The sleep testing services market is expected to be valued at US$ 8,395.7 Mn by the end of 2021, reflecting a CAGR of 12.9% during the forecast period (2016–2021). Full polysomnography sleep testing has strong penetration in in-lab sleep testing services owing to the reliable outcome and diversified scope in terms of disease diagnosis. Moreover, the ready availability of reimbursement and higher awareness level of PSG tests positively impacted the growth of full polysomnography testing segment in 2015. Reimbursement policies are playing a vital role in sleep disease diagnosis, and are also responsible for the commercial success of home-based sleep testing solutions. Preference in the leading market of North America is shifting from laboratory-based sleep testing services to home sleep testing services owing to lower cost and easy availability of services.

An increasing number of individuals diagnosed with sleep disorders is expected to promote the use services. In-lab sleep testing services sub-segment accounted for 69% share of the diagnostic sleep testing services segment share in 2015. However, the segment is expected to witness the reduction in terms of market growth owing to increase in adoption of cost-effective and less time-consuming home sleep testing services over the forecast period.

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By sleep disease treatment monitoring, the market is sub-segmented into Obstructive Sleep Apnea, Insomnia, Restless Legs Syndrome, Circadian Rhythm Sleeping Disorders, Narcolepsy, and Rapid Eye Movement (REM) sleep disorder. Obstructive Sleep Apnea the most prevalent condition and this segment held around 49% share in 2015 and is expected to remain dominant over the forecast period.

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On the basis of an end user, the sleep testing services market is segmented into Hospitals, Sleep Centers, and Home Care Settings. Sleep center end users accounted for largest revenue share in 2015 owing to strong penetration of sleep testing services across sleep clinics. However, home care setting end user segment is projected to outperform in terms of revenue growth during the forecast period, reflecting a CAGR of 15.7%.

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