Smart Bags Market

Smart Bags Market Outlook (2022-2032)

A smart bag is an application-specific design that can be useful for almost everyone in society. Smart bags are intelligent enough to carry out various features such as USB charging ports, a built-in weighing scale, a TSA-approved lock, and an anti-theft feature. It has the ability to transmit its location via GPS and cell phones.

The solar panels attached to the front of the smart bags not only charge the power banks but also power the whole GPS and Bluetooth system. Some smart bags come with RF-ID technology that stores data about the required items. It has an emergency button, which when pressed sent text to three emergency numbers and will solve the problem in any threatening situation.

With technological advancement, the smart bag market witnessed rapid growth, as they are increasingly becoming fashion accessories with innovative designs. Smart bags are preferred over conventional bags because of their easy-to-use design and wide applications. With the increasing number of consumers preferring state-of-the-art products, manufacturers of smart bags are being forced to realign their strategies to remain in sync with the increasing global demand.

The global Smart bags market is estimated at USD 1136.14 Million in the year 2022. The market is further expected to grow at a CAGR of 10.53 % in the forecast period. The global smart bags market is likely to surpass a valuation of USD 3091.96 Million by end of the forecast period i.e in 2032. The assessment period of this report is 2022-2032.

Report Attributes	Details
Market size (2022 A)	USD 1136.14 Million
Base Year for Estimation	2022
Forecast duration for this research	2022-2032
Forecasted Market value (2032 F)	USD 3091.96 Million
Global Market Growth rate (2022-2032 E)	CAGR of 10.53%
Key Companies Profiled	Xiaomi Bags AWAY barracuda Fugu Luggage and Trunkster along with Delsey Modobag Planet Travvelers Traxpack

What are the drivers of growth in the Smart Bags market?

Increasing airline travel and tourism, innovations in product design and quality, and demand for IoT (Internet of things)-based applications are the significant key drivers for the global smart bags market. With the increasing consumer focus on luggage security, the demand for smart bags is also growing. The emergency button feature in smart bags will help female consumers and aid in the expansion of the global smart bags market.

The prominent driver for the growth of the smart bags market is the ease of availability of a product. Consumers are more willing to purchase smart bags from branded outlets where a variety of brands are available. Availability of products on e-commerce websites and also at retail stores aids in the expansion of the smart bags market. The third-party online channels provide worldwide home delivery of the product which increases the sales of the product.

Several airlines including Delta Air Lines, Southwest Airlines, American Airlines, Alaska Airlines, Qantas, Air Canada, and British Airways have banned the use of smart bags in flight as they contain Lithium-ion batteries, which increases the risk of battery fires. This is an important factor hindering the growth of sales for the smart bags market.

Restraints faced by the Smart bags market?

The high prices of smart luggage may limit the growth and penetration of these products. The market may not accommodate the lower income class customers. A temporary decline in sales has been seen during the pandemic period owing to lockdowns and restrictions due to the Covid-19 pandemic.

Which region dominates in the smart bags segment?

“North America region reigns in smart bags market”

The North American smart bags market witnessed rapid growth as smart bags are increasingly becoming a fashion accessory with innovative designs, trendy color combinations, textures, and clean contoured lines. The Asia-Pacific smart bags market is expected to grow at a rapid pace as countries, including China and Japan have technological advancement, whereas CIS and Russia and MEA regions have limited growth in the global smart bags market.

“Asia Pacific led by India, China, and Japan to gain market share due to rise in the tourism sector”

There is the possibility of the fastest growth in the Asia Pacific region for the smart bags market which is attributed to rising government support and initiatives for fostering tourism in countries like India, and Malaysia. This rise gives a boost to demand smart luggage. The rising consumer spending on traveling and tourism in countries like China, Japan, and India is anticipated to increase the market share of smart bags in the forecast duration.

Segment wise analysis

The smart luggage market is segmented into types and distribution channels and materials. Based on the product type the market is segregated into duffel bags which are expected to hold the majority of the share in the market owing to the lightweight nature of bags. People give maximum preference to the shelf size of smart bags owing to their better resistance to any external pressures.

On the basis of connectivity, smart luggage is featured GPS, RFID, and Bluetooth. RFID scanning is widely preferred for security purposes at airports. The Smart bags having RFID features are anticipated to hold a major share in the forecast period. As these bags allow users to perform hassle-free check-ins and check-outs from airports.

Based on the weight criteria the smart bags can be categorized into soft and hard. The hard segment is likely to dominate in market share as they are resistive and more durable. Additionally, the preference for hard bags is due to the incorporation of security features in the bags when compared with soft luggage.

Based on the materials used for making of smart bags, the Nylon segment is reigning due to its high water soaking ability. Besides the high soaking features of nylon, this material has high durability. Owing to these qualities nylon luggage tends to notice high demand from consumers.

On the basis of distribution channels, offline sales are dominant in the smart bags market. The specialty stores are anticipated to get maximum revenue in the forecast period owing to large availability under the same roof. The experts in stores may assist customers for choosing the right smart bags as per their expectations and needs. However, the rising self-driven customer group is expected to increase sales of online channels in the anticipated forecast duration.

Competitive landscape

The competition is very high as the online channels provide the product at a highly discounted price. This competitive environment also leads retailers and suppliers to cut the prices of their products to retain their market position, which can also negatively affect the profit margin of the manufacturers. Smart bags have high sales in the developed market, with the presence of third-party online channels.

Owing to the rise in penetration of technology such as Bluetooth and IoT has increased connectivity. The features of GPS tracking and smartphones are widely applied in smart luggage. In 2020, Samsora announced a partnership with Monogoto to allow customers to connect with their smart bag with the facility of WIFI hotspot feature. The growing leisure activities are largely supportive of future demand in the smart bags segment.

Smart Bags Market - Key Segments

• By Material Type :

  • Ballistic Nylon
  • Canvas
  • Leather
  • Polycarbonate
  • PVC
  • Tegris

• By Types :

  • Duffle smart bags
  • Trolley smart bags
  • Backpacks

• By Distribution Channel :

  • Supermarkets/Hypermarkets
  • Brand Outlets
  • Factory Outlets
  • Online Stores
  • Others

• By region

  • North America
    • U.S.
    • Canada
  • Latin America
    • Mexico
    • Brazil
  • Western Europe
    • Germany
    • Italy
    • France
    • U.K
    • Spain
  • Eastern Europe
    • Poland
    • Russia
  • Asia Pacific
    • China
    • India
    • ASEAN
    • Australia
    • New Zealand
  • Japan
  • Middle East and Africa
    • GCC
    • S. Africa
    • N. Africa