The global hospitality robot market was valued at USD 350 million in 2023 and grew at a CAGR of 25% from 2024 to 2033. The market is expected to reach USD 3259.62 million by 2033. The expanding tourism and travel industry will drive the growth of the global hospitality robot market.

Market Introduction:

Robots are basically machines that are highly advanced and programmed to perform certain functions according to the needs and demands of consumers. Hospitality robot is specifically designed for the hospitality sectors. They automate or enhance the efficiency of tasks, actions, processes and systems in the hospitality industry such as in hotels, restaurants, tourist spots and other venues that are associated with hospitality. They are independent automated machines with navigation capabilities facilitated by sensors, cameras and relevant software technologies enabling them to dispense their responsibilities safely and without human intervention. Additionally, the use an interactive user interface with touchscreens or even voice recognition features. they are tweaked for tasks essential in hotels and restaurants like storage compartments for room delivery, cleaning functions for housekeeping, communication capabilities to transmit data seamlessly across the property. They are highly efficient and consistent with quality of the services offered. Additionally, they are also used in enhancing security and handling logistics and management around hotels and other properties.  they operate 24/7 with the same consistency in services. they are also equipped with software to gather data which is later analysed to improve services which leads to greater customer satisfaction.

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Recent Development

• Relay Robotics, Inc., a leading supplier of self-sufficient service robots for the hospitality industry, has declared a noteworthy achievement. The largest hotel delivery robot adopter in the country is InnVest Hotels, a well-known name in Canadian hotel ownership and management. Relay robots are currently being used on several locations, and more installations are in the works. With hundreds of hotels around the world using Relay's service robots, over 1.5 million deliveries have been made thus far. With its main office in Toronto, InnVest Hotels manages a network of more than 100 properties that are affiliated with 14 well-known hotel brands.

Market Dynamics:

Drivers

Labor shortages in hospitality industry – majority of the countries, especially the developed countries with robust tourism and travel industry have a declining birth rate in addition to an ageing population. These demographic shifts have led to labour shortages in these countries. prime examples of these countries would be Japan and South Korea. Another demographic shift has been in the labour market wherein the demand for high-paying white-collar jobs is increasing given the rising literacy rates which leads to few takers for hospitality jobs that are associated with long working hours, low wages and sometimes undignified work. the covid-19 pandemic worsened things for the tourism, travel and hospitality industries leading to lay-offs in the sector. majority of the former employees found work in new industries and have not returned to the hospitality sector causing shortages in the face of surging tourism in the aftermath of covid-19 pandemic. The growing rhetoric against immigration in Europe with the rise of far-right parties has also caused severe labour shortages in these countries for the hospitality sector. therefore, the labour shortages in hospitality industry have contributed to an increasing demand for hospitality robot.

• A proposed measure that would boost the minimum wage for tourist workers to USD 25 per hour as the 2028 Olympic Games in Los Angeles approach would be a shock to the hospitality sector. In response, businesses involved in the tourism industry are actively investigating automation solutions from Navia Robotics, a top supplier of cleaning robots and AI-driven services, to save labor costs and preserve operational effectiveness. With its advanced robotic systems that automate repetitive jobs and optimize operations, Navia Robotics has become a vital partner for the tourism sector. Businesses can lessen their dependency on human labor while maintaining high standards of service and guest experience by incorporating Navia's AI-driven robots into their workforce.

Restraints:

The high costs of acquiring hospitality robot – robots are highly advanced and automated sophisticated piece of machinery which has the most advanced technologies like AI integrated in them. the hardware, software and programming along with labour hours that has led to the manufacture of such a piece of sophisticated piece of machinery are highly capital-intensive ventures. The integration of these robots into the hospitality industry also entails significant costs. the maintenance and other operational aspects add to these costs. training of staff and hiring of technically-skilled and qualified experts for operating and managing these robots also required sufficient capital. The capital-intensive natures of robots make them affordable to only high-end hotel chains with deep pockets and renders them unaffordable to most of the small and medium enterprises of the hospitality industry. This leads to a significantly restricted or limited market which hampers the global hospitality robot market’s growth.

Opportunities:

Technological advancements – The advent and advancements in modern technologies such are artificial intelligence, IoT, navigation systems, and communication technologies will bode well for the growth and development of hospitality robot market. these advancements have led to better functioning robots with a greater understanding about guests, their needs, and demands. For instance, interactive user interface along with artificial intelligence and data analytics enables robots to collect data, analyse and interpret it to better understand the guests tastes and preference and likely make recommendations that improve consumer satisfaction. Advancements has also improved the reliability, dependency and precision of hospitality robot making them better employees of the institution they work for. The improved navigation has led to a safer and more autonomous navigation capabilities for robots. More advancements include improved safety, battery performance, interactions, and user-friendly interfaces. Therefore, technological advancements will lead to improved machines that are more likely to be accepted by employees and guests alike, contributing to the market’s development during the forecast period.

Regional segmentation analysis:

The regions analysed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most significant global hospitality robot market, with a 44% market revenue share in 2023.

Countries like Japan and South Korea are technological advanced and face labour shortages. Therefore, they have embraced technology such as hospitality robot to mitigate their labour shortage problems. The technologically advanced economies also make hospitality robot more accepted by the population which is used to such automated machines already operating in other sectors. The continuous research and development improve hospitality robot contributing to the growing dominance of the region in the global market. the expanding tourism and travel industry with a robust chain of hotels, restaurants and bars among others also offers incentives for adopting robots to meet the rising demand in the face of labour shortages. Favourable regulatory environment with supportive government policies also augments the market’s growth.

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• In response to the increased need for automation in the hospitality industry to increase productivity and efficiency, LG Electronics Inc. and Josun Hotels & Resorts Co., a premium hotel chain in South Korea, created hospitality robot together. The massive Korean electronics company revealed that Josun Hotels & Resorts and it had just reached an agreement to collaborate on the development of robots capable of performing a variety of hotel tasks, including as housekeeping and butler services. They will create and test robots specifically designed for hotel services, streamline the functioning of robotic cart solutions, and broaden their uses by utilizing LG's CLOi CarryBot, which was first created as a logistics robot. They will concentrate on enhancing artificial intelligence technology's capacity for autonomous driving in hospitality robot and setting up a wireless communication system for smooth remote control of robots.

Type Segment Analysis

The type segment is divided into front desk robots, mobile guidance robots, delivery robots, cleaning robots, and others. The front desk robots segment dominated the market, with a market share of around 40% in 2023. Front desk robots are designed to perform tasks at the reception. They are equipped with touchscreens and voice recognition features along with other interactive features that enable them to interact with guests or customers. They are first point of contact for guests and customers. They are efficient, reliable, operated 24/7, and convenient. they are highly effective and offer a fast customer service with reduced waiting times which is highly appreciated in this fast-paced world. They are the face of modernization and automation. They reduce costs. they are less prone to errors, all of which translates to better services and enhanced customer satisfaction.

• RobotLAB, an award-winning robotics integrator that provides businesses in a variety of industries with innovative robotics solutions and business innovations, has teamed up with global robotics leader LionsBot International to increase the availability of its cutting-edge cleaning robots to the hospitality sector. RobotLAB was chosen as LionsBot's preferred U.S. dealer partner because to its extensive experience in the restaurant and hospitality industries, as well as its track record of successfully deploying over 10,000 robots globally. As per the deal, RobotLAB will broaden its range of robots to include over 800 robots for cleaning, distribution, education, and hospitality, by including LionsBot's R3 and R12 product lines.

End user Segment Analysis

The end user segment is divided into hotels, bars and restaurants, travel and tourism, and others. The hotels segment dominated the market, with a market share of around 58% in 2023. Hotels are institutions that offer accommodations to travellers or guests on a temporary-basis. They are vital to the tourism and travel industry. They range from budget friendly hotels to luxury hotel chains. Other than lodging, these institutions offer dining, entertainment, utilities, and other recreational facilities. They adopt hospitality robot to automate their repetitive tasks facilitating improved efficiency, reduced downtime, costs and enhanced customer satisfaction. they face labour shortages which encourages them to automate tasks and utilize robots in doing so. Robots are the future and adopting them within the institution reflects on the openness and tech-savvy nature of these institutions which bodes well for their marketing and sales. 

• The Radisson Hotel Bengaluru City Centre is conveniently close to corporate offices, retail establishments, and dining establishments because of its location in the center of the business zone. You enter and hear a faint humming sound. You notice a robot circling the corridor and lobby as you look around. The robotics company Alphadroid, which has partnered with the Radisson Hotel, is the source of the lobby robot.

Some of the Key Market Players:

• Aethon Inc.
• BotsAndUs
• Connected Robotics Inc.
• Hyundai Robotics Co. Ltd.
• Knightscope, Inc.
• Maidbot Inc.
• Savioke
• SoftBank Robotics Group Corporation
• Travelmate Robotics
• UBTECH Robotics Inc.

Report Description: