2007 was a seminal year for the US Brain Fitness software market, according to a landmark study released by SharpBrains. The research and advisory company reports that the brain fitness software market reached $225 million in revenues in 2007, up from an estimated $100 million in 2005.
According to SharpBrains, two segments fuelled the market growth from 2005 to 2007: the consumer segment grew from $5 million to $80 million, a 300% CAGR; and the healthcare and insurance providers segment grew from $36 million to $65 million, a 35% CAGR.
The Top 10 Highlights from the report, “The State of the Brain Fitness Software Market 2008″:
1. 2007 was a seminal year for the US Brain Fitness software market, which reached $225 million in revenues – up from an estimated $100 million in 2005.
2. Over 20 companies are offering tools to assess and train cognitive skills to four customer segments: consumers; healthcare and insurance providers; K12 school systems; and Fortune 1000 companies, the military, and sports teams.
3. The Nintendo Brain Age phenomenon has driven much of the growth. The consumer segment grew from a few million in 2005 to an estimated $80 million in 2007.
4. There is major confusion in the market, so education will be key. Users and buyers need help to navigate the maze of products and claims.
5. Over 400 residential facilities for older adults have launched computerized “brain fitness centers.” Sales to the healthcare and insurance provider segment grew from $35 million in 2005 to an estimated $65 million in 2007.
6. More than five programs have shown results in randomized controlled trials. Cognitive functions that can be trained include: visual and auditory processing, working memory, attention, and decision-making.
7. A product has obtained 510(k) FDA clearance for rehabilitation of stroke and Traumatic Brain Injury patients. Another product is being used by a growing network of ADHD specialists.
8. Large-scale, fully-automated cognitive assessments are being used in a growing number of clinical trials. This opens the way for the development of inexpensive consumer-facing, baseline cognitive assessments.
9. The potential for K12 Education remains largely untapped due to limited research linking cognitive training to academic performance.
10. Companies, sports teams and the military are finding opportunities to improve productivity. The aging workforce will make this a must.
“This report is geared to executives, investors, entrepreneurs, professionals and policy-makers looking for the latest information about the brain fitness industry,” said Alvaro Fernandez, co-founder and CEO of SharpBrains. “This report is the first in an annual series providing a comprehensive picture of the industry spanning the underlying science, commercial applications, market players, and growth drivers.”
About this study
The SharpBrains 87-page report, “The State of the Brain Fitness Software Market 2008,” defines the brain fitness software market and analyzes the size and trends of its four customer segments: consumers, healthcare & insurance providers, K12 school systems, and fortune 1000 companies, military, and sports teams.
The report tracks developments at over 20 public and private companies offering tools to assess and train brain functions and provides important industry data, insights and analysis to help investors, executives, entrepreneurs, and policy makers navigate the opportunities and risks of this rapidly growing market. The report discusses the implications of cognitive science on healthy aging and a number of disorders such as attention deficits, dyslexia, stroke and traumatic brain injury, schizophrenia, autism, mild cognitive impairment, and Alzheimer’s disease. The report also provides information and frameworks to help institutional buyers make informed purchase decisions about brain fitness programs.
Companies profiled include: Advanced Brain Technologies, Applied Cognitive Engineering, Brain Resource Company, Cogstate, BrainTrain, Cogmed, CNS Vital Signs, CogniFit, Cognitive Drug Research, Dakim, Houghton Mifflin, Gemstone, Lexia Learning, Lumos Labs, MyBrainTrainer, Nintendo, NovaVision, Posit Science, Scientific Brain Training, Scientific Learning, TeachTown.