PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1472979
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1472979
Global airport sleeping pods market is projected to witness a CAGR of 5.62% during the forecast period 2024-2031, growing from USD 71.24 million in 2023 to USD 110.29 million in 2031. A surge in demand for airport sleeping pods has been witnessed due to various factors, such as the growth of air travel for domestic and international transits and the prevalence of layovers between flights for longer routes. Consumers' shift towards premium airport services and airlines and passengers' preference for convenience and comfort during travel further fuels the market's growth.
As per the survey conducted in March 2023 by the U.S. Department of Transportation, in December 2022, U.S. flights reported 79 tarmac delays of over 3 hours on domestic travels and three tarmac delays of over four hours on international travels.
Additionally, according to the statistics provided by IATA in April 2023, Europe's premium passenger recovery rate in February 2023 was 93.1%, a significant increase from 56.3% in February 2022. In North America, the same number reached 107.7% in February 2023, thus surpassing pre-pandemic levels and up from 75.3% in February 2022. Premium travel has also risen strongly in the Middle East and Africa. In the Middle East, this category reached 92.3% in February 2023, up from 59.6% in February 2022, likely benefiting from the region's strategic location as a transit hub for long-haul flights. Africa experienced a 90.5% recovery rate in February 2023, compared to 46.1% in February 2022, supported by the growing African tourism industry and increased intracontinental business travel.
Moreover, a rising sustainability trend is driving the demand for airport sleeping pods equipped with renewable energy. Key players have been experimenting and working on numerous airports sleeping pod solutions focusing on sustainability by utilizing environmentally friendly materials and energy-efficient features. As the airports strive to enhance passenger satisfaction, providing airport sleeping pods has become a sought-after amenity, contributing to the overall appeal and competitiveness of the different airport terminals.
High Implementation Costs Hindering the Market Growth
The cost of installing and implementing airport sleeping pods is very high, a barrier to widespread adoption and restraining the market's growth. Airport operators must make a significant initial investment in designing, constructing, and installing airport sleeping pods. Moreover, ongoing operation and maintenance costs further restrict airports from setting them up. Other costs, such as transportation, installation, integration of passengers' safety arrangements, and customization, add up to the prohibiting market growth.
However, this restraint helps the manufacturer understand the prevailing problem in the airport sleeping pods market. It enables them to take advantage of the opportunity and introduce cost-efficient solutions. They are creating a balance between innovative and technologically advanced airport sleeping pods at affordable prices to cater to the rising demand for the market.
Thus, budget-conscious travelers seek cheaper and more budget-friendly alternatives to rest during flight layovers, creating an opportunity for affordable airport sleeping pods.
Flourishing Requirement to Alleviate Travel-related Fatigue
Airport sleeping pods are an integral part of the airports since they are significant in providing comfort to the passengers by resting during delayed flights, long layovers, and jet lags to save their energy levels. During these extended waiting periods, travelers seek comfortable and private spaces to rest from the journey, making the airport sleeping pods an appealing solution to the passengers. Sleeping pods at airports provide passengers with a cozy place to combat their travel fatigue, allowing them to feel rejuvenated and refreshed before returning to their journey.
Moreover, the airport sleeping pods are equipped with features such as adjustable lighting, temperature control, and soundproofing, which creates an optimal sleep environment helping the passengers experience a sound and restful sleep. This personalized and comfortable space at the airport, enhances the overall travel experience of the passengers, fueling the growth of the market.
For instance, in August 2023, King Khalid International Airport in Riyadh introduced sleeping pods to cater to travelers. These pods feature hotel-style beds and are climate-controlled to provide comfort to the passengers in transit.
In June 2023, Ahmedabad Airport, India, also introduced innovative capsule sleeping pods offering a zero gravity ventilated seats, meditation music, body massager and oxygen therapy.
Rise in International Travel Acting as a Catalyst
The rise in international travel has significantly increased the demand for airport sleeping pods due to several factors. Firstly, international flights often involve long layovers or overnight stays in the airports, especially for connecting flights or flight departures during the off hours, thus, passengers seek solutions where they can stay and take some rest.
Additionally, international transits are often associated with jet lag and fatigue due to the crossing of multiple time zones. Airport sleeping pods provide a convenient option for travelers to combat jet lag by allowing them to sleep in a quiet and controlled environment, thereby enhancing the overall travel experience.
International travel and tourism revived after the pandemic by almost 90% by the end of year 2023. According to the study of the World Tourism Organization (UNWTO) in November 2023, it was analyzed that 975 million tourists made international travels between January and September 2023, exhibiting an increase of 38% in the same months of 2022. Additionally, as per the reports of the U.S. Travel Association, in March 2024, Air passenger growth remained positive in January 2024, up 6% as compared to the previous year. Foreign visits are showing growth, up by 24% YoY.
Advent of Smart Sleeping Pods Accelerating the Market
The demand for smart airport sleeping pods is on the rise due to various factors, such as the trend towards smart technology and the development of the infrastructure of the airport has extended the appeal of the consumers.
Smart airport sleeping pods leverage technology such as touchscreen interfaces, adjustable lighting, climate control, and multimedia entertainment systems to provide consumers with a customizable and immersive experience. The manufacturers are also making the airport sleeping pods multi-functional where the passengers can both work and take a rest during their journey. The technological advancements in airport sleeping pods appeal to modern travelers who are seeking convenience and comfort during travel.
In January 2022, Vienna Airport announced the launch of rentable sleeping pods from ZZZleepandGo S.r.l. at T3. These smart pods provide a space for passengers to work, rest, and stay during flight lags. The sleeping pod is equipped with USB ports, free Wi-Fi, shelves, and a foldable table. The pod is also furnished with a multimedia entertainment system to stream music and films as well as to control ventilation, and lighting and to darken the room.
Future Market Scenario (2024-2031F)
Sustainable airport sleeping pods are on the rise and are anticipated to dominate the industry in the future with the rising concerns on environmental issues and consumers' shift towards sustainable practices. Sustainable smart airport sleeping pods are being manufactured by key players which will soon surface the market. These sustainable pods are likely to have features such as smart thermostats, smart sensors, and LED lights.
Additionally, they are designed using recycled materials, sustainable woods, and low-volatile organic compound paints. These features in the smart airport sleeping pods contribute to minimizing carbon emissions and help in saving energy. Hence, they are appealing to eco-conscious travelers, driving the market growth.
Key Players Landscape and Outlook
Key players in the market are helping in the growth by focusing on continuous product innovation and advanced technology. The manufacturers are actively expanding their product portfolio, expanding their consumer base, and catering to their evolving needs.
Companies such as GoSleep Oy, Minute Suites, LLC, and napcabs GmbH dominate the market with their presence at various airports including JFK International Airport, Philadelphia International Airport, and Franz Josef Strauss International Airport, respectively, expanding their global outreach. These players invest heavily in research and development to innovate and launch new features and technologies, such as multi-functionality, USB charging ports, sleep mode buttons, and soundproofing, to enrich travelers' experience, driving the market growth.
In July 2022, Dubai International Airport announced the launch of a sleep pod launch at Emirates' Terminal 3. The sleep 'n fly pods include flexisuite pods and business pods. The flexisuite pods have been designed in a similar style to that of a first-class airline seat. While the business pods are designed with multiple charging options and folding desks which are convertible into meeting spaces.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.