Insomnia Therapeutics Market

Insomnia Therapeutics Market Size

The global insomnia therapeutics market size was valued at around USD 3.9 billion in 2024 and is estimated to grow at 5.2% CAGR from 2025 to 2034. Insomnia therapeutics refer to the medical interventions and treatments utilized to alleviate and manage insomnia, a common sleep disorder making it difficult to stay asleep or fall asleep.

The increasing incidence of insomnia, driven by rising lifestyle disorders, anxiety, and stress, are facilitating the demand for effective treatment options. For instance, according to the Journal of Clinical Sleep Medicine, approximately 30% of the general global population is affected by chronic insomnia. The conditions hinders physical and cognitive functioning, affecting the individual’s quality of life. Hence, there is a growing demand for treatment options, driving the market growth. Additionally, the increasing adoption of telemedicine, especially due to the pandemic, has increased diagnosis rates and treatment adoption due to rising awareness of these sleep disorders.

Furthermore, increasing investments in research and development initiatives by pharmaceutical organizations for the development and introduction of new insomnia treatments is driving market growth. For instance, in August 2024, the U.S. FDA granted clearance to the SleepioRx of Big Health, which is indicated to treat chronic insomnia. Such developments and approvals are expected to improve the treatment outcomes significantly during the forecast period. In addition, the rising adoption of work from home culture within the corporate sector has resulted in higher stress levels, anxiety, and sleep disorders, thus increasing the need for treatment options.

Insomnia Therapeutics Market Trends

• Growth in the insomnia therapeutics industry is expected owing to increasing approval of products and the introduction of new drugs for the management of the disease. For instance, in January 2022, Idorsia received FDA approval for QUVIVIQ (daridorexant) 25 mg and 50 mg for the treatment of insomnia.
  
• Also, in February 2020, Merck received FDA approval for BELSOMRA (suvorexant) C-IV for insomnia in Alzheimer patients. The drug was approved for patients facing difficulties with sleep maintenance and sleep onset. These changes to product approvals and increased treatment options are expected to improve market growth.
  
• In addition, the atopic dermatitis treatment paradigm is changing with the increasing adoption of orexin receptor antagonists such as suvorexant, Lemborexant, and daridorexant, which are safer alternatives to traditional benzodiazepines and Z-drugs that can cause cognitive side effects and addiction.
  

Insomnia Therapeutics Market Analysis

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Based on drug class, the market is segmented into benzodiazepines, non-benzodiazepine, orexin receptor antagonists, antidepressants, antihistamines, melatonin supplements, and other drug classes. The benzodiazepines segment dominated the market with the largest revenue share of 30.4% in 2024.

• Benzodiazepines are beneficial for insomnia caused by acute stress. It inhibits slow-wave sleep, shortens sleep latency, and extends sleep duration by 30-90 minutes. The drug popularity with physicians is increasing because of their quick results and ease of availability, which is fueling segmental expansion.
  
• Moreover, the introduction and approval of various novel benzodiazepine treatments in the market is driving segment growth. For instance, according to the 2024 study published by the National Center for Biotechnology Information (NCBI), the US FDA has licensed multiple benzodiazepine drugs, including chlordiazepoxide, clobazam, and alprazolam among others, for the effective treatment of insomnia.

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Based on sales channel, the insomnia therapeutics market is bifurcated into prescription drugs and over-the-counter (OTC) drugs. The prescription drugs segment held a revenue share of 33.7% in 2024.

• The increasing adoption of telemedicine and online medical consultations is facilitating early diagnosis and improved treatment outcomes, driving the demand for prescription medicines for the treatment of insomnia.
  
• Additionally, increasing cases of insomnia due to lifestyle changes, anxiety, stress, and aging populations is driving the demand for prescription treatments.
  

Based on route of administration, the insomnia therapeutics market is segmented into oral, injectable, transdermal, and intranasal. The oral segment dominated the market with the largest revenue of USD 2.6 billion in 2024.

• The increasing incidence of insomnia, particularly among the working elderly population is driving the demand for convenient treatment options such as oral drugs. For instance, according to the American Academy of Sleep Medicine, in 2024, approximately 12% of U.S. individuals reported being diagnosed with chronic insomnia.
  
• Additionally, growing patient interest in non-prescription oral drugs such as melatonin, and functional beverages and food infused with sleep-promoting agents is driving the segment growth.
  

Based on distribution channel, the insomnia therapeutics market is segmented into hospital pharmacies, retail pharmacies, and e-commerce. The retail pharmacies segment dominated the market with the largest revenue of USD 2.2 billion in 2024.

• Retail pharmacies are a convenient, trusted source for both prescription and OTC sleep medications. Consumers self-managing mild insomnia prefer to purchase OTC sleep medications from retail pharmacies before opting for prescription medications.
  
• These pharmacies also serve an equally important role in guiding and screening patients receiving systemic medications in terms of their side effects and treatment outcomes, thereby driving segment growth.

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The U.S. insomnia therapeutics market revenue has increased considerably from USD 1.6 billion in 2024 and is expected to grow significantly, reaching USD 2.6 billion by 2034.

• U.S. based organizations, for instance, the American Academy of Sleep Medicine (AASM), are helping increase the level of understanding of sleep disorders and insomnia along with their consequences. These organizations advocate for more appropriate research, funding, as well as better access to medications. For instance, according to AASM, approximately 1 in 5 U.S. adults suffer from sleep disorders, driving the demand for effective treatment options in the region.
  
• In addition, fast-tracked approval of novel drugs for the treatment of insomnia by the FDA is promoting market growth in the region. For instance, in January 2022, the U.S. FDA approved Dariodorexant (DORA) for the treatment of insomnia.
  

Europe: The insomnia therapeutics market in UK is expected to experience significant and promising growth from 2025 to 2034.

• Growing awareness of the detrimental effects of insomnia on the patient’s life is driving the demand for improved treatment options. For instance, the National Health Service (NHS) in the UK, has implemented digital therapeutics programs to address the increasing incidence of insomnia through self-guided online programs.
  
• Additionally, modern lifestyle changes characterized by excessive screen time, sedentary habits, and long working hours has contributed to the growing incidence of sleep disorders among the UK population, driving the demand for effective treatment options in the region.
  

Asia Pacific: Japan insomnia therapeutics market is anticipated to witness lucrative growth between 2025 – 2034.

• Japan has one of the largest geriatric population globally, having a high incidence of sleep disorders. For instance, according to the Japanese Ministry of Health, the number of citizens aged 65 years and older were recorded at 36.25 million in 2024, accounting for approximately one-third of the Japanese population.
  
• Additionally, the culture of kar?shi (death from overwork) and long working hours in the region is contributing to the increasing incidence of sleep disorders, driving the demand for treatments.
  

Middle East and Africa: The insomnia therapeutics market in Saudi Arabia is expected to experience significant and promising growth from 2025 to 2034.

• The high obesity rates in the country leading to the increasing incidence of sleep apnea is a major factor contributing to sleep disorders. This high incidence of sleep apnea in the region also promotes insomnia incidence, necessitating advanced sleep apnea devices and effective insomnia treatments in the region.
  
• Additionally, the high incidence of sleep disorders and insomnia in Saudi Arabia is driving the demand for therapeutics. For instance, according to a July 2023 study conducted by MDPI, approximately 61.6% of the population in Saudi Arabia was affected by sleep disorders.
  

Insomnia Therapeutics Market Share

The insomnia therapeutics industry is competitive, featuring both major global companies and numerous smaller firms. The top 5 players in this market include Eisai, Eli Lilly and Company, Merck & Co., Teva Pharmaceutical Industries, and Sanofi. These players collectively account for approximately 40% market share. These players are investing in the development of advanced treatments to enhance treatment efficiency. Moreover, strategic partnerships with research institutions and healthcare providers are critical for integrating modern technologies and expanding distribution, which will enable the companies to address the surge in demand for cost-effective solutions. The market experiences a regulatory support and streamlined approval processes which further motivates to innovate and facilitates market entry. Additionally, emerging players such as Woodward Pharma Services and Vanda Pharmaceuticals are focussing on development of new treatments, including oral and advanced drugs, which aim to improve disease management. These innovations continue to promote market progression.

Insomnia Therapeutics Market Companies

Some of the eminent market participants operating in the insomnia therapeutics industry include:

• Eisai
• Eli Lilly and Company
• Meiji Seika Pharma
• Merck & Co.
• Neurocrine Biosciences
• Pfizer
• Sanofi
• Takeda Pharmaceutical Company Limited
• Teva Pharmaceutical Industries
• Vanda Pharmaceuticals
• Woodward Pharma Services
  
• Eisai is a major player operating in the insomnia therapeutics market, renowned for its advanced research and development initiatives in the sleep disorders industry. Dayvigo (Lemborexant), an orexin receptor antagonist, developed by Eisai offers an alternative treatment to traditional therapies.
  
• Merck & Co., with its Belsmora (suvorexant), has established a significant foothold in the market. Belsmora offers an innovative mechanism of action in comparison to traditional treatments such as benzodiazepines, reducing the risk of addiction.
  
• Pfizer has a strong research and development pipeline and dominance in novel drugs, with expertise in sleep disorder treatments. It also has presence in more than 165 countries, making it a global player.
  

Insomnia Therapeutics Industry News

• In March 2024, Vanda Pharmaceuticals announced that it received a Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA) for its HETLIOZ (tasimelteon), indicated for the treatment of insomnia. This certification was expected to fast-track the approval process for the drug and promote the introduction of such novel treatments in the market, facilitating market growth.
  
• In June 2020, Eisai announced the launch of DAYVIGO (Lemborexant), an orexin receptor antagonist, for the treatment of insomnia in adults in the U.S. This launch is expected to significantly expand the company’s reach in the U.S. market.
  

The insomnia therapeutics market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Drug Class

• Benzodiazepines
• Non-benzodiazepine
• Orexin receptor antagonists
• Antidepressants
• Antihistamines
• Melatonin supplements
• Other drug classes

Market, By Sales Channel

• Over-the-counter (OTC) drugs
• Prescription drugs

Market, By Route of Administration

• Oral
• Injectable
• Transdermal
• Intranasal

Market, By Distribution Channel

• Hospital pharmacies
• Retail pharmacies
• E-commerce

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands 
• Asia Pacific 
  • China
  • Japan
  • India
  • Australia
  • South Korea 
• Latin America 
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE