What is included in this Sample?
- * Market Segmentation
- * Key Findings
- * Research Scope
- * Table of Content
- * Report Structure
- * Report Methodology
Download FREE Sample Report
IOT in Hospitality market Size, Share, Growth, And Industry Analysis by Type (Hardware, Software, Service) by Application (Chained, Standalone) Forecast From 2025 To 2033
Trending Insights

Global Leaders in Strategy and Innovation Rely on Our Expertise to Seize Growth Opportunities

Our Research is the Cornerstone of 1000 Firms to Stay in the Lead

1000 Top Companies Partner with Us to Explore Fresh Revenue Channels
IOT IN HOSPITALITY MARKET OVERVIEW
The global IOT in Hospitality market size was approximately valued at USD 27.28 Billion in 2024 and is expected to reach USD 251.6 Billion by 2033, growing at a CAGR of about 28%.during the forecast period.
The Internet of Things (IoT) is transforming the hospitality industry to improve guest satisfaction, maximize efficiency, and enhance energy performance. From smart lighting and voice-enabled features in the room to predictive maintenance and personalized offers made possible through data leverage, IoT is opening all kinds of possibilities for hotels to rethink and re-imagine service. While there are many IoT connected devices in hospitality, the combined sensibility of operating connected devices and utilizing insights is where operational efficiencies and guest satisfaction improvements will intersect. The new generation of platforms that are being developed by the industry's step-change players will allow hospitality providers to collectively enhance service delivery, view inventory consumption and preemptively address guest requirements from their provided insights. Just as cloud technologies have impressed our lives on the consumer-level, key players in hospitality technology are developing platforms and connected insights across hotel brands and hotels to stay competitive in a digital sector that is rapidly changing the international hospitality environment and ultimately driving innovation in our considered sector of the economy. Given the guest determination toward sustainability, ease of use and personalization in the ever-changing service supply chain, we will continue to see growth of IoT technologies as we move toward an inevitable economic future.
COVID-19 IMPACT
IOT in Hospitality market Had a Positive Effect Due to Increased Hygiene and limited physical interaction During COVID-19 Pandemic
The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.
COVID-19 has influenced the IoT in Hospitality market by accelerating the deployment of contactless technologies. Hygiene and limited physical interaction became priorities and hotels and resorts immediately deployed IoT enabled systems including automated check-ins, voice systems in rooms, and service requests through mobile apps. These technologies enabled operators to meet safety standards, while maintaining or increasing guest satisfaction. There was also largely compel financial models that included this (academic reference needed). The shift also emphasized predictive maintenance and remote monitoring; virtually a digital concierge to minimize guest and staff contact. Data analytics also became more valuable and seeing how to control things more effectively around occupancy control and efficiencies was important. While Hotel Occupancy dropped and travel bans limited travel, pent up demand for smart, touch-free solutions also saw plenty of interest come back into digital transformation strategies and in some cases completely re-phasing operational models not just across a single hotel but sector wide.
LATEST TREND
Rise of Voice-Activated and AI-Powered Guest Experiences to Drive Market Growth
One of the emerging trends in the IoT in Hospitality market is the escalating utilization of voice-activated and AI-driven technologies to deliver personalized and seamless experiences for guests. Hotels are deploying smart assistants and voice-driven systems that allow guests to control room lighting, temperature, entertainment and concierge services hands-free. This is designed to enhance the guest's experience as well as cater to post-COVID expectations for touchless experiences. In addition, AI-driven analytics from connected devices allow hotels to gain insight on guest preferences, such as personalized room settings, or even personal recommendations that would signal a more tailored experience. Integration of cloud and mobile apps enables remote control and real-time service updates to improve guests' intuitive experiences while on-site and leaving the impression for potential repeat-stays after departure. In general, these showcase how the hospitality industry is shifting toward hyper-personalized and automated realities.
IOT IN HOSPITALITY MARKET SEGMENTATION
By Type
Based on Type, the global market can be categorized into Hardware, Software, Service:
- Hardware: In the IoT in Hospitality space, hardware serves as the first layer, wiring up or providing direct connectivity and real-time service at various touchpoints. Devices such as smart thermostats, keyless door locks, occupancy and monitoring sensors, connected appliances, and voice assistants are more prevalent in current hospitality use. These hardware components create automation and energy efficiencies while enhancing guest comfort and satisfaction. For example, lighting systems have a motion sensor cover to enhance the guest experience (lighting turns on, off, or dims) while not using unnecessary energy. Motion-sensing climate control units employ the same usages of energy to enhance the experience while minimizing unnecessary energy consumption. Security is another core component. Monitoring systems and digital-locked spaces improves unscrupulous or unauthorized access to spaces while not compromising its function. There is a broad growth trend in connected hardware structured solutions as properties work to create smart environments for seamless digital experiences and connections.
- Software: Software is a critical component of managing and integrating IoT devices as part of hospitality operations. With software, data collected from hardware devices can be centralized to allow real-time analytics and reporting across all hardware, automated workflows, and personalization of guest services. Property management systems (PMS), energy management dashboards, and customer relationship tools driven by AI are examples of ways hotels have utilized for better service delivery and improved decision making in their operations. And, with software there is almost limitless scalability which allows hotel chains to roll out multiple IoT devices and systems across several properties seamlessly. The ability to provide cloud-based platform also provides flexibility to devices and remote access, vital requirements of any modern hotel. Regardless of how much effort hoteliers put toward being efficient and innovative, software solutions remain the primary enabler in properly managing their IoT ecosystems.
- Services: IoT services in hospitality comprise installation, maintenance, consulting, and system integration. These services are designed to support device operations and data transfer across systems. Consulting services help hotels identify the optimal mix of IoT to meet their business objectives. Integration services ensure all IoT elements work seamlessly together across platforms. As well, maintenance processes support minimizing downtime, addressing cybersecurity issues around the IoT devices, and other operational issues. Because IoT technology and how it interacts with other tools evolves very quickly, service providers can assist when systems need to be upgraded, as well as to train hotel staff on operating procedures. This is important to ensure successful implementation, scale, and ongoing evaluation of IoT technologies and processes, especially for those hotels with minimal in-house technical knowledge or expertise.
By Application
Based on application, the global market can be categorized into Chained, Standalone:
- Chained: Franchised hotels, chained and branded hotels, are often early adopters of IoT technologies. Because franchised hotels operate under a standard structure and have more financial capital, their ability to experiment with IoT is much easier than independent hotels. Because of their financial capital and their management team, they are often able to operate a cohesive service experience, increasing brand value and operating efficiently. Smart controls in rooms, an enterprise-level energy management program, and predictive maintenance can now be used to maximize guest experience while minimizing costs. Information captured from IoT devices is shared across the chain to help predict a guest's next preference and set up a seamless experience as they change hotels. Furthermore, the amount of data collected by a large chain can influence large scale IoT platforms and innovation is practically done through a lens of shared economics across the properties.
- Standalone: These hotels, although often smaller and operating on a limited budget, are not overlooking IoT solutions to remain competitive. Standalone hotels are generally focused more on selective integration to cost-effective, lower-cost technologies, such as smart thermostats, mobile check-in, and digital concierge capabilities. They are now integrating IoT because it allows them to improve guest services and experiences, and they do not have to fundamentally change their entire property’s infrastructure. However, the choices, needs, and demands of each hotel are different, and hotels can choose an IoT solution that meets their individual needs and provides them unique value (e.g., unique guest experiences through personalized lighting or mobile voice-controlled technology). As the costs of technology become cheaper and it becomes “modular”, standalone hotels will continue to use IoT and their sophisticated systems to differentiate themselves from every other hotel in their market. Ultimately, the operational efficiencies and guest satisfaction that IoT can provide to the hotel is becoming smarter and more efficient.
MARKET DYNAMICS
Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.
Driving Factors
Growing Demand for Personalized Guest Experiences to Boost the Market
One of the main drivers of IOT in Hospitality market growth is the aim to exceed guests' needs through personalization. Guests are looking for personalization; they want the services they experience, to be services they had a hand in deciding, based on today's travel situation. What a hotel can do with IoT technologies is collect data, analyze that data, and use it in real-time. With smart devices at a hotel, hotels understand their guests' true behaviors and inclination. Knowing this, hotels can position themselves for some of the changes that may happen, preparing for the guests' arrival. The hotel may change the lighting, temperature, entertainment options, or housekeeping, as variables in meeting guests' expectations and needs. Not only does this help to personalize guest needs, enhancing guest satisfaction, but it also develops brand identity and guest loyalty. In addition to personalizing aspects of the guests in-room amenities, hotels may leverage guests' data to serve where room upgrades, recommendations, and/or special offers can be personalized tailored to creating and exclusive guest experience.
Operational Efficiency and Cost Reduction to Expand the Market
Investing in enhanced operational efficiencies with cost savings represents another strong motivator. By automating many repeatable actions that would be otherwise completed manually, such as adjusting thermostats, controlling lighting or performing predictive maintenance, IoT enhances organizational efficiencies without causing employee burden and reduces energy use. Smart energy systems can analyze usage patterns to determine inefficient energy use and help to support sustainability initiatives. Smart platforms that integrate, control and monitor multiple functions from a dashboard will allow property managers to respond more quickly and efficiently while reducing operational and energy use, improving resource management and achieving operational efficiencies, all of which are critical metrics for achieving success in Canada's competitive hospitality sector.
Restraining Factor
High Initial Investment and Integration Complexity to Potentially Impede Market Growth
Without question one of the big constraints limiting IoT use in the hospitality industry, in considering the benefits of increased efficiencies from IoT systems, is the expense of cost to derive the initial investment and set up, as the capital demands of building an entire IoT ecosystem, spending on multiple smart devices including replacing existing devices, augmenting or adding network connectivity, and provisioning for measures to create a cybersecurity plan can be considerable. Also worth noting, there can be integration issues to manage migrating to IoT solutions from existing legacy systems which can use up time and resources. In many hotels, especially when you look at independent and hotels located in emerging market areas, the up-front investment may seem acceptable without tangible benefits or returns coming back in reasonable time, therefore they tend to sit on that challenge to commit and act. Additionally, also adding to the fact that dealing with IoT solutions for hospitality can be complicated and contain many unknowns, there is also a requirement to add new employees with technology expertise to maintain ongoing and to start-up proper IoT operations, all of which adds cost and contributes to more inertia for certain segments to pick up and initiate.

Expansion of Smart City Projects and Digital Tourism to Create Opportunity for the Product in the Market
Opportunity
The continued growth and development of smart cities represents a huge opportunity for the IoT in Hospitality market. As urban centers become more interconnected with enhanced smart infrastructure, hotels are uniquely placed to plug into IoT networks on a citywide level. This can create seamless guest experiences where travelers can access real-time public transport updates within the hotel, use smart navigation to find their way around a new city, and access location-based services on hotel platforms. Additionally, the concept of digital tourism brings a wave of hyper-connected environments that hotels can deliver through fully automated, app-based services. Hotels that tap into these smart, connected ecosystems not only provide convenient services to guests, but they also provide them with smart, modern solutions that appeal to a new generation of digitally literate consumers traveling to unfamiliar places.

Data Privacy and Cybersecurity Concerns Could Be a Potential Challenge for Market
Challenge
In the IoT in Hospitality market, one of the biggest areas of concern will be addressing data privacy and cybersecurity issues. Hotels collect no shortage of sensitive guest data ranging from personal preferences to payment information. Protecting this data is paramount, but hotels need to be mindful that IoT-enabled devices that are not protected properly are often vulnerable entry points in a cyberattack. This could constitute a breach of data protection policies and the loss of trust from your guests. The lack of expertise, skills and resources to maintain effective cybersecurity measures is a common issue many hospitalities providers face. As the number of connected devices increases, the capacity to manage the threat and risk will continue to stretch. Compliancy with regulations is just another burden and hotels will need to have the appropriate governance in place to satisfy the requirements of data protection laws – and make sure the hotel is compliant no matter where they are operating in the world. The threat and risk associated with data protection will not go away and will require significant investment over the coming years, even at the best of times.
-
Request a Free sample to learn more about this report
IOT IN HOSPITALITY MARKET REGIONAL INSIGHTS
-
North America
North America especially, United States IOT in Hospitality market is the leader in scaling IoT innovations in the hospitality industry. The region is supported by robust tech infrastructure, matured digital literacy relative to other regions, not to mention consumers demanding new and innovative solutions to convenience. Hotels across the US are quick to deploy smart room capabilities, automated check in, and AI powered personalization to meet evolving guest expectations. The presence of sizeable IoT and hospitality technology companies help create further pace of innovation and accessibility to the sector. In addition, the relative focus on sustainability supports further deployment of energy savings IoT technology. As a result, the United States is fostering an ecosystem with a significant appetite for further growth while allowing for experimentation by hotel customers.
-
Europe
The hospitality industry in the European continent is also gradually adopting IoT to improve the guest experience and become more sustainable. Countries such as Germany, the UK and the Netherlands are investing in the development of smart hotels with digital concierge services, energy management systems, and real-time analytics. Furthermore, European legislation related to data protection regulations and energy efficiency promotes the uptake of secure and sustainable IoT solutions for hotels. Additionally, countries in Europe are motivated to invest in smart solutions given the richness of the continent’s landscape and local tourism culture giving hotels a reason to innovatively distinguish themselves from competitors within the region. Several politicians and urban planners in these regions are also advocating for greater smart-city development which could further facilitate a seamless connection of hotel IoT tools with local smart infrastructure and higher quality guest connectivity and service levels.
-
Asia
Asia is emerging as an attractive targeted and growing market for IoT in hospitality, with growth fueled by expanding tourism, urbanization, and growing technology-savvy middle classes. Countries including China, Japan, South Korea, and India all are ascribing to smart hotel projects. Hotels in Asia are leveraging IoT to provide mobile key access, AI powered room control, and individualized guest services. The competitive hospitality landscape includes quicker adoption of IoT to attract and retain customers. Partnerships with local tech startups also are contributing to large scale innovation in the region. Along with growing government backing and multiple smart city projects, the region will soon see a rapid acceleration of IoT for hospitality use.
KEY INDUSTRY PLAYERS
Key Industry Players Shaping the Market Through Innovation and Market Expansion
Key players in the IoT in Hospitality space are changing the landscape of the industry through continuous innovation and strategic growth. Such players include Legrand and Cisco Meraki, which are working on infrastructure-based solutions for seamless connectivity for all devices in a hotel's property. Samsung and Amazon Alexa, which are improving in room experience using smart TVs and voice-product assistance. Ocean Medallion and ZoraBots, bringing their unique toolset of personalization and robot automation to enhance guest service. Igor is providing personalized intelligent lighting solutions that increase energy efficiency and guest comfort. CityHub innovates by incorporating technology into an experience of a boutique hotel. These players are using a combination of portability, usability, integration and scalability to remain competitive in the ever-changing market.
List of Top Iot In Hospitality Companies
- Legrand (France)
- Ocean Medallion (United States)
- ZoraBots (Belgium)
- Samsung (South Korea)
- Igor (United States)
- Amazon Alexa (United States)
- CityHub (Netherlands)
- Cisco Meraki (United States)
KEY INDUSTRY DEVELOPMENTS
June 2024: Two leading hotel companies, Marriott International (Marriott) and Hilton Hotels have developed Internet of Things (IoT) enabled smart room platforms as part of their digital transformation in the hospitality industry. Marriott launched their Voice Enabled Guest Room with guests being able to adjust room conditions (e.g. temperature, lighting, entertainment) with voice commands and smartphone apps. Hilton fulfilled their vision of the Connected Room; a guest could impact or create room conditions to personalize their experience and use the Hilton mobile app for streaming content. These examples help to demonstrate what we are consistently seeing in the hotel industry with IoT and guest technology-enabled experiences. More importantly, they illustrate that these two well-respected hotel brands are not only noting guest-centric smart hotel initiatives, but they are developing custom experiences for their guests while also attempting to create seamless operational practices. Therefore, it is obvious that we are seeing hotels investing in smart room initiatives, hotel practitioners must realize that if they are going to find a competitive stance in an evolving marketplace at a rapid speed, meeting and exceeding guest expectations is very real work.
REPORT COVERAGE
The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.
Attributes | Details |
---|---|
Market Size Value In |
US$ 27.28 Billion in 2024 |
Market Size Value By |
US$ 251.6 Billion by 2033 |
Growth Rate |
CAGR of 28% from 2025 to 2033 |
Forecast Period |
2025-2033 |
Base Year |
2024 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
|
By Type
|
|
By Application
|
FAQs
The global IOT in Hospitality market is expected to touch USD 251.6 billion by 2033.
The IOT in Hospitality market is expected to exhibit a CAGR of 28% by 2033.
The key market segmentation, which includes, based on type, the IOT in Hospitality market is Hardware, Software, Service. Based on application IOT in Hospitality market. is Chained, Standalone.
North America is the prime area for the IOT in Hospitality market due to its robust tech infrastructure, matured digital literacy relative to other regions, not to mention consumers demanding new and innovative solutions to convenience.
Growing Demand for Personalized Guest Experiences to Boost the Market and Operational Efficiency and Cost Reduction to Expand the Market.