The global travel technology market is set to more than double in size, reaching an estimated USD 21 billion by 2032, according to a new report by Allied Market Research. The industry, which was valued at USD 9.4 billion in 2022, is projected to grow at a compound annual growth rate (CAGR) of 8.6% from 2023 to 2032.

This significant growth is driven by the rising adoption of digital tools across the travel and tourism sector. Travel technology encompasses software, systems, and platforms that streamline travel planning, booking, and experiences — from mobile apps and booking engines to global distribution systems and analytics software.

The tourism industry segment is expected to witness the fastest expansion, thanks to user-friendly management apps offering features such as itinerary planning, real-time weather and flight updates, travel document storage, and automated reminders.

The COVID-19 pandemic served as a key accelerator for digital transformation in the travel industry. The need for contactless services led to the widespread implementation of touchless check-ins, mobile payments, and AI-powered customer support tools. These advancements are now standard features across many airlines, hotels, and online platforms.

Regionally, North America held the largest market share in 2022, supported by early tech adoption including AR, VR, and chatbot integration. However, the Asia-Pacific region is anticipated to see the highest growth, with a forecasted CAGR of 12.1%, spurred by increasing e-commerce adoption and the expansion of digital travel services.

By end user, the commercial segment dominated the market in 2022, accounting for nearly two-thirds of global revenue. Yet, the individual segment is expected to grow rapidly, driven by the increasing demand for personalized, self-service travel options.

Major players in the travel tech space include Amadeus IT Group SA, Travelport, Sabre GLBL Inc., Qtech Software, and Digitrips, among others. These companies are investing in innovation and partnerships to expand their global footprint and respond to evolving consumer behavior.

With enhanced broadband accessibility and digital payment systems, the report suggests that travel technology companies will increasingly influence how consumers discover, research, book, and manage their travel experiences.