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 Forecast 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 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. Our market report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

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 regions total market expansion. Additionally, Awabot company offers hospitality robots such as telepresence remote controlled wheeled robot which is designed with wireless internet connectivity. Also, Bear Robotics Inc. company offers hospitality robots for hotels which is designed to help with mundane and repetitive tasks such as cleaning, checking rooms and delivering room service.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Dynamics

The market is at the forefront of robotics innovation, integrating artificially intelligent chatbots and robot assistants into the customer service process. These enhance customer satisfaction and operational efficiency through various applications such as mobile guidance robots, cleaning robots, and housekeeping robots. They also contribute to tasks like food preparation, luggage handling, and security. Leveraging AI, ML, and IoT, these robots represent the pinnacle of digital and automation technologies. Despite challenges such as installation and operating costs, the market continues to grow, driven by technological advancement and increasing awareness of their utility. Their adoption addresses issues like manpower crunch and enhances the personalized customer experience with features like multilingual support and humanoid designs. 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. Despite the fact that 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. In order 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.

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. 

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.

Market Segmentation by End-user, Distribution Channel, and Geography

End-user Segment Analysis:

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 market during the forecast period.

Distribution Channel Segment Analysis

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. 

Regional Analysis

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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 trends and drivers 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.

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.  

Segment Overview

The market analysis and report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• 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

Market Analyst Overview:

The market is witnessing a surge in demand for food preparation and housekeeping robots as well as sanitization solutions, driven by the utility of robots in enhancing operational efficiency and guest satisfaction. Companies like Travelmate Robotics are pioneering innovative technologies to cater to the evolving needs of hospitality facilities, offering solutions that streamline tasks traditionally performed by a skilled workforce. This trend is particularly pronounced in less developed regions, where the growth of the Tourism Industry presents opportunities for leveraging automation to deliver a personalized and pleasant customer experience. With events like the Beijing 2022 Olympic Winter Games and establishments like the Thai restaurant in Melbourne, Australia, embracing cutting-edge solutions like the IPAW Model L from Connected Robotics Inc, the trajectory of the hospitality robots market is set for exponential growth.

Furthermore, the market is experiencing rapid expansion, fueled by a CAGR (Compound Annual Growth Rate) driven by the growing tourism industry and the increasing influx of tourists worldwide. Innovations such as multilingual robots and humanoid robots are reshaping the landscape, exemplified by the introduction of AI-driven solutions like those seen at the Henn-na Hotel in Nagasaki. From porter robots assisting with luggage to AI robot servers in restaurants like the Thai eatery in Melbourne, major players like LG Electronics Co and Hyundai Robotics Co are investing heavily in this emerging sector, alongside newcomers like Super Eagle Technology and Connected Robotics Inc.

Market Scope
Report Coverage	Details
Page number	161
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 14.19%
Market Growth 2024-2028	USD 471.77 million
Market structure	Fragmented
YoY growth 2023-2024(%)	13.56
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 38%
Key countries	US, China, Germany, UK, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Awabot, Bear Robotics Inc., Connected Robotics Inc., 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.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

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

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