Market Overview:

The Global Capsule Hotels Market size is expected to grow from USD 258.40 million in 2022 to USD 496.28 million by 2030, at a CAGR of 8.5 % during the forecast period (2023-2030).

The Capsule hotels market has experienced significant growth in recent years and is anticipated to continue this upward trajectory throughout the forecast period. Originating in Japan in 1979, Capsule hotels are characterized by their compact box-style accommodations. These hotels are designed to offer convenient and cost-effective lodging options to travelers who prioritize basic overnight stays over the more elaborate amenities provided by traditional hotels.

In contrast to luxury accommodations, many travelers opt for hotels that offer fundamental amenities, and this preference is expected to drive the global Capsule hotels industry. Tokyo, in particular, has witnessed the popularity of capsule hotels due to its high property costs and limited available space.

Top Key Players in the Capsule Hotels Market:

The Prime Pod Ginza Tokyo, Shinjuku Kuyakusho-mae Capsule Hotels, ENAKA Asakusa Central Hostel, Nihonbashi Muormachi Bay Hotel, Tokyo Ginza Bay Hotel, Oak Hostel Fuji, and Other Major Players.

Market Dynamics and Factors for Capsule Hotels Market:

Drivers:

An Increasing Consumer Preference for Hygiene, Comfort, And Budget-Friendly Accommodation While Traveling

The Capsule Hotels Market is experiencing significant growth, and this upward trajectory is being driven by an increasing consumer preference for hygiene, comfort, and budget-friendly accommodation while traveling.

In light of global health concerns, travelers are placing a premium on hygiene and safety. Capsule hotels are designed with individualized sleeping spaces that inherently promote physical distancing. This feature reassures travelers about their safety during their stay. Budget considerations remain a top priority for many travelers. Capsule hotels offer a cost-effective alternative to traditional hotel rooms, allowing travelers to save on accommodation expenses while still enjoying essential amenities.

Opportunities:

Implementation of Luxurious Amenities for Enhancing Customer Experience

The Capsule Hotels Market has a compelling opportunity for growth through the strategic implementation of luxurious amenities aimed at enhancing the customer experience. While capsule hotels are traditionally associated with compact and budget-friendly accommodations, there is a growing trend towards elevating these offerings to cater to a broader range of travelers.

By introducing luxurious amenities such as premium bedding, high-end toiletries, and personalized service options, capsule hotels can appeal to a more diverse customer base. This includes travelers who seek a blend of affordability and indulgence during their stays.

Segmentation Analysis of the Capsule Hotels Market:

By Booking Mode, the Offline Booking segment is expected to dominate the market. Offline booking methods, such as booking through travel agencies, directly at the hotel front desk, or via phone reservations, have been well-established for many years.

By Age Group, Millennials are likely to dominate in this area. Millennials, often referred to as digital natives, have grown up in an era where technology is an integral part of daily life. They are comfortable using digital platforms and online tools for various activities, including travel booking.

Regional Analysis of the Capsule Hotels Market:

Asia-Pacific is expected to dominate the market during the forecast period. Asia-Pacific is home to a significant portion of the world's population, including emerging economies like China and India. The region's robust economic growth, urbanization, and rising middle-class population have fueled increased consumer spending and demand across various markets.

The sheer size of the Asia-Pacific market, both in terms of population and GDP, makes it an attractive destination for businesses across industries. This vast market offers substantial growth potential for companies seeking to expand their presence.

Key Industry Development:

In February 2022, a New capsule hotel was launched at Zurich Airport. A brand-new hotel has opened in Zurich Airport, with an emphasis on being small and compact. The brand-new capsule hotel is available to travelers who want a small pod to call home while staying at the airport.

In September 2021, Louvre Hotels Group launched Hosho, its new capsule hostel brand aimed at families and groups. The first property is located in the south of Paris with 246 beds spread over 39 rooms with private showers and separate toilets. acquisition, SmartBear will be able to take full advantage of automation to deliver higher-quality software faster.

Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)

North America

• The U.S.
• Canada
• Mexico

Eastern Europe

• Russia
• Bulgaria
• The Czech Republic
• Hungary
• Poland
• Romania
• Rest of Eastern Europe

Western Europe

• Germany
• UK
• France
• Netherlands
• Italy
• Spain
• Rest of Western Europe

Asia Pacific

• China
• India
• Japan
• Singapore
• Australia
• New-Zealand
• Rest of APAC

Middle East & Africa

• Turkey
• Saudi Arabia
• Qatar
• UAE
• Israel
• South Africa

South America

• Brazil
• Argentina
• Rest of SA