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Global Capsule Hotel Market to Reach US$ 274.18 Million by 2027, Catalyzed by Escalating Demand for Comfortable and Budget-Friendly Accommodations

Published on May 12, 2022

The latest report by IMARC Group, titled “Capsule Hotel Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the global capsule hotel market size reached US$ 78.41 Million in 2021. Capsule hotels, also known as pod hotels, are a type of unique accommodation facility with various compact bed-sized rooms or sleeping cabins known as capsules. These capsules are generally arranged in rows or double-stacked and furnished with basic amenities to provide a comfortable stay. They are equipped with a locker facility, single or double beds, charging sockets, Wi-Fi, alarm clock, air conditioning units, and common washrooms. Nowadays, they also offer large baths, luxurious lounges, saunas, theatre rooms, and spacious common areas. In recent years, capsule hotels have gained immense popularity among travelers as they are more cost-efficient than traditional business hotels and provide improved comfort, safety, privacy, and convenience.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Global Capsule Hotel Market Trends:

The escalating demand for convenient and budget-friendly accommodations coupled with the rising hygiene consciousness among individuals represents the primary factor driving the market growth. Additionally, with the expanding travel and tourism industry, capsule hotels are rapidly gaining traction among solo travelers and millennials for adventure, travel expeditions, and exploring the culture of destinations. In line with this, the increasing willingness of individuals to try out new accommodation options and enjoy immersive experiences has catalyzed the demand for capsule hotels. Furthermore, the leading players are integrating artificial intelligence (AI) in capsule hotels to monitor guest health and predict their food preferences. Along with this, various technological advancements, such as the incorporation of smartphone applications to access smart pods and personal capsules, have propelled the market growth. Besides this, the widespread adoption of soundless alarm systems that gradually raise sleeping guests into seated positions while brightening the ambient lights has positively influenced the market growth. Other factors, including the emerging trend of leisure and solo travel, increasing consumer disposable incomes, rising number of luxury capsule hotels, favorable government initiatives promoting travel and tourism, and availability of online booking options, are also creating a positive market outlook. Looking forward, IMARC Group expects the market value to reach US$ 274.18 Million by 2027, growing at a CAGR of 12.20% during the forecast period (2022-2027).

Market Summary:

  • Based on the traveler type, the market has been bifurcated into solo and group travelers. 
  • On the basis of the booking mode, the market has been classified as online and offline bookings.
  • The market has been segregated based on the age group into generation X, generation Y, and generation Z. 
  • Based on the application, the market has been divided into office workers, tourists, and others.
  • Region-wise, the market has been segmented into North America (the United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.   
  • The competitive landscape of the market has also been analyzed, with some of the key players being CubeHotelsGroup, De Bedstee Capsules Hotel B.V., Hippo Pod, inBox Capsule Hotel, Mayu Tokyo Woman, Nadeshiko Hotel, Pangea Pod Hotel, Riccarton Capsule Hotel, St Christopher’s Inns, The Bed KLCC, The Capsule Hotel, and Urban Pod Pvt Ltd.

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IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

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