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Hospitality Robots Market Report Cover

Hospitality Robots Market

Hospitality Robots Market Report Cover

Hospitality Robots Market Size, Share, Growth & Industry Analysis, By Type (Front Desk Robots, Delivery Robots, Cleaning Robots, and Others), By End User (Hotels, Bars & Restaurants, Travel & Tourism, and Others), By Sales Channel (Offline and Online), and Regional Analysis, 2024-2031

Author : Antriksh P.

Pages : 120

Base Year : 2023

Release : June 2024

Report ID: KR767

Hospitality Robots Market Size

Global Hospitality Robots Market size was recorded at USD 373.1 million in 2023, which is estimated to be at USD 442.6 million in 2024 and projected to reach USD 1,724.8 million by 2031, growing at a CAGR of 21.45% from 2024 to 2031. Increased personalization in guest experiences is revolutionizing the hospitality industry by leveraging advanced technologies such as AI, big data, and machine learning. In the scope of work, the report includes solutions offered by companies such Relay Robotics, Inc., RobotLAB Inc., LG Electronics, SoftBank Robotics America, Inc., Knightscope, Inc., Bear Robotics, Inc., HD Hyundai Robotics, Connected Robotics Inc., PAL Robotics, Tailos, and others.

Hotels and resorts are increasingly utilizing data analytics to understand guest behaviors, preferences, and past interactions. For instance, personalized recommendations for dining, activities, and room preferences significantly enhance the guest experience. Smart rooms, equipped with IoT devices, allow guests to control lighting, temperature, and entertainment options through their mobile devices, creating a customized environment that caters to their specific tastes.

Moreover, AI-powered chatbots and virtual concierges provide real-time, personalized assistance, thereby enhancing convenience and satisfaction. By delivering a personalized experience, hospitality providers differentiate themselves in a competitive market, leading to higher occupancy rates and increased revenue. As technology continues to advance, the scope for personalization in guest experiences is likley to expand, setting new standards for the hospitality industry.

Hospitality robots are automated machines designed to perform a variety of tasks within the hospitality industry, thus enhancing operational efficiency and guest experiences. These robots come in several types, including service robots, concierge robots, delivery robots, cleaning robots, and security robots. Service robots are commonly used in hotels for various tasks such as room service delivery, where they autonomously navigate through hallways to deliver items to guest rooms. Concierge robots are equipped with advanced AI and natural language processing capabilities, enabling them to interact with guests, answer inquiries, provide recommendations, and assist with check-in/check-out processes.

Delivery robots, often seen in bars and restaurants, facilitate the transport of food and beverages from kitchens to tables, ensuring timely and hygienic service. Cleaning robots, including autonomous vacuum cleaners and floor scrubbers, are used to maintain cleanliness in public areas and guest rooms. Security robots patrol premises, monitoring for unusual activity, and providing real-time alerts to staff, thus enhancing safety. The technologies powering these robots include AI, machine learning, computer vision, IoT, and advanced sensors, enabling them to perform tasks autonomously and interact with humans effectively.

Hospitality robots cater to various end users within establishments such as hotels, bars, and restaurants, as well as across the travel and tourism sector, where they contribute to streamlined operations and superior guest experiences, leading to higher satisfaction and efficiency in the hospitality industry.

Analyst’s Review 

The hospitality robots market is witnessing a dynamic transformation as key players are increasingly focusing on strategic initiatives to capture market share and foster innovation. These strategies include continuous investment in research and development to enhance the capabilities and reliability of robotic solutions. Companies are prioritizing the integration of advanced AI and machine learning technologies to enable more intuitive and interactive robots. This allows for seamless guest interactions and more efficient task management, which are critical in improving operational efficiency and customer satisfaction.

Additionally, key players are adopting a customer-centric approach, focusing on personalization and customization to cater to the unique preferences of their clients. This includes developing modular robots that are adapted to various tasks and environments. Moreover, expanding geographical reach is a significant imperative, as companies target emerging markets where the hospitality sector is rapidly growing. Addressing regulatory and ethical concerns, such as data privacy and employment impacts, is essential for gaining trust and ensuring sustainable growth. By aligning their strategies with these imperatives, key players are well-positioned to lead the hospitality robots market.

Hospitality Robots Market Growth Factors

The increasing demand for contactless robot services is a significant factor reshaping the hospitality industry landscape. Guests prioritize minimal physical interaction to reduce the risk of contamination, prompting hotels, restaurants, and other hospitality businesses to adopt innovative solutions. This shift is further fueled by the rising popularity of robots, which provide services such as contactless check-ins, room deliveries, and cleaning, enhancing safety and streamlineing operations.

  • For instance, autonomous delivery robots transport food and amenities directly to guest rooms, while self-service kiosks equipped with AI handle check-in and check-out processes. These technologies offer a seamless and efficient experience, by reducing wait times and human contact.

Furthermore, the integration of mobile apps and QR codes for ordering and payments supports this trend, allowing guests to manage their entire stay through their smartphones. This demand for contactless services highlights a long-term shift toward more efficient and hygienic service models, thereby fostering ongoing innovation and adoption of robotic solutions in the hospitality sector.

The upfront cost of purchasing and implementing robot technology presents a significant barrier for numerous hospitality businesses, particularly small and medium-sized enterprises (SMEs). Investing in advanced robotics involves considerable expenses, including the cost of the robots themselves, installation, integration with existing systems, and ongoing maintenance. These high initial costs present a formidable obstacle for businesses with limited budgets. This financial burden is compounded by the need for staff training and potential disruptions during the transition period.

However, the Robot-as-a-Service (RaaS) model is emerging as a viable solution to this barrier, allowing businesses to lease robots and pay for their usage over time, thereby eliminating the need for a substantial upfront investment. This model makes robotics accessible, offering flexibility and scalability, thereby enabling hospitality businesses to adopt new technologies incrementally and manage costs more effectively.

Hospitality Robots Market Trends

The rising trend toward developing eco-friendly robots and implementing sustainable practices in their manufacturing and operation reflects the hospitality industry's growing commitment to environmental stewardship. As businesses increasingly recognize the importance of sustainability, there is a concerted effort to minimize the ecological footprint of their operations. This includes designing robots that are energy-efficient, made from recyclable materials, and capable of operating with minimal environmental impact. Manufacturers are adopting green production processes, utilizing renewable energy sources, and reducing waste during the robot fabrication phase.

Additionally, the operational efficiency of these robots contributes to sustainability by optimizing energy use and reducing the need for chemical cleaning agents through precision cleaning technologies. In hotels and restaurants, robots aid in waste management and resource conservation, thus enhancing eco-friendly practices. This trend is propelled by both regulatory pressures and consumer demand for greener options, as environmentally conscious guests prefer to support businesses that prioritize sustainability. By aligning with these sustainable practices, hospitality businesses contribute to environmental preservation and appeal to a growing segment of environmentally consciousness customers, thereby enhancing their market competitiveness.

Segmentation Analysis

The global hospitality robots market is segmented based on type, end user, sales channel, and geography.

By Type

Based on type, the market is categorized into front desk robots, delivery robots, cleaning robots, and others. The delivery robots segment captured the largest market share of 41.25% in 2023 due to the growing demand for efficient, contactless delivery solutions in the hospitality industry. This surge is primarily fueled by hotels, restaurants, and other hospitality businesses seeking to enhance guest services while minimizing human contact.

Delivery robots offer a reliable and hygienic alternative to traditional room service and in-restaurant dining, ensuring timely and accurate delivery of food, beverages, and other amenities. Their ability to operate autonomously around the clock, coupled with advanced navigation and obstacle avoidance technologies, makes them an attractive investment for improving operational efficiency and customer satisfaction. Additionally, the increasing focus on enhancing guest experiences through innovative and high-tech services has led to the widespread adoption of these robots. The integration of AI and IoT technologies allows delivery robots to seamlessly interact with other systems.

By End User

Based on end user, the market is divided into hotels, bars & restaurants, travel & tourism, and others. The travel & tourism segment is poised to record a staggering CAGR of 23.70% through the forecast period, mainly attributed to the growing adoption of advanced technologies to enhance traveler experiences and operational efficiencies. There is an increased focus on implementing robotics and AI to manage large volumes of travelers more effectively. Robotics in travel and tourism enhance various aspects, including the automation of check-in and luggage handling processes at airports, along with the provision of interactive guides and concierge services in hotels and tourist attractions. The demand for seamless, contactless services is accelerating this trend.

Moreover, the rising emphasis on sustainability and cost reduction in travel operations facilitates the deployment of robots to optimize resource use and minimize waste. The integration of smart technologies in tourism infrastructure improves the tourist experience and supports the growth of the travel & tourism segment. For instance, in October 2023, according to a report by the International Federation of Robotics (IFR), sales surged by 44%, with over 86,000 units sold in 2022 of the professional service robot sector. The increasing popularity of hospitality robots is evident, with sales of more than 24,500 units (+125%) recorded in the same year. Predominantly, these robots were designed for mobile guidance, information dissemination, and telepresence.

By Sales Channel

Based on sales channel, the market is divided into offline and online. The offline segment garnered the highest revenue of USD 213.6 million in 2023, propelled by the robust demand for in-person, hands-on experiences in purchasing hospitality robots. Despite the rise of digital channels, hospitality businesses prefer to engage directly with suppliers to assess the functionality and quality of robots before making significant investments. This approach allows for detailed demonstrations, personalized consultations, and the ability to negotiate terms and support services, which hold significant importance.

Additionally, trade shows, industry conferences, and specialized exhibitions play a significant role in driving offline sales, providing platforms where businesses explore the latest innovations, interact with multiple vendors, and make informed decisions. The trust and assurance gained through face-to-face interactions and the ability to see and test the products firsthand contribute significantly to the growing preference for offline purchasing channels.

Hospitality Robots Market Regional Analysis

Based on region, the global hospitality robots market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Hospitality Robots Market Size & Share, By Region, 2024-2031

The North America Hospitality Robots Market share stood around 36.16% in 2023 in the global market, with a valuation of USD 134.9 million, fueled by the region's early adoption of advanced technologies and robust investment in the hospitality sector. The widespread integration of AI, robotics, and IoT in hotels, restaurants, and travel services has significantly contributed to the enhancement of both operational efficiency and guest experiences. Additionally, North America's strong economic landscape supports significant investments in cutting-edge hospitality solutions.

For instance, in April 2024, Flagship Facility Services entered into a strategic partnership with SoftBank Robotics America (SBRA) to integrate automation into its service offerings. By leveraging SBRA's renowned automation portfolio and support program, Flagship aims to enhance efficiency and deliver added benefits across its diverse range of services. The presence of major players, coupled with a high concentration of luxury hotels, and the prevalence of renowned restaurant chains leads to the increased demand for innovative robotic solutions.

Asia-Pacific is poised to grow at a significant CAGR of 22.72% in the foreseeable future owing to rapid urbanization, economic development, and the burgeoning hospitality industry. The increasing disposable income and changing consumer preferences in emerging economies are fueling demand for enhanced guest experiences and efficient service delivery, prompting hospitality businesses to invest in robotic solutions.

Furthermore, the region's strong manufacturing base and expertise in electronics and robotics production provide a competitive edge, enabling the development of cost-effective and innovative hospitality robots. Moreover, government initiatives and supportive policies aimed at promoting smart tourism and technological innovation play a crucial role in this growth trajectory. As Asia-Pacific continues to expand its tourism infrastructure and adopt digital transformation, the demand for advanced robotic solutions in hospitality is expected to surge.

Competitive Landscape

The global hospitality robots market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Hospitality Robots Market

  • Relay Robotics, Inc.
  • RobotLAB Inc.
  • LG Electronics
  • SoftBank Robotics America, Inc.
  • Knightscope, Inc.
  • Bear Robotics, Inc.
  • HD Hyundai Robotics
  • Connected Robotics Inc.
  • PAL Robotics
  • Tailos

Key Industry Developments 

  • February 2024 (Partnership): LG Electronics and South Korea’s luxury hotel chain operator, Josun Hotels & Resorts, formed a strategic partnership to develop advanced hospitality robots. This collaboration aims to address the increasing demand for automation in the hospitality sector, enhancing efficiency and productivity by offering a range of hotel services such as housekeeping and butler services.
  • December 2023 (Partnership): SoftBank Robotics America unveiled a strategic collaboration with Formant, aimed at fostering seamless integration throughout SoftBank Robotics' solution portfolio. This partnership seeks to empower businesses to revolutionize their operational processes and achieve greater efficiency in task execution.
  • October 2023 (Launch): Knightscope announced the sale of its K5 Autonomous Security Robots to both a hotel in Georgia and a Pre-K school in Vancouver, Washington.
  • April 2023 (Partnership): SoftBank Robotics Australia partnered with Sushi Machines to offer robotic and AI solutions for Australian restaurants. Sushi Machines are intended to distribute Gausium’s Tray Delivery Robot "Delivery X1", aiming to address worker shortages with efficient, hygienic solutions.

The Global Hospitality Robots Market is Segmented as:

By Type

  • Front Desk Robots
  • Delivery Robots
  • Cleaning Robots
  • Others

By End User

  • Hotels
  • Bars & Restaurants
  • Travel & Tourism
  • Others

By Sales Channel

  • Offline
  • Online

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • U.K.
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global hospitality robots market is projected to reach USD 1,724.8 million by 2031, growing at a CAGR of 21.45% from 2024 to 2031.
The global market was valued at USD 373.1 million in 2023.
Increased personalization in guest experiences and utilizing data analytics is augmenting the market growth.
Top key players of hospitality robots are Relay Robotics, Inc., RobotLAB Inc., LG Electronics, SoftBank Robotics America, Inc., Knightscope, Inc., Bear Robotics, Inc., HD Hyundai Robotics, Connected Robotics Inc., PAL Robotics, Tailos, and others.
Asia-Pacific is the fastest growing region with the CAGR of 22.72% in the forecasted period (2024-2031) with the market value forecasted to reach at USD 386.6 million by 2031.
By type, the delivery robots segment will hold the maximum share in the hospitality robots market with the revenue value of USD 153.9 million by 2031.
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