Resmed’s cloud-connected CPAP + SaaS ecosystem is turning respiratory hardware into a sticky, high-margin data flywheel—while the next battleground is Philips’ return and expansion into adjacent sleep disorders.
Overview
Resmed (RMD) is a global leader in sleep-disordered breathing and respiratory care devices, increasingly differentiated by cloud-connected software that creates a digital health ecosystem rather than a standalone equipment business. Its two primary segments—Sleep & Breathing Health (CPAP/bilevel devices plus masks/accessories) and Residential Care Software (Brightree, MatrixCare, MEDIFOX DAN)—produce a multi-billion-dollar revenue stream with a growing recurring component. With operations in 140+ countries and roughly ~60% of revenue from the US/Canada/Latin America, the company benefits from scale in manufacturing and distribution. The flagship AirSense 11 platform uses sensors and machine learning to personalize therapy, while AirView/myAir improve patient adherence and clinician efficiency; reported adherence can exceed ~87%, supporting resupply economics. Resmed’s competitive edge is amplified by its large installed base (28M+ cloud-connected devices) and data scale, which enhance algorithms and embed Resmed into provider workflows. The company is expanding the sleep funnel into adjacent conditions (e.g., RLS via Noctrix) and views consumer wearables’ sleep apnea detection as a demand tailwind. Overall, Resmed is positioned as a high-quality compounder transitioning from hardware-centric growth to a more software- and data-driven model with durable recurring revenue.