Smart Luggage Market

Market Overview

The global smart luggage market size was valued at USD 2 billion in 2023 and is projected to reach USD 9.6 billion by 2032, registering a CAGR of 20.6% during the forecast period (2024-2032). The increasing infrastructure development in tourist destinations is expected to boost the revenue generated from smart luggage.

Smart luggage is a modern type of luggage with both basic and advanced capabilities, making it more convenient for consumers. Battery-powered baggage has gained significant popularity due to its ability to charge smartphones through the USB ports integrated into these bags.

The growth of the smart baggage business is fueled by the rising need for easy and secure luggage choices that provide advanced functionalities like GPS tracking, USB charging, and Bluetooth connectivity. The increasing prevalence of air travel is a significant driver of the smart baggage business. The growing recognition of the importance of sustainability is a crucial factor impacting the expansion of the smart luggage market.

Highlights

• Duffel bags generate the highest revenue share based on product type.
• RFID influenced the market growth by luggage type.
• Soft luggage generates the highest revenue share based on weight.
• Nylon influenced the market growth by material.
• Specialty stores generate the highest revenue share based on distribution channels.

Market Dynamics

Global Smart Luggage Market Drivers:

Product Innovation

Product innovation is a significant factor driving the industry's growth, namely through premiumization. Multiple industry participants are already creating cutting-edge smart baggage goods incorporating technologies such as integrated weighing scales, proximity servers, alarm systems, and water-resistant accessories. The primary benefit of a smart carry-on bag is that it guarantees a travel experience without any difficulties or inconveniences. The backpack has an autonomous light-emitting diode (LED) system that turns on when it is dark or there is low light. The luggage is also equipped with a detecting system linked to an application. This system notifies the relevant individual when the bag is being carried a significant distance away or when it is being opened beyond a particular range. 

Furthermore, the SE3S smart rideable suitcase electric luggage scooter for travel, released by Airwheel, is a lightweight device that can be effortlessly switched between ride-on and pull-behind modes. The rechargeable battery facilitates convenient packing and complies with airline carry-on regulations. Effortlessly fits into the majority of overhead luggage compartments.

In April 2024, Gold Medal Electricals announced the introduction of AirXpress, India's inaugural intelligent riding suitcase. The AirXpress intelligent travel suitcase is equipped with a detachable 73.26WH battery and has a robust construction that enables it to support weights of up to 110 kg while reaching a top speed of 13 km/hr. The AirXpress effectively integrates technology and ease. The AirXpress has two color options, Digital Silver and Carbon Black, and a sleek style ideal for contemporary travelers. The smooth navigation technology enables effortless mobility in congested areas such as airport terminals. Al These innovations are anticipated to drive market expansion over the forecast period.

Global Smart Luggage Market Restraints:

High Costs

The high expenses connected with smart baggage limit the market's growth. Smart luggage introduced globally is equipped with cutting-edge technologies to provide uninterrupted communication. Despite its advanced features and technologies, smart baggage is not priced reasonably due to its focus on the premium consumer market. Consequently, most people need more financial means to purchase smart luggage. Most prominent smart luggage suppliers introduce items priced between USD 200 and USD 550. Consequently, most individuals need help to acquire such things due to their high cost. Consequently, the exorbitant cost of smart luggage is a challenge for customers, potentially impeding the market's growth in the projected timeframe.

Global Smart Luggage Market Opportunity:

Weight Regulations on Luggage by Airline Companies 

Implementing weight limitations on luggage by airline operators is a significant industry trend driving the market's growth. Due to the implementation of the introductory economy rate, most commercial airlines are imposing limitations on the carriage of big bags on board the aircraft. Most airlines impose limitations on bags exceeding 12 inches in height or width. Customers who desire to transport such luggage must remit costs ranging from USD 25 to USD 35. Smart luggage equipped with integrated scales enables consumers to comply with the regulations established by airline carriers. 

Moreover, notable vendors of smart luggage with integrated weighing systems include JRSK Inc (Away), Horizn Studio GmbH, and Samsonite International SA. Due to the adherence of various airline operators to tight rules and regulations, the utilization of intelligent luggage equipped with integrated scales that indicate the weight of the bag is anticipated to rise in the projected timeframe.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global smart luggage market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global smart luggage market shareholder and is estimated to grow at a CAGR of 20.4% over the forecast period. The Asia Pacific area is experiencing rapid expansion in the worldwide smart baggage market due to strong governmental support for tourist development in countries like India, Thailand, and Malaysia. This support has increased demand for smart travel luggage in the region.  The Thai government intends to enhance tourism by implementing temporary visa-free travel for Chinese and Kazakh citizens and considering a similar arrangement with India.

Additionally, efforts will be made to improve local infrastructure to accommodate tourists better. Significant endeavors include enhancing the Krabi airport, which incurred an expenditure of 2.7 billion baht, and establishing an international airport in the Takua Thung area of Phang-nga. Furthermore, there are plans to develop a second airport in Phuket solely dedicated to handling foreign flights, as the current airport has already reached its maximum capacity of accommodating 14 million people. Moreover, the rising expenditure of consumers on vacation excursions in nations like Japan and China is expected to stimulate the demand for intelligent travel luggage in the area.

North America is estimated to grow at a CAGR of 20.9% over the forecast period. The growing utilization of Internet of Things (IoT) technology and developments in GPS monitoring systems have greatly improved luggage security and convenience, attracting technologically inclined tourists. Moreover, the increasing need for cutting-edge travel solutions in response to the booming travel and tourist industry drives the market's growth. According to UN Tourism data, over 1.3 billion foreign tourists were documented globally in 2023, marking a 34% rise compared to the number of tourists in 2022.

Additionally, projections for 2024 indicate that the demand for tourism will remain robust. The number of international tourists visiting the Americas in 2023 surpassed 90% of the levels before the pandemic. Enhanced airline restrictions further stimulate the demand for compliant and feature-rich baggage. Consumer preference for convenient travel, greater disposable incomes, and a robust e-commerce infrastructure drive this region's market expansion.

Europe holds a significant market share. Various significant elements drive the smart luggage industry in Europe globally. Technological innovations, such as GPS tracking, integrated weight scales, and automated locking systems, improve travelers' security and convenience. The market experiences significant growth due to increased travel and tourism and a rising preference for technologically advanced and high-quality travel products.

Moreover, the increasing adoption of IoT technology and the growth of e-commerce platforms enable wider availability and dissemination of smart luggage. In Europe, the strict airline restrictions concerning the safety and tracking of luggage drive innovation and create a high demand for smart luggage.

Segmental Analysis

The global smart luggage market is segmented based on product type, weight, material, connectivity, and distribution channels. 

Based on product type, the market is segmented into Duffel Bags, Travel Backpacks, Strollers, and Others. 

The duffel bags segment dominated in 2023 due to the comparatively lighter weight of these bags compared to other varieties. Moreover, individuals predominantly favor using these bags due to their vast storage capacity and superior ability to withstand external pressure.

The travel backpack segment is the fastest growing. Travel backpacks substantially impact the worldwide smart luggage market because they meet the requirements of contemporary travelers who need ease, functionality, and connectivity.  Due to the growing need for improved travel solutions, smart backpacks have become an essential part of the larger smart luggage market. They are trendy among tech-savvy consumers who need fast and smooth travel experiences.

The strollers segment is the second largest. Strollers are crucial in driving the expansion of the worldwide smart baggage market. The increasing focus on the ability to perform several functions and link with other devices in travel equipment intensifies the need for intelligent strollers. The worldwide smart baggage market is likely to experience significant growth as consumers place greater importance on convenience and safety during their travels, leading to increased adoption of smart strollers. 

Based on luggage connectivity, the market is segmented into RFID, GPS, Bluetooth, and Combination Connectivity Features. 

The RFID segment dominated in 2023. RFID scanning technology is widely favored for security purposes at airports. Consequently, the RFID sector is expected to have a substantial portion of the market since consumers can quickly check in and out from the airport using RFID-enabled smart luggage.

The GPS segment is the fastest growing. This technology allows for the immediate tracking and monitoring of luggage, improving security and reassuring travelers. GPS technology enables customers to remotely track the whereabouts of their luggage remotely, minimizing the chances of it being lost or stolen.  In addition, the rising popularity of intelligent travel solutions and the growing focus on ease and safety contribute to the increasing demand for GPS-enabled smart luggage, driving market growth.

By weight, the market is segmented into Soft Luggage and Hard Luggage. 

The hard luggage segment dominated in 2023 due to its superior durability and resistance to external pressure. In addition, individuals tend to like using these travel bags because they are more likely to be equipped with security than the soft kind. 

The soft luggage segment is the fastest growing. Durable luggage plays a crucial part in driving the growth of the worldwide intelligent luggage industry. The increasing desire for luxurious and top-notch luggage drives the use of intelligent technology in durable luggage. As consumers increasingly look for durable and technologically advanced items, including smart features in burdensome baggage, it is becoming a critical factor in driving market growth and influencing the future of travel accessories.

The material segments the market into nylon, leather, canvas, plastic, and other materials.  

The nylon segment dominated in 2023. The primary reason for the dominance of the nylon category is its superior water absorption properties, which effectively prevent luggage contents from becoming wet. Furthermore, the increased durability and strength of ballistic nylon baggage contribute to the significant market demand for this type of goods.

The leather segment is the second largest. The durability, superior visual appeal, and identification with luxury leather materials are key factors driving the growth of the worldwide smart baggage industry. Smart luggage makers frequently integrate leather accents or panels into their designs to enhance their products' aesthetic and tactile experience, appealing to buyers who desire both practicality and elegance. Moreover, leather's durability makes it very suitable for safeguarding electronic components and sensors integrated into smart luggage, guaranteeing long-lasting performance and dependability. The travel accessories industry's market expansion is driven by the increasing customer demand for high-quality and technologically advanced products, with leather playing a crucial role in this trend.

The canvas segment is the fastest growing. The durability, versatility, and aesthetic appeal of canvas material are key factors driving the growth of the worldwide smart luggage market. Consumers need smart luggage that combines usefulness and appearance, so the canvas is becoming a popular alternative. The strong and durable nature of the smart luggage provides security for the electrical components, while its adaptability allows for creative and advanced designs and functionalities. Therefore, using canvas material in smart baggage plays a crucial role in market growth by satisfying changing customer expectations and increasing the need for sophisticated travel accessories.

Based on the distribution channel, the market is segmented into Specialty Stores, Online Stores, Brand Stores, and Others.

The specialty stores segment dominated in 2023 due to the extensive availability of a diverse range of branded travel baggage and backpacks in these stores. Moreover, individuals are inclined to purchase luggage from these stores due to the presence of knowledgeable sales staff who help customers comprehend the superior quality and distinctive characteristics of the bags, making specialized stores the preferred option.

The online retailer's segment is the second largest. Online retailers are crucial in driving the growth of the worldwide smart luggage industry by offering a simple platform for customers to browse, compare, and buy smart luggage items from any location. These platforms provide a vast range of choices, allowing consumers to access various items that cater to their requirements and tastes. Moreover, the convenience and simplicity of online transactions enhance the overall expansion of the smart baggage industry by simplifying the buying procedure for global consumers.

Recent Developments

• January 2024– Airwheel introduced the Away The Bigger Carry-On Flex, a resilient, expandable, and fashionable suitcase. The suitcase is constructed from resilient materials capable of enduring the demands of travel, and it is equipped with an integrated lock authorized by the Transportation Security Administration (TSA) to enhance security. The Away, The Bigger Carry-On Flex, has four spinner wheels, facilitating effortless navigation in bustling airports and rail stations. 
• January 2024– The Airwheel brand introduced a new suitcase called The Frame Carry-on Max: Aluminum Edition by Arlo Skye. This luggage is notable for its elegant aluminum design, combining strength and refinement. By incorporating a built-in TSA-approved lock and a detachable portable charger, the convenience and security for travelers are significantly improved.