Strategic Analysis of the Australian Sleep Apnea Therapeutics Markets

Greater Number of Sleep Laboratories to Hike Diagnosis Rates and Demand for Sleep Apnea Therapeutics

The significant incidence of sleep apnea in Australia has caused most of the country’s sleep laboratories to work at optimal capacity and still deal with a waiting list that stretches from one to three months. The current lab infrastructure is grossly inadequate to treat the approximately 482,000 obstructive sleep apnea (OSA) patients. On an average, if a sleep laboratory has three beds, operates five nights for 50 weeks a year at 100 percent occupancy, only 85,000 patients can be diagnosed. Using only the existing infrastructure, it could take healthcare providers five and a half years to diagnose all patients. However, with sleep laboratories mushrooming, there will be increased coverage of the patient population and a considerable shortening of the waiting list. Such enhanced diagnosis rates are expected to improve the sales of sleep apnea equipment such as continuous positive airway pressure (CPAP) devices and masks.

This Frost & Sullivan strategic analysis service examines the Australian therapeutic sleep apnea market for 2004. It analyzes the demand for CPAP devices and segments it into standard, bi-level, and auto CPAP units. The study also discusses the prevailing market drivers and restraints and enables companies to align their positioning strategies to benefit from the changing market conditions.

CPAP Sales Get a Boost from Rising Awareness about Sleep Apnea

Sleep laboratories are expected to benefit immensely from greater awareness about OSA among general practitioners (GPs) and sleep physicians. This improved awareness will increase the number of referrals they send to sleep labs to diagnose the severity of the patient’s condition. With better diagnosis rates, there will be enhanced demand for CPAP therapeutic machines. This increasing awareness among patients has raised the levels of testing for pilots as well as bus and truck drivers for this disorder. Several public health measures have been initiated to increase awareness about sleep and sleep hygiene.

Additionally, industry participants can start a patient referral program to motivate sleep apnea patients to spread awareness about the condition among friends and family. The patients can be rewarded with free sleep test vouchers and upgrades on CPAP units and accessories. Apart from patients, market participants can also reach out to physicians with help from national bodies such as Sleep Disorder Australia (SDA), which publishes a bimonthly newsletter as well as conducts seminars and workshops. This institution educates new users about the latest CPAP technologies and the use of various accessories.

Market Participants Target New Groups to Exploit Untapped Revenue Potential

Sleep physicians and technicians have traditionally been the target of most manufacturers’ marketing efforts. "GPs are expected to become more involved in the treatment of sleep apnea, as they are the initial contact point for most patients who seek advice on treatment plans for the disorder," says the analyst of this study. Due to GPs’ increased awareness of sleep apnea and its treatment, they are likely to encourage patients to visit sleep specialists.

"Current trends show that 50 percent of sleep laboratories accept referrals from GPs for conducting sleep test and this trend is expected to continue with a constant rise in awareness levels among GPs," notes the analyst. "Select companies have started focusing their marketing efforts on GPs who treat sleep apnea, in order to tap into new revenue streams."