(Yicai Global) June 17 -- China’s robot market in the catering sector more than doubled in value last year from the year before to USD84 million thanks to the need for contactless service due to the resurgence of Covid-19 in the country as well as rising labor costs, according to a new study.

Keenon Robotics, Pudu Robotics, Suzhou Pangolin Robot and Beijing Orion Star Technology dominated the market, said US market research firm International Data Corporation in a recent report.

These firms also attracted a lot of attention from investors. Shanghai-based Keenon raised over CNY1 billion (USD149.2 million) in its Series D round, while Shenzhen-headquartered Pudu secured hundreds of millions of Chinese yuan, equivalent to tens of millions of US dollars, in its C-Series.

China’s food service robot market experienced fast growth last year, said Cui Can, research manager at IDC China. But as markets mature, the next step is to introduce more refined product categories, pan-catering and overseas expansion.

Robot makers are also shifting their business focus to selling services rather than just selling products as the leasing model, which requires less cash, proves highly popular amid the Covid-19 outbreaks. Rentals made up over 60 percent of some manufacturers’ revenue last year.

As of the end of last year, there was a high penetration rate of food service robots in the big first- and second-tier cities but growth is slowing. There is also still some difficulty in gaining acceptance in the smaller third and fourth-tier cities where there are more traditional food and beverage brands and independently owned restaurants.

Overseas sales went through the roof. For some robot makers, overseas revenue exceeded their domestic revenue and many industry leaders are focusing on expansion abroad.

Editor: Kim Taylor