Capsule Hotel Market Expected to Reach $276.2 Million by 2028—Allied Market Research
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Capsule Hotel Market
According to a new report published by Allied Market Research, titled, “
Capsule Hotel Market by Traveler Type, Booking Mode, and Age Group: Global 
Opportunity Analysis and Industry Forecast, 2022–2028,” The global capsule hotel 
market size was valued at $202.3 million in 2019, and is projected to reach $276.2 
million by 2028, registering a CAGR of 8.2% from 2022 to 2028. Capsule hotel is also 
known as sleeping cabins or pod hotels. It is a unique and novel type of 
accommodation that is budget friendly and is equipped with basic amenities, which 
include single or double bed, pillow, locker facility, alarm clock, charging socket, 
common washroom, and others.
The capsule hotel market industry is gaining traction across the world owing to the rise 
in demand for hotels available at cheaper rate. Moreover, surge in travel and tourism 
across the globe is further expected to boost the capsule hotel market demand. 
Furthermore, capsules hotels are also gaining popularity majorly in the Asian countries 
attributable to the rise in number of travelers and increase in the growth of hotels in 
the region. Additionally, Modern capsule hotels with facility like common space with 
free hot drinks and fast Wi-Fi and others are the current capsule hotel market trends.
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Capsule Hotel Market
The rise in trend of upmarket luxury capsule hotels and the increase in the availability 
of the capsule hotels at airports and train stations drive the demand for such hotels 
among the travelers. Businesspeople and foreign tourists seeking for a unique 
accommodation experience is another factor that further paves way for the growth of 
the capsule hotel market. Moreover, some capsule hotels are located very close to 
airports and offer inexpensive accommodation with easy connectivity options to both 
the airport and the city making it popular among the business people. Airport and 
train station capsule hotels are increasingly adopted by several countries such as India, 
Japan, U.S., and others which in turn is anticipated to offer a lucrative opportunity for 
the growth of the capsule hotel market in terms of value sales in the upcoming years.
The global capsule hotel market segment is categories 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. By 
region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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Capsule Hotel Market
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Frontrunners in the industry-
• 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.
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Capsule Hotel Market
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Key findings of the study 
• By traveler type, the solo segment accounted for the highest capsule hotel 
market share in 2019 and is expected to grow at a CAGR 8.7% from 2022 to 2028. 
• By booking mode, the offline booking mode segment garnered the highest share 
in 2019 and is estimated to grow at a CAGR of 8.1% during the forecast year. 
• By age group, the generation Y segment occupied the maximum share in the 
 market in 2019 and is anticipated to dominate the market during the forecast period. 
• By region, Asia-Pacific led the market, in terms of share, in 2019, and is likely 
to exhibit a CAGR of 7.4% during the forecast year. 
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Capsule Hotel Market
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Capsule Hotel Market
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