The smart hospitality market is expected to grow with a decent CAGR during the forecast period(2018-2024). Increasing investments by companies into R&D are bringing a wider range of innovative and affordable solutions into the market for the hospitality industry and will further boost the market. However, varying or limited budget of the different end users may offer some restraint to this fast growing market.
Smart Hospitality market has been segmented on the basis of component, deployment model, and geography. By component, the services segment is estimated to show a strong CAGR on account of the rising demand from the hospitality segment to provide their guests with unified communication capabilities. Geographically, the European region is poised to hold a significant share in the market owing to the widespread adoption of new technologies and rising tourism in the region. While the North America and Asia are also expected to witness healthy growth over the forecast period.
Smart Hospitality Market By Component
By component, the smart hospitality market is segmented as hardware, software, and services. Hardware held a significant share in 2018 and is anticipated to witness moderate growth over the forecast period on account of the increasing adoption of smart hospitality solutions globally. The software segment is expected to witness a significant growth during the forecast period. In addition, new product launches are expected to propel the market growth opportunities for the software and services segments during the forecast period. For instance, in June 2018, Oracle Hospitality announced its latest OPERA Reporting and Cloud Service analytical tool in order to provide hoteliers with critical insights for improving the operational efficiency and create a remarkable guest experience.
Smart hospitality hardware market is projected to grow at a CAGR of XX%, increasing from US$XX.XX billion in 2018 to US$XX.XX billion in 2024. This hardware segment is expected to grow at a substantial growth rate over the next five years on account of the increasing investments by the end-users majorly in the developing countries towards the deployment of smart hospitality solutions in order to enhance the customer services and experience. Furthermore, rising competition in the hospitality industry is further instigating the providers to increase the adoption of smart solutions as the quality of services provided by them directly impacts their reputation thus impacting the smart hospitality market.Huawei and Intercontinental Shenzhen, China, in April 2018, signed a strategic agreement in which Huawei will create the world’s first 5G smart hotel with a view to digitally transform the Intercontinental Shenzhen’s luxury experience. The growing travel and tourism industry globally is another major factor driving the market growth owing to the rising revenues and increasing budgets of providers for the improvement of infrastructure and technology. For example, in November 2018, Hotel Julian, Chicago, one of the highly-regarded luxury properties of the Oxford Capital Group purchased the complete hospitality solution from Oracle named OPERA in order to deliver world-class services to the guests and improve the operational efficiency of the property.
Smart Hospitality Market Forecast by Geography
The United States smart hospitality market is estimated to grow at a CAGR of XX% to reach a market size of US$XX.XX billion in 2024 from US$XX.XX billion in 2018. The presence of major market players and the early adoption of smart technologies supports the dominance of U.S. smart hospitality market across the North American region. High growth of travel and tourism industry in the country is one of the major drivers of smart hospitality market. According to the World Bank data, number of international tourist arrival in U.S. increased from 69.9 million in 2013 to 76.9 million in 2017. The rapid change and evolution of customer preferences is constantly pressurizing traditional hotel chains and brands to explore ways to attract customer loyalty and capture greater market share. Moreover, after the entrance of Airbnb, traditional hotel chains are required to address the emerging needs of customers by changing the hospitality solutions and services according to the new technologies.
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