More sleep issues will arise from electronic device usage, requiring industry services
Los Angeles, CA (PRWEB) August 07, 2013
About 40 million Americans suffer from chronic sleep disorders, as revealed by the American Sleep Association. This statistic underpins revenue growth within the Sleep Disorder Clinics industry. In the past five years, revenue grew at an estimated annualized rate of 11.6% to $6.2 billion in 2013. Sleep clinics have gained exposure during the period due to the rising number of sleep disorders brought on by electronic stimuli in the form of laptops and smartphones. “Research findings show that the light emitted from these gadgets limits melatonin release, a hormone that regulates sleep,” says IBISWorld industry analyst Nikoleta Panteva. “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 Sleep Disorder Clinics industry. In 2013, IBISWorld expects revenue to increase 6.2%, partly due to expanding insurance coverage. Market share concentration within the industry is low; 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. IBISWorld expects concentration to increase over the next five years. “Larger players that are able to expand their facilities, take on more patients and open additional locations will likely grow their operations faster than their competitors,” adds Panteva. “This trend is likely to occur with clinics in metropolitan areas, where population is dense and demand for sleep clinic services is high.”
The Sleep Disorder Clinics industry is forecast to continue expanding over the five years to 2018. Rising private and public health insurance coverage, coupled with continuous research on the effects of sleep deprivation, will likely keep industry growth strong. While awareness grows, habits like using light-emitting electronics before bed are unlikely to subside, creating more sleep issues and demand for sleep clinic services. Over the next five years, IBISWorld projects that industry revenue will increase. Meanwhile, profit margins will stagnate as new entrants intensify internal competition. For more information, visit IBISWorld’s Sleep Disorder Clinics in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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