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The global service robotics market size was USD 12.88 billion in 2019 and is projected to reach USD 41.49 billion by 2027, exhibiting a CAGR of 15.9% during the forecast period.
The market for service robots is poised to take off astonishingly backed by advances in edge artificial intelligence (AI) chips and introduction of 5G telecom services. It would benefit professional service robots with high performance and less power consumption. Further, the major breakthrough technology providers are also engaged in delivering advanced, integrated, and comprehensive designs for a wide array of robotics solutions. For instance, in June 2020, Qualcomm introduced the world’s first 5G and AI based platform for industrial and professional service applications. The processor enables heterogeneous computing, enhanced computer vision, and others, ideal for low-power robots and drones.
Outbreak of COVID-19 Pandemic to Create High Demand for Medical Robots
The spread of the COVID-19 pandemic has a huge economic impact that is drastically changing the manufacturing and various other industries. China being the central manufacturing hub is significantly slowing down many global business operations and this is creating repercussions at regional and global value chains. Also, companies such as ABB are facing losses from various industries. They have observed a significant year-on-year decline by more than 20 percent from the robotics & discrete automation business. However, medical robots are gradually coming under the spotlight amid the COVID-19 phase.
Overall, the market for service robots is anticipated to create a positive impact in the future.
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Introduction of Intuitive Technologies in Robotic Solutions to Boost Growth
Technological advancement is vastly extending the capabilities of machines and has increased their flexibility to perform multiple tasks in minimal time. The adoption of robots across a wide range of sectors, mainly healthcare, logistics, defense, agriculture, and others has revolutionized the workflow processes. For instance, the deployment of robots in the healthcare sector is enabling surgeons to perform minimally invasive surgeries. Also, surgeons access these robots as a tool to gain more precise incisions or movements that cannot otherwise easily be replicated by human hands. The technologies embedded in such robots include artificial intelligence for data analysis, predictive analytics, vision recognition, and others.
Besides, agriculture robots are nowadays equipped with graphic processing units (GPUs), LiDAR-based autonomous navigation systems, and 3D sensing capabilities to determine product ripeness, picking, and harvesting without crushing the crops.
Ongoing Advancements in Robotic Technology to Propel Growth
The robotics industry is rapidly stimulating the service robotics market trends, owing to the fast-paced technological advancements converging in automation, engineering, artificial intelligence, and machine learning. The outcomes of the introduction of robots have resulted in the transformation of the task-performing capacity of humans. According to the International Federation of Robotics (IFR), it is being estimated that the number of robots have increased three-folds over the past two decades. Additionally, the newly introduced trends in robotics would aid the global stock of robots to multiply faster in the next twenty years.
Furthermore, the implications of the growth of robotics will propel the productivity and the economic expansion of developing countries. Apart from this, service robots can create tremendous opportunities across the industrial sectors in underdeveloped economies as they lack skilled labor. However, the era of automation and robotics is representing significant opportunities across the residential and industrial sectors. The adoption of robotics has matured to a point where these devices can safely be deployed among laborers in such a way that they can create a value addition to the overall operation.
Massive Investments at Initial Stage and High Maintenance Cost May Hinder Growth
The initial capital expenditure required for the procurement, integration, programming, accessories, and other tasks can be a challenging factor for the market growth of service robotics. According to Robotic Industries Association (RIA), the maintenance cost of service robots is approximately USD 2,50,000 and USD 10,000 per annum. This creates a limitation for companies, especially for small and medium enterprises to invest. These companies often find it difficult to generate large amounts of funds owing to low-volume production and slow return on investments (ROI). Besides, the high maintenance cost is another factor pushing the market downwards. The cost of software upgradation, replacement of sensors, and other devices increases the cost of ownership, thereby slowing down the market growth rate.
Professional Robots Segment to Show Higher CAGR Backed by Rising Labor Costs
On the basis of type, the market is bifurcated into professional and personal robots.
Among them, the professional segment holds a larger share and is expected to grow exponentially over the forecast period. This is mainly due to the growing demand for service robots across industries such as medical, defense, logistics, construction, and others. Apart from this, the adoption of mobility and automation across the industrial sectors is also creating a remarkable impact on the overall market share for service robotics. The growth of this segment is further enhanced due to the rising labor costs, increasing investments in research and development, lack of skilled labor, and the growing awareness regarding service robots and industrial automation.
The personal robots segment is expected to grow significantly across the residential sector. These robots are usually used to assist and educate individuals in home settings. Besides that, personal robots are useful for vacuuming, floor cleaning, lawn-mowing, pool cleaning robots, and for entertainment. These types of robots are set to have a higher potential across the American, European, and ASEAN regions over the forecast period. But, currently, the demand is limited, owing to its operability and battery capacity.
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Industrial/Commercial Segment to Exhibit Highest Share during the Forecast Period
On the basis of application, the market for service robotics is categorized into domestic and industrial/commercial.
The industrial/commercial segment is expected to establish its supremacy over the forecast period and is also projected to grow exponentially over the forecast period. This segment is further divided into transportation & logistics, defense, medical, construction & demolition, unmanned vehicles, agriculture & forestry, and others which include public relations, retail, and more.
Among these, the logistics sector holds the highest share, owing to the automation introduced in the process of moving and storing of goods. Also, this sector is exhibiting high demand for service robots in order to streamline the supply chain processes across industries. Medical service robots are anticipated to show significant growth owing to the rising shift of people towards integrating robotic solutions for critical medical operations and the introduction of high-tech testing labs. Unmanned aerial vehicles are deployed across the defense and agriculture sectors owing to their ability to enhance the soldiers’ existing capabilities by protecting them from harm, determining product ripeness, gauging the land fertility, and inspection of crops, respectively.
Apart from these, the construction & demolition sub-segment is forecasted to grow at a steady rate owing to the rising number of commercial and residential projects across developed and developing economies. Besides, the massive investments by governmental bodies to restructure the existing infrastructure would aid growth. The domestic sub-segment is anticipated to hold a significant share across the residential sector owing to the growth of the personal service robots that are used for the well-being of humans.
Europe Service Robotics Market Size, 2019 (USD Billion)
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Geographically, the market for service robotics is grouped into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries
Europe predominantly leads in terms of the global service robotics market share, mainly owing to the high demand for professional and personal robots across several countries in the region. According to the International Federation of Robotics, Europe had the largest presence of manufacturers at around 44% due to the increasing demand from sectors, such as logistics, defense, medical, and retail. Further, countries mainly Germany, Italy, the U.K., and France are projected to grow significantly over the forecast period in this market with the rising adoption of robotics solutions across these geographies.
Following Europe, Asia Pacific held the second-highest share and is also projected to exhibit the highest CAGR till 2026. This is mainly due to the increasing research and development activities across industrial robot sectors and the rising government investments in automation, robotics, artificial intelligence, and other technologies. China, Japan, South Korea, and India are anticipated to be the main reasons for this region exhibiting the highest growth. Globalization, industrialization, and the demand for automation due to the growing standard of living of the individuals across developing countries such as China and India will further propel the service robot market in the region. According to the World Robotics 2018, almost 35% manufacturers of service robots are present in North America, which have ultimately raised the potential growth of the region.
The Middle East & Africa and Latin America are expected to slowly extend their footprints towards the service robotic systems industry because of the moderate technological growth across these regions.
Major Players Are Focusing on Integrating Advanced Robotic Technology
It has been observed that key vendors are emphasizing on expanding the possibilities of interactive robots. To do so, 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 upbringing a new wave in the service robots market.
An Infographic Representation of Service Robotics Market
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The service robotics market research report provides detailed information regarding various insights of the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2020 to 2027 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.
Value (USD billion)
Fortune Business Insights says that the global service robotics market size was USD 12.88 billion in 2019 and is projected to reach USD 41.49 billion by 2027.
In 2019, the value of the market in Europe stood at USD 4.21 billion.
Registering a CAGR of 15.9%, the market will exhibit substantial growth in the forecast period (2020-2027).
The industrial/commercial segment under application is expected to lead this market during the forecast period.
Maturity in robotic technology is a key factor driving the market growth.
Lely International, Northrop Grumman Corporation, and iRobot Corporation are the major players in the global market.
Europe dominated the market in terms of share in 2019.
The high initial capital expenditure is expected to restrain the market growth.
The introduction of intuitive technologies streamlined in robots is the current market trend.
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