Product Code: 27876
Global Capsule Hotel Market was valued at USD 259.70 million in 2024 and is expected to reach USD 430.34 million by 2030 with a CAGR of 8.84% during the forecast period. The global capsule hotel market is expanding due to increasing demand for affordable, space-efficient accommodations, especially among solo travelers and business professionals. Urbanization, rising tourism, and cost-effective lodging solutions fuel market growth. Technological advancements, such as automated check-ins and smart pods, enhance customer experience. The trend is driven by budget-conscious travelers, digital nomads, and short-stay guests. Sustainability initiatives, including eco-friendly materials and energy-efficient designs, are shaping the industry. Competition is intensifying as traditional hotels and startups innovate to attract modern travelers.
Market Overview |
Forecast Period | 2026-2030 |
Market Size 2024 | USD 259.70 Million |
Market Size 2030 | USD 430.34 Million |
CAGR 2025-2030 | 8.84% |
Fastest Growing Segment | Online |
Largest Market | North America |
Market Drivers
Rising Demand for Affordable and Space-Efficient Accommodation
The increasing cost of traditional hotel stays has fueled the demand for budget-friendly lodging options, particularly in urban centers and tourist destinations. Capsule hotels provide an economical solution by offering compact sleeping pods with essential amenities at lower prices than standard hotels. This affordability attracts budget-conscious travelers, including solo tourists, students, and digital nomads.
Additionally, the rising cost of real estate has made space optimization a priority, especially in densely populated cities. Capsule hotels maximize available space by utilizing modular, stackable sleeping units, allowing operators to accommodate more guests without requiring large properties. This space-efficient design also appeals to businesses looking to establish cost-effective hospitality ventures in prime locations.
Key Market Challenges
Intense Competition from Budget Hotels and Hostels
One of the biggest challenges capsule hotels face is the intense competition from budget hotels, hostels, and other low-cost accommodation providers. Many budget hotels and hostels offer similar price points while providing additional amenities such as private rooms, larger beds, and private bathrooms. Some budget hotels also offer free breakfast, 24/7 customer service, and flexible check-in options, making them a preferred choice for many travelers.
Hostels, in particular, pose a strong challenge due to their social atmosphere. Many backpackers and solo travelers prefer hostels for networking, shared activities, and group experiences, which capsule hotels typically lack. While capsule hotels offer privacy within compact pods, the limited social interaction can be a drawback for travelers seeking a communal experience.
Key Market Trends
Growing Focus on Sustainability and Eco-Friendly Design
As sustainability becomes a global priority, capsule hotels are adopting eco-friendly practices to minimize their environmental impact. Many operators are incorporating sustainable materials, energy-efficient lighting, and water-saving systems in their hotel designs.
Some capsule hotels use recycled and biodegradable materials for their pod structures, while others focus on reducing plastic waste by offering reusable toiletries and water dispensers instead of single-use plastic bottles. Additionally, solar panels, rainwater harvesting systems, and green rooftops are being integrated into capsule hotel designs to improve energy efficiency.
Consumers, especially millennial and Gen Z travelers, are increasingly prioritizing sustainability when choosing accommodations. Capsule hotels that emphasize eco-friendly initiatives can attract environmentally conscious guests while also reducing operational costs in the long run.
Key Market Players
- Nine Hours Inc.
- Atelier Book & Bed Co., Ltd.
- First Cabin HD Co., Ltd.
- The O Pod Hotel
- Tripadvisor LLC
- CityHub AMS Bellamy BV
- Bloc Hotel Operations Limited
- MGH Hospitality Pte Ltd.
- New Japan Tourism Co., Ltd.
- PT Bobobox Mitra Indonesia
Report Scope:
In this report, the global Capsule Hotel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Capsule Hotel Market, By Traveler Type:
Capsule Hotel Market, By Age Group:
- 18-24 Years
- 25-39 Years
- 40-54 Years
- 55+ Years
Capsule Hotel Market, By Booking Mode:
Capsule Hotel Market, By Region:
- North America
- United States
- Canada
- Mexico
- Europe
- France
- Germany
- Spain
- Italy
- United Kingdom
- Asia-Pacific
- China
- Japan
- India
- Vietnam
- South Korea
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Turkey
- Kuwait
- South America
- Brazil
- Argentina
- Colombia
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the global Capsule Hotel Market.
Available Customizations:
Global Capsule Hotel Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
Detailed analysis and profiling of additional market players (up to five).
Table of Contents
1. Introduction
- 1.1. Market Overview
- 1.2. Key Highlights of the Report
- 1.3. Market Coverage
- 1.4. Market Segments Covered
- 1.5. Research Tenure Considered
2. Research Methodology
- 2.1. Methodology Landscape
- 2.2. Objective of the Study
- 2.3. Baseline Methodology
- 2.4. Formulation of the Scope
- 2.5. Assumptions and Limitations
- 2.6. Sources of Research
- 2.7. Approach for the Market Study
- 2.8. Methodology Followed for Calculation of Market Size & Market Shares
- 2.9. Forecasting Methodology
3. Executive Summary
- 3.1. Overview of the Market
- 3.2. Overview of Key Market Segmentations
- 3.3. Overview of Key Market Players
- 3.4. Overview of Key Regions
- 3.5. Overview of Market Drivers, Challenges, and Trends
4. Voice of Customer
- 4.1. Source of Information
- 4.2. Factor Influencing Purchase Decision
5. Global Capsule Hotel Market Outlook
- 5.1. Market Size & Forecast
- 5.2. Market Share & Forecast
- 5.2.1. By Traveler Type (Solo, Group)
- 5.2.2. By Age Group (18-24 Years, 25-39 Years, 40-54 Years, 55+ Years)
- 5.2.3. By Booking Mode (Offline, Online)
- 5.2.4. By Region
- 5.2.5. By Company (2024)
- 5.3. Market Map
6. North America Capsule Hotel Market Outlook
- 6.1. Market Size & Forecast
- 6.2. Market Share & Forecast
- 6.2.1. By Traveler Type
- 6.2.2. By Age Group
- 6.2.3. By Booking Mode
- 6.2.4. By Country
- 6.3. North America: Country Analysis
- 6.3.1. United States Capsule Hotel Market Outlook
- 6.3.1.1. Market Size & Forecast
- 6.3.1.2. Market Share & Forecast
- 6.3.1.2.1. By Traveler Type
- 6.3.1.2.2. By Age Group
- 6.3.1.2.3. By Booking Mode
- 6.3.2. Canada Capsule Hotel Market Outlook
- 6.3.2.1. Market Size & Forecast
- 6.3.2.2. Market Share & Forecast
- 6.3.2.2.1. By Traveler Type
- 6.3.2.2.2. By Age Group
- 6.3.2.2.3. By Booking Mode
- 6.3.3. Mexico Capsule Hotel Market Outlook
- 6.3.3.1. Market Size & Forecast
- 6.3.3.2. Market Share & Forecast
- 6.3.3.2.1. By Traveler Type
- 6.3.3.2.2. By Age Group
- 6.3.3.2.3. By Booking Mode
7. Europe Capsule Hotel Market Outlook
- 7.1. Market Size & Forecast
- 7.2. Market Share & Forecast
- 7.2.1. By Traveler Type
- 7.2.2. By Age Group
- 7.2.3. By Booking Mode
- 7.2.4. By Country
- 7.3. Europe: Country Analysis
- 7.3.1. France Capsule Hotel Market Outlook
- 7.3.1.1. Market Size & Forecast
- 7.3.1.2. Market Share & Forecast
- 7.3.1.2.1. By Traveler Type
- 7.3.1.2.2. By Age Group
- 7.3.1.2.3. By Booking Mode
- 7.3.2. Germany Capsule Hotel Market Outlook
- 7.3.2.1. Market Size & Forecast
- 7.3.2.2. Market Share & Forecast
- 7.3.2.2.1. By Traveler Type
- 7.3.2.2.2. By Age Group
- 7.3.2.2.3. By Booking Mode
- 7.3.3. Spain Capsule Hotel Market Outlook
- 7.3.3.1. Market Size & Forecast
- 7.3.3.2. Market Share & Forecast
- 7.3.3.2.1. By Traveler Type
- 7.3.3.2.2. By Age Group
- 7.3.3.2.3. By Booking Mode
- 7.3.4. Italy Capsule Hotel Market Outlook
- 7.3.4.1. Market Size & Forecast
- 7.3.4.2. Market Share & Forecast
- 7.3.4.2.1. By Traveler Type
- 7.3.4.2.2. By Age Group
- 7.3.4.2.3. By Booking Mode
- 7.3.5. United Kingdom Capsule Hotel Market Outlook
- 7.3.5.1. Market Size & Forecast
- 7.3.5.2. Market Share & Forecast
- 7.3.5.2.1. By Traveler Type
- 7.3.5.2.2. By Age Group
- 7.3.5.2.3. By Booking Mode
8. Asia-Pacific Capsule Hotel Market Outlook
- 8.1. Market Size & Forecast
- 8.2. Market Share & Forecast
- 8.2.1. By Traveler Type
- 8.2.2. By Age Group
- 8.2.3. By Booking Mode
- 8.2.4. By Country
- 8.3. Asia-Pacific: Country Analysis
- 8.3.1. China Capsule Hotel Market Outlook
- 8.3.1.1. Market Size & Forecast
- 8.3.1.2. Market Share & Forecast
- 8.3.1.2.1. By Traveler Type
- 8.3.1.2.2. By Age Group
- 8.3.1.2.3. By Booking Mode
- 8.3.2. Japan Capsule Hotel Market Outlook
- 8.3.2.1. Market Size & Forecast
- 8.3.2.2. Market Share & Forecast
- 8.3.2.2.1. By Traveler Type
- 8.3.2.2.2. By Age Group
- 8.3.2.2.3. By Booking Mode
- 8.3.3. India Capsule Hotel Market Outlook
- 8.3.3.1. Market Size & Forecast
- 8.3.3.2. Market Share & Forecast
- 8.3.3.2.1. By Traveler Type
- 8.3.3.2.2. By Age Group
- 8.3.3.2.3. By Booking Mode
- 8.3.4. Vietnam Capsule Hotel Market Outlook
- 8.3.4.1. Market Size & Forecast
- 8.3.4.2. Market Share & Forecast
- 8.3.4.2.1. By Traveler Type
- 8.3.4.2.2. By Age Group
- 8.3.4.2.3. By Booking Mode
- 8.3.5. South Korea Capsule Hotel Market Outlook
- 8.3.5.1. Market Size & Forecast
- 8.3.5.2. Market Share & Forecast
- 8.3.5.2.1. By Traveler Type
- 8.3.5.2.2. By Age Group
- 8.3.5.2.3. By Booking Mode
9. Middle East & Africa Capsule Hotel Market Outlook
- 9.1. Market Size & Forecast
- 9.2. Market Share & Forecast
- 9.2.1. By Traveler Type
- 9.2.2. By Age Group
- 9.2.3. By Booking Mode
- 9.2.4. By Country
- 9.3. MEA: Country Analysis
- 9.3.1. South Africa Capsule Hotel Market Outlook
- 9.3.1.1. Market Size & Forecast
- 9.3.1.2. Market Share & Forecast
- 9.3.1.2.1. By Traveler Type
- 9.3.1.2.2. By Age Group
- 9.3.1.2.3. By Booking Mode
- 9.3.2. Saudi Arabia Capsule Hotel Market Outlook
- 9.3.2.1. Market Size & Forecast
- 9.3.2.2. Market Share & Forecast
- 9.3.2.2.1. By Traveler Type
- 9.3.2.2.2. By Age Group
- 9.3.2.2.3. By Booking Mode
- 9.3.3. UAE Capsule Hotel Market Outlook
- 9.3.3.1. Market Size & Forecast
- 9.3.3.2. Market Share & Forecast
- 9.3.3.2.1. By Traveler Type
- 9.3.3.2.2. By Age Group
- 9.3.3.2.3. By Booking Mode
- 9.3.4. Turkey Capsule Hotel Market Outlook
- 9.3.4.1. Market Size & Forecast
- 9.3.4.2. Market Share & Forecast
- 9.3.4.2.1. By Traveler Type
- 9.3.4.2.2. By Age Group
- 9.3.4.2.3. By Booking Mode
- 9.3.5. Kuwait Capsule Hotel Market Outlook
- 9.3.5.1. Market Size & Forecast
- 9.3.5.2. Market Share & Forecast
- 9.3.5.2.1. By Traveler Type
- 9.3.5.2.2. By Age Group
- 9.3.5.2.3. By Booking Mode
10. South America Capsule Hotel Market Outlook
- 10.1. Market Size & Forecast
- 10.2. Market Share & Forecast
- 10.2.1. By Traveler Type
- 10.2.2. By Age Group
- 10.2.3. By Booking Mode
- 10.2.4. By Country
- 10.3. South America: Country Analysis
- 10.3.1. Brazil Capsule Hotel Market Outlook
- 10.3.1.1. Market Size & Forecast
- 10.3.1.2. Market Share & Forecast
- 10.3.1.2.1. By Traveler Type
- 10.3.1.2.2. By Age Group
- 10.3.1.2.3. By Booking Mode
- 10.3.2. Argentina Capsule Hotel Market Outlook
- 10.3.2.1. Market Size & Forecast
- 10.3.2.2. Market Share & Forecast
- 10.3.2.2.1. By Traveler Type
- 10.3.2.2.2. By Age Group
- 10.3.2.2.3. By Booking Mode
- 10.3.3. Colombia Capsule Hotel Market Outlook
- 10.3.3.1. Market Size & Forecast
- 10.3.3.2. Market Share & Forecast
- 10.3.3.2.1. By Traveler Type
- 10.3.3.2.2. By Age Group
- 10.3.3.2.3. By Booking Mode
11. Market Dynamics
- 11.1. Drivers
- 11.2. Challenges
12. Market Trends & Developments
- 12.1. Merger & Acquisition (If Any)
- 12.2. Product Launches (If Any)
- 12.3. Recent Developments
13. Porters Five Forces Analysis
- 13.1. Competition in the Industry
- 13.2. Potential of New Entrants
- 13.3. Power of Suppliers
- 13.4. Power of Customers
- 13.5. Threat of Substitute Products
14. Competitive Landscape
- 14.1. Company Profiles
- 14.1.1. Nine Hours Inc.
- 14.1.1.1. Business Overview
- 14.1.1.2. Company Snapshot
- 14.1.1.3. Products & Services
- 14.1.1.4. Financials (As Per Availability)
- 14.1.1.5. Key Market Focus & Geographical Presence
- 14.1.1.6. Recent Developments
- 14.1.1.7. Key Management Personnel
- 14.1.2. Atelier Book & Bed Co., Ltd.
- 14.1.3. First Cabin HD Co., Ltd.
- 14.1.4. The O Pod Hotel
- 14.1.5. Tripadvisor LLC
- 14.1.6. CityHub AMS Bellamy BV
- 14.1.7. Bloc Hotel Operations Limited
- 14.1.8. MGH Hospitality Pte Ltd.
- 14.1.9. New Japan Tourism Co., Ltd.
- 14.1.10. PT Bobobox Mitra Indonesia
15. Strategic Recommendations
16. About Us & Disclaimer