The Sleep Economy: Tech and Tiredness.

Sleep has become a £430 billion business. From smart rings to mindfulness apps, we’re surrounded by tech promising better rest, sharper focus, and a smoother morning routine. But here’s the catch: knowing how badly we slept doesn’t always help us sleep better.

Sleep technology has raced ahead in sensors and tracking, yet lagged in impact. It’s not that the data isn’t useful, it’s that the way it’s delivered, interpreted, and acted on often leaves users more anxious than empowered. In a culture already obsessed with optimisation, we risk turning rest into yet another performance metric.

We believe the next phase of sleep tech won’t be defined by smarter devices, but by smarter design. That means user journeys grounded in behavioural science, products that reduce friction (not increase it), and experiences that gently shift habits instead of just logging failures.

The Booming Sleep Economy

From wearable sleep trackers and white noise machines to AI-powered mattresses and guided meditation subscriptions, sleep has become a full-blown commercial category. Big tech, indie startups, and wellness giants are all competing for space on our nightstands and in our REM cycles.

This boom is driven by real need. Poor sleep is now considered a public health crisis, linked to everything from mental health issues to reduced workplace performance. Amid rising rates of burnout and digital overwhelm, the desire to “fix” our sleep is understandable.

But when the solution comes in the form of a push notification or a graph of how restless we were at 3:17am, it’s worth asking: is this helping?

From Tracking to Transformation (The Missing Link)

The majority of sleep apps today offer tracking and analysis. They can tell you when you fell asleep, how long you spent in each sleep stage, and how your heart rate fluctuated. Some now offer “readiness” scores or personalised sleep recommendations.

But here’s the issue: most users don’t struggle with awareness. They struggle with change. A low sleep score might confirm that you’re tired, but it doesn’t tell you what to do about it or how to make that change sustainable within the sometimes messy reality of your life.

And in some cases, the data makes things worse. Sleep anxiety is a growing phenomenon, fuelled by constant self-monitoring and the pressure to meet biometric goals. The feedback loop becomes unhelpful, even harmful.

Design Friction and the Feedback Loop

Poor design compounds the problem. Too many sleep apps bombard users with alerts, harshly colour-coded dashboards, or rigid advice that doesn’t account for lived experience. If you’re a new parent, a shift worker, or someone living with anxiety, being told your sleep score is “poor” feels less like guidance and more like judgement.

Other apps fall into the trap of feature overload, bedtime routines, alarm settings, breathing exercises, content libraries, all layered into a single experience that becomes overwhelming at precisely the moment users are trying to wind down.

There’s a deeper point here: good sleep design is often invisible. It works best when it’s ambient, flexible, and supportive rather than prescriptive.

What Works: Lessons from Behavioural Design

The good news? We know a lot about what helps people sleep better. Cognitive Behavioural Therapy for Insomnia (CBTi) is evidence-based and highly effective. Many of its principles,  like stimulus control, sleep restriction, and cognitive reframing, could be adapted into app design in a way that’s subtle and user-led.

That might mean:

• Microcopy that reassures instead of alarms
  
  
• Wind-down prompts based on user behaviour, not rigid schedules
  
  
• Gentle nudges to build healthier evening habits over time
  
  
• Adaptive journeys for different user types, from neurodivergent individuals to people navigating trauma or chronic illness
  
  

We’ve also seen promising examples of ambient technology, wearables that integrate with lighting, temperature, and sound environments to support natural circadian rhythms. These interventions don’t just log data; they shape context.

The Arch Perspective: Designing for Healthier Habits

At Arch, we design digital products that aim to shift behaviour in ways that are human, inclusive, and empowering. That means thinking beyond screens and dashboards. It means designing with empathy, for users whose lives are complex, unpredictable, and not always optimisable.

Our work in digital health — from mental wellbeing to medication management — has shown us that success doesn’t come from simply surfacing data. It comes from creating experiences that reduce friction, build trust, and make healthy habits feel possible.

Sleep is no different. It’s not a problem to fix; it’s a state to support. The best sleep apps of the future won’t just track your rest. They’ll help you protect it.

Final Thought

As sleep tech matures, it faces a choice. Keep chasing the next big feature, or focus on designing tools that truly help people feel better. We’re betting on the latter.

Want to talk about how your product can go beyond tracking and deliver real impact? We’d love to chat.