Resmed — Business Overview

What does ResMed do?

ResMed is a medical device and software company focused on helping people with sleep-related breathing disorders stay out of the hospital. Its core products are devices — think CPAP machines and ventilators — that treat conditions like obstructive sleep apnea (OSA) and chronic obstructive pulmonary disease (COPD). These are sold alongside masks, accessories, and cloud-connected software that lets clinicians monitor patients remotely. The company was founded in 1989 and commercialized the first successful non-invasive CPAP treatment for sleep apnea.

ResMed operates in two segments:

Within the Sleep and Breathing Health segment, devices account for roughly 52% of total net revenue, and masks, diagnostics, and accessories account for about 36%.

How does ResMed make money?

ResMed sells hardware, consumables, and software subscriptions across a recurring-revenue model. Devices like CPAP machines are typically a one-time purchase (made by a home medical equipment provider, not the patient directly), but masks and accessories wear out and need regular replacement — creating a steady consumable stream alongside each device sale. In the U.S., most purchases flow through home medical equipment (HME) providers, who then bill insurers (Medicare, Medicaid, private plans) for reimbursement.

The Residential Care Software segment generates recurring software-as-a-service (SaaS) revenue. Brightree, MatrixCare, and related platforms are sold to thousands of healthcare providers on subscription-like arrangements, supporting billing, electronic health records, and workflow management. This segment serves more than 160 million individual patient accounts across those provider networks.

A growing digital layer adds a data and engagement dimension to the hardware business. More than 30 million patients use cloud-connected ResMed devices monitored via the AirView platform, and over 10 million are registered on myAir (the patient-facing app). This installed base supports remote monitoring, over-the-air device updates, and patient adherence tools — all of which strengthen the value proposition for providers and differentiate ResMed's devices from lower-cost alternatives.

What market does ResMed operate in?

Sleep apnea is a massive, underpenetrated global market. A 2019 study published in Lancet Respiratory Medicine estimated that more than 936 million people worldwide have some form of OSA, including 54 million Americans. Despite this, fewer than 20% of those affected in the U.S. have been diagnosed or treated, and 10% or less in most other markets. That diagnosis gap represents the core long-term growth opportunity for ResMed.

COPD is similarly large. Approximately 480 million people worldwide are estimated to suffer from COPD, which is the world's third leading cause of death. Home-based ventilation and non-invasive therapy for COPD patients is an expanding treatment area, driven by evidence that home care reduces costly hospital readmissions.

Secular trends generally favor the industry, though some risks are worth noting. Aging populations globally, rising obesity rates, and growing awareness of sleep health are all tailwinds. However, GLP-1 weight-loss drugs (like injectable medications used for obesity) represent a potential headwind — they could reduce OSA severity in patients who achieve significant weight loss. Oral versions of these drugs are reportedly in development and some have already been approved specifically for OSA treatment in obese patients. Additionally, U.S. Medicare reimbursement rates for CPAP and related devices have faced ongoing downward pressure through competitive bidding programs, and new policy changes (including the recently signed One Big Beautiful Bill Act) introduce further uncertainty around Medicaid and Medicare funding.

Who are ResMed's main competitors?

The sleep and breathing device market is moderately consolidated at the top but has a growing number of regional and lower-cost competitors. ResMed's primary named competitors in Sleep and Breathing Health include Philips BV (a major global rival, though Philips has faced significant disruption following a large CPAP recall in recent years), Fisher & Paykel Healthcare (a strong competitor particularly in masks and humidification), DeVilbiss Healthcare, Apex Medical, BMC Medical, React Health, Jiangsu Yuyue Medical (a Chinese manufacturer), and Lowenstein Medical.

ResMed claims several competitive advantages. It holds approximately 10,000 patents and designs globally (with about 640 U.S. and 1,450 foreign patents/designs expiring in the next five years, which the company believes will not materially harm its position). Its installed base of 30 million+ cloud-connected patients gives it a proprietary data advantage that it uses to train AI and machine-learning algorithms embedded in its devices — something harder for newer entrants to replicate quickly. The company also points to its brand reputation, clinical evidence base, and integrated ecosystem (device + cloud platform + patient app + provider software) as key differentiators.

In Residential Care Software, competition is more fragmented and technology-driven. The company faces rapidly evolving competition, low barriers to entry, and the reality that many provider customers use internally built systems. This segment is viewed as strategically important partly because it feeds demand into the Sleep and Breathing Health business.

Where does ResMed operate?

ResMed sells products in more than 140 countries and manufactures across multiple continents. Its roughly 10,600 employees are distributed as follows: 31% in the U.S., Canada, and Latin America; 31% in Asia; 24% in Europe; and 14% in Australia.

Manufacturing is spread across a global network to manage risk and cost. Key production sites include:

• Tuas, Singapore — primary device manufacturing hub
• Sydney, Australia and Johor Bahru, Malaysia — additional device/mask production
• Chatsworth and Calabasas, California; Atlanta, Georgia — U.S. facilities
• Suzhou, China — Curative-branded products
• Lyon, France — Narval dental devices

The Residential Care Software business is concentrated in the U.S. and Germany. Brightree, MatrixCare, and HEALTHCAREfirst serve U.S. providers; MEDIFOX DAN serves German residential care providers. Software is not sold in other international markets at this stage.

Tariff exposure is an active concern. ResMed sources components and manufactures in multiple countries, leaving it exposed to trade policy shifts. The filing specifically notes that tariff measures introduced in early 2025 could affect supply chains and input costs, though CPAP-type products received temporary tariff relief as of April 2025. If broad reciprocal tariffs take wider effect, the company has flagged a potential material impact on costs and operations.