Capsule Hotel Market

Global Capsule Hotel Market Size, Share & Trends Analysis Report By Booking Mode (Offline Booking and Online Booking), By Age Group (Generation Y, Generation Z, and Generation X), By Traveler Type, By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-23390 Publication Date: July-2024 Number of Pages: 200
USD 200.1 Million
USD 359.8 Million
Historical Data
2020 to 2022

Market Report Description

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 Hotel Market Size - Global Opportunities and Trends Analysis Report 2020-2031

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.

Driving and Restraining Factors
Capsule Hotel Market
  • Cost-effectiveness of capsule hotels
  • Increasing urbanization and population density
  • Increasing tourism and travel industry worldwide
  • Space and comfort limitations
  • Target audience limitations of capsule hotels
  • Airport and transit hub expansion
  • Medical tourism support
  • Lack of customization options
  • Seasonal and operational challenges

Booking Mode Outlook

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.

Age Group Outlook

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.

Capsule Hotel Market Share and Industry Analysis Report 2023

Traveler Type Outlook

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

Regional Outlook

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.

Capsule Hotel Market Report Coverage
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
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Netherlands, and Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Australia, Singapore, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
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
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List of Key Companies Profiled

  • The Bed KLCC
  • Riccarton Capsule Hotel
  • De Bedstee Capsules Hotel B.V.
  • nine hours Inc.
  • Book & Bed Tokyo (Atelier Book and Bed Co., Ltd.)
  • The Capsule Hotel

Capsule Hotel Market Report Segmentation

By Booking Mode

  • Offline Booking
  • Online Booking

By Age Group

  • Generation Y
  • Generation Z
  • Generation X

By Traveler Type

  • Solo
  • Group

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Netherlands
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Australia
    • Rest of Asia Pacific
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA


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