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Capsule Hotels Market By Type (Solo and Group), By Booking Mode (Online Booking, Offline Booking) By Age Group (Generation X, Generation Y, Generation Z) – Growth, Future Prospects, and Competitive Landscape, 2016 – 2028

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Capsule Hotels Market Overview

Trendy, upmarket luxury capsule hotels and airport capsules are two new trends in the capsule hotel sector. The first is aimed at the wealthy, business people, and foreign nationals looking for a one-of-a-kind living experience. These are found in popular, upscale bar districts and are frequented by salaried Japanese men who are unable or unwilling to return home after a night of drunken revelry.  They are given overnight accommodations because it is significantly more convenient to stay in these hotels rather than take a train to their homes, which are normally located on the outskirts of the city.

The second caters to business clients and jet-setters who go from one country to another for board meetings in various locations. They are positioned near airports and offer low-cost accommodations with convenient access to both the airport and the city, meeting their clients’ key needs. Airport capsule hotels, in particular, have been accepted by a number of countries due to their cross-cultural Booking Mode.

capsule-hotels-market

What is the Market Size of Capsule Hotels Market in terms of value?

Global Capsule Hotels Market is projected to increase at a significant CAGR of 7.9 % in the coming years. In 2021, the global Capsule Hotels Market was valued at USD 239.4million and is projected to reach at value of USD 377.7 million by 2028. The annual demand for Capsule Hotels is projected to increase substantially in the coming years and is presumed to generate revenue opportunities for the key industry players that worth USD 168.24 million during the forecast period between 2022 and 2028.

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Online travel booking makes travel planning and booking easier for travelers. Quick and fast flight and hotel bookings, increased customer trust in online payment, and the ability to evaluate multiple accessible travel alternatives are driving the online travel business. The increasing penetration of internet service is the primary driver of the market for online booking options. Furthermore, numerous capsule hotels have created Booking Modes that offer online booking. These factors are propelling the market for online booking. Customers are adopting new payment options as the popularity of online travel booking platforms grows.Social media serves as a platform for online travel service providers to advertise their services and special offers for online reservations, contributing to the growth of online booking during the forecast period.

Interesting Facts about Capsule Hotels Industry

  • The global expansion of the travel and tourist business, as well as the choice for a cost-effective living while traveling, drive the demand for capsule hotels among travelers.
  • Increased unrest in countries as a result of terrorism and other issues has posed a hindrance to the growth of the capsule hotel sector.
  • The expansion of the capsule hotel business has slowed as a result of the coronavirus pandemic, which has resulted in the closure of airports and train stations due to the lockdown enforced by governments in several nations.
  • The Asia Pacific regional market is expected to generate the highest growth in revenue during the predicted duration. This region’s market is growing mostly because it claims the most capsule hotels in the globe.
  • The solo sub-segment is expected to increase significantly, during the forecast period. The increase in this sub-segment is primarily due to the growing tendency of solo travel among young people.

Who are the Top 10 players/companies in the Capsule Hotels Market in term of value?

The key players in the global Capsule Hotels Market in terms of value and volume include The Capsule HotelFirst Cabin HD Co., Ltd., UZ. Hotels, Book & Bed Tokyo, Urbanpod Hotel, The CUBE Hotel Group, Riccarton Capsule Hotel, Nadeshiko Hotel Shibuya, The Bed KLCC, and Pangea pod hotel. These key players are concentrating on new product developments as well as technological innovation to enhance their production of Capsule Hotels to gain competitive market share at a global level. Moreover, some regional and country-level players are also investing heavily to expand their product portfolio and enhance their sales. For instance, in 2021, Indian Railway inaugurated its first pod hotel in Mumbai. The facility will contain a total of 48 Pods, divided into three categories: 30 Classic Pods, 7 Ladies Only Pods, and 10 Private Pods.

Who are the Top 10 Countries in the Capsule Hotels Market?

In the global Capsule Hotels Market, the major countries are US, Canada, UK, Germany, Italy, Switzerland Japan, China, Australia, and Singapore. Japan held a 73.0 percent market share in the Asia-Pacific capsule hotel market in 2020. Japan created the concept of capsule hotels, and it is now the largest global sector. The first capsule hotel opened in Japan in 1979, when New Japan launched Capsule Inn Osaka in the city’s Umeda area. They are now commonly found near major train terminals in major cities and cater to people searching for a low-cost, one-night stay. With changing lifestyles, psychographics, and life ambitions, the middle-class population desires abroad travel. Thus driving the growth of the market in the nation.

Which Age Group Will Acquired the Largest Market Share?

In the forecast period, the generation Y category will hold the largest market share in the global market. This generation mostly prefers economic accommodations, which has fueled the expansion of the capsule hotel business. The growing use of the internet and social media influence in this generation along with the use of mobile phones will propel the growth of the market through online bookings. The people in the generation Y category are well settled with a steady source of income, hence will opt for a technological advance pod. Additionally, the increase in the number of solo travels among generation Y and their behavior to explore more places will boost the growth of the market in the approaching years. However, the generation Z group is expected to rise significantly over the capsule hotel market prediction period because this generation wants to travel and see the world. The unavailability of a steady source of income and their dependence on their parents will, however, restrict the growth of this particular segment.

What are the Major Driving Factors for Capsule Hotels Market?

Increasing per capita income is propelling the global tourism business forward, resulting in a continual expansion in international tourism, thus driving the demand for capsule hotels. The rising consumer spending power, as well as the execution of different government efforts to promote travel and tourism, are expected to propel the market forward. Technological improvements, such as the integration of smartphone apps to access personal capsules and smart pods, are propelling market expansion. In accordance with this, the use of artificial intelligence (AI) in capsule hotels to monitor health and predict guest food preferences is positively influencing the market growth.

What are the Major Restraints for Capsule Hotels Market?

Mid-priced hotels have benefited from increased leisure travel and the rising disposable income of the middle-class population. Domestic and international travelers are increasing the demand for low-cost hotels in India, Japan, Thailand, and China. As the demand for mid-priced hotels grows, more multinational companies are joining the market. This factor is estimated to hamper the growth of the market in the coming years. In addition, increased unrest in countries due to terrorism and other factors has hampered the expansion of the capsule hotel sector.

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Which Region Dominated the World Capsule Hotels Market?

In the forecast period, Asia-Pacific will account for the largest market share, owing to an increase in the number of tourists combined with an increase in the spending power of nations such as India, China, and Japan. Increased demand for hotels at reasonable prices is expected to drive the growth of the capsule hotel market over the forecast period. Rising disposable income, weekend culture popularisation, the introduction of low-cost flight services, and robust service industry are all expected to push the regional market forward. Additionally, rising earnings in developing economies such as India, China, and Thailand are predicted to boost the tourism industry, helping the entire industry.

Europe is a lucrative market for capsule hotels, and it is likely to grow at a rapid pace over the forecast period. The expansion in the number of capsule hotels in the United Kingdom, the Netherlands, and Germany will drive the spike. Europe is the world leader in international tourism, with over 700 million inbound tourists visiting each year. Furthermore, a growing number of tourists looking for low-cost accommodations is predicted to increase the market for capsule hotels in Europe. The hosting of sporting events by a city or country is another important factor driving the demand for capsule hotels. Germany saw the most investment in the capsule hotel market. Domestic tourism accounts for approximately 75-80% of total tourism in Germany making it relatively reliable and affordable. Every German hotel market has increased by more than 3% each year, with some even faster. This factor will propel the growth of the market in the nation.

Segmentation of Global Capsule Hotels Market –

Capsule Hotels Market – By Traveler Type

  • Solo
  • Group

Capsule Hotels Market – By Booking Mode

  • Online Booking
  • Offline Booking

Capsule Hotels Market – By Age Group

  • Generation X
  • Generation Y
  • Generation Z

1. Preface
1.1. Report Description
1.1.1. Purpose of the Report
1.1.2. Target Audience
1.1.3. USP and Key Offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1. Phase I – Secondary Research
1.3.2. Phase II – Primary Research
1.3.3. Phase III – Expert Panel Review
1.3.4. Approach Adopted
1.3.4.1. Top-Down Approach
1.3.4.2. Bottom-Up Approach
1.3.5. Assumptions
1.4. Market Segmentation

2. Executive Summary
2.1. Market Snapshot: Global Capsule Hotels Market

3. Market Dynamics & Factors Analysis
3.1. Introduction
3.1.1. Global Capsule Hotels Market Value, 2016-2028, (US$ Bn)
3.2. Market Dynamics
3.2.1. Key Growth Trends
3.2.2. Major Industry Challenges
3.2.3. Key Growth Pockets
3.3. Attractive Investment Proposition,2021
3.3.1. Traveller Type
3.3.2. Booking Mode
3.3.3. Age Group
3.3.4. Geography
3.4. Porter’s Five Forces Analysis
3.4.1. Threat of New Entrants
3.4.2. Bargaining Power of Buyers/Consumers
3.4.3. Bargaining Power of Suppliers
3.4.4. Threat of Substitute Types
3.4.5. Intensity of Competitive Rivalry
3.5. Value Chain Analysis

4. Market Positioning of Key Players, 2021
4.1. Company market share of key players, 2021
4.2. Top 6 Players
4.3. Top 3 Players
4.4. Major Strategies Adopted by Key Players

5. COVID 19 Impact Analysis
5.1. Global Capsule Hotels Market Pre Vs Post COVID 19, 2019 – 2028
5.2. Impact on Import & Export
5.3. Impact on Demand & Supply

6. North America
6.1. North America Capsule Hotels Market, by Country, 2016-2028(US$ Bn)
6.1.1. U.S.
6.1.2. Canada
6.1.3. Mexico
6.2. North America Capsule Hotels Market, by Traveller Type, 2016-2028(US$ Bn)
6.2.1. Overview
6.2.2. Solo
6.2.3. Group
6.3. North America Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
6.3.1. Overview
6.3.2. Online Booking
6.3.3. Offline Booking
6.4. North America Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
6.4.1. Overview
6.4.2. Generation X
6.4.3. Generation Y
6.4.4. Generation Z

7. Europe
7.1. Europe Capsule Hotels Market, by Country, 2016-2028(US$ Bn)
7.1.1. UK
7.1.2. France
7.1.3. Germany
7.1.4. Italy
7.1.5. Russia
7.1.6. Ukraine
7.1.7. Spain
7.1.8. Belgium
7.1.9. Netherland
7.1.10. Austria
7.1.11. Sweden
7.1.12. Poland
7.1.13. Denmark
7.1.14. Switzerland
7.1.15. Rest of Europe
7.2. Europe Capsule Hotels Market, by Traveller Type, 2016-2028(US$ Bn)
7.2.1. Overview
7.2.2. Solo
7.2.3. Group
7.3. Europe Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
7.3.1. Overview
7.3.2. Online Booking
7.3.3. Offline Booking
7.4. Europe Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
7.4.1. Overview
7.4.2. Generation X
7.4.3. Generation Y
7.4.4. Generation Z

8. Asia Pacific
8.1. Asia Pacific Capsule Hotels Market, by Country, 2016-2028(US$ Bn)
8.1.1. China
8.1.2. Japan
8.1.3. South Korea
8.1.4. India
8.1.5. Australia
8.1.6. New Zealand
8.1.7. Taiwan
8.1.8. Indonesia
8.1.9. Malaysia
8.1.10. Philippine
8.1.11. Rest of Asia Pacific
8.2. Asia Pacific Capsule Hotels Market, by Traveller Type, 2016-2028(US$ Bn)
8.2.1. Overview
8.2.2. Solo
8.2.3. Group
8.3. Asia Pacific Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
8.3.1. Overview
8.3.2. Online Booking
8.3.3. Offline Booking
8.4. Asia Pacific Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
8.4.1. Overview
8.4.2. Generation X
8.4.3. Generation Y
8.4.4. Generation Z

9. Latin America
9.1. Latin America Capsule Hotels Market, by Country, 2016-2028(US$ Bn)
9.1.1. Brazil
9.1.2. Argentina
9.1.3. Peru
9.1.4. Chile
9.1.5. Colombia
9.1.6. Rest of Latin America
9.2. Latin America Capsule Hotels Market, by Traveller Type, 2016-2028(US$ Bn)
9.2.1. Overview
9.2.2. Solo
9.2.3. Group
9.3. Latin America Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
9.3.1. Overview
9.3.2. Online Booking
9.3.3. Offline Booking
9.4. Latin America Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
9.4.1. Overview
9.4.2. Generation X
9.4.3. Generation Y
9.4.4. Generation Z

10. Middle East
10.1. Middle East Capsule Hotels Market, by Country, 2016-2028(US$ Bn)
10.1.1. UAE
10.1.2.
10.1.3. KSA
10.1.4. Israel
10.1.5. Turkey
10.1.6. Iran
10.1.7. Rest of Middle East
10.2. Middle East Capsule Hotels Market, by Traveller Type, 2016-2028(US$ Bn)
10.2.1. Overview
10.2.2. Solo
10.2.3. Group
10.3. Middle East Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
10.3.1. Overview
10.3.2. Online Booking
10.3.3. Offline Booking
10.4. Middle East Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
10.4.1. Overview
10.4.2. Generation X
10.4.3. Generation Y
10.4.4. Generation Z

11. Africa
11.1. Africa Capsule Hotels Market, by Country, 2016-2028(US$ Bn)
11.1.1. South Africa
11.1.2. Egypt
11.1.3. Nigeria
11.1.4. Rest of Africa
11.2. Africa Capsule Hotels Market, by Traveller Type, 2016-2028(US$ Bn)
11.2.1. Overview
11.2.2. Solo
11.2.3. Group
11.3. Africa Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
11.3.1. Overview
11.3.2. Online Booking
11.3.3. Offline Booking
11.4. Africa Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
11.4.1. Overview
11.4.2. Generation X
11.4.3. Generation Y
11.4.4. Generation Z

12. Global
12.1. Global Capsule Hotels Market, by Traveller Type, 2016-2028(US$ Bn)
12.1.1. Overview
12.1.2. Solo
12.1.3. Group
12.2. Global Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
12.2.1. Overview
12.2.2. Online Booking
12.2.3. Offline Booking
12.3. Global Capsule Hotels Market, by Booking Mode, 2016-2028(US$ Bn)
12.3.1. Overview
12.3.2. Generation X
12.3.3. Generation Y
12.3.4. Generation Z

13. Company Profiles
13.1. Capsule Hotel
13.2. First Cabin HD Co., Ltd.
13.3. UZ. Hotels
13.4. Book & Bed Tokyo
13.5. Urbanpod Hotel
13.6. The CUBE Hotel Group
13.7. Riccarton Capsule Hotel
13.8. Nadeshiko Hotel Shibuya
13.9. The Bed KLCC
13.10. Pangea pod hotel
13.11. Others

List of Figures

List of Figures
FIG. 1 Global Capsule Hotels Market: Research Methodology
FIG. 2 Market Size Estimation – Top Down & Bottom up Approach
FIG. 3 Global Capsule Hotels Market Segmentation
FIG. 4 Global Capsule Hotels Market, by Type, 2019 (US$ Bn)
FIG. 5 Global Capsule Hotels Market, by Booking Mode, 2021 (US$ Bn)
FIG. 6 Global Capsule Hotels Market, by Geography, 2021 (US$ Bn)
FIG. 7 Attractive Investment Proposition, by Geography, 2021
FIG. 8 Global Market Positioning of Key Capsule Hotels Market Manufacturers, 2019
FIG. 9 Global Capsule Hotels Market Value Contribution, By Traveller Type, 2021 & 2028 (Value %)
FIG. 10 Global Capsule Hotels Market, by Solo, Value, 2016-2028 (US$ Bn)
FIG. 11 Global Capsule Hotels Market, by Group, Value, 2016-2028 (US$ Bn)
FIG. 12 Global Capsule Hotels Market Value Contribution, By Booking Mode, 2021 & 2028 (Value %)
FIG. 13 Global Capsule Hotels Market, by Online Booking, Value, 2016-2028 (US$ Bn)
FIG. 14 Global Capsule Hotels Market, by Offline Booking, Value, 2016-2028 (US$ Bn)
FIG. 15 Global Capsule Hotels Market Value Contribution, By Age Group, 2021 & 2028 (Value %)
FIG. 16 Global Capsule Hotels Market, by Generation X, Value, 2016-2028 (US$ Bn)
FIG. 17 Global Capsule Hotels Market, by Generation Y, Value, 2016-2028 (US$ Bn)
FIG. 18 Global Capsule Hotels Market, by Generation Z, Value, 2016-2028 (US$ Bn)
FIG. 19 U.S. Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 20 Rest of North America Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 21 U.K. Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 22 Germany Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 23 France Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 24 Italy Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 25 Spain Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 26 Russia Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 27 BENELUX Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 28 Poland Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 29 Austria Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 30 Rest of Europe Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 31 Japan Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 32 China Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 33 India Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 34 South Korea Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 35 Australia Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 36 Southeast Asia Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 37 Rest of Asia Pacific Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 38 Middle East & Africa Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 39 South Africa Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 40 Nigeria Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 41 Egypt Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 42 GCC Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 43 Israel Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 44 Latin America Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 45 Mechanicalzil Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 46 Argentina Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 47 Colombia Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 48 Peru Capsule Hotels Market, 2016-2028 (US$ Bn)
FIG. 49 Chile Capsule Hotels Market, 2016-2028 (US$ Bn)

List of Tables

List of Tables
TABLE 1 Market Snapshot: Global Beauty Devices (Capsule Hotels) Market
TABLE 2 Global Capsule Hotels Market, by Type, 2016-2028 (US$ Bn)
TABLE 3 Global Capsule Hotels Market, by Booking Mode, 2016-2028 (US$ Bn)
TABLE 4 Global Capsule Hotels Market, by Geography, 2016-2028 (US$ Bn)
TABLE 5 North America Capsule Hotels Market, by Type, 2016-2028 (US$ Bn)
TABLE 6 North America Capsule Hotels Market, by Booking Mode, 2016-2028 (US$ Bn)
TABLE 7 North America Capsule Hotels Market, by Country, 2016-2028 (US$ Bn)
TABLE 8 Europe Capsule Hotels Market, by Type, 2016-2028 (US$ Bn)
TABLE 9 Europe Capsule Hotels Market, by Booking Mode, 2016-2028 (US$ Bn)
TABLE 10 Europe Capsule Hotels Market, by Country/Region, 2016-2028 (US$ Bn)
TABLE 11 Asia Pacific Capsule Hotels Market, by Type, 2016-2028 (US$ Bn)
TABLE 12 Asia Pacific Capsule Hotels Market, by Booking Mode, 2016-2028 (US$ Bn)
TABLE 13 Asia Pacific Capsule Hotels Market, by Country/Region, 2016-2028 (US$ Bn)
TABLE 14 Latin America Capsule Hotels Market, by Type, 2016-2028 (US$ Bn)
TABLE 15 Latin America Capsule Hotels Market, by Booking Mode, 2016-2028 (US$ Bn)
TABLE 16 Latin America Capsule Hotels Market, by Country/Region, 2016-2028 (US$ Bn)
TABLE 17 Middle East Capsule Hotels Market, by Type, 2016-2028 (US$ Bn)
TABLE 18 Middle East Capsule Hotels Market, by Booking Mode, 2016-2028 (US$ Bn)
TABLE 19 Middle East Capsule Hotels Market, by Country/Region, 2016-2028 (US$ Bn)
TABLE 20 Africa Capsule Hotels Market, by Type, 2016-2028 (US$ Bn)
TABLE 21 Africa Capsule Hotels Market, by Booking Mode, 2016-2028 (US$ Bn)
TABLE 22 Africa Capsule Hotels Market, by Country/Region, 2016-2028 (US$ Bn)

Frequently Asked Questions

How COVID-19 Impacted the global Capsule Hotels Market?

The novel coronavirus pandemic has had a global impact, with the capsule hotel industry being one of the hardest hit. Many countries enforced travel bans due to complete lockdowns and fears of coronavirus spread, impeding the expansion of the pod hotel sector. Japan is the world’s largest market for the capsule business. According to the official OYO blog published on April 29, 2020, visitors from China, who account for the majority of total tourists to Japan, have decreased by 98.5 percent. Thu

Which is the leading market for Capsule Hotels?

In the forecast period, Asia-Pacific will account for the largest market share, owing to an increase in the number of tourists combined with an increase in the spending power of nations such as India, China, and Japan.

What are the key drivers for the growth of the Capsule Hotels Market?

Significant expansion in the global travel and tourism business is producing a good picture for the market. The growing consumer choice for hygiene, comfort, cost-effective, and budget-friendly lodging while traveling is propelling the market forward.

Which is the major segment in Capsule Hotels Market by Age Group?

The generation Y category held the largest market share in the global market during the projection period. However, the generation Z sub-segment of the worldwide capsule hotel industry is expected to develop the fastest rate

Which is the major segment in Capsule Hotels Market by Traveler Type?

The solo segment is expected to occupy a major share of the global market.

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