Analyst sees growth in sleep
CHARLOTTE, N.C. - The global market for sleep therapy products reached $1.6 billion in 2006 ($1 billion in the United States, $600 million elsewhere), according to market data complied by Wachovia Capital markets. Wachovia estimated that the U.S. market slowed modestly from 26% growth in 2005 to 23% growth in 2006. In contrast, the international market jumped from 13% growth in 2005 to 25% growth in 2006. The global market for masks grew in the 25% to 30% range while flow generators grew 15% to 20%, Wachovia reported. According to Wachovia:
* ResMed ended 2006 with a 40.8% share of the global sleep market, compared to Respironics' 40% share.
* Heavy discounting of legacy REMstars by Respironics likely drove down the domestic sleep market in late 2006.
* The domestic sleep market was 27% penetrated and the international market 6% penetrated at the end of 2006.