Insomnia Therapeutics Market Size, Share & Trends Analysis Report By Type (Benzodiazepines, Nonbenzodiazepines, Antidepressants, Orexin Antagonists, Melatonin Antagonists), By Sales Channel, By Region, And Segment Forecasts, 2025 - 2030

Insomnia Therapeutics Market Size & Trends

The global insomnia therapeutics market size was estimated at USD 2.89 billion in 2024 and is projected to grow at a CAGR of 4.5% from 2025 to 2030. Factors including increasing stress levels, lifestyle changes, and a growing geriatric population are contributing to a higher prevalence of insomnia. According to the National Library of Medicine, about 30% of adult’s exhibit symptoms of insomnia, highlighting an urgent need for effective treatment options. This rising demand has prompted pharmaceutical companies and healthcare providers to innovate and expand their therapeutic offerings, leading to a surge in the market size.

As individuals age, they often face a range of health challenges that can disrupt sleep patterns. This demographic shift necessitates tailored therapeutic interventions to address insomnia in older adults, further fueling market demand. The increasing awareness of sleep health, coupled with the availability of various treatment options-both pharmacological and non-pharmacological-has encouraged patients and healthcare providers to seek solutions for sleep disorders, thereby expanding the market landscape.

The introduction of innovative products, such as novel pharmacotherapeutics and digital therapies such as the FDA-approved Somryst app, has transformed the treatment paradigm for insomnia. Moreover, advancements in artificial intelligence and telemedicine offer promising avenues for improving sleep disorder management. The ability to monitor patients remotely and provide timely interventions enhances the therapeutic experience, aligning with the growing preference for personalized and accessible healthcare solutions.

Supportive reimbursement frameworks enhance the affordability of treatment options, making them more accessible to various patient populations. As telehealth services gain traction, particularly in the Asia-Pacific region, there is a heightened opportunity for broader reach and utilization of insomnia therapies. Collectively, these drivers indicate a robust trajectory for the insomnia therapeutics market, positioned for sustained expansion in the forecast period.

Type Insights

Benzodiazepines dominated the market and accounted for a share of 29.1% in 2024. Benzodiazepines are useful for insomnia associated with acute stress. It increases sleep duration by 30-90 minutes, decreases sleep latency, and suppresses slow-wave sleep. The higher acceptability of drugs among physicians due to their quick results and easy availability are driving segmental growth. For instance, according to a report published in the National Center for Biotechnology Information (NCBI) in 2024, the U.S. FDA has approved a few of the BZDs such as alprazolam, clobazam, chlordiazepoxide, and others for the effective treatment of insomnia.

Antidepressants are expected to grow lucratively over the forecast period. Drugs such as nefazodone, trazodone, and mirtazapine may also improve subjective sleep ratings compared to placebo or other antidepressants in patients with depression and suffering from insomnia. For instance, the European Medicines Agency (EMA) and Food and Drug Administration (FDA) approved daridorexant has demonstrated sustained efficacy, improving nocturnal sleep parameters, with a favorable safety and tolerability profile. Thus, this segment has been positively increasing with growing awareness among people and acceptance of such antidepressants in treating insomnia.

Sales Channel Insights

Over-the-counter (OTC) led the market and accounted for a share of 61.6% in 2024, owing to the increasing number of patients with insomnia. OTC drugs do not require a prescription and are easily available to patients suffering from acute insomnia. For instance, in October 2024, Neurovalens launched Modius Sleep, an FDA-cleared medical device in the U.S., designed to treat chronic insomnia in adults through targeted neurostimulation for improved sleep quality. The emergence of combination therapies that pair OTC medications with prescription drugs or non-pharmacological interventions helps in providing more effective and personalized treatment options for patients with insomnia.

Prescription therapeutics are projected to grow rapidly over the forecast period, fueled by the increasing awareness regarding drugs and their consumption amongst people. Physicians prescribe the prescription drugs after evaluating sleep disturbance patterns and a patient’s history; thereby, its reliance level is higher, and the chances of adverse effects are also less. These factors are likely to help in fostering the market growth of this segment over the forecast period.

Regional Insights

North America insomnia therapeutics market dominated the global market with a revenue share of 35.4% in 2024. Market growth in the region is due to the rising incidence of insomnia disorders, the increase in awareness levels, and high healthcare spending in this region. The American Academy of Sleep Medicine’s (AASM) Sleep Prioritization Survey 2024 highlighted concerns about adults’ sleep quality, revealing that 12% U.S. adults were diagnosed with chronic insomnia, driving insomnia therapeutics and research further. The governments in North America have been involved in creating awareness about the importance of treating insomnia and the available treatment options.

U.S. Insomnia Therapeutics Market Trends

The insomnia therapeutics market in the U.S. dominated the North America insomnia therapeutics market with a revenue share of 90.9% in 2024, owing to the rising awareness programs and R&D facilities for new drug development. For instance, in the U.S., men (13%) were slightly more likely than women (11%) to have been diagnosed with chronic insomnia, as reported by the AASM. Meanwhile, millennials reported the highest rate of chronic insomnia diagnosis (15%). In addition, favorable reimbursement policies, rising stress levels, and a strong clinical pipeline are expected to drive the market growth over the forecast period.

Europe Insomnia Therapeutics Market Trends

Europe insomnia therapeutics market held substantial market share in 2024. Growing awareness of insomnia and the need for effective treatment has prompted educational institutions and healthcare providers to inform the public about sleep disorders. Meanwhile, advancements in drug discovery, including the development of Quviviq by Idorsia, which received FDA approval in 2022, have contributed to market growth. Lifestyle changes and work-related stress have increased the number of individuals seeking remedies for sleep issues. Despite CBT for Insomnia (CBT-I) being the recommended first-line treatment, its adoption varies across Europe, where limited availability and a dominance of hypnotic medications persist. A lack of training among CBT professionals hinders access. To combat this, experts proposed establishing a European CBT-I Academy for standardized training. Effective CBT-I incorporates behavioral and cognitive interventions, and digital treatment options have been advocated for their wide-reaching efficacy.

The insomnia therapeutics market in Germany is expected to grow in the forecast period. Current data indicates that approximately 50% of individuals with insomnia face comorbidities, such as chronic insomnia and depression. Notably, chronic insomnia was not represented in ICD-10, a gap addressed in ICD-11, effective since January 1, 2022, where it is categorized under sleep-wake disorders (code 7A00). Studies show that in Germany, the health status and quality of life of those with sleep disorders are significantly lower than that of the general population.

Asia Pacific Insomnia Therapeutics Market Trends

Asia Pacific insomnia therapeutics market is expected to register the fastest CAGR of 5.3% in the forecast period. Asia Pacific insomnia therapeutics market is anticipated to witness significant growth in the insomnia therapeutics market. Increased stress levels and shift-work sleep disorders are expected to expand the patient base in Asia Pacific. It also contributes to the growing demand for drugs in these economies. Constantly improving healthcare reimbursement policies and FDA approvals have also impacted the market growth in this region. For instance, in July 2024, Simcere Pharmaceutical announced the acceptance of the new drug application for Quviviq in China, an innovative anti-insomnia drug developed with Idorsia, successfully improving daytime functioning.

Japan insomnia therapeutics market is projected to grow at the fastest rate of 6.5% over the forecast period.Increasing awareness of mental health, urbanization, and demanding lifestyles drove demand for insomnia treatments. Factors such as traditional medicine, advancing healthcare infrastructure, and improving policies also contributed. Japan’s aging population, strong economy, and technological innovation further supported market growth, with its advanced economy and high patent registrations facilitating sleep technology development. SUSMED Med CBT-I App developed by SUSMED, Inc. received regulatory approval from the Ministry of Health, Labour and Welfare for treating insomnia patients in Japan.

Key Insomnia Therapeutics Company Insights

Some of the key companies operating in the insomnia therapeutics include Takeda Pharmaceutical Company Limited; VANDA PHARMACEUTICALS; Merck & Co., Inc. These companies are growing their market presence by launching new products, collaborations, and adopting various other strategies.

• Takeda Pharmaceutical Company Ltd. is a Japan-based company that works for the development of insomnia therapeutics products. It also announced a co-promotion agreement with Meiji Seika Pharma Co., Ltd. for their insomnia treatment drug “ROZEREM” in Japan. Thus, using such strategies, it has been able to expand its market revenue share and its presence not only in Japan but also in other countries.

• Merck & Co., Inc. is a U.S.-based company which works for the development of insomnia therapeutics products. It launched its insomnia treatment drug Belsomra (suvorexant), which was the first in a new class of medications called orexin receptor antagonists. This is expected to help it in expanding its portfolio of insomnia treatments and contributing to the growth of the overall insomnia therapeutics market.

Recent Developments

• In December 2024, Shionogi and Nxera Pharma launched QUVIVIQ (daridorexant) in Japan, targeting adults with insomnia as a new treatment option in the quality of life disease area.

• In August 2024, Big Health received FDA clearance for SleepioRx in the U.S., a digital therapeutic designed to treat chronic insomnia using Cognitive Behavioral Therapy for Insomnia (CBT-I).

• In July 2024, the European Medicines Agency’s CHMP recommended extending Slenyto’s use to treat insomnia in children with neurogenetic disorders, addressing significant unmet needs in this patient population.

• In February 2024, Vanda Pharmaceuticals received FDA notification regarding deficiencies in its supplemental NDA for HETLIOZ to treat insomnia, impacting further discussions on labeling and postmarketing requirements.

Insomnia Therapeutics Market Report Scope

Global Insomnia Therapeutics Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global insomnia therapeutics market report based on type, sales channel, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Benzodiazepines

  • Nonbenzodiazepines

  • Antidepressants

  • Orexin Antagonists

  • Melatonin Antagonists

  • Others

• Sales Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Prescription

  • Over-the Counter (OTC)

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • APAC

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait