Global Distribution System Market Size, Share & Trends Analysis Report By Component (Software and Services), By Application (Hotels & Resorts, Car Rental, Aviation, Cruises and Others), By Regional Outlook and Forecast, 2024 - 2031

Global Distribution System Market Size, Share & Trends Analysis Report By Component (Software and Services), By Application (Hotels & Resorts, Car Rental, Aviation, Cruises and Others), By Regional Outlook and Forecast, 2024 - 2031

The Global Distribution System Market size is expected to reach $11.8 billion by 2031, rising at a market growth of 7.5% CAGR during the forecast period.

With the prevalence of online booking platforms and travel websites, hotels, and resorts increasingly rely on distribution systems to manage their online presence, room inventory, and reservations. Consequently, the hotels and resorts segment would generate more than 25% revenue of the market in 2023. These enable hotels to connect with multiple online travel agencies (OTAs), global distribution systems (GDS), and direct booking channels, expanding their global reach and visibility to potential guests.

The major strategies followed by the market participants are Mergers & Acquisition as the key developmental strategy to keep pace with the changing demands of end users. For instance, In March, 2024, Amadeus IT Group, S.A. completed the acquisition of VOXEL MEDIA, S.L. Through this acquisition, Amadeus broadened the spectrum of services available to travel sellers and tour operators. Additionally, In August, 2023, Emerson Electric Co. completed the acquisition of FLEXIM Flexible Industriemeßtechnik GmbH. Through this acquisition, the comprehensive measurement suite of Emerson was integrated with innovative technology of FLEXIM to enhance the value we bring to customers across a variety of industries.

Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG is the forerunner in the market. In October, 2021, Siemens AG took over Wattsense, a computer networking product manufacturing company. Through this acquisition, Siemens AG would enhance range of building automation solutions tailored for small and mid-sized buildings. Companies such as Schneider Electric SE, Eaton Corporation PLC, ABB Group are some of the key innovators in the market.

Market Growth Factors

Globalization enables companies to access new markets and customer segments worldwide. As businesses seek to tap into diverse markets and cater to the needs of a global customer base, they require efficient systems to deliver products and services to distant locations efficiently. Therefore, increasing levels of globalization are driving the growth of the market.

Mobile bookings offer unparalleled convenience and accessibility for travellers, allowing them to research, compare, and book travel services anytime, anywhere, using their smartphones or tablets. Mobile distribution systems enable travellers to make bookings on the go, eliminating the necessity for desktop computers or physical travel agents by offering a user-friendly interface and a seamless booking experience. In conclusion, the rising growth of mobile bookings promotes the market’s growth.

Market Restraining Factors

Modern distribution systems often require substantial investment in technology infrastructure, including hardware, software, and networking equipment. Advanced technologies such as warehouse management systems (WMS), transportation management systems (TMS), and IoT sensors can be costly to acquire and integrate into existing operations. Thus, high implementation and maintenance costs are impeding the market’s growth.

By Component Analysis

On the basis of component, the market is segmented into software and services. In 2023, the services segment attained 36.6% revenue share in the market. Adopting cutting-edge technologies changes distribution processes and increases the demand for specialist services. Examples of these technologies include robotics, artificial intelligence, and data analytics.

By Application Analysis

Based on application, the market is divided into hotels & resorts, cruises, car rental, aviation, and others. In 2023, the cruises segment held 14.0% growth rate in the market. As the cruise industry expands, there is a greater need for efficient systems to manage bookings, cabin inventory, and passenger preferences across a diverse range of cruise itineraries and destinations.

By Regional Analysis

Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region generated 26.3% revenue share in the market. The Asia Pacific region is home to a significant portion of the world's population, including rapidly growing urban populations. The increasing population creates higher demand for goods and services, driving the need for efficient systems to supply these goods to urban centers and rural areas.

The competition in the distribution system market can be characterized as high due to several factors. Firstly, there is a large number of players operating in the market, ranging from established multinational corporations to small and medium-sized enterprises. These companies offer a wide range of distribution solutions, including software platforms, logistics services, and consulting expertise, resulting in intense competition for market share. Secondly, the distribution system market is witnessing technological advancements and innovations at a rapid pace.

Recent Strategies Deployed in the Market

• Mar-2024: Amadeus IT Group, S.A. introduced the Amadeus Leisure Connect to foray into the leisure travel sector. The new product helps in harmonizing and simplifying the distribution of hotel content, fostering seamless connectivity between hoteliers and travel sellers across the entire booking journey.
• Mar-2024: Amadeus IT Group, S.A. completed the acquisition of VOXEL MEDIA, S.L., a company developing technological solutions. Through this acquisition, Amadeus broadened the spectrum of services available to travel sellers and tour operators. Additionally, the acquisition assisted Amadeus to cater to its corporate clientele.
• Jan-2024: Amadeus IT Group, S.A. completed the acquisition of Vision-Box, a renowned provider of biometric solutions tailored for airports, airlines, and border control entities. Through this acquisition, Amadeus gained access to cutting-edge biometric hardware and software, enriching its portfolio with innovative border control solutions. Additionally, the acquisition helped Amadeus in fostering connectivity within the travel industry through a cohesive ecosystem approach.
• Jan-2024: Sabre Corporation formed a partnership with International Consolidated Airlines Group, S.A., an Anglo-Spanish multinational airline holding company. Under this partnership, the companies enabled travel buyers and agencies connected to Sabre's network to market conventional EDIFACT content, alongside gaining competitive access to NDC offerings from British Airways, Iberia, Aer Lingus, and Vueling through the Sabre travel marketplace on a global scale.
• Nov-2023: Mitsubishi Electric Corporation came into a partnership with Nexperia B.V., a global semiconductor company. Under this partnership, the companies developed silicon carbide (SiC) power semiconductors. Additionally, the partnership assisted in producing SiC MOSFET chips and SiC discrete devices.

List of Key Companies Profiled

• Amadeus IT Group, S.A.
• Sabre Corporation
• Travelport
• Schneider Electric SE
• Mitsubishi Electric Corporation
• Eaton Corporation PLC
• Kiu System Solutions
• ABB Group
• Emerson Electric Co.
• Siemens AG

Global Distribution System Market Report Segmentation

By Component

• Software
• Services

By Application

• Hotels & Resorts
• Car Rental
• Aviation
• Cruises
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA