Los Angeles, CA (PRWEB) January 22, 2012
About 40 million Americans suffer from chronic sleep disorders, which underpins revenue growth within the Sleep Disorder Clinics industry. According to IBISWorld industry analyst and report author Kevin Culbert, “during the five years from 2007 revenue will grow at an average annual rate of 13.3% to reach $5.8 billion in 2012.” Sleep clinics have gained exposure during the period due to rising sleep disorders brought on by electronic stimulus in the form of laptops and smartphones. As usage of devices increases, so do sleep issues that require attention from clinics. Moreover, health insurance policies are increasingly covering (or at least partly covering) the costs of tests, diagnoses and treatments provided by sleep clinics. As a result, patients gain greater access to specialized sleep clinics, which pushes up revenue for the industry. In 2012, IBISWorld expects revenue to increase by 10.9%, partly due to expanding insurance coverage.
“The Sleep Disorder Clinics industry is forecast to continue expanding over the five years to 2017, says Culbert. “Rising private and public health insurance coverage, coupled with continuous research on the effects of sleep deprivation, will likely keep industry growth strong. While sleep problem awareness grows, habits like using light-emitting electronics before bed are unlikely to subside, creating more sleep issues and demand for sleep clinic services. However, profit margins will stagnate as new entrants intensify internal competition.”
Market share concentration within the Sleep Disorder Clinics industry is low; combined, the top four players account for less than 40.0% of revenue. Most sleep disorder clinics cater to their local geographical market, much in the same way that hospitals, specialty doctors and primary care physicians do. Additionally, most industry participants have no more than a handful of locations, limiting their presence in the industry. Among industry operators, clinics principally compete on reputation, prices, accessibility and quality. Reputation is derived from accreditation and doctor-patient relationships, which, if positive, can improve a community’s impression of a doctor. Similarly, some firms, like SleepMed, have developed a brand name and have branches across the United States. While the industry is highly fragmented, large operators have a competitive advantage in terms of brand recognition.
For more information visit IBISWorld’s Sleep Disorder Clinics industry page
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
This industry includes facilities that are devoted to the diagnosis and care of outpatients with disorders that affect, disrupt or more generally involve sleep. Common sleep disorders include insomnia, sleep apnea, restless leg syndrome and sleepwalking. Industry firms are often associated with hospitals or medical schools.
IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.