Market Overview

Sleep technology, or sleep tech, a term coined from sleep and technology, is a device, system, or service designed to improve sleep by analyzing sleep states and collecting biological activity data using IT or AI-powered sensors or apps. The sleep tech market refers to sales of bedding products (not ordinary bedding, but only those equipped with ICT features) and home appliances related to sleep enhancement. For example, it includes smartphone apps, wristbands, a device-enabled ring, a headset, and a bedding sensor. The market size is calculated based on the user fee for sleep tech services, systems or apps.

Sleep improvement has been an important topic that has been observed as a social issue. Many products and services, including bedding and Foods with Function Claims, not to mention medical electronics and pharmaceuticals, have been developed to improve sleep. In such a situation, the sleep technology market has emerged and is gaining attention.

With medical electronics manufacturers, healthcare companies, bedding manufacturers, electrical appliance manufacturers, telecommunications companies, and university start-ups entering the market, cross-industry collaboration is proactive. The market is in the spotlight from a health and productivity management perspective, as companies strive to improve productivity and reduce health risks through employees’ sleep enhancement. Due to its rapid growth, the domestic sleep tech market is estimated to reach 9,500 million yen in 2023, based on the user fee for sleep tech services, systems or apps.

Noteworthy Topics

The Concept of Sleep as Entertainment in the Spotlight

The value of “sleep” has been enhanced in the entertainment sector, which is attracting attention. In the context of enjoying sleep itself, the sleep promotion service is spreading through game applications or content with a story.

The user is encouraged to get quality sleep in a natural manner, with the time and quality of sleep measured by a smartphone app, which is incorporated as a factor in the progression of the game. This app has been downloaded several thousand times since its release and is in constant use, especially among young people. In addition, it has the characteristic of offering entertainment experiences with the scientific knowledge of a specialized sleep institution as a supervisor.

A relaxation app that combines sleep and reading strives to help users fall asleep comfortably by connecting them to the world of a story. The app provider hosts events around the experience, with the goal of giving as many people as possible the opportunity to think more positively about sleep.

​The mainstream of sleep technology used to be measurement, analysis, and suggestions for improvement. However, the approach is now required to give meaningful value to sleep. In the future, sleep tech services are expected to expand to a wide range of populations by integrating sleep with entertainment such as games, music, reading, etc.

Future Outlook

The sleep tech market has expanded into broader areas, from bedding and home appliances to various smartphone apps and sleep-enhancing services. The domestic sleep tech market size is expected to reach 16.0 billion yen by 2027, based on the user fee for sleep tech services, systems or apps. 

In particular, sleep-related services for enterprises are gaining attention as a method of employee health management and productivity improvement. With recent evidence showing that improving employee sleep can lead to increased corporate profitability and engagement, the key to expanding the sleep tech market seems to be in enterprise services.

On the other hand, there are challenges to the operation of enterprise services, such as the privacy required to handle each employee's sleep data, the balance between measurement time and evaluation, as it takes some time before the effectiveness of improving employee sleep and productivity becomes apparent, and the understanding required by corporate customers for long-term services. To respond to this, sleep tech services are needed to incorporate generative AI-powered work efficiency and each of the corporate strategies. Another way to expand the market is to reach out to the population that has no interest in health maintenance. This requires new efforts such as using entertainment factors and integrating with welfare services.

Research Outline