One of the most serious health issues today, a sleep disorder is believed to affect 1 out of every 5 individuals. The market for sleep diagnostic systems is growing rapidly and has increased in recent years at a rate of about 10 -15% per year.

The global size of the diagnostic equipment market is estimated to be about $200 million; the market for providing sleep diagnostic related services is estimated to be over $2 billion in the US alone.

At present, there are no accurate analyses available of the sleep diagnostic market. The American Academy of Sleep Medicine (AASM) conservatively estimates that 1.5 million to 2.0 million full PSG studies are performed each year in the US. Flaga Group estimates that the world sleep diagnostic market is about USD 3 billion which means that the USD 2 billion US market makes up 2/3 of the world market.

Revenues and growth of the sleep diagnostic equipment market in the US are estimated at USD 100 million in 2003, having increased 12.8% from the previous year. The market is expected to grow at a compound annual growth rate of 12.6% until year-end 2009. The size of the US market is thus estimated to be USD 198.1 million in 2009. In addition, Flaga Group believes that the US market for sensors and other accessories totals USD 10-12 million. Stakeholders agree that the US amounts to half of the world market which connotes that the world market for sleep diagnostic equipment and accessories adds up to more than USD 200 million.

It is believed that the following factors will drive revenue growth:

	Obesity in the US and elsewhere is a growing problem, resulting in a growing patient population experiencing weight-related sleep disorders, most notably sleep apnea.
	Increased awareness and research demonstrating a strong correlation between sleep disorders and other, potentially life threatening diseases, such as cardiovascular diseases and cerebral hemorrhage.
	An increase in awareness among healthcare professionals of sleep disorders is contributing to an increase in patient population being tested for sleep disturbances, spanning all ages from very young children to the elderly.
	Continued increase in the number of sleep centers, both hospital-affiliated and non-hospital-affiliated, is creating new demand for sleep diagnostic equipment.
	Expansion of existing sleep centers is occurring, which requires additional sleep diagnostic equipment and more efficient equipment operation.
	Ongoing comprehensive support and reimbursement of sleep diagnostic studies by Medicare