Insomnia Therapeutics Market By Treatment Type (Medication {Benzodiazepines, Non-Benzodiazepines, Antidepressants, Antihistamines, Orexin Receptor Antagonists, Melatonin Receptor Agonists}, Therapy {Cognitive Behavioral Therapy for Insomnia (CBT-I), Light Therapy, Relaxation Techniques, Sleep Hygiene Education}), By Route of Administration (Oral, Intravenous, Transdermal, Others), By Formulation (Tablets, Capsules, Liquid Solutions, Patches), By End-User (Hospitals, Clinics, Homecare Settings, Sleep Centers, Research and Academic Institutes), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Insomnia Therapeutics market accounted for USD 3.16 Billion in 2024 and is expected to reach USD 5.58 Billion by 2035, growing at a CAGR of around 5.3% between 2025 and 2035. The insomnia therapeutics market is the segment of the pharmaceutical industry that specializes in producing and selling medications used to treat insomnia. This market also encompasses pharmacological and non-pharmacological treatments, including prescription drugs and non-prescription drugs, CBT-I, and natural supplements. This market is expanding due to an increase in the frequency of sleep disorders such as stress, lifestyle, and mental health awareness. Some of its primary growth areas are drug formulations and therapies and the developing field of treatment personalization.

Report Scope:

Market Dynamics

Integration of Artificial Intelligence in Sleep Disorder Management

The insomnia therapeutics market is driven by growing incidence rates of sleep disorders in populations around the world, a greater emphasis on sleep hygiene, and an expanding roster of accessible medicines. Insomnia cases are closely linked to current lifestyle factors such as stress, screen time, and irregular working hours. Further, there appears to be a growing recognition of the harmful effects of sleep disorders on global health and well-being, necessitating the development of effective remedies. Artificial intelligence (AI) has recently been demonstrated to give more tailored and patient-specific solutions than traditional therapeutic procedures. New non-sleep-enhancing products, such as sleepless items, are also driving market expansion, as are approvals for new pharmaceutical classes and digital treatments. Based on the favorable growth trend in the consumption of smart wearable sleep monitoring devices and artificial intelligence-based sleep remedy applications, the market is bolstered by enhanced diagnosis tools and effective sleep disorder treatment methods.

Expansion of Telemedicine Services for Remote Sleep Therapies

The insomnia therapeutics market is driven by several factors. Increased prevalence of sleep problems such as insomnia, which are caused by changes in people's working and social schedules, stress, and screen device exposure, necessitated the development of more effective treatment alternatives. As more people recognize the importance of sleep to overall health, they are turning to specialists for help. New pharmacological and non-pharmacological therapies are being developed in neurology, such as therapeutic CBT and digital therapeutics. Several advances, such as the evolution of telemedicine and distant monitoring devices, have allowed patients to get sleep care from the comfort of their own homes. It can also be attributed to the aging global population and rising concern about mental health, both of which are linked to insomnia. Investment in research and development of new types of insomnia sickness therapies and sleep aid products is impacting market growth.

Abundance of Over-the-Counter Sleep Aids as Cheaper Alternatives

One of the primary challenges impeding the growth of the insomnia therapeutics market is the advent and increased use of over-the-counter sleep medicines that are less expensive than prescription medications. Pharmacological therapies make use of over-the-counter items such as melatonin, antihistamines, and herbal remedies as they are more readily available and are thought to be safer and less addictive than prescription drugs. This accessibility diminishes the market for prescription insomnia treatments in some cases, as customers seek less-priced or non-prescription alternatives. Some of these pharmaceutical sleep aids can be misused or have harmful side effects, diminishing market rates as consumers turn to natural products. There is less information available about the long-term usefulness and safety of over-the-counter sleep aids. This uncertainty may influence market share because customers prefer over-the-counter sleep aids that are less expensive than prescription medication.

Increasing Awareness About Mental Health and Sleep Hygiene

The growing public awareness of mental health and sleep quality might be viewed as the most promising possibility for the insomnia therapeutics market. As people become more aware of the importance of sleep in overall health, there is a growing need for remedies. Pharmacological advancements in cognitive behavioral therapy for insomnia (CBT-I) using recently created digital health technology represent the new frontier in insomnia treatment. Sleep habits are also affected by other social factors such as increased work pressure and/or stress and changes in the life cycle. As more individuals understand the importance of sleep, there will be a greater demand for prescription and other sleep aid medications. Further, as more people become aware of the importance of sleep for mental health, there will be greater investment in targeted drugs, resulting in larger market prospects. Sleep disorders are intimately related to mood disorders such as anxiety and depression. Therefore, other integrative therapy models may see an increase in demand.

Expansion of Telehealth and Online Consultation Services for Sleep Disorders

The increasing use of telemedicine and online consultations represents a significant opportunity in the insomnia therapeutics market. There is growing concern about mental health and sleep concerns, and more people are seeking reasonable, courteous, and efficient therapy. Teleconcussion services enable users to communicate with sleep specialists without having to physically visit them, due to several technologically advanced virtual consultation services. It is also an early intervention paradigm that reduces stigma and improves access, particularly for patients in remote regions. Moreover, both sleep tracking and digital pharmaceuticals are enhancing the treatment of insomnia, creating a new landscape for patient involvement and optimization. It is projected that as the notion of telemedicine gains traction in the market, there will be increased acceptance of insomnia-related pharmaceutical and non-pharmacological treatments, resulting in a growing market.

Industry Experts Opinion

"Chronic insomnia is associated with an increased risk of serious health conditions like high blood pressure, diabetes, and heart disease. It can also lead to daytime impairments, including difficulty concentrating, mood disturbances, and overall reduced quality of life."

• Dr. Alon Y. Avidan, Director of the UCLA Sleep Disorders Center.

"Insomnia can often result in a vicious cycle where poor sleep exacerbates stress and anxiety, and in turn, these factors disrupt sleep further. Cognitive-behavioral therapy for insomnia is highly effective, as it not only improves sleep but also helps manage associated psychological conditions."

• Dr. Aric Prather, a sleep specialist and Associate Professor of Psychiatry at UCSF.

Segment Analysis

Based on the treatment type, the insomnia therapeutics market is classified into Medication and Therapy. In the Insomnia Therapeutics Market, medicine is the largest and most important treatment segment. Prescription sleep aids like benzodiazepines, non-benzodiazepine hypnotics, and melatonin receptor agonists are the most widely used due to their efficacy in the treatment of primary and secondary insomnia, both short-term and chronic. Furthermore, the rising prevalence of sleep problems, as well as people's increased knowledge of the dangers of sleep deprivation, is driving the demand for pharmaceutical therapies. Because of its effectiveness in giving an initial effect, medicine remains the most important therapy option for insomnia, as opposed to cognitive behavioral therapy (CBT-I).

Based on the route of administration, the insomnia therapeutics market is classified into Oral, Intravenous, Transdermal, and Others. The oral method of administration accounts for the most significant and sizable part of the insomnia therapeutics market. This is mostly due to the simplicity, ease of administration, and patient acceptance of tablet/capsule medications as opposed to injectable products. Oral formulations are common in insomnia because they allow for the integration of cassettes and are available in a variety of forms, including short and long-acting. Moreover, practitioners and patients are accustomed to oral drugs, which contribute to the advantage of using OMs to treat sleep disorders. This area likewise has a high market penetration rate and, more importantly, a diverse product offering.

Regional Analysis

The North American insomnia therapeutics market is the leading due to high sleep disorder prevalences, advanced healthcare infrastructure, and adaptability of novel treatments. Within the parameters of the mentioned country, the United States, a major player houses a significant budget for R&D and adoption of pharmacological therapies such as non-benzodiazepines and orexin receptor antagonists. Moreover, the growing incidence of stress, the aging population, and awareness of health effects due to poor sleep are other factors for the expanding market. Demand is furthered by government initiatives towards the promotion of mental well-being and improving sleep hygiene. The region considered the top in clinical trials, is expected to bring even better improvements in advanced digital therapeutics for insomnia management.

The Asia-Pacific insomnia therapeutics market is quickly expanding due to a large geriatric population, urbanization, and increased stress levels caused by industrialization. Countries such as China, India, and Japan are becoming significant contributors to revenues because of the growing middle class and access to better healthcare, which in turn raises the incidence of insomnia treatment. An increase in awareness campaigns and the expansion of healthcare infrastructure have increased the diagnosis rates. Furthermore, developing local pharmaceutical businesses is forming cooperative partnerships with global giants to introduce lower-cost medicines. Cognitive behavior therapy for insomnia (CBT-I) is among the non-pharmacological solutions gaining a foothold in the area.

Competitive Landscape

The insomnia therapeutics market is highly competitive, with key pharmaceutical industry firms. Purdue Pharma L.P., Takeda Pharmaceutical Company Limited, Merck & Co., Inc., and Pfizer Inc. are among the leading prescription and non-prescription sleep aid manufacturers. Major market companies such as Eisai Co., Ltd., and Sanofi S.A. are currently trying to produce the next-generation insomnia drug, with Eisai recently releasing Dayvigo. Johnson & Johnson and Vanda Pharmaceuticals Inc. are expanding their portfolio with new products like Invega and Hetlioz, which will treat those with sleep-wake disorders. In addition, Minerva Neurosciences, Inc., Idorsia Pharmaceuticals Ltd., and Sumitomo Pharma Co., Ltd. are developing drug therapies other than habit-forming sleep drugs to fulfill the growing demand for effective insomnia treatment. New collaborations and mergers among these businesses, like the Idorsia-Janssen insomnia drug development cooperation, are pointing toward more focused and personalized methods for addressing the illness.

Insomnia Therapeutics Market, Company Shares Analysis, 2024

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Recent Developments:

• In March 2024, Vanda Pharmaceuticals announced FDA approval for supplemental NDA for HETLIOZ in the treatment of insomnia.
• In May 2022, Idorsia Ltd received marketing authorization from the European Commission for QUVIVIQ, which was indicated for the treatment of adult patients with insomnia characterized by symptoms present for at least three months and considerable impact on daytime functioning.

Report Coverage:

By Treatment Type

• Medication
  • Benzodiazepines
  • Non-Benzodiazepines
  • Antidepressants
  • Antihistamines
  • Orexin Receptor Antagonists
  • Melatonin Receptor Agonists

• Therapy
  • Cognitive Behavioral Therapy for Insomnia (CBT-I)
  • Light Therapy
  • Relaxation Techniques
  • Sleep Hygiene Education

By Route of Administration

• Oral
• Intravenous
• Transdermal
• Others

By Formulation

• Tablets
• Capsules
• Liquid Solutions
• Patches

By End-User

• Hospitals
• Clinics
• Homecare Settings
• Sleep Centers
• Research and Academic Institutes

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Purdue Pharma L.P.
• Takeda Pharmaceutical Company Limited
• Merck & Co., Inc.
• Eisai Co., Ltd.
• Pfizer Inc.
• Sanofi S.A.
• Johnson & Johnson
• Vanda Pharmaceuticals Inc.
• Minerva Neurosciences, Inc.
• Idorsia Pharmaceuticals Ltd.
• Sumitomo Pharma Co., Ltd.
• Neurocrine Biosciences, Inc.
• Medice Arzneimittel Pütter GmbH & Co. KG
• Astellas Pharma Inc.
• Harmony Biosciences
• Zydus Cadila
• Boehringer Ingelheim GmbH
• Theravance Biopharma, Inc.

 

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