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Market Summary

The Global Smart Hospitality market is forecasted to grow at a rate of 21.63% CAGR from 2020 to 2027, rising from value of USD 11.21 Billion in 2019 to USD 52.88 Billion in 2027. Factors driving the smart hospitality market includes increasing demand for real-time optimized experience management for guests, rising adoption of energy management systems and reduced operation costs.

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Additionally, there are various benefits associated with this type of hospitality, which are also propelling the growth of the market. To hotel management and owners, it brings more efficient management of hotel staff, ease of maintenance activities, and savings. To guests, it brings optimized comfort and security.

Many companies are providing variety of smart hospitality solutions and technology which facilitate different needs of the customers. Some of these technologies are very innovative like the one that allow easy check-in options for the hoteliers. With the arrival of the Internet of Things (IoT), Smart Hotel is more than having a smart TV or a smart entertainment system in the room. The smart hotel includes all the electrical appliances like the TV, Fridge, AC, coffee machine to central lighting system, and even the sensors installed in the guest rooms.

As the COVID-19 pandemic spreads across the entire world, the major focus for governments and businesses is the safety of all citizens. While this focus is expected to continue, the ramifications for the tourism and hospitality sectors seem dire at least for the short term. Autonomous carts are expected to become more ubiquitous. For example, robots that can carry food or other items are becoming more popular; they are being experimented in many hotels across the world. CloudMinds has developed a humanoid called ‘XR-1 ‘and Fraunhofer Institute for Material Flow and Logistics has developed a ‘Smart Transportation Robot’. The robots can carry food and medicine to patients from health-care providers without person-to-person contact. Face++ is a Chinese company which uses infrared cameras with computer vision technologies for rapid deployment at areas which have mass gatherings (like hotel lobbies) to detect and track individuals with fever.

Solutions component Outlook:

Technology in the hospitality industry is advancing at a rapid pace and hotel management software (HMS) remains essential for hoteliers looking to improve the running of their business. With software, hotel operators can streamline their administrative processes and improve their overall hotel management system.

The automated system allows the managers to generate reports within seconds – daily work report, and is accessible from any part of the world. Being an online system the hospitality management software gives access to the managers to the affairs of the business quick and fast that allows them to plan the business a lot better.

With the growth in the demand for cloud solutions recently, many market players have deployed cloud based solutions for the hospitality industry. Cloud-based hotel management software is a very cost-effective solution and the functionality can be custom-made as per the requirements of the hotel. The necessities of a small-sized hotel can differ from bigger properties and cloud-based hotel management software comes with a “pay-as-you-go” service that allows hoteliers to choose plans as per their requirements Working in the cloud does not require added expenditures on IT support or maintenance of a server.

With hotel management software, hoteliers get real-time access to all of the hotel’s data. It takes a single touch of a button to view which rooms are available, how many can be allocated for check-in, the entire billing cycle of any guest and so on.

Deployment Type Outlook:

The cloud-deployment in hospitality include Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). This system enables hotels to deploy their software and services in a virtual ecosystem, which reduces the cost of infrastructure cloud-based deployment in smart hospitality software reduces the cost incurred in purchasing, servicing, and powering of server-class machines. This subscription model offers broader scalability of hoteliers with a low cost of proprietorship. It also ensures the reliability of data back-up while reducing the risk of security breaches. The backend operations of the cloud deployed solutions are handled by the cloud solution offering organization. With all such advantages offered by the cloud deployment mode, the demand for such solutions is forecasted to increase over the forecasted period as smart hospitality solutions increasingly make use of sensors and other devices for which cloud solutions are needed.

Hotel type Outlook:

Smart occupancy sensors will help the business hotels push menu notifications to smartphones at optimal times when the guests are in their rooms. These notifications can even include personalized suggestions based on past orders. Indeed, many home food-delivery apps already offer a similar experience, sending push notifications to frequent users at their preferred ordering times on their preferred days. Such features are being witnessed in the business hotels type, as the guests in such hotels demand convenience features. With the rise in the demand for convenience features from the visitors, the demand for smart hospitality market in business hotels is forecasted to grow through 2027.

A factor restraining the growth of the Heritage hotel segment over the forecasted period is the fact that installing such smart solutions in the heritage hotels can be a challenge as the construction of these hotels are from a past age. Installing and incorporating smart solutions which require specific type of construction (like the specific HVAC requirements needed for the Property Management Solutions) can be a factor that can limit the growth.

Regional Outlook:

North America has a large and well-developed hospitality sector. The U.S and Canada are global economic powerhouses, and the large number of tourist and business travelers in these countries has proved to be an important driver for the regions smart hospitality sector. This development is expected to accelerate during the next few years as more and more digital innovations take place in the sector.

According to the 2017-2018 Annual Report by HOTREC, the industry association of hoteliers across Europe, in 2017, international tourist arrivals grew by a huge 7% to reach a total of 1,320 million people. The 2017-2018 period was the eighth consecutive year of above-average growth in people crossing international borders into Europe for tourism, bringing immense benefits to countries, and the large hospitality industry in the region. This rising tourism industry in the region is one of the major factors for the growth of the smart hospitality industry in the region.





Market-O-Nomics

Rising demand for real time optimized guest experience management as well as an attractive revenue and low operational costs in hospitality industry are some of the factors driving the growth of the market over the forecasted period.

Solutions segment is forecasted to fetch the maximum share of the market in 2027 on account of the rising awareness amongst hoteliers about the benefits of smart hospitality solutions.

Advent of technological advancements like artificial intelligence, machine learning, and Internet of Things has led to better functionality of smart hospitality solutions. With the intense market competition and the growing hotel industry, controlling internal processes; enhancing security becomes a matter of concern for the hoteliers. There are many hotels across the globe in which fingerprint recognition is already in play, for instance, Hotel Alma in Barcelona allows room access through fingerprint scanners, Yotel has long used handprint readers to clock staff on and off. Such innovations are being observed in the industry.

North America region is forecasted to grow at a rate of 21.5% CAGR through the forecasted period on account of rising tourism industry in the region.

Companies considered and profiled in this market study

Huawei Technologies Co. Ltd, NEC Corporation, IBM Corporation, Siemens AG, Schneider Electric Se, Honeywell International, Inc., Johnson Controls, Oracle Corporation, Winhotel Solution S.L., and Infor, Inc. have been profiled in the report. They are the major solution providers in the market.

The players operating in the market have undertaken a number of strategies related to the market in the period 2017-2020. The key highlight is:

In 2018, Honeywell, one of the major market players, had launched new connected hotel solutions for energy, cloud management, and smart lighting controls. With the help of this new launch by Honeywell, the hospitality sector can completely integrate safety and security systems, energy management, brand network operations, property management, for guestroom and building automation. Such new launches are positively impacting the growth of the market.

In August 2019, Cisco completed the acquisition of Sentryo, a provider of device visibility and security solutions for Industrial Control System (ICS) networks. This acquisition enables Cisco to offer control system s engineers deeper visibility into assets for optimizing, detecting anomalies, and securing their networks.to optimize, detect anomalies and secure their networks.

Start-up Traction

The industry offers numerous growth opportunities. Thus, a number of startups providing innovative products and technologies have been entering the market. Some of them include Xiezhu, Hotelitix, and Hotel.

Deals Landscape

Mergers and Acquisitions are an integral part of the Smart Hospitality industry. Along with the companies operating in the market, other key market players have also been entering the industry.

In February 2020, Infor Inc. launched the Infor Hospitality Price Optimizer (HPO) solution. Infor HPO is a comprehensive, built-for-the-cloud solution that delivers pricing decisions for hoteliers. With this new offering, the company extended its product offering in the market.

Expert Insights:

Reports and Data forecasts promising developments for increased adoption of Smart Hospitality technology. According to industrial experts, application relating to the market product will usher in the market and will soon drive the industry. Moreover, new manufacturers are expected to enter the market who are likely to provide platform-centric Smart Hospitality solutions for production applications. New companies entering the industry would focus on innovating and providing through advanced technologies thereby reducing complexity and lowering the overall total cost of operation. Experts also believe that increase in adoption of environment friendly product in emerging nations would be a key development area for the industry.

Segments covered in the report

This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the market trends in each of the sub-segments from 2017 to 2027. The scope of the report can be defined as:

For the purpose of this report, Reports and Data have segmented into the global Smart Hospitality market on the basis of extraction type, application, end use industry, and region:

Component Outlook (Revenue, USD Million; 2017-2027)

Solution Hotel operation management system Hotel building automation systems guest service management system others

Hardware Lighting Control Security & Access Control Video Surveillance Access Control Systems HVAC Control Entertainment Controls Others

Services Professional Service Consulting Deployment & Integration Support & Maintenance Managed Service



Deployment mode Outlook (Revenue, USD Million; 2017-2027)

Cloud

On Premise

Hotel type Outlook (Revenue, USD Million; 2017-2027)

Business Hotels

Heritage & Boutique hotels

Resorts & Spas

Others

Regional Outlook (Revenue, USD Million; 2017-2027)

North America U.S

Europe U.K France

Asia Pacific China India Japan

MEA

Latin America Brazil



Key Question the Report Will Answer

At what rate will the Smart Hospitality Market grow? What will be the value of the market in 2027?

What are key technologies driving Smart Hospitality?

What would be the impact of Smart Hospitality across different regions?

What are the strategies adopted by players to enter the APAC region?

What is the key application of Smart Hospitality in the transportation sectors?

What are future growth strategies in the market?