Sleeping Pods and Cabins Market - Global Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

The growth in air passenger traffic has necessitated the need for expanding the existing capacity of airports worldwide.

The sleeping pods and cabins market size to reach USD 269 million by 2024, growing at a CAGR of over 2% during the forecast period. The use of emerging technologies to smoothen the operation at airports and provide superior services has driven airport operators to deliver passenger-friendly services. Hence, the positioning of pods and services as facilities, which provide services with high-quality grading at a low-price, is expected to sustain the sleeping pods market in the longer run.

Airports authorities are actively embarking on modernization plans and pumping hefty investments into mega modernization projects to elevate airport infrastructure and services. This is to ensure that they transform their facilities and operations into what they envision to be expected of a market leader as they serve a growing number of passengers year on year. Operational inefficiencies, long waiting times, inadequate and aging facilities, limited retail, poor accessibility, and unpleasant staff attitudes are some of the common examples of negative passenger experience encountered by travelers around the world. Therefore, the growth of smart and modern airports is expected to boost pod and cabin services.

The rise in transfer passengers and layover times is also likely to drive the need for napping facilities at airports. Sleeping pods and cabins are expected to have higher traction during the latter half of the forecast period as airports are currently experimenting with the idea of offering sleeping facilities. Steady growth rates have characterized the aviation market over the last few years. The growing numbers of passengers is a significant driver for the rise of the aviation industry. China is the largest source of outbound tourists in the world, with 122 million travelers in 2016.

Further, the APAC region is undergoing massive changes, with smart features and processes being set up at airports. Hence, the increase in global passenger traffic is likely to drive the global sleeping pods market. The global sleeping pods and cabins market is expected to reach over $255 million by 2024.

SLEEPING PODS AND CABINS MARKET SEGMENTATION

The research report includes detailed market segmentation by

• End-user
• Service type
• Geography

INSIGHTS BY END-USER TYPE

Sleeping pods and cabins services are increasing as many airports are adopting the new age relaxation and boarding facilities

The demand for sleeping pods is mainly high from the hotel segment. The deployment of sleeping cabins and pods is increasing in the hotel industry, especially capsule hotels. In terms of geography, the demand for the pod is high in Asia, while cabins are highly preferred in Europe and North America.  The global hotel industry is growing actively with several emerging countries witnessing growth in inbound tourism. Although the US is the largest market for hotels, the growth is hampered by the high cost of rooms and the overall high cost of living.

Sleeping pods and cabins services at airports are growing rapidly as many airports are adopting the new age relaxation and boarding facilities. These services enable air travelers to spend more time inside airports. Airport sleeping pods and cabins are small and charge on per hours basis charge. They offer relaxation joints, which allow the air traveler private space, charge electronic devices, safely deposit the belongings and have other amenities to refresh before taking the long-haul flights. Singapore Changi Airport, Jakarta Airport, Hong Kong Airport, Kuala Lumpur airport, and Bangkok airport have the highest number of transit passengers in APAC. Hence, the rise in transit passengers and the increase in affordability of air travel are likely to augur well for the sleeping pods market at airports.

The growth in other sectors, which include hospitals, railways, and utility centers, arenas, and conference centers, is expected to drive the demand for sleeping pods and cabins during the forecast period. Corporate offices usually procure single-use pod with no additional value-added features as they are mainly used to take naps. Pods have a high acceptability rate among corporate offices and act as a differentiating factor for the employer’s firm. Therefore, the trend of taking responsibility for employees’ wellbeing is likely to drive the adoption of sleeping pods.                                                                    

INSIGHTS BY SERVICES TYPES

The cabin segment is expected to witness high demand in North America, Latin America, and Europe 

The popularity of pods or cabins mainly depends on cultural ethos, sleeping habits, types of travelers, and the budget of the traveler. European and North American airports are witnessing a high occupancy of sleeping pods. Also, the acceptance of pods as capsule hotels and napping facilities at airports is widely growing in APAC. The demand mainly stems from airports, corporations, and hotels. However, the functionality of pods in hotels completely varies from airports and corporates. The adoption of pod in hotels is high as they save time and efforts. The sleeping pods market is growing at a faster rate than the cabins segment as the deployment of pods is higher than cabins, which require ample space.

Sleeping cabins have been popular in North America and Western Europe as they are considerably large. Cabins are like micro hotels with little fewer amenities than regular micro hotels. The cabin market is expected to witness high demand in North America, Latin America, and Europe as these regions are seeing an increase in the number of international travelers.

INSIGHTS BY GEOGRAPHY

Riyadh, Dubai, Sharjah, and Abu Dhabi provide the massive potential for pods and cabin vendors as these locations witness high transit passenger volume

The sleeping pods and cabins market is dominated by APAC, Europe, and North America. The APAC sleeping pods market is largely volume-driven due to the growing number of economic travelers looking for low-cost lodging services, along with tremendous growth of the aviation industry in China.  Further, these have been widely adopted in major countries such as China, Japan, and Australia as these countries are emerging as major trade hubs. Also, the growth of the middle-class population with high disposable incomes is expected to drive the sleeping pods market in APAC.

North America is likely to emerge as one of the fastest-growing sleeping cabins and sleeping pods market. As airports in North America are one of the best-managed airports with a high level of focus on providing quality amenities, the growth potential for sleeping cabins and pods is high. Also, the rise in passenger traffic is expected to increase, which is leading to the modernization of airport infrastructure. The sleeping pods market in the US is gaining popularity because vendors are making changes to the traditional pod by reworking on the size and increasing the amenities. However, the sleeping pods market in Canada is limited as there is a lack of awareness of budget lodging facilities.

The Europe market for nap pods and cabins is steadily growing as it is one of the regions with the most developed airport infrastructure and a maximum number of international airports and tourist destinations. Favorable support from airports, universities, and corporates in Europe is driving the pods and cabins industry. Further, the presence of the highest number of transit points in Europe is the major driving factor for the growth of the sleep market.

The concept of sleeping pods and cabins is new in Latin America with no large-scale commercialization. The adoption of pods and cabins is currently limited to hotels and airports. Developing countries of Latin America still prefer traditional hotels as they are not expensive, and the overall cost of living is low in Latin America. The sleeping pods market in MEA is at a nascent stage with services limited to only major cities, which are either trade or tourist hubs. However, developed urban cities such as Riyadh, Dubai, Sharjah, and Abu Dhabi provide a vast potential for vendors as the transit passenger volume at these locations is very high.

KEY VENDORS ANALYSIS

The global sleeping pods and cabins market is at a nascent stage with several markets in the experimentation stage worldwide. The growth of the market is expected majorly from airports and pod-based or cabin-based hotels. The competition is currently stiff in the airport segment as many companies are looking to gain the first-mover advantage. With a high level of expansion being planned across regions, the sleeping pods market is expected to attract several investors.

The competition in the pod hotels market is offset by the unique position of the hotel in the industry. Most pod hotels are offering high-quality services at a low price. Unlike the traditional hotel where the prices are high, and the hostels where security, privacy, and service levels are challenges, pod hotels have maintained an image of high-quality, affordable service.

In the corporate sector, the market faces competition from the recliner/furniture industry, and other forms of sleeping facilities, as they are comparatively lower in the cost. The shift to pods or cabins in the corporate premise is slow they consume space and are expensive.

Since the initial cost of manufacturing and installation is high, many different business models have been adopted. The competition level is expected to increase as airports have started to explore solutions, which provide a superior travel experience for customers and increase their non-aeronautical revenues.

The Sleeping Pods and Cabins market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Market Segmentation by End-user Type

• Airports
• Hotels
• Others

By Service Type

• Pods
• Cabins

By Geography

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • Italy
  • Russia
• APAC
  • China
  • Japan
  • India
  • Australia
  • South Korea
• RoW
  • Mexico
  • Brazil
  • South Africa
  • UAE