“Global Capsule Hotel Market to reach a market value of USD 359.8 Million by 2031 growing at a CAGR of 7.7%”
The Global Capsule Hotel Market size is expected to reach $359.8 million by 2031, rising at a market growth of 7.7% CAGR during the forecast period.
Asia-Pacific cities are experiencing rapid urbanization, increasing population density, and a high demand for affordable, compact accommodations. Thus, the Asia-Pacific region acquired 52.4% revenue share in the market 2023. Capsule hotels optimize limited urban space by offering compact, functional rooms that cater to the needs of urban dwellers and travelers seeking convenient lodging options. Asia-Pacific countries attract many budget travelers, including backpackers and solo adventurers, who prefer affordable accommodations without compromising location or comfort.
Capsule hotels provide budget-friendly lodging options compared to traditional hotels. They typically offer lower nightly rates, making them attractive to budget-conscious travelers, especially in expensive urban areas with high hotel prices.
Additionally, urbanization leads to the expansion of cities and metropolitan areas, often resulting in a scarcity of available land for traditional hotels or large-scale developments. Capsule hotels offer a compact and space-efficient alternative that maximizes the use of limited urban space.
However, capsules in these are designed to be compact, typically measuring around 1 to 2 meters in length and width. This limited space confines guests to a small sleeping area with minimal room for movement or personal belongings. Thus, space and comfort limitations are hindering the growth of the market.
Based on booking mode, the market is divided into offline and online booking. In 2023, the offline booking segment garnered 73.6% revenue share in the market. Some guests prefer the convenience of booking a capsule room on-site, especially when they arrive at the hotel without a prior reservation.
On the basis of age group, the market is segmented into generation Y, generation Z, and generation X. In 2023, the generation Z segment attained 34.8% revenue share in the market. Capsule hotels often provide communal areas, co-working spaces, and social events that foster guest interaction.
By traveler type, the market is divided into solo and group. In 2023, the solo segment registered 82% revenue share in the market. Capsule hotels are often situated in prime urban locations or near transportation hubs, providing solo travelers with convenient access to city attractions, public transit, and dining options.
Free Valuable Insights: Global Capsule Hotel Market size to reach USD 359.8 Million by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America region generated 23.2% revenue share in the market. Major cities in North America, such as New York City, San Francisco, and Toronto, experience high population density and urbanization trends.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 200.1 Million |
| Market size forecast in 2031 | USD 359.8 Million |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 7.7% from 2024 to 2031 |
| Number of Pages | 200 |
| Number of Tables | 328 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Booking Mode, Age Group, Traveler Type, Region |
| Country scope |
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| Companies Included | The Bed KLCC, PANGEA POD HOTEL, Riccarton Capsule Hotel, De Bedstee Capsules Hotel B.V., nine hours Inc., Book & Bed Tokyo (Atelier Book and Bed Co., Ltd.), NADESHIKO HOTEL and The Capsule Hotel |
By Booking Mode
By Age Group
By Traveler Type
By Geography
This Market size is expected to reach $359.8 million by 2031.
Cost-effectiveness of capsule hotels are driving the Market in coming years, however, Space and comfort limitations restraints the growth of the Market.
The Bed KLCC, PANGEA POD HOTEL, Riccarton Capsule Hotel, De Bedstee Capsules Hotel B.V., nine hours Inc., Book & Bed Tokyo (Atelier Book and Bed Co., Ltd.), NADESHIKO HOTEL and The Capsule Hotel
The expected CAGR of this Market is 7.7% from 2023 to 2031.
The Generation Y segment is leading the Market by Age Group in 2023; thereby, achieving a market value of $163.9 million by 2031.
The Asia Pacific region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $4,169.4 million by 2031.
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