Smart Tourism Market Size, Share & Industry Analysis, By Solution (Smart Ticketing, Smart Engagement, Smart Parking, Smart Guide, Smart City Bots, and Others), By End-user (Business/Corporate and Individual/Family/Group), and Regional Forecast, 2024 – 2032

The global smart tourism market size was valued at USD 626.8 million in 2023. The market is projected to grow from USD 712.6 million in 2024 to USD 2,258.6 million by 2032, exhibiting a CAGR of 15.5% during the forecast period.

The rapid economic development and improvement in the living standards of the population have led to significant growth in the tourism sector. With ongoing technological advancements, tourism has emerged as one of the most important global industries in recent times. These developments have contributed to the emergence of the concept of smart tourism. The travel and tourism sector is one of the largest sectors in the world. It is an important part of the social and economic activities of many countries, as it creates work opportunities and business prospects. The players in the market include Libelium Comunicaciones Distribuidas S.L., Cleverciti Systems GmbH, Moca Technologies LLC, Bismart are among others. The tourism sector continues to rise year after year, with tourist arrivals reaching 1.3 billion in 2023, 34% more than in 2022, and it is predicted to exceed 1.8 billion by 2030.

MARKET DYNAMICS

Market Trends

Application of AI and Machine Learning in Tourism is Driving Market Growth

In recent years, there has been a rise in research within the field of smart tourism, covering topics such as tourism development, tourist behavior, and theoretical explorations of smart tourism. Tools powered by AI for data analysis allow tourism companies to derive important insights from extensive and intricate datasets. Machine learning algorithms assess past data to uncover trends, patterns, and relationships. This provides businesses with practical insights regarding customer behavior and market dynamics. Smart tourism technology is powered by various digital technologies such as mobile applications, Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), big data and cloud computing, Augmented Reality (AR), and others, seamlessly integrated to create an intelligent ecosystem. Additionally, technology-enhanced transportation systems, such as intelligent parking, advanced traffic management, and real-time updates for public transport, help improve mobility in tourism locations.

Thus, the application of AI and machine learning in tourism will create smart tourism market growth opportunities.

Market Drivers

Rising Demand for Personalized Experience is Fueling Market Growth

Smart cities and smart tourism have initiated a significant change in the tourism sector. The digitization of the travel experience enables brands to customize marketing and suggestions for customers according to their data. Furthermore, the growth of e-commerce and smartphones has greatly aided travel companies in terms of personalization, as online platforms have become the main shopping venue for today’s travelers. The primary industry factors influencing the personalization theme include the rise of mobile travel applications, the swift expansion of digital partnerships, and the implementation of real-time personalization to enhance customer engagement and drive upselling.

With travel costs on the rise and brand loyalty diminishing, customers are likely to choose brands that tailor products and communications. A 2022 study by Oracle indicates that nearly one-third of travelers are more inclined to stay at hotels that provide options for contactless checkout and/or personalized digital promotions. The competitive nature of the travel industry requires a personalized approach to attract and keep customers. According to industry experts, 71% of consumers anticipate that companies will provide tailored interactions, and 76% would feel irritated if this expectation is not met.

Therefore, the rising demand for personalized experiences is driving the growth of the smart tourism market.

Market Restraint

Increasing Rate of Cybercrimes to Put Data Confidentiality and Security of Transactions in Danger

Smart travel solutions contain data such as employee name, mail-id, credit card details, preferred travel locations, transaction details, and other financial histories. Thus, it becomes a crucial measure of business, as end users tend to be more careful while selecting a tourism solution. According to a report from Air Plus International and the Global Business Travel Association, approximately 68% of business travelers experience the impact of a data breach involving third-party payment data. The majority of payment breaches related to data occur from external vendors, including hotel reservations, airline tickets, and other retail transactions. This is increasing the rate of cybercrimes.

The impact of such factors is likely to limit the demand for solutions in the market.

Market Opportunity

Collaborative Partnerships Among Key Stakeholders, Market Players, and Travel Agencies to Create Lucrative Market Opportunities

Collaboration between tourism stakeholders, technology providers, and local communities can foster the development of comprehensive smart tourism ecosystems. Such partnerships can drive innovation, create employment opportunities, and promote sustainable tourism practices. As the travel sector continues to recover from the impacts of the COVID-19 pandemic, the pace of recovery varies by region. It is complicated by emerging issues such as climate change and overcrowding. To tackle these challenges, governments and destinations should collaborate with essential tourism stakeholders to promote sustainable, inclusive, and resilient development for the future. This approach involves shaping tourism policies on both global and national scales, financing innovative projects that support local communities and small enterprises, and encouraging responsible behavior among consumers.

• For instance, in October 2024, IntrCity SmartBus teamed up with CheckMyBus, a platform that enables users to search for bus travel options, to provide top-notch bus services to both domestic and international travelers. Being CheckMyBus's inaugural partner in India, this collaboration aims to boost business significantly by drawing in travelers from abroad, especially from major markets such as the U.S., U.K., and Europe, while offering them affordable yet high-quality transportation solutions.

Thus, collaborative partnerships among key stakeholders, market players, and travel agencies are expected to create lucrative market opportunities.

SEGMENTATION ANALYSIS

By Solution

Increasing Adoption of Smart Ticketing for Streamlining Ticketing Process is Driving Segment Growth

The market is segmented by solution into smart ticketing, smart engagement, smart parking, smart guide, smart city bots, and others.

Among these, smart ticketing dominated the market in 2023, as these solutions in tourism involve the use of digital technologies, such as mobile apps, QR codes, RFID cards, and NFC (Near Field Communication), to streamline the ticketing process for travel, attractions, and events. As per a survey by industry experts, around 76% of tourists prefer mobile or e-tickets over paper tickets due to convenience. Also, it helps to enhance user experience.

Smart city bots are expected to grow with the highest CAGR during the forecast period, as smart city bots guide tourists on using public transport, rideshares, or eco-friendly mobility options. These bots support travelers with disabilities by providing information on accessible routes, accommodations, and attractions.

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By End-user

Businesses Increasing Investment in Cloud Solutions to Boost Business/Corporate Segment Demand

Based on end-user, the market is segmented into business/corporate and individual/family/group.

Business/corporate dominated the market in 2023 and is estimated to witness the highest CAGR during the forecast period. Smart tourism platforms integrate flights, hotels, transportation, and events, enabling employees to plan trips efficiently without managing multiple systems. The solutions offer leisure options, combining business trips with leisure opportunities to enhance employee satisfaction. By adopting smart tourism solutions, businesses can streamline operations, improve employee satisfaction, and align with modern trends, such as personalization and sustainability, making corporate travel more efficient and appealing.

Individual/family/group is estimated to grow significantly in coming years. Smart platforms help groups coordinate travel plans, manage itineraries, and book experiences together and using GPS and AR, smart tourism solutions enhance group tours with interactive, localized content.

SMART TOURISM MARKET REGIONAL OUTLOOK

The market is geographically studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific, and each region is further studied across countries.

Europe

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Europe dominated the market in 2023 and is estimated to showcase the highest CAGR during the forecast period, as tourism is a significant driver of economic growth in Europe, contributing 10% to its GDP. However, the pandemic has severely impacted the tourism industry. In response, the industry has been forced to explore new strategies for recovery. To prepare for the eventual return of visitors, the tourism and travel sectors are embracing innovation. Smart tourism is one of the advanced technological applications that is shaping both the current and future landscape of this industry.

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The smart tourism industry in the France market is expected to experience a strong growth rate during the forecast period. France aims to enhance its smart tourism framework by expanding 5G networks, promoting AI in tourism planning, and increasing partnerships with tech companies to offer more personalized and sustainable traveler experiences. France remains the world’s top tourist destination, with over 89 million visitors annually.

North America

North America is expected to grow significantly during the forecast period. The latest Economic Impact Report (EIR) from the World Travel & Tourism Council (WTTC) indicates that the tourism sector in North America is expected to grow at an average annual rate of 3.9% over the next decade.

Among North American countries, the U.S. dominated the market and is expected to showcase the highest CAGR during the forecast period. International arrivals to the U.S. grew significantly in 2023, with visits up 24% year-over-year.

Asia Pacific

In 2023, international visitor arrivals across 47 Asia Pacific destinations reached 522 million, reflecting an impressive increase of 94.3% compared to the previous year. This significant rebound marks the strongest recovery for tourism in the Asia Pacific region since the onset of the pandemic, with international visitor arrival nearing 2019 levels. China was among the top-performing destinations, which welcomed over 82 million tourists, representing 15.7% of the region's total.

Middle East & Africa

Middle East & Africa is anticipated to grow at a healthy rate. The Middle East has emerged as a global leader in the recovery of international tourism. According to the UNWTO, the region experienced an impressive growth of 31% above pre-pandemic levels, the highest among all regions. This rapid growth is fueled by strategic initiatives, tourism-friendly policies, and investments designed to enhance the region’s attractiveness as a global travel destination.

South America

South American market is likely to register a steady growth rate over the forecast period. In recent years, tourism in South America has experienced remarkable growth, surpassing its revenue of pre-pandemic travel by 29% by the end of 2023, reaching a total of USD 62.1 billion. This upward trend in the region is expected to continue, with a forecast that revenue will reach USD 71.7 billion by the end of 2024.

COMPETITIVE LANDSCAPE

Key Industry Players

Market Players to Opt for Merger & Acquisition Strategies to Expand Their Presence

Key players in the market are adopting strategies, including strategic partnerships & collaborations and mergers & acquisitions, to expand their business operations and geographical presence. Key market players are updating their existing solutions and integrating new tools to meet the changing customer requirements, such as the integration of new technologies such as artificial intelligence, automation, and others.

List of Companies Studied

• Libelium Comunicaciones Distribuidas S.L.  (Spain)


• Cleverciti Systems GmbH (Germany)


• Moca Technologies LLC (U.S.)


• Bismart (Spain)


• XIPHIAS Software Technologies Pvt. Ltd.  (India)


• Meridian Kiosks (U.S.)


• LamasaTech Ltd. (England)


• Cubic Transportation Systems, Inc. (U.S.)


• TraveloPro (India)


• NTT Data Business Solutions  (Germany)


• EDAG Engineering GmbH (Germany)


• Masabi (U.K.)


• Telefonica Tech (Spain)

…and more

KEY INDUSTRY DEVELOPMENTS

• October 2024: Cubic Transportation Systems (CTS) revealed its plans to implement a new smart ticketing solution for Tasmania’s (Australian State) public transportation network. This system will introduce cutting-edge fare payment technology, making travel throughout the state more accessible and convenient. The innovative solution will utilize Cubic's advanced account-based ticketing technology.


• September 2024: Cubic Transportation Systems unveiled Umo ScanRide, a new fare payment solution. This innovative approach allows transit agencies to adopt account-based fare collection without the need for new equipment onboard. ScanRide leverages QR codes and smartphone technology to provide an alternative to conventional fare collection methods. The system permits riders to use their mobile devices to scan QR codes located inside vehicles for fare validation.


• February 2024: Dublin City Council collaborated with the artificial intelligence firm OpenAI as part of a “smart tourism” project aimed at showcasing how AI can provide more tailored travel suggestions. This partnership involves jointly creating a prototype itinerary planner for Dublin to highlight the city’s cultural and heritage attractions.


• December 2023: Telefónica Tech and unBlock launched web3 SuperApp in the tourism industry at the International Tourism Trade Fair (FITUR). The unBlock SuperApp enables anyone (whether a tourist or a local) to access all products, events, and services available in the city. It incorporates Telefónica Tech’s Blockchain-managed platform, TrustOS, to provide users with incentives in the form of fungible tokens and NFTs for utilizing city services.


• April 2023: Cubic Transportation Systems' Umo Mobility platform launched a groundbreaking pilot program in Temuco, Chile – marking the first Umo deployment beyond North America. The pilot initiative allows riders to select different fare payment methods for their travels on urban and regional buses as well as taxi collectives. Passengers can choose from payment options such as the Umo Mobility app, tickets featuring pre-paid QR codes, and contactless smartcards.

INVESTMENT ANALYSIS AND OPPORTUNITIES

Smart tourism investments globally have shown substantial growth in recent years, driven by an emphasis on sustainability, innovation, and technology. Between 2019 and 2023, there were 1,943 greenfield Foreign Direct Investment (FDI) projects in the tourism sector, resulting in USD 106.7 billion in capital investments. Europe led with 44.6% of global FDI in tourism. At the same time, Asia Pacific and South America also witnessed significant increases in investment activity, with a strong focus on digital transformation and sustainable infrastructure development. Sustainability and digital innovation are key priorities for future tourism investments. Technologies such as AI and blockchain are increasingly used to enhance visitor experiences and reduce environmental impact. Public-private collaborations, such as the Global Investment and Innovation Forum, highlight the growing role of partnerships in attracting investment, boosting employment, and supporting local economies.

REPORT COVERAGE

The market research report provides a detailed market analysis. It focuses on key points, such as leading companies and applications. Besides this, it offers an understanding of the latest market trends and highlights key industry developments. In addition to the above-mentioned factors, it contains several factors that have contributed to the growth of the market in recent years.

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