Sleep Industry Expected to Grow to $585 Billion by 2024
Focus on Sleep, Mental Health Management Apps, and Sleep Tech
"Clear Business Models and Collaboration Between Different Companies Needed"
As digital healthcare becomes more active, 'Sleep Tech (Sleep+Technology),' which uses information and communication technology (ICT) to solve sleep problems, is gaining attention.
On the 8th, Samjong KPMG announced that it recently published a report titled 'The Digital Innovation That Never Sleeps, The Rise of Sleep Tech.' The report presented the current status of sleep tech investments domestically and internationally, as well as companies' market entry strategies.
According to the report, the global sleep industry market size is expected to grow from $432 billion in 2019 to $585 billion in 2024. This represents an increase of approximately 35.4% over five years. In South Korea, the number of patients with sleep disorders has also expanded, increasing from 860,000 in 2018 to 1.1 million in 2022, with an average annual growth rate of 6.5%, reflecting growing demand for diagnosis and treatment of sleep-related diseases.
Looking at the global investment status related to sleep tech, with the rapid rise of the digital healthcare industry, global investment increased from about $190 million in 2017 to approximately $620 million in 2022, maintaining over 50 annual investment deals in 2023 as well. Notably, software, manufacturing, and big tech companies have been acquiring sleep tech companies through mergers and acquisitions (M&A), expanding their business models and enhancing their own products and services.
During the pandemic, sleep and mental health management applications gained attention. In the U.S., Calm, centered on sleep-inducing apps, grew to a corporate valuation of $2.2 billion, showing high growth rates among sleep-related app companies. Additionally, device companies such as Eight Sleep, Muse, and Onera, which collect biometric data during sleep, have successfully attracted Series C or higher investments and are expanding new product development.
Park Kyung-su, Partner in charge of the healthcare industry at Samjong KPMG, stated, "The service areas of sleep tech products are extensive, ranging from medical settings to daily life, and their purposes vary, including improving sleep environments, monitoring health information during sleep, and improving sleep disorders." He emphasized, "For successful market entry into sleep tech, clear business model planning and collaboration among key demanders and heterogeneous companies are necessary."
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