The global capsule hotel market size was valued at $202.3 million in 2019, and is projected to reach $276.2 million by 2028, registering a CAGR of 8.2% from 2022 to 2028.
Capsule hotel, which is also known as a pod hotel or sleeping cabin, is a unique and novel type of accommodation available at an affordable price. Each traveler occupies a capsule, essentially a bed-sized pod, which can be closed either with a curtain or door without a lock. These capsules within hotels are arranged in rows and are equipped with Wi-Fi, locker, sockets, and other amenities. The first capsule hotel opened in Osaka in 1979. However, at present these hotels can be found in other parts of the world including India, Singapore, UK, and others. Additionally, the capsule hotel market demand is increasing owing to the rising solo tourism globally.
The global capsule hotel market is segmented into traveler type, booking mode, age group, and region. By traveler type, the market is classified into solo and group. By booking mode, it is divided into online booking and offline booking. By age group, the market is segregated into generation X, generation Y, and generation Z. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By traveler type, the solo segment accounted for the highest capsule hotel market share in 2019. According to the recent trends, solo tourism is on a rise and thus, there has been an increase in the number of people travelling solo by choice and looking for inexpensive accommodation. Thin in turn has propelled the demand for accommodation in capsule hotels, which is cost-effective; thus contributing toward the growth of the capsule hotel market.
By Traveler Type
The Solo segment dominates the global capsule hotel market and is expected to retain its dominance throughout the forecast period.
By booking mode, the offline booking segment accounted for the highest share in the market in 2019. Most of the travelers prefer the offline mode of booking option for booking capsule hotels, as they find it easy. However, the online booking segment is anticipated to witness growth attributed to the novel coronavirus, where people have started following social distancing norms and prefer the online payment options.
By Booking Mode
The Offline Booking segment dominates the global capsule hotel market and is expected to retain its dominance throughout the forecast period.
By age group, the generation Y segment accounted for the highest market share in the global market in 2019. This generation prefers to opt for budget friendly accommodation, which in turn has driven the growth of capsule hotel market. However, the generation Z segment is likely to witness significant growth during the capsule hotel market forecast period as this generation prefers to travel and explore the world.
By Age Group
The Generation Y segment dominates the global capsule hotel market and is expected to retain its dominance throughout the forecast period.
By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for the highest market share in 2019 attributed to the increase in number of travelers coupled with rise in the purchasing power of countries such as India, China, and Japan. However, Europe serves as the lucrative market for capsule hotel and is expected to grow at a significant rate during the forecast period.
By Region
The Asia-Pacific segment dominates the global capsule hotel market and is expected to retain its dominance throughout the forecast period.
The key players operating in the global capsule hotel industry focus on prominent strategies to overcome competition and to improve their share worldwide. Some of the major players operating in the global capsule hotel market include The Capsule Hotel, First Cabin HD Co., Ltd., UZ.Hotesl, Book & Bed Tokyo, Urbanpod Hotel, The CUBE Hotel Group, Riccarton Capsule Hotel, Nadeshiko Hotel Shibuya, The Bed KLCC, and Pangea pod hotel.
The other players analyzed in the global capsule hotel market include Nonze Hostel, Pattaya, Dream Lodge, Lavender, Singapore, Inbox Capsule Hotel, Saint Petersburg, The Pod Sydney, Anshin Oyado, Bloc Hotels, Tubohotel, Koyasan Guesthouse, Time Capsule Retreat, Comicap, De Bedstee Boutique Capsules, Take Surf Hostel Conil, Atypicap Capsule Hostel, Hipstercity Hostel, and Eighteen By Three Cabins.
Covid-19 Impact Analysis
- Capsule hotel industry is profoundly impacted due to pandemic owing to lockdowns and widespread travel restrictions.
- The recent declaration regarding the shutdown operation of airports and railway station has drastically hampered the growth of the capsule hotel market.
- The travel restrictions due to lockdown have created challenges for customer to travel, which has affected the capsule hotel market growth.
- The duration of the virus outbreak remains a key factor in assessing the overall impact of the pandemic, however, the global capsule hotel industry is likely to stabilize after 2022.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current capsule hotel market trends, estimations, and dynamics of the size from 2019 to 2028 to identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis and the market size and segmentation assists in determining the prevailing capsule hotel market opportunity.
- Major countries in each region have been mapped according to their revenue contribution to the global industry.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of market players.
- The report includes the regional as well as global capsule hotel market analysis, key players, market segments, and growth strategies.
Key Market Segments
By Traveler Type
- Solo
- Group
By Booking Mode
- Online Booking
- Offline Booking
By Age Group
- Generation X
- Generation Y
- Generation Z
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- Australia
- ASEAN
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Capsule Hotel Market Report Highlights
| Aspects | Details |
 By TRAVELER TYPE |
|
 By BOOKING MODE |
|
 By AGE GROUP |
|
 By Region |
|
 Key Market Players | URBANPOD HOTEL, 9H NINEHOURS, THE BEDSTEE BOUTIQUE CAPSULE HOTEL, FIRST CABIN HD CO., LTD., PANGEA POD HOTEL, UZ.HOTESL, THE CUBE HOTEL GROUP, BOOK & BED TOKYO, THE GLOBAL HOTEL TOKYO, HIPPO POD, THE BED KLCC, THE CAPSULE HOTEL, NADESHIKO HOTEL SHIBUYA, CAPSULE HOTEL ‘DARAKHYU’ T1, RICCARTON CAPSULE HOTEL |
Analyst Review
According to the key market players, proliferation of the tourism industry has fueled the demand for capsule hotels across the globe. Moreover, the rise in trend of solo travelers, who love to explore the city as well experience new type of accommodations has contributed toward the growth of the capsule hotel market.
The key market players operating in the capsule hotels market have adopted key developmental strategies such as providing various facilities at their hotel such as alarm clock, Wi-Fi connectivity, breakfast facility, locker facility, and others to attract travelers. This factor makes way for the development and awareness of the concept of capsule hotels, in turn boosting the growth of the market in terms of value sales.
Furthermore, the key manufacturers added that the availability of capsule hotel at cheaper rate as compared to other luxury and traditional hotels, lodges, and other accommodation types is another major factor that fosters the growth of the capsule hotel market. Also, these hotels offer the option of hourly basis accommodation and are perfectly located at airports or train stations, which enables the traveler to relax before or after the journey. This in turn boosts the capsule hotel market growth.
The global capsule hotel market is projected to reach $276.2 million by 2028
The global capsule hotel market is projected to register a CAGR of 8.2% from 2022 to 2028.
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The key players operating in the market include The Capsule Hotel, First Cabin HD Co., Ltd., UZ.Hotesl, Book & Bed Tokyo, Urbanpod Hotel, The CUBE Hotel Group, Riccarton Capsule Hotel, Nadeshiko Hotel Shibuya, The Bed KLCC, and Pangea pod hotel.
The global capsule hotel market is segmented into traveler type, booking mode, age group, and region.
2019 is the base year considered in the capsule hotel market report.
The rising solo travelling trend along with increasing preference for inexpensive accommodation is expected to boost the market growth during the forecast period.
Asia-Pacific holds the maximum market share in the Global capsule hotel market.
Proliferation of travel & tourism industry globally along with preference for cost-effective accommodation during travel driving the market growth.
Capsule hotel industry is negatively impacted due to pandemic owing to lockdowns and widespread travel restrictions globally in the year 2020.
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