ResMed’s Sleep Institute and the Long-Term Growth Potential in Sleep Health

The global sleep health market is undergoing a transformative phase, driven by rising awareness of sleep disorders and the urgent need for scalable diagnostic solutions. At the forefront of this evolution is ResMed’s Sleep Institute, a strategic initiative launched in September 2025 to address the underdiagnosis of obstructive sleep apnea (OSA) and elevate sleep health as a global priority. With OSA affecting an estimated 1 billion people worldwide [1], the Institute’s focus on innovation, policy advocacy, and partnerships positions ResMed to capitalize on a market projected to grow at a compound annual growth rate (CAGR) of 7–7.4% through 2032 [1].

Market-Driven Innovation in Sleep Diagnostics

ResMed’s Sleep Institute has introduced a suite of diagnostic tools designed to streamline workflows and improve patient outcomes. Products like Somnoware™, NightOwl™, and the EasyCare Tx 2 titration software bundle leverage home-based testing and AI-driven analytics to simplify the diagnostic pathway for OSA [4]. These innovations align with a critical market trend: the shift from in-clinic to at-home diagnostics, which reduces costs and increases accessibility. For instance, a 2025 study presented at the SLEEP 2025 conference demonstrated that CPAP therapy reduces cardiovascular-related emergency room visits or hospitalizations by 22% for OSA patients [6]. Such evidence strengthens the case for integrating sleep health into routine care, a goal the Sleep Institute actively pursues.

The Institute’s emphasis on digital health also reflects ResMed’s broader 2030 ambition to impact 500 million lives through operational excellence and technological innovation [1]. By 2025, the company had already expanded its ecosystem strategy, partnering with global experts to develop scalable solutions for underdiagnosis [3]. For example, the AirTouch™ N30i nasal cradle mask, recognized with dual Red Dot Design Awards, underscores ResMed’s commitment to improving patient adherence through comfort-driven design [2]. These innovations not only enhance user experience but also reinforce the company’s leadership in a market where adherence to therapy is a key determinant of success.

Policy Influence and Global Collaboration

ResMed’s Sleep Institute is not merely a research entity; it is a catalyst for policy change. The initiative’s collaboration with governments and policymakers is evident in initiatives like New York City’s 2024 law, which provides free sleep apnea screenings and home tests for the uninsured [5]. Such policies highlight the growing recognition of sleep health as a public health priority, a shift ResMed actively supports through evidence-based advocacy.

At the 2025 World Sleep Congress in Singapore, the Institute hosted a symposium titled “OSA Underdiagnosis – A world of difference, a common challenge,” emphasizing the need for global cooperation to address diagnostic gaps [1]. This aligns with ResMed’s broader strategy to integrate sleep health into policy frameworks, as seen in its partnership with Singapore’s Economic Development Board (EDB) to advance manufacturing and digital innovation in the Asia-Pacific region [5]. These efforts are critical in markets where sleep disorders are often overlooked, such as in low- and middle-income countries.

The Institute’s policy influence is further amplified by data from ResMed’s 2024 Global Sleep Survey, which revealed that 40% of respondents reported no more than three nights of good sleep per week, while only one in three U.S. patients said healthcare providers had asked about their sleep in the past six months [5]. Such findings provide a compelling case for systemic changes, including expanded insurance coverage for diagnostics and therapies like positive airway pressure (PAP) devices [5].

Long-Term Investment Potential

ResMed’s strategic alignment with market trends and policy priorities positions it as a long-term growth story. The Sleep Institute’s focus on innovation and collaboration addresses two critical barriers in sleep health: accessibility and awareness. By 2025, the company had already demonstrated the efficacy of PAP therapy in reducing hospitalizations by 31% and emergency room visits by 23% for patients with OSA and comorbid insomnia [5]. These outcomes not only validate the clinical value of ResMed’s solutions but also strengthen their appeal to payers and policymakers.

From an investment perspective, the Sleep Institute’s initiatives are poised to drive revenue growth through three vectors:
1. Product Innovation: Continued development of AI-driven diagnostics and user-friendly devices.
2. Policy Expansion: Advocacy for insurance coverage and public health programs, as seen in New York’s 2024 initiative.
3. Global Market Penetration: Leveraging partnerships to address underdiagnosis in emerging markets.

Conclusion

ResMed’s Sleep Institute represents a confluence of innovation, policy advocacy, and market foresight. By addressing the underdiagnosis of OSA through cutting-edge diagnostics and influencing policy frameworks, the company is not only solving a critical healthcare challenge but also securing a dominant position in a rapidly expanding market. For investors, the Sleep Institute’s initiatives underscore ResMed’s ability to translate global health priorities into sustainable growth, making it a compelling long-term investment in the sleep health sector.

Source:
[1] Resmed Launches Sleep Institute to Elevate Sleep Health as a Global Priority [https://newsroom.resmed.com/news-releases/news-details/2025/Resmed-Launches-Sleep-Institute-to-Elevate-Sleep-Health-as-a-Global-Priority/default.aspx]
[2] Resmed Launches Sleep Institute to Advance Global Sleep Health Research and Insights [https://www.quiverquant.com/news/Resmed+Launches+Sleep+Institute+to+Advance+Global+Sleep+Health+Research+and+Insights]
[3] Resmed at SLEEP 2025: Advancing the Future of OSA Diagnosis and Treatment [https://newsroom.resmed.com/news-releases/news-details/2025/Resmed-at-SLEEP-2025-Advancing-the-Future-of-OSA-Diagnosis-and-Treatment-2025-8bDJKu6wuX/default.aspx]
[4] OSA Diagnostic Innovation | Resmed at SLEEP 2025 [https://www.resmed.com/en-us/health-professionals/sleep-conference-2025/]
[5] ResMed's 2024 Global Sleep Survey Uncovers a World in Sleep Crisis [https://investor.resmed.com/news-events/press-releases/detail/371/resmeds-2024-global-sleep-survey-uncovers-a-world-in-sleep-crisis]
[6] Resmed at SLEEP 2025: Advancing the Future of OSA Diagnosis and Treatment [https://newsroom.resmed.com/news-releases/news-details/2025/Resmed-at-SLEEP-2025-Advancing-the-Future-of-OSA-Diagnosis-and-Treatment-2025-8bDJKu6wuX/default.aspx]