Smart Hospitality Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Component (Solution, and Services), By Solution Type (Hotel Operation Management, Hotel Automation Management, Guest Service Management System, Security Management System, and Others), By Deployment Mode (On-premises, and Cloud), By Application (Hotels, Cruises, Luxury Yachts, and Others) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Smart Hospitality Market was valued at USD 13,743.7 Million in 2022 and is anticipated to reach a value of USD 103,319.6 Million by 2030 expanding at a CAGR of 29.3% between 2023 and 2030.

Smart hospitality is the integration of disruptive technologies such as artificial intelligence and internet of things(IoT) into the hospitality industry with the aim of improving management system, efficiency and profitability, and enhance the guest experience. Smart hospitality is the unification of automated solutions and services used in hotels, cruises, and luxury yachts for offering more personalized, efficient, and connected environment to guest. The integration of smart technologies in hotels, resorts, and other hospitality sectors aims to enhance the guest experience, and offering a better service to guests. It provides a unique experience to guests by offering more personalized services such as selection of rooms, types, entertainment systems in the room, internet features, and other facilities.  Beyond improving the efficiency of the staff and guests, smart hospitality also reduces the cost, thus it is extensively adopted on a global scale. It smartly handles all the operational and management need of hotel from reservation to departure. This system consists of customizable solutions and services, which is beneficial for a big and small size of hotels.

Smart Hospitality Market Major Driving Forces

Growing Tourism: The growing domestic and international tourism is a key factor driving the global market growth. The growth of travel and tourism industry globally drives the demand for smart hospitality solutions.

Real-time Optimized Guest Experience: The growth in the need for real-time optimized guest experience management is significantly boosting the global market growth for the smart hospitality market. The increasing adoption of smart hospitality services and technology in the hospitality industry is propelling the market growth.

Rising Demand for Energy Efficiency: The growing demand for energy efficiency is a significant factor driving the market growth. Smart technologies contribute to energy conservation, sustainability, and optimize resource utilization in the hospitality industry.

Rising Penetration of 5G Technology: The rising penetration of 5G technology in the hospitality sector contributes to the market growth. The widespread adoption of 5G provides faster internet speed and enhanced connectivity. 5G has the capability to propel digital transformation in the hospitality industry.  

Smart Hospitality Market Key Opportunities

Integration of Innovative Technologies: The growing adoption of advanced technologies such as artificial intelligence and machine learning in the hospitality sector is expected to create market growth opportunities. These technologies provide personalized guest experiences, and more efficient operational management.

IoT in Hospitality Sector: The opportunities lie in the use of the internet of things(IoT) in hospitality operations lead to increased connectivity and automation. The IoT used in smart hospitality solutions to improve comfort and safety, further propelling the market growth. The integration of innovative technologies such as IoT is revolutionizing the hospitality industry.

Customized and Personalized: The increasing emphasis on customized and personalized services for better customer experience is anticipated to provide incredible opportunities for market growth. By implementing smart technologies hoteliers can create more personalized and value-driven experience with every customer. Customers increasingly seek personalized and unique hospitality solutions.

Smart Hospitality Market Key Trends

·         The internet of things(IoT) has gained momentum in the hospitality industry, as hotels and resorts are increasingly incorporating IoT devices to automate workflows

·         AI-powered chatbots and virtual assistants are becoming increasingly widespread in hospitality industry

·         The integration of cutting-edge technologies in hospitality sector by major players is escalating the market growth

·         The blockchain technology is being investigated for use in safe visitor identification verification, payment processing, and data protection

·         Many hotels and resorts are introducing environmentally friendly practices and technologies in order to reduce energy consumption, and water usage hospitality distribution

·         Robots are getting used to provide efficiency and smooth interactions in duties such as room service delivery, cleaning, and other services based on individual sleep patterns and preferences

·         With the growing preferences for customized and personalized experiences, hotels and resorts employ data analytics and client preferences to provide required services

Region-wise Market Insights

North America accounted for the largest market share at 41.3% in 2022 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 30.1% between 2023 and 2030.

The global smart hospitality market is dominated by the North America, which holds the largest market share. This dominance is attributed to the technological advancements, robust internet infrastructure, adoption of IoT in the hospitality industry. Moreover, In North America, the presence of major hotel operators coupled with rising use of smart technologies such as artificial intelligence and automation are fueling the growth of the market in the region. Europe emphasizes on excellent internet infrastructure, technical advancements, and a proclivity for IoT. In Asia-Pacific, the market is characterized by burgeoning tourism industry, technological innovations, internet infrastructure, and younger hotel infrastructure drive the expansion of the smart hospitality market. Additionally, factors such as favorable government efforts and regulations, expanding IoT applications, rapid urbanization, and burgeoning middle class contribute to the growth of smart hospitality in the Asia Pacific region.  The Middle East and Africa has been witnessing a growing demand for smart hospitality solutions due to growing tourism, and development of smart cities in the region.

Market Competition Landscape

The global smart hospitality market is highly fragmented with the well-established and emerging players. The market is characterized by the intense competition among various technology providers that offering advanced and innovative solutions to improve overall hospitality industry. Major players operating in the market are integrating artificial intelligence, data analytics, and IoT into smart hospitality solutions to enhance guest experience. Furthermore, key players in the smart hospitality market engage in strategies aimed at gaining a competitive edge. These strategies include product innovation, design differentiation, and the incorporation of sustainable and eco-friendly practices to meet evolving consumer preferences. Established brands leverage their reputation for quality and reliability to maintain market share, while newer entrants focus on disruptive innovations and unique selling propositions.

Key players in the global smart hospitality market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         IBM Corporation

·         Infor, Inc.

·         Schneider Electric

·         Honeywell International

·         BuildingIQ

·         Winhotel Solutions

·         Huawei Technologies

·         Siemens AG

·         Cisco Systems, Inc.

·         NEC Corporation

·         Oracle Corporation

·         Johnson Controls

·         Samsung Co., Ltd.

·         WiSuite