The global capsule hotel market was valued at $216.5 million in 2023 and is projected to reach $460.7 billion by 2033, registering a CAGR of 7.9% from 2024 to 2033.
A capsule hotel is a type of accommodation that originated in Japan. It consists of small, individual sleeping compartments known as capsules. These capsules are typically stacked side by side and on top of each other, resembling a honeycomb or beehive structure. Each capsule usually contains a bed, lighting, and sometimes a small television or other amenities. However, the space is very compact, often only allowing enough room for a person to lie down comfortably. Capsule hotels are designed to provide basic overnight accommodation at a lower cost compared to traditional hotel rooms.
The surge in a number of airports and train stations in developing countries such as India, Brazil, Africa, and others is expected to offer immense opportunities for the growth of the capsule hotels market during the forecast period. For instance, according to the India Brand Equity Foundation (IBEF), India has experienced an increase in a number of operational airports to 190-200 by the financial year 2040. This in turn is projected to boost the availability of capsule hotels in the upcoming years.
Moreover, the Indian Railway Catering Tourism Corporation Limited (IRCTC) has recently announced to launch of the first capsule hotel at the Mumbai Central Station. Thus, these novel capsule hotels are expected to gain significant traction in emerging economies such as India, Brazil, and other developing countries during the forecast period contributing toward the growth of the capsule hotel market in the future.
Capsule hotels are still in nascent stages in developed regions of North America and Europe such as Mexico, the UK, Italy, Germany, Canada, and others. These are still untapped potential markets for the key players as these regions have a large number of tourists, which presents a remunerative opportunity for the increased demand for capsule hotels. Moreover, there is an increase in awareness regarding capsule hotels among travelers, which is expected to provide lucrative opportunities for market growth during the forecast years.
Urbanization and overcrowding are significant drivers fueling the growth of the capsule hotel market. As cities become increasingly populated and urban spaces grow more congested, traditional hotel accommodations may become prohibitively expensive or simply unavailable. In response to this challenge, capsule hotels offer a space-efficient solution by maximizing the use of limited urban real estate. Their compact design allows them to be strategically located in prime urban areas, including bustling city centers and transportation hubs, providing convenient access for travelers in need of short-term accommodation.
Moreover, the rise of urbanization has led to an influx of transient travelers, including business professionals, tourists, and commuters, seeking affordable and convenient lodging options. Capsule hotels cater to this growing demand by offering cost-effective accommodations without compromising on comfort or accessibility. By leveraging innovative design and technology, capsule hotels optimize space utilization while providing essential amenities, making them an attractive choice for travelers navigating densely populated urban environments. In essence, the symbiotic relationship between urbanization and the capsule hotel market drives innovation and expansion, meeting the evolving needs of modern travelers in crowded urban landscapes.
Innovative design and technology play a pivotal role in driving the growth of the capsule hotel market by enhancing guest experiences and attracting a diverse range of travelers. Capsule hotels leverage cutting-edge design principles to maximize the efficient use of space, creating compact yet comfortable accommodations that appeal to urban dwellers and budget-conscious travelers. By incorporating sleek and futuristic designs, capsule hotels cultivate a unique and visually appealing environment that sets them apart from traditional lodging options.
Moreover, technology integration within capsule hotels enhances convenience and personalization for guests. Features such as smart lighting, integrated entertainment systems, and automated check-in processes streamline the guest experience, offering seamless access to amenities and services. This tech-driven approach not only caters to the preferences of tech-savvy travelers but also improves operational efficiency for hotel management. As travelers increasingly prioritize convenience, connectivity, and immersive experiences, capsule hotels that embrace innovative design and technology are well-positioned to capture market share and sustain growth in the competitive hospitality industry.
Technology integration offers significant opportunities for the capsule hotel market by enhancing guest experiences, streamlining operations, and staying competitive in a digitally driven hospitality landscape. Implementing advanced technologies such as mobile check-in/out systems, keyless entry, and in-room automation not only improves operational efficiency but also provides guests with a seamless and convenient stay. These innovations reduce wait times, eliminate the need for physical keys, and empower guests to control their room environment, enhancing overall satisfaction and loyalty.
Moreover, technology integration opens avenues for personalization and customization in capsule hotels. By leveraging data analytics and guest preferences, hotels can offer tailored recommendations, amenities, and services, creating unique and memorable experiences for guests. From curated local experiences to personalized room settings, technology enables hotels to anticipate and meet the individual needs and preferences of guests, fostering stronger connections and driving repeat business. Additionally, technology-driven features such as virtual concierge services and interactive platforms enhance communication and engagement, allowing guests to easily access information, make requests, and provide feedback, further elevating the guest experience and setting capsule hotels apart in a competitive market.
The capsule hotel market analysis 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. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, Spain, the UK, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Thailand, Indonesia, and rest of Asia-Pacific), Latin America (Brazil, Argentina, and rest of Latin America), and Middle East and Africa (South Africa, Saudi Arabia, UAE, and rest of MEA).
The players in the capsule hotel market have adopted acquisition, business expansion, partnership, collaboration, and product launch as their key development strategies to increase profitability and improve their position in the capsule hotel market.
Some of the key players profiled in the capsule hotel market analysis 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.
A capsule hotel is a type of accommodation that originated in Japan. It consists of small, individual sleeping compartments known as capsules. These capsules are typically stacked side by side and on top of each other, resembling a honeycomb or beehive structure. Each capsule usually contains a bed, lighting, and sometimes a small television or other amenities. However, the space is very compact, often only allowing enough room for a person to lie down comfortably. Capsule hotels are designed to provide basic overnight accommodation at a lower cost compared to traditional hotel rooms.
The surge in a number of airports and train stations in developing countries such as India, Brazil, Africa, and others is expected to offer immense opportunities for the growth of the capsule hotels market during the forecast period. For instance, according to the India Brand Equity Foundation (IBEF), India has experienced an increase in a number of operational airports to 190-200 by the financial year 2040. This in turn is projected to boost the availability of capsule hotels in the upcoming years.
Moreover, the Indian Railway Catering Tourism Corporation Limited (IRCTC) has recently announced to launch of the first capsule hotel at the Mumbai Central Station. Thus, these novel capsule hotels are expected to gain significant traction in emerging economies such as India, Brazil, and other developing countries during the forecast period contributing toward the growth of the capsule hotel market in the future.
Capsule hotels are still in nascent stages in developed regions of North America and Europe such as Mexico, the UK, Italy, Germany, Canada, and others. These are still untapped potential markets for the key players as these regions have a large number of tourists, which presents a remunerative opportunity for the increased demand for capsule hotels. Moreover, there is an increase in awareness regarding capsule hotels among travelers, which is expected to provide lucrative opportunities for market growth during the forecast years.
Urbanization and overcrowding are significant drivers fueling the growth of the capsule hotel market. As cities become increasingly populated and urban spaces grow more congested, traditional hotel accommodations may become prohibitively expensive or simply unavailable. In response to this challenge, capsule hotels offer a space-efficient solution by maximizing the use of limited urban real estate. Their compact design allows them to be strategically located in prime urban areas, including bustling city centers and transportation hubs, providing convenient access for travelers in need of short-term accommodation.
Moreover, the rise of urbanization has led to an influx of transient travelers, including business professionals, tourists, and commuters, seeking affordable and convenient lodging options. Capsule hotels cater to this growing demand by offering cost-effective accommodations without compromising on comfort or accessibility. By leveraging innovative design and technology, capsule hotels optimize space utilization while providing essential amenities, making them an attractive choice for travelers navigating densely populated urban environments. In essence, the symbiotic relationship between urbanization and the capsule hotel market drives innovation and expansion, meeting the evolving needs of modern travelers in crowded urban landscapes.
Innovative design and technology play a pivotal role in driving the growth of the capsule hotel market by enhancing guest experiences and attracting a diverse range of travelers. Capsule hotels leverage cutting-edge design principles to maximize the efficient use of space, creating compact yet comfortable accommodations that appeal to urban dwellers and budget-conscious travelers. By incorporating sleek and futuristic designs, capsule hotels cultivate a unique and visually appealing environment that sets them apart from traditional lodging options.
Moreover, technology integration within capsule hotels enhances convenience and personalization for guests. Features such as smart lighting, integrated entertainment systems, and automated check-in processes streamline the guest experience, offering seamless access to amenities and services. This tech-driven approach not only caters to the preferences of tech-savvy travelers but also improves operational efficiency for hotel management. As travelers increasingly prioritize convenience, connectivity, and immersive experiences, capsule hotels that embrace innovative design and technology are well-positioned to capture market share and sustain growth in the competitive hospitality industry.
Technology integration offers significant opportunities for the capsule hotel market by enhancing guest experiences, streamlining operations, and staying competitive in a digitally driven hospitality landscape. Implementing advanced technologies such as mobile check-in/out systems, keyless entry, and in-room automation not only improves operational efficiency but also provides guests with a seamless and convenient stay. These innovations reduce wait times, eliminate the need for physical keys, and empower guests to control their room environment, enhancing overall satisfaction and loyalty.
Moreover, technology integration opens avenues for personalization and customization in capsule hotels. By leveraging data analytics and guest preferences, hotels can offer tailored recommendations, amenities, and services, creating unique and memorable experiences for guests. From curated local experiences to personalized room settings, technology enables hotels to anticipate and meet the individual needs and preferences of guests, fostering stronger connections and driving repeat business. Additionally, technology-driven features such as virtual concierge services and interactive platforms enhance communication and engagement, allowing guests to easily access information, make requests, and provide feedback, further elevating the guest experience and setting capsule hotels apart in a competitive market.
The capsule hotel market analysis 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. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, Spain, the UK, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Thailand, Indonesia, and rest of Asia-Pacific), Latin America (Brazil, Argentina, and rest of Latin America), and Middle East and Africa (South Africa, Saudi Arabia, UAE, and rest of MEA).
The players in the capsule hotel market have adopted acquisition, business expansion, partnership, collaboration, and product launch as their key development strategies to increase profitability and improve their position in the capsule hotel market.
Some of the key players profiled in the capsule hotel market analysis 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.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the capsule hotel market analysis from 2023 to 2033 to identify the prevailing capsule hotel market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the capsule hotel market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global capsule hotel market trends, key players, market segments, application areas, and market growth strategies.
Additional benefits you will get with this purchase are:
- Quarterly Update and* (only available with a corporate license, on listed price)
- 5 additional Company Profile of client Choice pre- or Post-purchase, as a free update.
- Free Upcoming Version on the Purchase of Five and Enterprise User License.
- 16 analyst hours of support* (post-purchase, if you find additional data requirements upon review of the report, you may receive support amounting to 16 analyst hours to solve questions, and post-sale queries)
- 15% Free Customization* (in case the scope or segment of the report does not match your requirements, 15% is equivalent to 3 working days of free work, applicable once)
- Free data Pack on the Five and Enterprise User License. (Excel version of the report)
- Free Updated report if the report is 6-12 months old or older.
- 24-hour priority response*
- Free Industry updates and white papers.
Possible Customization with this report (with additional cost and timeline, please talk to the sales executive to know more)
- Additional company profiles with specific to client's interest
- Additional country or region analysis- market size and forecast
- Brands Share Analysis
- Criss-cross segment analysis- market size and forecast
- Expanded list for Company Profiles
- Historic market data
- Key player details (including location, contact details, supplier/vendor network etc. in excel format)
Key Market Segments
By Traveler Type
- Solo
- Group
By Age Group
- Generation X
- Generation Y
- Generation Z
By Booking Mode
- Online Booking
- Offline Booking
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- Italy
- Rest of Europe
- Asia-Pacific
- Japan
- China
- Australia
- Asean
- Rest of Asia-Pacific
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East and Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of Middle East And Africa
Key Market Players
- 9h Ninehours
- Book & Bed Tokyo
- CAPSULE HOTEL ‘DARAKHYU’ T1
- First Cabin HD Co., Ltd.
- Hippo Pod
- Nadeshiko Hotel Shibuya
- Pangea pod hotel
- Riccarton Capsule Hotel
- The Bed KLCC
- The Bedstee Hotel
Please note:
- Online Access price format is valid for 60 days access. Printing is not enabled.
- PDF Single and Enterprise price formats enable printing.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CAPSULE HOTEL MARKET, BY TRAVELER TYPE
CHAPTER 5: CAPSULE HOTEL MARKET, BY BOOKING MODE
CHAPTER 6: CAPSULE HOTEL MARKET, BY AGE GROUP
CHAPTER 7: CAPSULE HOTEL MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- 9h Ninehours
- Book & Bed Tokyo
- CAPSULE HOTEL ‘DARAKHYU’ T1
- First Cabin HD Co., Ltd.
- Hippo Pod
- Nadeshiko Hotel Shibuya
- Pangea pod hotel
- Riccarton Capsule Hotel
- The Bed KLCC
- The Bedstee Hotel
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
LOADING...
