GLOBAL SLEEP APP MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Global sleep app market was valued at US$ 1,070.9 Mn in 2023 and is expected to reach US$ 2,755.2 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 14.4% from 2024 to 2031.

Sleep monitoring apps have gained tremendous popularity among majority of the people are looking for ways to track and improve their sleep. There are different types of apps available that utilize various technologies to analyze sleep patterns. Fitness tracker apps are integrated with wearable devices like smartwatches to monitor heart rate, movement, and other biometrics during sleep. They provide high-level insights into sleep stages, duration, and interruptions. Other apps require users to place a smartphone near their bed to use the internal microphone, camera, or accelerometer to record sounds, movements, or lighting conditions that can indicate sleep quality.

A major advantage of sleep monitoring apps is their affordability and accessibility as compared to clinical sleep labs or medical devices. They allow users to conveniently track their sleep from the comfort of their own home on a nightly basis. This continuous monitoring over time can reveal patterns that may not be apparent from a single sleep study. However, the accuracy of data from consumer apps is not validated by medical standards and is mostly for self-tracking purposes. Technical issues like disrupted recordings or incorrect wear of compatible devices can also affect reliability. Interpreting raw data may require some clinical context. Overall, sleep apps provide a low-cost starting point for becoming more aware of one's sleep, but medical guidance should be sought for serious insomnia or other disorders.

Global Sleep App Market Regional Insights

• North America is expected to be the largest market for sleep app over the forecast period, and it accounted for over 36.3% of the market share in 2023. The growth of the market in North America is due to the presence of leading smartphone and smartwatch manufacturers in U.S. and Canada which contributes to the proliferation of compatible devices. Several large sleep labs and monitoring equipment manufacturers have a strong presence across countries like the U.S. which encourages continuous technological advancements and partnerships with app developers
• Europe is expected to be the second-largest market for sleep app, which accounted for over 30.4% of the market share in 2023. The growth of the market is due to the high healthcare spending
• Asia Pacific is expected to be the fastest-growing market for sleep app, which is expected to grow at a CAGR of over 13.2% during the forecast period. The growth of the market in Asia Pacific is due to the rapid economic growth has improved access to smartphones and other devices across countries like India and China. At the same time, evolving lifestyles and rising health consciousness among the expanding middle-class population is driving the uptake of health-focused apps

Figure 1. Global Sleep App Market Share (%), By Region, 2024

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Analyst’s Views:

Global sleep monitoring app market is expected to grow significantly over the next five years. Major drivers for this growth include the increasing popularity of wearable devices and rising health consciousness among consumers. As more people adopt smartwatches and fitness bands, the demand for sleep tracking capabilities will continue rising. Another major driver is the growing maturity of sleep tracking technologies. Advanced sensors and algorithms are enabling apps to provide deeper sleep analysis with better accuracy.

However, data privacy and security concerns could act as a restraint. People may feel hesitant sharing their personal sleep data with apps over security and privacy risks. Lack of accuracy in sleep stage tracking for some lower-end devices is another challenge, thus undermining the credibility of apps relying on such devices. Opportunities exist in the medical sector with further validation of consumer sleep apps helping in diagnosis and treatment of sleep disorders. Collaborations between app developers and sleep clinics can help realize this opportunity.

The North American region dominates the market but Asia Pacific is expected to show strongest growth. Expanding middle class, increasing health awareness, and proliferation of smart wearables in countries like China, Japan and India are fueling demand. Medical use cases are also emerging as key growth drivers in Asia.

Global Sleep App Market Drivers:

• Rising prevalence of sleep disorders: Rising prevalence of sleep disorders across the globe is one of the major factors contributing to the growth of global sleep app market. Sleep disorders have increased multifold over the years due to changing lifestyles and high stress levels. According to the data provided by American Sleep Apnea Association, in 2021, sleep apnea affects over 25 Mn of U.S. and 80% of moderate and severe cases remain undiagnosed. Stress, obesity, medication side effects, and consumption of alcohol are some of the common causes of sleep disorders.
• Increasing health awareness: Rising awareness regarding the importance of good quality sleep and overall health and wellness is one of the major factors propelling the growth of the global sleep app market. People are more conscious about tracking their sleep patterns and duration by using smart devices and apps. Several studies conducted by organizations like World Health Organization (WHO) and Center for Disease Control and Prevention (CDC) have highlighted the crucial role of sufficient sleep in maintaining mental and physical health, immune function, weight control, and productivity. The COVID-19 pandemic has further emphasized the significance of sleep for building resilience against illnesses.
• Advent of wearable technology: Many users are increasingly adopting wearable devices and downloading sleep monitoring apps to analyze their sleep patterns better and take corrective measures, if needed. The COVID-19 pandemic has further accelerated this trend as more people try to manage stress and improve immunity by monitoring and optimizing their sleep. The awareness about importance of good sleep for overall well-being has increased significantly in the past. According to the data provided by World Health Organization (WHO), in 2020, at least 50-70 Mn of U.S. population suffer from over 80 different sleep disorders. Advanced sleep tracking solutions can help diagnose such disorders at an early stage.

Global Sleep App Market Opportunities:

• Integration with other health apps and devices: Connecting sleep tracking to overall wellness data can provide users with more actionable insights. For example, linking nocturnal heart rate and breathing patterns recorded by a smart watch to daily activity and calorie burn logged in a fitness app may reveal connections between sleep quality and next-day energy levels or workout performance. Similarly, integrating sleep app data with glucose readings from a connected glucometer could help diabetes patients understand how rest impacts blood sugar control. As healthcare moves towards more holistic and preventative models, aggregating the full picture of how lifestyle factors interconnect will be invaluable for users and medical practitioners alike.
• Telemedicine services: Telemedicine services could provide a great opportunity in the growing sleep monitoring app market. As more people struggle with lack of sleep and sleep disorders, remote monitoring of sleep patterns through apps and devices could help improve diagnosis and treatment. According to the CDC, over 30% of American adults are deprived of enough sleep on a regular basis. Lack of sleep is linked to numerous health issues like obesity, diabetes, cardiovascular disease and depression. Sleep apps allow users to track their sleep schedules, durations, disturbances, and cycles remotely on their phones without visiting in-person clinics. This data can be shared with doctors and specialists to analyze sleep trends over time, look for irregularities, and determine if clinical insomnia or other disorders are present.

Global Sleep App Market Trends:

• Development of artificial intelligence (AI)-based apps: AI-assisted sleep tracking capabilities are also improving sleep diagnosis and assistance for various conditions. For example, some apps are using AI to detect symptoms of underlying sleep disorders like sleep apnea from an individual's daily sleep tracking data, without requiring clinic visits. This facilitates remote diagnosis and management of common sleep issues. AI tools are also helping clinicians by aggregating and analyzing sleep data from many users to gain new clinical insights. One recent study by the American Academy of Sleep Medicine analyzed de-identified sleep data from over 500,000 app users and helped identify new risk factors for insomnia. Such applications of AI are enhancing clinical research and aiding in customized treatment plans for better patient outcomes.
• Increasing mobile health subscriptions: The rising trend of mobile health subscriptions is having a significant impact on the growing sleep monitoring app market. As more individuals adopt smartphones and wearable devices that can track biometrics like heart rate and movement during sleep, the use of sleep focused apps has expanded rapidly. Many popular health and fitness platforms integrate sleep tracking as a standard feature, thus making it easier than ever for users to monitor and analyze their nightly rest. As people increasingly seek ways to better understand and improve their sleep through data, the demand for specialized sleep apps and services has increased in tandem.
• Multi-therapy approaches combining apps and therapies: The sleep monitoring application market has witnessed growing influence from multi-therapy approaches that combine digital solutions with traditional therapies. More apps are integrating features that are derived from cognitive behavioral therapy (CBT) and mindfulness practices to improve the overall sleep experience and outcomes for users. For example, applications offer sleep stories that use CBT techniques like relaxation scripts to address anxiety or worries that may disrupt sleep. In addition to sleep tracking, many incorporate psychoeducational elements to raise self-awareness of sleep habits and their impact. Some popular applications partner with licensed therapists and coaches to provide personalized guidance and check-ins are based on data insights.

Global Sleep App Market Restraints:

• Data privacy concerns: There have been numerous instances of data breaches involving health and fitness apps in the past couple of years. In 2020, a study by International Computer Science Institute found that over a quarter of most popular sleep applications shared users’ personal information like physical activities, menstrual cycles and fertility with third parties without consent. This eroded user trust in these apps and impacted their willingness to adopt new sleep tracking solutions. App developers are also unable to clearly communicate how the collected personal data is protected, for how long it is stored and if it is offered to advertising and data analytics companies. They often have complicated and legalistic privacy policies that are tough to comprehend for general users.
• High costs of devices: High cost of devices is one of the major factors restraining the growth of sleep monitoring application market. Sleep monitoring requires devices like smartphones, smartwatches or dedicated sleep trackers that integrate with apps to track sleep patterns. However, these devices are at a considerable cost which is unaffordable for many consumers. For example, according to the report published by United Nations Population Fund, in 2021, more than 2.2 billion people, which are around 30% of the world’s population, lived below the international poverty line of US$ 3.20 a day in 2020.

Recent Developments

Key Developments

• In October 2023, Infineon Technologies AG, a global semiconductor provider in power systems and IoT, launched a contactless, privacy-centric sleep quality solution which can be easily integrated into original equipment manufacturer (OEM) end devices such as bedside lamps, televisions, smart speakers and air purifiers. Infineon’s 60GHz Radar, PSoC and Wi-Fi technologies, the XENSIV Sleep Quality Service is designed to measure and help optimize the user’s sleep based on individual needs.
• In February 2023, Sleep Cycle, one of the market-leading sleep tracker, launched ‘Sleep Cycle Kids’,  a science-based app providing parents with tools to optimize the children’s sleep - and how to help their kids sleep better to optimize well-being for the whole family. Sleep Cycle Kids is centered around an intelligent sleep schedule that adapts to each individual child and gives parents the tools to determine the optimal bedtime, thus reduce the time it takes to fall asleep, and identify and change other behaviors that can be problematic for children’s sleep.

Figure 2. Global Sleep App Market Share (%), By Device Type, 2023

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Top Companies in the Global Sleep App Market

• Sleep Cycle
• Sleep As Android
• Pillow
• Sleep Better
• Sleep Genius
• Timeshifter
• Calm
• Sleep Stories
• Relax Melodies
• Noisli
• Other Prominent Players

Definition: A sleep app is defined as a specialized program downloaded onto medical devices and marketed with the assertion that it performs sleep monitoring or sleep-related interventions. Sleep app ownership is increasing exponentially, due to their affordability, ease-of-use and the ubiquitous nature of smartphones; there will be an estimated 9 billion smartphones in use by the end of 2024. Sleep apps are used to screen for various conditions, including obstructive sleep apnoea, insomnia and periodic limb movement disorder. While sleep apps have the potential to raise awareness of sleep conditions and promote healthy sleep habits, there are several concerns regarding their use.