According to a new market research report “Smart Hospitality Market by Software (Hotel Operation Management System, Hotel Building Automation System), Service (Professional, Managed), Hotel Type (Business, Heritage & Boutique, Resorts & Spas), Deployment Model, and Region – Global Forecast to 2021” published by MarketsandMarkets, the market expected to grow from USD 5.74 Billion in 2016 to USD 18.11 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 25.8%.
The major drivers for upsurge in demand for smart hospitality software and services include the growing demand for real-time optimized guest experience management, luring revenue generation & low operational costs, and increasing adoption of Internet of Things (IoT) & energy management systems.
Hotel building automation system is expected to hold the largest market share in the Smart Hospitality Market.
The hotel building technology has significantly changed over time, and various disciplines such as building automation for facility & emergency response management, building energy optimization, parking management, and water management are now being widely adopted in the hospitality sector. The adoption of hotel building automation software is propelled by the increasing demand for energy and facility-efficient methods. The emergence of IoT has also enabled the exchange of information among several electronic devices as well as cloud, without the need of direct human interaction, which makes hospitalities smarter.
Business hotels are likely to hold the largest market share in the Smart Hospitality Market by hotel type
Business hotels primarily serve business travelers; however, many tour groups, individual tourists, and small conference groups find these hotels attractive. Business hotels provide their guests with unified communication capabilities that enable the guests to conduct meetings, conferences, and connect to associates around the world. In addition, these hotels deploy various building automation and mobile device-enabled technologies to provide a mesmerizing experience to the guests.
On-demand deployment model is expected to grow at the highest CAGR during the forecast period
The on-demand deployment model, also referred to as Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS), enables hotels to deploy their software and services on a virtual environment. The cloud-based deployment smart hospitality software reduces the cost associated with purchasing, servicing, and powering of server-class machines. The subscription model enables the scalability for end-users with a low cost of ownership. It also ensures the integrity of data back-up while reducing the risk of expensive security breaches.
Europe is expected to hold the largest market share in the Smart Hospitality Market
As per the geographic analysis, Europe is likely to benefit from its technological advancements, robust internet infrastructure, and widespread adoption of new technologies. The need for better operational efficiency at a low operating cost is expected to bring continuous growth in the Smart Hospitality Market.
The major vendors covered in the Smart Hospitality Market for this study include Schneider Electric (Rueil-Malmaison, France), Siemens AG (Munich, Germany), IBM Corporation (New York, U.S.), BuildingIQ (California, U.S.), Honeywell International (New Jersey, U.S.), Winhotel Solutions (Balearic Islands, Spain), Cisco Systems, Inc. (San Jose, U.S.), Oracle Corporation (California, U.S.), Huawei Technologies (Shenzhen, China), Johnson Controls (Wisconsin, U.S.), NEC Corporation (Tokyo, Japan), and Infor, Inc. (New York, U.S.).