Hospitality Robots Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast 2024-2028

Hospitality Robots Market Size 2024-2028

The hospitality robots market size is forecast to increase by USD 471.77 million, at a CAGR of 14.19% between 2023 and 2028. Market growth relies on factors including AI integration, burgeoning hospitality robot start-ups driving market expansion, and the benefits of automated work over human labor. With AI enhancing smart robot capabilities and startups innovating in hospitality robotics, the market anticipates substantial growth. The advantages of automated tasks over manual labor further fuel this momentum, positioning the industry for continued expansion. As an early adopter of sophisticated technologies across many industries, the market in North America has always been profitable. The economies of the United States and Canada are technologically advanced, and the strong presence and market penetration of leading suppliers fuel the region's total market expansion. Additionally, the mobile robots market in healthcare and hospitality sectors is experiencing significant growth with innovations like Awabot's telepresence remote controlled wheeled robot offering wireless internet connectivity. Similarly, Bear Robotics Inc. provides hospitality robots tailored for hotels, assisting in mundane and repetitive tasks such as cleaning, room checking, and delivering room service. These advancements in mobile robots enhance operational efficiency and guest experience in the hospitality sector, driving adoption and market growth in North America's dynamic healthcare and hospitality segments. Our market report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Segmentation

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• End-user Outlook 
  • Hotels
  • Restaurants and bars
  • Travel and tourism industry

• Distribution Channel Outlook 
  • Online
  • Offline

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By End-user 

The hotels segment will account for a major share of the market's growth during the forecast period.? Multinational hotel corporations such as Marriott and Hilton use robots to increase social distancing. In the hotel industry, the rose robot is gaining major traction. Hospitality robots perform a variety of tasks, including housekeeping, cleaning, luggage transport, and food and beverage delivery to guest rooms. Hence, the increasing number of hotels and the adoption of robotic automation are anticipated to enhance the demand over the forecast period.

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The hotels segment was valued at USD 180.74 million in 2018. Robots include housekeeping, cleaning, carrying luggage, and delivering food and drinks to guest rooms to perform various tasks. Therefore, the demand is expected to increase during the projection years due to the increasing number of hotels and the introduction of robot automation. Thus, product portfolio expansion is expected to positively influence the growth of the segment of the France hospitality market during the forecast period. France's hospitality market, renowned for its luxury accommodations and innovative service offerings, is embracing robot automation to enhance operational efficiency and guest satisfaction. With advancements in robotics technology, hotels in France are integrating robots for various tasks, from room service to concierge services, catering to the evolving preferences of tech-savvy travelers and enhancing overall service quality. As the adoption of robotic solutions expands across the France hospitality sector, the market is poised for substantial growth driven by automation-driven productivity gains and enhanced guest experiences.

By Distribution Channel 

Based on the distribution channel, the market is further segmented into offline and online. The online distribution channel platform is the main factor driving the global robotics industry in the hospitality industry. Most companies that manufacture catering today have their own web-based retail store where users can get information about product launches, product features, demos, pricing, and any other product information they need. Further, the expansion of the offline segment of the global hotel robot market is mainly due to the increasing number of specialty stores offering electronic devices, increasing the shelf space available for hotel robot marketing. In addition, there is a growing demand for technologically advanced robots. These will drive the growth of the offline segment during the forecast period. In addition, specialty markets offer loans and have better infrastructure than other offline retailers. 

By Region

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North America is estimated to contribute 38% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market growth and trends influencing the market's trajectory throughout the forecast period. There are a number of hotel and hospitality management cloud software suppliers in the region, and these companies largely serve small hotels and hotel chains. In addition, cloud services enable the user to use the software 24 hours a day, seven days a week, regardless of location, as well as multi-party use, which boosts the hotels/hospitality institutions' accessibility and enables clients to visit the property whenever they like. Cloud-based health and hospitality management systems play a crucial role in streamlining the flow of information technology and services by monitoring customer demand in real time. During the forecast period, cloud-based solutions was expected to become increasingly popular.

Market Dynamics

The market is transforming the Travel & Tourism industry by enhancing productivity and efficiency in various operations. Front Desk Robots are revolutionizing Reception and Front desk tasks, offering 24/7 service and reducing wait times. Mobile Guidance Robots assist guests in navigating Public areas, while Autonomous machines handle Storage services and disinfecting tasks, ensuring cleanliness and safety. In Bars & Restaurants, robotic systems are improving service speed and accuracy. These robotic systems not only boost operational efficiency but also enhance security. As the market grows, the integration of robots into hospitality will continue to expand, driven by advancements in autonomous machines and their increasing role in providing seamless guest experiences. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver- Increasing penetration of AI

Professional service robots perform efficient services in collaboration with humans. In service industries, such as hotels and hospitality, robots have shortened the duration of operations and made them risk-free. Even though they use cameras, sensors, and software for rapid movement in a dynamic environment based on software programming, they are unable to use information from sensory devices to make complex decisions via technological advancement with digital and automation technologies. To increase the efficacy of their operations, suppliers are adopting artificially intelligent chatbots in professional service robots.

Furthermore, AI is a neural network that machines use to replicate human intellect. Nowadays, AI in robots focuses mostly on visual systems and machine learning. Teradyne Inc. is one of the companies that include AI in their cameras, which aids in obstacle detection and navigation. Several end-users have begun integrating AI into their processes to increase overall efficiency. The use of AI in robots is still limited. However, the capability of AI and ML in solving complex tasks such as programming can aid robots in hospitality, thus enhancing their capabilities during the forecast period, which in turn will drive the growth of the market during the forecast period. Additionally, robotics have been increasingly employed in various sectors, including customer service processes, robot assistants, and digital and automation technologies, to enhance personalized customer experience and operational efficiency. Entertainment robots, which include robots used for amusement and entertainment purposes, such as theme parks and interactive exhibits, is also seeing growth driven by advancements in AI and robotics technologies.

Significant Market Trends- Integration of IoT with robots

 IoT has become one of the fastest-growing technologies due to the increasing focus on connected environments. IoT devices collect data from sensors and actuators and transmit it in real-time to a central location so end users can make informed decisions. Developing product customization is one of the most important IoT drivers. As a result, companies around the world are looking to integrate their machinery, equipment, and motion control systems to efficiently manage their operational processes.

Additionally, the emergence of digital controls, wireless communications, low-cost sensors, remote monitoring, and other IoT-enabled technologies is changing OEMs dramatically. Using such technology increases the effectiveness, functionality, and accessibility of machine intelligence. From big data analytics to intelligent energy monitoring, machine builders and manufacturers will be at the forefront of IoT adoption in the next decade. With the rise of internet usage in APAC, manufacturers are adopting more online options in how they provide customer service. Artificial Intelligence (AI) robots are poised to play a pivotal role in this transformation, integrating advanced AI capabilities such as machine learning and natural language processing. These AI robots enhance automation and operational efficiency across industries, offering sophisticated solutions in customer service, manufacturing processes, and smart infrastructure management. As AI robots continue to evolve, they will drive innovation and propel IoT adoption in manufacturing and service sectors globally. 

Major Market Challenge- High initial cost of hospitality robots

The average initial cost of hospitality robots can vary significantly depending on factors such as size, complexity, functionality, and brand reputation. Generally, smaller robots designed for specific tasks such as room service delivery or concierge services have an initial cost ranging from USD 5,000 to USD 20,000. However, larger and more sophisticated equipped with advanced features such as AI, autonomous navigation, and multi-functional capabilities can command higher prices ranging from USD 20,000 to USD 100,000 or more. Additionally, customization options, maintenance contracts, and training programs may incur additional costs. Overall, the average initial cost typically falls within the range of USD 10,000 to USD 50,000, with variations based on specific requirements and market dynamics.

Further, as the market is still in its infancy, most companies in emerging and developed nations are unwilling to invest large sums of money in new technologies. Owing to limited acceptance, hospitality robots have yet to demonstrate their full commercial potential in real-world applications despite prototype testing indicating a satisfactory outcome. In this situation, the frequent obsolescence of technology also creates uncertainty for businesses in terms of the benefits of high-cost hospitality robots. Thus, such factors may hinder the growth of the market during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Connected Robotics Inc.: The company offers hospitality robots such as french fries robot which is designed to be used for making french fries and deliver them to the bagging station.

We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:

Hyundai Motor Co., KNEXT GmbH, Knightscope Inc., Pudu Technology Inc., Pypestream LLC, Quantum Robotics, Relay Robotics Inc., Richtech Robotics Inc., Shanghai Gaussian Automation Technology Development CO. LTD., Shanghai Qinglang Intelligent Technology Co. Ltd., Singapore Technologies Engineering Ltd., sliQue Robotics, SoftBank Robotics Group Corp., Tailos, UBTECH ROBOTICS CORP LTD., and LG Electronics Inc.

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. 

Market Analyst Overview

The market is rapidly evolving, integrating advanced technologies like artificial intelligence, face recognition, and voice recognition to enhance interpersonal communication and guest experiences. Front-desk robots, delivery robots, and cleaning robots are now commonplace, offering remote control via Wi-Fi for tasks such as security check and contactless delivery. Innovations like the relay robot improve operational efficiency, particularly in laundry and food delivery apps. This growth opens up numerous employment opportunities for engineers, programmers, and business professionals, supported by universities offering robotics courses in computer science, psychology, and kinesiology. The focus on revenue management, employee health, and customer satisfaction drives the market, ensuring affordability, reliability, and increasing public acceptance.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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