DUBLIN—The “Smart Hospitality Market—Forecasts from 2020 to 2025” report has been added to ResearchAndMarkets’ offering. The Global Smart Hospitality Market is projected to grow at a CAGR of 13.14% during the forecast period, reaching a total market size of $12.7 billion in 2025 from $6.1 billion in 2019.
The market is driven by the rising internet penetration and growing inclination toward IoT, which are encouraging the hospitality segment to offer smart solutions to customers with the use of digital technology. The growing use of cloud computing across the hospitality sector is another contributing factor to the market growth of smart hospitality. An increasing number of contractors are teaming up with different tech firms to build smarter hotels with low cost and less time which, in turn, is positively impacting the smart hospitality market growth.
The demand for real-time optimized guest experience management is increasing, which is bolstering the market growth of smart hospitality. For example, in some hotels, customers can use their smartphones to control the room’s environment by way of allowing remotely open and close the window blinds and regulating the room temperature.
According to the World Bank Data, the number of arrivals of international tourists across the world has increased from 911.85 million in 2009 to 1,442 million in 2018. As such, market players in the hospitality sector are using smart hospitality solutions in order to provide their guests with better hospitality services.
Global hotel chains are increasingly investing heavily in smart hospitality solutions, including those that improve customers’ impressions and satisfaction. Moreover, hotel companies are also adopting smart hospitality solutions as they help to save operational costs and generate more revenue while enhancing their hospitality services to customers. In addition to this, smart hospitality solutions allow energy-efficient management systems. As such, growing environmental concerns and rising focus on CSR among hotel companies is also ramping up the demand for smart hospitality solutions.
Market players in the global smart hospitality market are increasingly following various growth strategies in order to stay ahead while maintaining their market share, according to the report. For example, in April 2019, InterContinental Shenzhen signed a strategic cooperation agreement with Huawei and Telecom to create the world’s first 5G smart hotel. Viggo Smart Hotel is delivering the first true cloud-based smart hotel TV solution for the global hospitality industry. In December 2018, Shangri-La Group and Tencent signed a strategic partnership for developing and deploying smart hotel solutions to enhance the hotel operations and services for Shangri-La. However, factors such as high initial cost of deployment and lack of technically skilled professionals are hindering the smart hospitality market growth.
The rise in the number of smart hotels is driving software and services used for integration, maintenance and training. The software helps in facility and emergency management response systems, building energy management, water management, security management and parking management, which will further reduce costs and save time on these services. This, in turn, will increase the demand for smart hospitality services, thereby positively impacting the overall market growth.
The increasing number of smart hotels around the world with the advancement of technology is driving the market for smart hospitality solutions. These hotels have increased the demand for smart hospitality services by using more of on-premise and cloud for better management of hotel resources and improved hospitality services. It even helps in reducing operating costs by providing energy-efficient solutions and increases revenue. The smart hospitality solutions help in serving the guest with advanced communications technologies that assist them in conducting meetings, conferences and connecting with associates around the world without any hindrances. The innovative smart hospitality provides easy check-in options for hoteliers, room selection and room services which, in return, help hotels to retain guests, earning them more revenue. The increase in demand for resorts and spas is also gaining momentum due to the increasing disposable income of people and improvement in lifestyle.
Regionally, the global smart hospitality market is classified into North America, South America, Europe, Middle East and Africa and Asia-Pacific. The APAC Smart Hospitality market will witness substantial market growth during the forecast period owing to the growing investments by international hotel chains in countries like India and China in smart hospitality solutions. Furthermore, favorable government initiatives and policies to fuel the growth of the hospitality sector will also support the market growth of smart hospitality in this region during the next five years. Factors such as the increase in technological developments, internet infrastructure, increasing applications of IoT and efficient energy consumption are also growing the market for smart hospitality in the region.
North America and Europe have a significant amount of market share in the smart hospitality market due to the presence of big hospitality companies that are focusing on moving toward the use of advanced technologies and smart building management systems for efficient energy consumption, reducing operational cost and providing guests with modern amenities for better services.