Service Robotics Market Size, Share & COVID-19 Impact Analysis, By Type (Professional, Personal) By Application (Domestic, Industrial/Commercial), and Regional Forecast, 2022-2029

The global service robotics market size was valued at USD 16.95 billion in 2021 and is projected to grow from USD 19.52 billion in 2022 to USD 57.35 billion by 2029, exhibiting a CAGR of 16.6 % during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with service robotics experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited an average decline of 14.6% in 2020 as compared to 2019.

Service robots are machines that help man by performing useful tasks for them. They are majorly classified as robots used for professional use and personal use. Further, according to application, they are categorized as domestic and industrial.

Domestic segment consists of all the robots used for personal application and indoor uses. The use of IoT-based devices in homes and introduction of precise and more affordable home use robots are the reasons behind increasing adoption of domestic robots across geographies. The industrial/commercial segment deals with the equipment used in the industrial environment to perform industry related tasks. Constant efforts toward the inculcation of automation at industrial facilities and reducing the expenditure on labor wages by reducing human intervention in industrial operations are driving the market of industrial service robots.

Furthermore, these robots find their applications in transportation & logistics, medical, defense, construction & demolition, agriculture, and retail sectors.

COVID-19 IMPACT

Outbreak of COVID-19 Pandemic to Create High Demand for Medical Robots

The global market was subject to a considerable decrease in market growth due to the repercussions of economic downfall across numerous prominent countries. However, increasing demand for automation and increased social distancing practices across the globe were the two sustaining factors for the development in the sales of service robots during the pandemic. After COVID-19 pandemic period, introduction of robot-based operations and advancement of automation increased the demand for these robotics to increase integration automation across industries.

An evolution of this technology and application of Artificial Intelligence (AI) and Big Data systems in service robotics is collectively spurring the demand for these robots throughout the forecast period. Further, post COVID-19 the incorporation of technologically advanced robots with a robust built quality is projected to attract heavy demand especially from the healthcare and hospitality sector.

LATEST TRENDS

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Inception of Intuitive Technologies in Robotics Solutions to Accelerate Market

Technological advancement is exponentially expanding the capabilities of service robots and has increased their ability to carry out multiple tasks in minimum duration.

The adoption of these robots across a diverse range of sectors such as healthcare, defense, logistics, agriculture, and others has radically changed the workflow process.

For instance, the deployment of these robots in the healthcare sector has allowed surgeons to perform minimally invasive surgeries. These robots are used as tools to achieve more precise incision or movement that are difficult for human hands to achieve. For instance, a U.S. based medical device company, Johnson & Johnson’s launched a new robot assisted surgical system for laparoscopic application as well as open surgery in 2020.

DRIVING FACTORS

Availability of Affordable Service Robots to Drive Market Growth

Due to rapid technological advancements and rise in production of robots, the cost of making robots has gone down significantly. Over the past 30 years, the average cost of a robot has reduced by half in real terms, and even further when compared to labor costs. Furthermore, owing to rising demand for robots from the emerging economies, it is anticipated that the production of robots will shift to low-cost regions, further reducing the manufacturing cost. In addition, rising labor costs as compared to the cost of robots in major manufacturing economies also contribute to increasingly attractive pricing dynamics, thus helping the market growth.

Improved capabilities of robots as a result of advancement of technology along with better productivity and quality achieved with the use of service robots aided the market growth.

RESTRAINING FACTORS

High Initial Cost of Investments to Hamper Market Growth

The initial capital expenditure required for procurement, programming, integration, and other accessories is quite high, and thus it is a challenging factor for the service robotics market growth. Further, as per the Robotic Industries Association, the maintenance cost of these robots is around USD 2,50,000 and USD 10,000 per annum. This creates a hindrance for enterprises, especially small and medium businesses to invest in these robots, as they find it hard to raise large amounts of capital due to low volume of production and less ROI. The cost of upgrading software, replacement of sensors as well as other devices increases the cost of ownership of service robots, which then results in lowering the market growth rate. Hence, by virtue of all these factors, there has been a slowdown in the market growth.

SEGMENTATION

By Type Analysis

Professional Robots Segment to Show Higher CAGR Backed by Rising Labor Costs

Based on type, the market is bifurcated into personal and professional.

Between these two types, the professional segment holds a greater market share and is anticipated to grow rapidly over the forecast period majorly owing to the increasing demand for service robots across sectors such as defense, medical, construction, logistics, and others. Apart from this, the adoption of automation and mobility across the industrial sectors is also creating a significant impact on the overall market share. The growth of this segment is further strengthened due to increasing labor costs, rising investments in R&D, shortage of skilled labor, and increasing awareness regarding service robots and industrial automation.

The personal robots segment is anticipated to grow remarkably across the residential home sector. These robots are usually used to help, teach, and tutor individuals in home settings. Apart from that, personal robots are useful for floor cleaning, vacuuming, pool cleaning, lawn mowing, as well as for entertainment. These types of robots are expected to have a higher prospect across the European, ASEAN, and American regions over the forecast period. However, presently, the demand is limited, owing to its operability and battery capacity.

By Application Analysis

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Industrial/Commercial Segment to Showcase Majority Share during Forecast Period

Based on application, the market is segmented into domestic and industrial/commercial.

The industrial/commercial segment is anticipated to establish its dominance over the forecast period and is also expected to grow significantly over the forecast period. This segment is further divided into agriculture & forestry, defense, transportation & logistics, unmanned vehicles, construction & demolition, medical, retail, and others that include public relations.

Amidst these, the transportation & logistics segment holds a prominent share due to automation introduced in the process of storing and moving of goods. Also, this sector is showcasing increasing demand for service robots to optimize the supply chain processes across various industrial sectors. Medical robots are expected to show remarkable growth due to increasing transformation of people toward integrating robotic solutions for crucial medical operations and the initiation of high-tech testing labs. UAVs are deployed across the agricultural and defense sectors owing to their ability to increase the existing capabilities of soldiers by safeguarding them from danger, determining product ripeness, inspection of crops, and gauging the land fertility, respectively.

Besides these, the construction & demolition sub-segment is predicted to grow steadily due to the increasing number of residential and commercial projects across developed and developing economies. Moreover, huge investments by governments to reorganize the existing infrastructure would assist the growth. The domestic sub-segment is also expected to hold a considerable share across the residential sector since there has been a rise in adoption of service robots for personal use at home.

REGIONAL INSIGHTS

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The market’s scope comprises five major regions, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific is projected to show major growth owing to the advancement of technology and rising automation at many industrial manufacturing levels across all the sectors in the region. The major and impactful economies of Japan, China, and India are the driving forces of the Asia Pacific market. Besides, promising government policies in the manufacturing industry and increased focus on economic diversification in emerging countries are the two main growth propellers driving industrial automation. As a result, the demand for this type of robotics has increased. The increasing robot density across the regional market can be identified as the most promising factor behind the substantial growth of the market over the forecast period in the region.

China is anticipated to showcase considerable growth and is also projected to showcase the highest CAGR over the forecast period. The country leads the market as a result of hefty investments conducted in the manufacturing sectors. As China is a manufacturing hub for low manufacturing cost, low labor cost and raw material cost, suppliers believe in mass production of electronic products and obtain a substantial profit yield from other parts of the region. However, despite having a sustainable and profitable manufacturing model, which helped them to develop an extensive manufacturing cluster in the market of the country, domestic manufacturers with local consumers as the target audience have a very weak position in the market.

For instance, by the end of 2017, the market share catered by the local manufacturers in the market of China fell up to nearly 25% from the earlier 31% in 2016. Increasing localized production of the global giants in the market of China can be cited as the main concerning reason behind the dismal performance of the local vendors in the regional market. In 2020, ABB Ltd. decided to build a manufacturing facility by the end of 2020.

Following Asia Pacific, Europe held the second highest share in the global market majorly due to the high demand for personal and professional robots across various nations in the region. As per the International Federation of Robotics, Europe has the highest presence of service robot manufacturers owing to rise in demand from sectors such as medical, logistics, retail, and defense. In addition, the U.K., Italy, France, and Germany are anticipated to significantly grow over the forecast period, thus increasing the service robotics adoption in the region.

Furthermore, North America also has a decent market share due to the strong presence of prominent global manufacturers in the region. Although, the top four automation solution providers, ABB Ltd., FANUC, KUKA AG, and Yaskawa have a domestic market outside the region of North America, strong demand for their products in the regional market due to heavy technology innovation quotient is encouraging these manufacturers to operate more effectively across North America. Additionally, the implicit efforts of these companies regarding technological developments through strong investments in research & development operations, strategic partnerships, acquisitions, entering into collaborations and joint ventures are identified as pivotal factors boosting the development potential of North America.

In the Middle East & Africa region, GCC holds the highest service robotics market share due to heavy application of automation and modernized techniques in manufacturing and warehouse management systems in the developed Gulf countries. Going forward, the increasing adoption of service robots in healthcare and automotive sectors in the regional market is expected to emerge as the prime contributor for the market development prospects over the course of time.

Latin America is expected to gradually extend its footprint toward the service robotics sector owing to the moderate technological advancement in the region. Moreover, Brazil is projected to have majority of the market share. Further, the key growth factor of the Latin America market is the significant shift of consumers in the market toward automated solutions.

KEY INDUSTRY PLAYERS

Key Industry Players are Emphasizing Integrating Advanced Robotic Technology

It has been observed that major market players are focusing on broadening the possibilities of interactive robots. For instance, TDK Corporation, in September 2019, integrated ultra-compact Micro Electro Mechanical Systems (MEMS) microphones using advanced semiconductor for improving the intelligence of interactive robots. Also, the integration of acoustic sensors and Application Specific Integrated Circuit (ASICS) is bringing a new wave in the service robots market.

LIST OF KEY COMPANIES PROFILED:

• Ricoh (Japan)


• Honda Motor Co., Ltd. (Japan)


• iRobot Corporation (U.S.)


• KUKA AG (Germany)


• Intuitive Surgical (U.S.)


• Daifuku Co., Ltd. (Japan)


• SoftBank Robotics Group Corp. (Japan)


• Aethon (U.S.)


• Boston Dynamics (U.S.)


• Lely (Netherland)


• Fetch Robotics, Inc. (U.S.)


• GreyOrange (U.S.)


• Geekplus Technology Co., Ltd. (China)


• Youibot Robotics Co., Ltd. (China)


• Sirius Robotics (Portugal)

KEY INDUSTRY DEVELOPMENTS:

• February 2022 – Ricoh acquired Axon Ivy AG as a part of its strategic investment with an objective to expand its digital process automation capabilities.


• November 2021 – KUKA AG and MHP collaborated to work on Smart Intelligence Robotic Project Cockpit (SIRPCO).


• November 2021 - iRobot Corporation acquired Aeris Cleantec AG, an air purification company with an objective to diversify the product portfolio with air purification systems.


• June 2021 - HYUNDAI MOTOR GROUP acquired 80% stake in Boston Dynamics to strengthen its position in the field of robotics.

REPORT COVERAGE

An Infographic Representation of Service Robotics Market

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The research report provides a detailed analysis of the type, application, and region. It provides information about the leading service robotics companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, and current key market trends and highlights key growth drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation