Insomnia Therapeutics Market Report

Insomnia Therapeutics Market Analysis By Treatment Type [Devices, Drugs (Benzodiazepines, Nonbenzodiazepines, Antidepressants, Orexin Antagonists, Melatonin Antagonists)], By Sales Channel, And Segment Forecasts, 2014 - 2025

Published: October 2017  |  101 Pages  |  Format: PDF  |  Report ID: GVR-2-68038-213-6

Industry Insights

The global insomnia therapeutics market size was valued at USD 2.18 billion in 2016 and is expected to grow at a CAGR of 5.3% over the forecast period. Increasing prevalence of insomnia across the world, rising stress level, growing geriatric population, and increasing awareness about various treatment options for this condition are some of the factors expected to propel the market.

Increase in launch of novel products such as Merck & Co.’s Belsomra in 2014 is expected to fuel high demand. Moreover, availability of multiple generics is expected to boost the insomnia therapeutics market over the forecast period. Lemborexant, a novel Orexin Receptor Antagonist (ORA) by Eisai is expected to be launched in the early phase of the forecast period, which may promote growth.

U.S. insomnia therapeutics market by treatment type, 2014 - 2025 (USD million)

U.S. insomnia therapeutics market

Development of new technologies and introduction of medical devices are anticipated to boost market growth. Only few medical devices have been approved in the recent years such as EBB Insomnia Therapy, Fisher Wallace Stimulator, and Alpha-Stim AID, which are expected to have higher penetration due to favorable reimbursement policies and adoption of device - drug combination therapies for treating insomnia.

Growing awareness about target disease and increase in penetration of new pharmaceuticals & devices are expected to boost demand for products for treatment of sleep disorders. Approximately 9 million patients who have been treated with pharmaceuticals remain unsatisfied. For this unsatisfied patient group, devices or a combination of drugs and devices have been observed to deliver satisfactory results. Positive results portrayed through the combination of devices & drugs are expected to drive revenue growth of the insomnia therapeutics market over the forecast period.

Treatment Type Insights

Global insomnia therapeutics market is segmented into following treatment types: drugs and devices. The drugs segment dominated the market in 2016 and accounted for nearly 99.0% of the total revenue and is expected to dominate throughout the forecast period. Primarily pharmaceuticals are used for the treatment of sleep disorders. Moreover, since medical devices for insomnia treatment have been introduced only recently, this segment is still at its nascent stage. As compared to devices, drugs have higher acceptability among physicians’ due to quick results and easy availability. 

The drugs segment comprises various patented and generics. Patented drugs accounts for the largest share in terms of revenue in developed regions. On the other hand, generics & branded generics accounted for the largest revenue in developing and underdeveloped regions. Key reasons behind this difference are presence of price-sensitive population in developing & underdeveloped countries and high cost of patented pharmaceuticals. Zolpidem comprises nearly 70% of the total insomnia treatment drugs, owing to its effectiveness and easy availability.

Low price and positive results of devices are expected to be the major factors promoting demand for devices. Although demand for devices is observed to be significantly low worldwide, insomnia therapeutic devices have started gaining traction in developed countries. Medical devices have benefits like the rapid onset of sleep and longer sleep maintenance among patients who have not achieved positive results through drugs. New devices such as Ebb Insomnia Therapy, Fisher Wallace Stimulator, and Alpha-Stim AID have already received approvals from FDA. Moreover, products such as Sana Sleep are awaiting approval. With the introduction of new therapeutic devices, the market is expected to witness robust growth over the forecast period.

Sales Channel Insights

The global demand for insomnia therapeutics has seen a paradigm shift due to rising awareness among patients. The prescription segment accounted for a largest share of over 79.2% of the total market revenue in 2016.This segment is expected to maintain its dominance throughout the forecast period owing to increase in use of prescription pharmaceutical. Moreover, the number of OTC products available is very small. Prolonged use of these drugs may lead to resistance. Hence, majority of the people suffering from sleep disorders seek professional help and use prescription products this segment is expected to grow at a CAGR of 6.4% over the forecast period. 

Global insomnia therapeutics market by sales channel, 2016 (%)

Global insomnia therapeutics market

OTC therapeutics comprise active ingredients such as melatonin, diphenhydramine, and tryptophan. Sales of these drugs is anticipated to grow due to the emergence of newer therapeutics with lesser adverse effects. In addition, as OTC drugs do not require prescription, these drugs are easily accessible to patients suffering from acute insomnia or those in early phases. With an increase in the number of such patients, the demand for OTC products is expected to grow.

However, use of these products for treatment of target disease may have negative effects on patients. As there are no restrictions on the supply of OTC drugs, patients may regularly take medicines to induce sleep, which can lead to drug addiction. As prescription drugs are prescribed by physicians after evaluating a patient’s history and sleep disturbance pattern, people find the treatment procedure suggested by a physician to be highly reliable. Hence, majority of patients suffering from insomnia prefer prescription drugs over OTC, which is anticipated to result in growth of the insomnia therapeutics market.

Regional Insights

North America was leading the insomnia therapeutics market and accounted for 54% of the total revenue share in 2016. Growing demand for sleep disorder treatment in the U.S. and Canada coupled with increasing prevalence of sleep disorders, increase in awareness, and high healthcare spending are anticipated to drive the market. Moreover, high prevalence of this disease among geriatric population and rapidly growing geriatric population in the U.S. are expected to be the key driving factors promoting demand. In addition, favorable reimbursement policies for therapeutic products, strong clinical pipeline, and rising stress level are other factors anticipated to promote revenue growth.

North America was followed by Asia Pacific, which accounted for 20.9% of the total market revenue in 2016. Japan has a major contribution in the market owing to high prevalence of target disease and it is estimated that one out of five people in Japan suffer from the same. Emerging economies such as India, China, and Indonesia have been using generics and branded generics due to the economic pricing of generic alternatives. Growing demand for new treatment options and rising prevalence is expected to drive growth during the forecast period.

Asia Pacific is anticipated to witness a lucrative growth over the forecast period with a CAGR of 7.8% over the forecast period. Shift-work sleep disorder and increased stress level are expected to expand the patient base in Asia Pacific. These factors may contribute to the growing demand for drugs in these economies. In addition, constantly improving healthcare reimbursement policies are expected to boost demand over the forecast period.

Competitive Insights

The global insomnia therapeutics market is highly fragmented with several manufacturers offering generics. Although few players offer branded drugs, price sensitivity is an issue in several regions. Companies focus on developing new chemical entities and novel molecules to obtain higher revenue share. Key market participants includeTakeda Pharmaceutical Company Ltd.;Vanda Pharmaceuticals;Merck & Co., Inc.;Pfizer Inc.; Teva Pharmaceutical Industries Ltd.;Mylan N.V.;Sumitomo Dainippon Pharma Co., Ltd; Sanofi;Paratek Pharmaceuticals Inc.; and Ebb Therapeutics. 

Novel drug development and technological advances in medical devices are expected to boost competition in this market. The fragmented generics sector may witness growth in the number of new entrants’ due to lesser entry barriers in the insomnia therapeutics market.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, U.K., Germany, China, Japan, Brazil, Mexico, South Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global insomnia therapeutics market on the basis of treatment types, sales channel and region:

  • Treatment Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Drugs

      • Benzodiazepines

      • Nonbenzodiazepines

      • Antidepressants

      • Orexin Antagonists

      • Melatonin Antagonists

      • Others

    • Medical Devices

  • Sales Channel Outlook (Revenue, USD Million, 2014 - 2025)

    • Prescription

    • Over-the-Counter (OTC)

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

      • South Africa

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