Service robots are semi- or fully-automatic robots that carry out necessary and hazardous tasks for people. These robots help people in a variety of fields, including entertainment, household work, automation, and medical treatment. These robots are operated automatically by an internal control system, with the option for manual intervention. These service robots manage time, reduce the workload of the staff and labourers, and increase output by removing the possibility of human error.
Market Analysis
The market for service robots, which was estimated to be worth $21.7 billion in 2020, is expected to expand to $153.7 billion by 2030, with a CAGR of 21.2% between 2021 and 2030.
Due to advantages like providing precise, high-quality services that reduced operating costs and human errors and enhanced usability and dependability, service robotics have become widely accepted in a number of personal and professional applications. Furthermore, in order to reduce human error in operations and increase productivity, many businesses have implemented robotic technology as a result of the growth in labour prices and the dearth of trained people. The need for service robots has also increased as people’s understanding of the advantages of robots, R&D spending, and the demand for automation in the personal and professional sectors have all increased. However, factors including the rising cost of raw materials and semiconductor chips have had a detrimental effect on market expansion. Furthermore, the expansion of the service robotics business has been constrained by high starting investment and maintenance costs.
Major market participants provide completely and semi-automatic vice robots for a range of applications, and in order to expand their clientele and increase their skills, they are partnering with and acquiring top service robot companies.
Sales Analysis
Professional and personal service robots are the two categories that make up the service robotics market. The segment of professional service robots holds the largest market share. However, it is anticipated that the personal service robot market would expand quickly throughout the course of the projected period. Professional service robots are used in industries like forestry, agriculture, construction, logistics, healthcare, and defence & security, whereas personal service robots are used for domestic and entertainment purposes.
Europe generated the most revenue per region in 2020, according to data. Numerous steps are being taken to support the development of robotics R&D activities across various sectors as a result of increased government investment in the R&D industry. However, due to an increase in automation in developing economies, Asia-Pacific is anticipated to experience the greatest growth during the projection period. Additionally, because of technical improvements and the introduction of new business strategies, such as the burgeoning retail and e-commerce industries, nations in this zone have implemented robotics solutions.
Opportunities
Service robotics have gained widespread acceptance in a variety of professional and personal applications owing to benefits such as delivery of precise and high-quality services that decreased operating expenses human mistakes and improved usability dependability. Furthermore, owing to rise in labor costs and scarcity of trained workers, various companIes have adopted robotic technology to overcome human error operations and enhance productivity. Moreover, growth in awareness regarding the benefits of robots, increase in R8,D investments, and surge in demand for automation in the personal professional sector has increased the demand for service robots. However, factors such as increase in raw materIal and semiconductor chips prices have negatively waved the market growth.
Furthermore, the expansion of the service robotics business has been constrained by high initial investment and maintenance costs. Major market players also provide fully and partially automatic service robots for a range of applications, and they are acquiring and collaborating with top service robotics companies to expand their capabilities and clientele. such as in February 2020. The top manufacturer of industrial robots joined forces with the startup company Covariant in Alabama. ABB and Covariant intend to develop completely automated robotic systems for warehouse operations and the e-commerce industry as the first Al-enabled robotics solution.
Factors Affecting the Growth of the Industry
A number of sectors’ rising necessity for professional robots is anticipated to drive market growth.
The rise of the global robot as a service market is anticipated to be fueled by the rising demand for professional robots across several sectors over the forecasted period. This is a result of the rising demand for automated operations across numerous professional fields. Due to the growing importance of human assistance tasks, the decrease in workload, and the encouragement of maximum dependability in repetitive activities in businesses, robot as a service is becoming more and more common. The hefty annual maintenance costs of service robots, however, restrict enterprises’ capacity to invest, especially small and medium-sized ones. This is probably going to hurt the market.
Driving Factors
The cost of manufacturing robots has greatly decreased as a result of the quick development of technology and increase in robot production. The average cost of a robot has decreased over the past 30 years by half in real terms and significantly more when compared to labour expenditures. Additionally, it is projected that production of robots would relocate to low-cost locations, further lowering the manufacturing cost, due to the increased interest for robots from the emerging nations. Major manufacturing economies’ increased labour costs relative to the price of robots also contribute to an increase in the attractiveness of pricing dynamics, which supports market expansion.
The usage of service robots, which increased productivity and quality, together with improved robot capabilities as a result of technological improvement, contributed to the market’s expansion.
Restraining Factors
A difficult issue for the expansion of the service robots market is the initial capital expenditure needed for procurement, programming, integration, and other accessories, all of which are fairly expensive. Furthermore, according to the Robotic Industries Association, these robots require annual maintenance costs of between USD 2,50,000 and USD 10,000. This makes it difficult for firms, especially small and medium-sized ones, to invest in these robots because of their low production volume and low return on investment. The price of replacing sensors, upgrading software, and purchasing new equipment raises the cost of owning service robots, which in turn slows the market’s growth.Thus, the market’s growth has slowed as a result of all of these causes.
Market Segmentation
- Type:-
- Healthcare
- Defence
- Field
- Logistics
- Construction
- Domestic
- Entertainment
- Others
- Application:-
- Professional Service Robotics
- Personal Service Robotics
- Geographical Region
- North America (US, Canada, Mexico)
- Europe ( Germany, France, Italy, UK, Rest of Europe)
- Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific)
- LAMEA ( Latin America, Middle East, Africa)
The market is divided into segments based on type, application, and geographic region. The market is split into two categories based on type: personal service robots and professional service robots. The market is segmented into healthcare, defence, domestic, construction, logistics, field, entertainment & leisure, and others based on application. The United States, Canada, and Mexico are included in North America, as are the United Kingdom, France, Germany, Italy, and the rest of Europe, as well as China, Japan, India, South Korea, and the rest of Asia-Pacific and LAMEA (Latin America, the Middle East, and Africa).
In 2020, Europe was the region with the highest revenue production. Numerous steps are being done to boost the expansion of robotics RD activities in various industries as a result of increased government investment in the RD sector. However, due to the increase in digitization in developing nations, Asia-Pacific is anticipated to grow at the quickest rate during the projection period. Additionally, because of technical improvements and the introduction of new business models, such as the burgeoning retail and e-commerce industries, countries in this region have implemented robotics solutions.
Key Competitors
- Daifuku Co. Ltd
- Dematic Corp.
- Swisslog Holding AG (KUKA)
- Omron Corporation
- iRobot Corporation
The market for service robots is moderately consolidated since dominant players dominate the industry. But as the industry becomes more competitive and fragmented due to increased rivalry brought on by rising demand, new competitors are also joining the market. Vendors are using a variety of techniques, such as product innovation, alliances, acquisitions, etc., to further solidify their market dominance. Daifuku Co. Ltd, Dematic Corp., Swisslog Holding AG, and iRobot Corporation are a few well-known participants.