Smart Backpack Market Trend, Share, Growth, Size, Analysis and Forecast 2032

Smart Backpack Industry Prospective:

The global smart backpack market size was worth around USD 17.52 billion in 2023 and is predicted to grow to around USD 39.66 billion by 2032 with a compound annual growth rate (CAGR) of roughly 9.50% between 2024 and 2032.

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Smart Backpack Market: Overview

Smart backpacks are designed to be used in the technology-driven world. These backpacks are more functional and versatile as compared to traditional backpacks. They offer more efficient storage capacity, anti-theft features, and space that allows charging cables to pass through the bag allowing users to charge their smart devices on the go. Furthermore, most smart backpacks have intelligent locking systems that discourage unwanted access to the contents of the bag. Additional features of smart backpacks include water-resistant attributes and a handle pass-through so that the bag can be easily placed on stroller bags. Smart backpacks are highly popular among travel enthusiasts owing to the excellent functionality of the storage solutions.

The market players are now experimenting with the overall design and appeal of the product to attract more buyers. Several factors are expected to influence the demand for smart backpacks during the forecast period with the primary being the growing consumerism level. However, the industry also faces specific challenges as most modern smart backpacks are highly priced thus catering to the needs of specific consumer segments.

Key Insights:

• As per the analysis shared by our research analyst, the global smart backpack market is estimated to grow annually at a CAGR of around 9.50% over the forecast period (2024-2032)
• In terms of revenue, the global smart backpack market size was valued at around USD 17.52 billion in 2023 and is projected to reach USD 39.66 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising number of consumers globally
• Based on distribution channel segmentation, online was predicted to show maximum market share in the year 2023
• Based on capacity segmentation, 35-60 liters was the leading segment in 2023
• On the basis of region, North America was the leading revenue generator in 2023

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Smart Backpack Market: Growth Drivers

Rising number of consumers globally will drive market demand

The global smart backpack market is projected to grow owing to the growing number of consumers worldwide. One of the key aspects of the modern economy is excessive consumerism. The advent and access to the Internet and online platforms have resulted in high consumer awareness. Buyers are aware of new products being offered in the commercial market. Additionally, modern buyers have a wide range of options while choosing products they may need or want. Several financial, psychological, and social factors are responsible for driving the consumerism index globally.

For instance, in most cases, the notion of equating the number of things owned to social status has resulted in overspending that is not considered a necessity. Additionally, the rise in disposable income of the general population along with easier access to products through e-commerce platforms has further encouraged higher sales of products. A recent official report by The White House indicated that consumption spending drives around two-thirds of the total US economy. The growing population rate also contributes to a higher number of potential consumers. As of 2024, the world population is over 8 billion.

Growing tourism levels impact the demand for intelligent backpack solutions

Backpacks are essential items required during traveling, especially during adventure trips. Compact backpack solutions that offer efficient packing space and anti-theft features are highly common among backpackers. Market research indicates that the number of backpackers increased from 6 million in 2017 to 10 million in 2021. The global smart backpack market enjoys considerable demand for the backpacking industry as these bags are highly versatile, unlike traditional bags with limited storage capacity.

For instance, smart backpacks are multiple storage units with each unit dedicated to specific items to be stored. Certain backpacks also have radio-frequency identification (RFID) systems as theft-prevention systems. Additionally, makers are experimenting with solutions to ensure that the bags remain lightweight and meet the ergonomic demands of the users.

Smart Backpack Market: Restraints

High cost of the backpacks restricts the number of buyers in the industry

The global industry for smart backpacks enjoys limited revenue due to the high cost associated with the product. Since smart backpacks consist of advanced technologies such as charging ports and in some cases Bluetooth connectivity, these bags are more expensive than traditional counterparts. Buyers may refrain from buying smart backpacks since they have the option to choose bags that are reasonably priced. Such bags may not offer high-tech features but they are effective in performing the role of storing and securing items.

Moreover, the increase in cases of sale of fraudulent smart backpacks through online portals has impacted the length of the consumer list in the smart backpack industry. Over 1 million cases of online fraud were reported in India alone in 2023.

Smart Backpack Market: Opportunities

Growing investments in research & development (R&D) for improved solutions may generate high-growth opportunities

The global smart backpack market is expected to come across job opportunities due to the rising investments in R&D to make improvements in bag performance. Companies are experimenting with advanced technologies such as Artificial Intelligence (AI) to be incorporated into smart backpacks and make them more evolved. In September 2023, Microsoft announced its plan to design an AI-equipped backpack with features such as cameras, sensors, speakers, and global positioning system (GPS). The new backpack is supposed to have environmental awareness higher than the latest mobile phones and assistive technologies. Other features that can be expected with the bag include the ability to provide information on nearby sellers and scan posters.

In June 2023, Targus, a leading producer of laptop cases and bags operating in Canada and the US, announced the launch of Cypress™ Hero Backpack with Find My® Locator. This environmentally-friendly backpack leverages the benefits of a location-tracking module to track Apple products such as iPhone, Mac, and iPad. The retail price of the bag is USD 149.99 and can be bought across Canada, the US, Europe, the Middle East & Africa (EMEA).

Smart Backpack Market: Challenges

Lack of supporting infrastructure may challenge market expansion

The global smart backpack market will be challenged by the lack of supporting infrastructure. For instance, if smart backpacks equipped with high-tech systems malfunction, there are limited-service centers that may be able to repair the units. Additionally, the lack of skilled professionals across the globe capable of managing errors in the technological features of smart backpacks will further discourage the number of buyers. Hence, companies must ensure that there is a sufficient supply of repair services if they plan to enjoy long-term popularity among consumers.

Smart Backpack Market: Segmentation

The global smart backpack market is segmented based on capacity, distribution channel, and region.

Based on capacity, the global market segments are above 60 liters, 35-60 liters, and below 35 liters. In 2023, the highest sale was observed in the 35-60 liters segment. In most cases, smart backpacks have a capacity that ranges between 20 to 45 liters. These backpacks have sufficient space for storing essentials including laptops, clothes, and other accessories. Moreover, backpacks in this range are not too bulky and hence act as a preferred choice among travelers. Smart backpacks below 35 liters are highly popular among students since such bags can easily meet their needs.

Based on distribution channel, the global market is divided into offline and online. In 2023, the online segment was the highest revenue generator. The growing revenue reported in the e-commerce sector is an indication of the rising number of buyers who opt for online buying. As per market projections, in 2024, the global e-commerce market is expected to generate a revenue of over USD 3000 billion. Most smart backpackers initiate product selling by collaborating with e-commerce companies since this form of selling requires less investment from the seller's side thus making online selling a cost-efficient business decision.

Smart Backpack Market: Report Scope

Smart Backpack Market: Regional Analysis

North America to register the highest revenue during the projection period

The global smart backpack market will be led by North America during the forecast period. Countries such as the US and Canada are likely to promote the regional market growth rate. The US is home to the largest technology giants across the globe. Additionally, the region is known to promote new technologies and start-ups willing to invest in advancements of existing products such as backpacks. In October 2020, Google announced a collaboration with Samsonite. The former is a technology firm with pioneering inventions while the latter is a global luggage firm. The company's partnership resulted in the launch of Konnect-i. It is a smart backpack available in two sizes. Apart from boasting a rigid structure, the backpack is powered by Jacquard technology owned by Google.

Asia-Pacific is an emerging market with a tremendous growth rate. The growing demand and consumption of technologically advanced products such as smart backpacks is on the rise in Asian countries such as China, Japan, and India. The growing sale of consumer products through the e-commerce segment along with changing consumer spending habits will benefit the regional market revenue. In 2020, Chinese smartphone company Realme expanded its product portfolio in the Indian market. Along with the launch of other products, the company also announced the commercial sale of smartback in the travel segment.

Smart Backpack Market: Competitive Analysis

The global smart backpack market is led by players like:

• Swissgear
• Bobby
• Herschel Supply Co.
• XD Design
• Voltaic Systems
• Targus
• JanSport
• Osprey
• Ghostek
• Matein
• Incase
• Mancro
• Kopack
• Pacsafe
• Mark Ryden

The global smart backpack market is segmented as follows:

By Capacity

• Above 60 Liters
• 35-60 Liters
• Below 35 Liters

By Distribution Channel

• Offline
• Online

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa