Global Smart Hospitality Market Size By Type (Business Hotels, Heritage and Boutique Hotels), By Application (Hotels, Cruise), By Component (Solution, Services), By Deployment Mode (On-Cloud, On- Demand), By Geographic Scope And Forecast
Published on: 2024-08-08 | No of Pages : 320 | Industry : latest updates trending Report
Publisher : MIR | Format : PDF&Excel
Global Smart Hospitality Market Size By Type (Business Hotels, Heritage and Boutique Hotels), By Application (Hotels, Cruise), By Component (Solution, Services), By Deployment Mode (On-Cloud, On- Demand), By Geographic Scope And Forecast
Smart Hospitality Market Size And Forecast
Smart Hospitality Market size was valued at USD 27.28 Billion in 2023 and is projected to reach USD 181.64 Billion by 2031, growing at a CAGR of 29.50% from 2024 to 2031.
- Smart Hospitality is a concept that uses advanced technology solutions and data-driven strategies to improve the management of hospitality facilities and guest experience. It involves the use of Internet of Things (IoT), artificial intelligence (AI), machine learning, big data analytics, and automation to streamline operations, personalize guest experiences, and optimize resource allocation.
- Its applications include personalized guest experience, energy management, mobile integration, predictive maintenance, dynamic pricing and revenue management, and enhanced security.
- The future of smart hospitality is expected to see the integration of advanced technologies, such as voice-activated controls and robot-assisted services, greater customization, sustainability initiatives, blockchain applications, virtual and augmented reality, post-pandemic recovery, and increased competition and innovation. As technology becomes a standard expectation, hospitality providers will face increased pressure to continuously innovate and improve their offerings, leading to rapid developments in technology and service quality.
- In the future of smart hospitality will be a confluence of technology, personalized service, and sustainable practices, aiming to enhance guest satisfaction and operational efficiency in unprecedented ways.
Global Smart Hospitality Market Dynamics
The key market dynamics that are shaping the global smart hospitality market include
Key Market Drivers
- Rising Need for Personalized Guest Experiences Today’s tourists are always looking for experiences that are tailored to their own requirements and tastes. Hotels may provide their customers with a more customized experience by using smart hospitality technologies, such as in-room tablets that manage lighting, temperature, and entertainment, and digital concierge services that offer recommendations and local knowledge.
- Growing Adoption of IoT Technologies The hotel sector is not an exception to how the Internet of Things (IoT) is changing numerous businesses. IoT devices can be utilized to automate processes, increase energy efficiency, and give visitors a more easy and comfortable stay. Examples of these gadgets include smart locks, thermostats, and lighting systems.
- Mobile Connectivity With the widespread use of smartphones and a rising reliance on mobile devices for communication and information access, mobile connectivity has emerged as a key driver of the smart hospitality market. Hotels use mobile apps to provide visitors with easy access to services and facilities, which improves their entire experience.
- Need for Operational Efficiency In today’s competitive hospitality market, hotels are always seeking for ways to improve their operational efficiency. Smart hospitality technologies can help hotels streamline operations by automating chores like housekeeping scheduling and energy management. This can help hotels save money and boost their profits.
- Improved Safety and SecuritySmart hospitality solutions improve guest safety and security by including technologies like smart locks, surveillance cameras, and emergency response systems. These technologies contribute to the well-being of guests and workers while providing peace of mind during their stay.
Key Challenges
- Integration ComplexityThe complexity of integrating various smart hospitality systems into current hotel infrastructure makes it a considerable problem. Distinct technologies may use distinct platforms or protocols, resulting in interoperability challenges and possible compatibility conflicts. This complexity originates from the wide variety of technologies and devices utilized in hospitality environments, such as smart room management systems, IoT devices, mobile apps, and data analytics platforms.
- Data Security and Privacy ConcernsAs smart hospitality systems capture large volumes of guest data, protecting its security and privacy is a key concern. Hotels must put in place strong cybersecurity procedures to protect sensitive information from unauthorized access, data breaches, and cyberattacks. This comprises network security, data encryption, access control implementation, and continuous security protocol updates to handle evolving threats.
- High Initial Investment One of the key issues confronting the smart hospitality business is the significant upfront expenditure necessary to install smart technologies. The initial expenditures of implementing smart room management systems, IoT devices, mobile apps, and data analytics platforms can be high, especially for smaller hotels or those operating on a limited budget. The significant initial investment may be a barrier to adoption for some hoteliers, particularly if they are unsure about the return on investment (ROI) or do not have the financial resources to pay for the implementation.
- Staff Training and Resistance When new technology is introduced into the hospitality industry, it is often necessary to train staff on how to use it efficiently. However, staff members’ aversion to change might stymie uptake and impede the successful deployment of smart solutions. Staff training is critical to ensuring that personnel understand how to operate and use smart hospitality technologies to improve guest experiences and streamline operations. This could involve learning how to use mobile apps for guest services, how to operate IoT devices for room automation, how to use data analytics platforms to gain insights, and how to handle typical technical issues.
Key Trends
- Contactless Solutions The COVID-19 pandemic has expedited the use of contactless solutions in the hotel industry, and this trend is likely to continue. Contactless check-in/out, keyless entrance, and digital payments eliminate physical encounters while increasing safety for both visitors and workers. Hotels are investing in smartphone apps and IoT devices to provide seamless contactless experiences and cater to the needs of health-conscious travelers.
- Personalization and Customization Personalization is becoming more important in the hospitality business as consumers desire more individualized experiences. Smart hospitality solutions use data analytics and artificial intelligence (AI) to identify visitor preferences and behavior, allowing hotels to provide personalized suggestions, room preferences, and special amenities. From personalized welcome notes to carefully picked in-room entertainment, customization boosts guest pleasure and loyalty.
- Voice Activated TechnologyVoice-activated technology is gaining popularity in the smart hospitality market, allowing guests to manage room settings, order services, and access information with voice commands. Virtual assistants such as Amazon Alexa and Google Assistant are integrated into hotel rooms, allowing for hands-free interaction and increased convenience for visitors. Voice technology streamlines processes and provides a more intuitive guest experience.
- Remote Work and Leisure Travel The rise of remote work and flexible scheduling has increased leisure travel, which involves business travelers extending their travels for leisure purposes. Hotels are responding to this trend by providing amenities and services geared at remote workers, such as co-working spaces, high-speed internet, and flexible check-in/out times. Smart hotel solutions enable remote work and leisure travel by delivering effortless connectivity and personalized experiences.
Global Smart Hospitality Market Regional Analysis
Here is a more detailed regional analysis of the global smart hospitality market
North America
- North America is expected to dominate the Smart Hospitality Market, owing to its advanced technological infrastructure and strong adoption of cutting-edge technology. The region, particularly the United States and Canada, is home to numerous technological giants and startups that are always pushing the limits of smart technology.
- Hotels in North America have easy access to the most recent developments in IoT, AI, big data analytics, and mobile applications. This technical edge enables hotels to incorporate complex smart solutions that improve guest experiences, streamline operations, and increase overall efficiency. The increasing usage of high-speed internet and smart devices among consumers helps to accelerate the adoption of these technologies in the hospitality industry.
- Investment and funding are critical to preserving North America’s leadership in the smart hotel business. Major hotel chains with headquarters in North America, such as Marriott, Hilton, and Hyatt, spend substantially in smart technology to remain competitive and fulfill the changing needs of modern travelers. These expenditures include upgrading infrastructure to accommodate smart room management systems, implementing AI-powered chatbots for client assistance, and incorporating IoT devices for energy management and automation.
- North America has a huge influence on the implementation of smart hospitality technologies. Guests in the region have become accustomed to high levels of ease and personalization in their daily lives, and they expect the same when staying in hotels. The demand for smooth and tailored experiences drives hoteliers to use smart technologies that respond to individual preferences and increase guest satisfaction.
Asia Pacific
- Asia Pacific is the fastest-growing market for smart hospitality, thanks to rapid economic development and significant tourism growth. China, India, and several Southeast Asian countries are experiencing tremendous economic growth, resulting in greater urbanization and the development of new hotels. This economic expansion opens up prospects for hotels to invest in smart technologies to appeal to a growing middle class and an influx of international travelers.
- The region’s booming tourist industry, driven by both local and foreign travelers, needs the use of innovative hospitality technologies to efficiently manage large numbers of guests while providing great service. Smart technologies, like as IoT-enabled room management systems and AI-powered customer service, are being quickly integrated to meet these demands and remain competitive in a continuously changing industry.
- The region has strong rates of technological adoption and innovation. Countries such as Japan and South Korea are technological innovators, influencing surrounding countries to adopt smart hospitality solutions. The extensive use of smartphones and internet connectivity throughout the region facilitates the smooth integration of mobile and IoT-enabled services in the hospitality industry.
- Government measures that promote smart city projects, as well as technical breakthroughs, help to drive the expansion of smart hospitality in the Asia Pacific. These projects frequently offer incentives and help for implementing smart technologies, encouraging hotels to match with larger smart city ambitions. This mix of economic growth, tourism expansion, high technological adoption, and government assistance is driving Asia Pacific’s smart hospitality business to new heights.
Global Smart Hospitality Market Segmentation Analysis
The Global Smart Hospitality Market is Segmented on the basis of Type, Application, Component, Deployment Mode, and Geography.
Smart Hospitality Market, By Type
- Business Hotels
- Heritage and Boutique Hotels
- Resorts and Spas
Based on Type, the market is segmented into Business Hotels, Heritage and Boutique Hotels, Resorts and Spas. Business Hotels dominate the Smart Hospitality Market due to prioritizing efficiency and meeting the high expectations of business guests. These hotels appeal to professionals who value ease, connectivity, and productivity throughout their stay. To address these expectations, business hotels make significant investments in smart technologies such as high-speed Wi-Fi, automated check-in/out processes, and IoT-enabled conference rooms. Resorts and spas cater to a rising market group that values wellness and premium experiences. Smart hospitality solutions that provide personalization and convenience can greatly boost company offers, resulting in faster growth.
Smart Hospitality Market, By Application
- Hotels
- Cruise
- Luxury Yachts
Based on Application, the market is bifurcated into Hotels, Cruise, and Luxury Yachts. Hotels are projected to dominate the Smart Hospitality Market due to their sheer size. Hotels are a far more established sector than cruise ships and luxury yachts. This corresponds to a larger existing infrastructure that can be improved using smart solutions. In today’s competitive industry cruise companies must constantly innovate to attract clients. Smart technologies provide a unique opportunity to improve the guest experience on board large ships by personalizing services and automating duties.
Smart Hospitality Market, By Component
- Solution
- Services
Based on Component, the market is fragmented into Solution, and Services. Solutions include a variety of services for implementing and managing smart hospitality systems. This includes consultation, integration, installation, and on-going support. Hotels, particularly larger chains, frequently require these services to traverse the complex configuration and ensure the proper operation of numerous smart technology. Software is witnessing the fastest growth as a result of the ongoing development of novel guest-centric features.
Smart Hospitality Market, By Deployment Mode
- Cloud-Based
- On-premise
Based on Deployment Mode, the market is segmented into Cloud-Based and On-premise. On-premise deployments have the largest market share. This gives hotels more control over their data and includes features such as personalized guest experiences and advanced security. Cloud-based solutions are rapidly expanding due to a variety of factors. They provide scalability, lower upfront costs, and easier maintenance than on-premise systems.
Smart Hospitality Market, By Geography
- North America
- Europe
- Asia Pacific
- Rest of the World
On the basis of Geography, the Global Smart Hospitality Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. North America has a tech-savvy population with a high demand for convenience and customized experiences. Hotels in this area are well-funded and have a long history of early technology adoption, making them ideal candidates for smart hospitality solutions. The Asia-Pacific area is enjoying a hospitality boom, with substantial investments in new hotels and infrastructure. This, combined with an expanding middle class with increasing disposable cash, generates a robust market for smart hospitality solutions that improve guest experiences and operational efficiency.
Key Players
The “Global Smart Hospitality Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are chneider Electric, Siemens AG, IBM Corporation, Honeywell International, Winhotel Solutions, Cisco Systems, Oracle Corporation, Huawei Technologies, Johnson Controls, and NEC Corporation. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.
Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.
Smart Hospitality Market Recent Developments
- In August 2022, the Republic of Indonesia’s Ministry of Education, Culture, Research, and Technology (MoECRT) and Oracle Indonesia reaffirmed their agreement on safety issues. This collaboration intends to incorporate Oracle Academy curriculum and technological resources with MoECRT’s Directorate General of Vocational Education (DGVE) activities over the next four years. The alliance seeks to train 2,000 educators and their 50,000 pupils throughout Indonesia.
- In November 2022, Infor announced a partnership with Rosen Hotels & Resorts to develop critical back-of-house hospitality technologies. This partnership involves the automation of important business operations such as accounting, human resources, talent management, analytics, and workforce management.
Report Scope
Report Attributes | Details |
---|---|
Study Period | 2020-2031 |
Base Year | 2023 |
Forecast Period | 2024-2031 |
Historical Period | 2020-2022 |
Unit | Value (USD Billion) |
Key Companies Profiled | chneider Electric, Siemens AG, IBM Corporation, Honeywell International, Winhotel Solutions, Cisco Systems, Oracle Corporation, Huawei Technologies, Johnson Controls, and NEC Corporation |
Segments Covered | By Type, By Application, By Component, By Deployment Mode, and By Geography |
Customization scope | Free report customization (equivalent to up to 4 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
Research Methodology of Market Research
To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our .
Reasons to Purchase this Report
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market