U.S. Smart Hospitality Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

U.S. Smart Hospitality Market, By Offering (Software, and Service), Deployment (Cloud, and On-Premise), Hotel Type (Business Hotels, Heritage and Boutique Hotels, Resorts and Spas, and Others), and Application (Hotels, Cruise, Luxury Yachts, and Others) – Industry Trends and Forecast to 2032.

Smart Hospitality Market Size

• The U.S. smart hospitality market size was valued at USD 4.82 billion in 2024 and is expected to reach USD 21.27 billion by 2032, at a CAGR of 20.4% during the forecast period
• The market growth is primarily driven by the increasing adoption of smart technologies in the hospitality sector, including IoT-enabled devices, AI-powered guest services, and advanced automation systems, enhancing operational efficiency and guest experiences
• Growing consumer demand for personalized, seamless, and technology-driven hospitality services is positioning smart hospitality solutions as a cornerstone of modern hotel and travel operations

Smart Hospitality Market Analysis

• Smart hospitality solutions, encompassing software and services for automation, guest management, and operational efficiency, are becoming integral to the U.S. hospitality industry due to their ability to offer personalized guest experiences, remote management capabilities, and integration with smart ecosystems
• The surge in demand is fueled by rising consumer expectations for convenience, enhanced security, and contactless services, particularly post-pandemic, alongside the rapid digital transformation of hotels, cruises, and luxury yachts
• These technologies enable advanced data processing and real-time analytics, providing deeper insights into guest preferences, operational efficiency, and predictive maintenance needs
• AI-powered solutions, such as virtual concierges and chatbots, analyze guest behavior to offer personalized services, such as tailored room settings or dining recommendations
• The software segment dominated the largest market revenue share of 62.3% in 2024, driven by the widespread adoption of hotel management software, including property management systems (PMS), guest experience management, and integrated security systems, which enhance operational efficiency and guest satisfaction

Report Scope and Smart Hospitality Market Segmentation   

Smart Hospitality Market Trends

“Increasing Integration of AI and IoT Technologies”

• The U.S. smart hospitality market is experiencing a significant trend toward the integration of Artificial Intelligence (AI) and Internet of Things (IoT) technologies
• These technologies enable advanced data processing and real-time analytics, providing deeper insights into guest preferences, operational efficiency, and predictive maintenance needs
• AI-powered solutions, such as virtual concierges and chatbots, analyze guest behavior to offer personalized services, such as tailored room settings or dining recommendations

  • For instance, companies are developing AI-driven platforms that optimize hotel operations by predicting peak demand periods or automating energy management based on occupancy patterns

• IoT-enabled devices, such as smart thermostats and lighting systems, enhance guest experiences by allowing remote control of room environments via mobile apps
• This trend is increasing the appeal of smart hospitality solutions for both guests and operators, driving adoption across hotels, cruises, and luxury yachts

Smart Hospitality Market Dynamics

Driver

“Rising Demand for Personalized Guest Experiences and Contactless Services”

• Growing consumer demand for personalized and seamless hospitality services, such as mobile check-ins, digital room keys, and customized amenities, is a key driver for the U.S. smart hospitality market
• Smart hospitality systems enhance guest safety and convenience through features such as contactless payments, virtual concierge services, and self-check-in kiosks, spurred by post-COVID-19 preferences for minimal physical contact
• Regulatory pushes for energy efficiency and sustainability in the U.S. hospitality sector are encouraging the adoption of IoT-enabled systems for resource management
• The proliferation of 5G technology and cloud-based platforms supports faster data transmission and scalability, enabling advanced in-room services and real-time guest engagement
• Hotel chains and luxury operators are increasingly integrating smart technologies as standard features to meet guest expectations and enhance property value

Restraint/Challenge

“High Implementation Costs and Data Privacy Concerns”

• The high initial investment for smart hospitality hardware, software, and system integration poses a significant barrier, particularly for smaller hotels and operators in the U.S. market
• Retrofitting legacy properties, such as heritage and boutique hotels, with smart technologies can be complex and costly due to architectural constraints
• Data security and privacy concerns are a major challenge, as smart hospitality systems collect sensitive guest data, including personal information and payment details, raising risks of breaches or misuse
• Compliance with U.S. data protection regulations, such as the California Consumer Privacy Act (CCPA), adds complexity for operators managing data across multiple platforms
• These factors may deter adoption in cost-sensitive segments or regions with heightened privacy awareness, potentially limiting market growth

Smart Hospitality market Scope

The market is segmented on the basis of offering, deployment, hotel type, and application.

• By Offering

On the basis of offering, the U.S. smart hospitality market is segmented into software and service. The software segment dominated the largest market revenue share of 62.3% in 2024, driven by the widespread adoption of hotel management software, including property management systems (PMS), guest experience management, and integrated security systems, which enhance operational efficiency and guest satisfaction.

The service segment is expected to witness the fastest growth rate from 2025 to 2032, propelled by increasing demand for professional services such as system integration, consulting, and support and maintenance. These services ensure seamless implementation and ongoing optimization of smart hospitality solutions, catering to the evolving needs of the hospitality industry.

• By Deployment

On the basis of deployment, the U.S. smart hospitality market is segmented into cloud and on-premise. The cloud segment dominated with a market revenue share of 68.7% in 2024, driven by its flexibility, scalability, and cost-effectiveness, which appeal to hotels of all sizes. Cloud-based solutions enable remote access, real-time updates, and integration with IoT and AI technologies, enhancing operational agility and guest experience.

The on-premise segment is anticipated to experience steady growth from 2025 to 2032, as larger hotel chains and luxury properties prioritize robust, secure, and customizable solutions. On-premise deployments offer greater control over sensitive guest data, addressing data privacy and security concerns critical to the hospitality sector.

• By Hotel Type

On the basis of hotel type, the U.S. smart hospitality market is segmented into business hotels, heritage and boutique hotels, resorts and spas, and others. The business hotels segment accounted for the largest market revenue share of 45.2% in 2024, driven by the high demand for smart technologies such as mobile check-in, keyless entry, and integrated communication systems that cater to business travelers’ need for convenience and connectivity.

The resorts and spas segment is expected to witness the fastest growth rate from 2025 to 2032, fueled by rising consumer demand for personalized and immersive experiences. The integration of IoT-enabled room controls, AI-powered concierge services, and energy-efficient systems in luxury resorts and spas enhances guest satisfaction and operational efficiency.

• By Application

On the basis of application, the U.S. smart hospitality market is segmented into hotels, cruise, luxury yachts, and others. The hotels segment held the largest market revenue share of 78.6% in 2024, driven by the widespread adoption of smart technologies such as property management systems, automated check-in, and virtual concierge services to meet guest expectations for seamless and contactless experiences.

The cruise segment is anticipated to experience rapid growth from 2025 to 2032, with a projected CAGR of 21.8%. This growth is driven by the increasing integration of IoT and AI technologies for real-time guest service management, onboard navigation, and personalized entertainment, enhancing the overall cruise experience while optimizing operational costs.

Smart Hospitality Market Share

The smart hospitality industry is primarily led by well-established companies, including:

• NEC Corporation (Japan)
• Huawei Technologies Co., Ltd. (China)
•  IBM (U.S.)
• Cisco Systems, Inc. (U.S.)
•  Siemens (U.S.)
•  Schneider Electric (France)
•  Johnson Controls (Ireland)
•  Honeywell International Inc. (U.S.)
•  Oracle (U.S.)
•  Infor. (U.S.)
•  Winhotel Solution SL (Spain)
•  WiSuite (U.S.)
•  Qualsoft (India)
•  SAMSUNG (South Korea)
•  BLAZON HOTELS (U.A.E)
•  Snap One, LLC (U.S.)
•  Guestline (U.K.)
•  Cloudbeds (U.S.)
• Frontdesk Anywhere (U.S.)

What are the Recent Developments in U.S. Smart Hospitality Market?

• In July 2025, the U.S. smart hospitality market continues to accelerate its adoption of contactless technologies, a trend catalyzed by global health events and evolving guest expectations. Hotels are increasingly implementing mobile payments, virtual concierge services, and self-check-in kiosks to deliver safer, more seamless experiences. According to recent industry data, 71% of guests prefer hotels offering self-service tech, including digital room keys and mobile check-ins. This shift reflects a broader movement toward minimizing physical contact, enhancing hygiene protocols, and improving operational efficiency through digital transformation
• In November 2020, Oracle partnered with Carmel Hotéis, a Brazilian hospitality group, to implement Oracle Hospitality OPERA Cloud services across its resorts and business hotels in Ceará. This made Carmel Hotéis the first hotel group in Brazil to adopt the cloud-based property management system (PMS), which offers intuitive interfaces, mobility, and multi-property support. The collaboration reflects Oracle’s broader strategy to expand cloud adoption in hospitality, streamlining operations and improving front-line staff efficiency—benefits that resonate across global markets, including the U.S
• In July 2020, Oracle launched OPERA Cloud, a unified hospitality platform that integrates Property Management with Sales and Event Management capabilities. Designed to streamline hotel operations, OPERA Cloud offers a mobile-enabled, cloud-based solution that simplifies IT infrastructure while enhancing guest experiences. Its intuitive interface and multi-property support help hotels manage reservations, housekeeping, group bookings, and event planning—all from a centralized system. This innovation reflects Oracle’s strategic push to modernize the U.S. hospitality market through smarter, more agile technology
• In May 2020, IBM Corporation and Red Hat unveiled a suite of edge computing solutions tailored for the 5G era, announced during IBM’s Think Digital conference. These offerings empower enterprises and telecom providers to deploy and manage AI, IoT, and analytics workloads at the edge, reducing latency and enhancing responsiveness. Built on Red Hat OpenShift, the platform supports hybrid multicloud environments and enables real-time insights across industries—including smart hospitality, where edge-enabled services improve operational efficiency and guest experiences
• In March 2020, Honeywell International Inc. introduced the e7w Wireless EMS Thermostat, a smart, battery-powered device designed to enhance energy efficiency in hotel guestrooms. Featuring built-in occupancy, temperature, and humidity sensors, it integrates seamlessly with the INNCOM networked Energy Management System (EMS) to optimize HVAC performance. This advanced thermostat enables energy savings of 25–40%, supports wireless ZigBee® connectivity, and offers flexible installation—ideal for ADA-compliant rooms. With real-time data reporting and compatibility with INNcontrol software, the e7w expands Honeywell’s EMS portfolio, promoting sustainability and operational efficiency in the U.S. hospitality sector

SKU-64376