Robotics Market

Robotics Market Outlook (2023 to 2033)

FMI's recent global robotics market report envisions a promising future. With projected market revenue of US$ 25.2 billion in 2023, the market is set for remarkable growth. The robotics industry leaps forward at an astonishing CAGR of 19.8%, charting a course toward surpassing US$ 152.9 billion by 2033.

Key Drivers Boosting the Demand for Robotics:

• The advent of digitization and the Industry 4.0 revolution has ignited a surge in robotic automation across industries
• Rising labor costs are prompting industries to turn to robotics as a replacement for human workers
• Increasing demand for autonomous robots across manufacturing industries
• E-commerce and logistics expansion driving warehouse automation demand
• Robots now have enhanced safety features and improved collaborative capabilities
• Government initiatives and funding are supporting the research and development of robotics
• Continuous innovation in robotics software for adaptive and complex task performance
• Advancements in robotic sensors for enhanced perception and object/environment detection
• The growing use of robot vision systems for object recognition, navigation, and quality control
• Integration of robotics with IoT enhances connectivity and control
• Advancements in human-robot interaction (HRI) technologies for intuitive human-robot communication
• Rising robotic process automation (RPA) demand in finance, insurance, and customer service for task automation
• Adoption of robot-assisted surgery for precision, faster recovery, and better outcomes

Challenges for Market Players in the Robotics Industry:

• The high initial investment costs associated with robotics technology
• The shortage of skilled professionals in robotics development and maintenance
• Regulatory and legal challenges in implementing robotics and autonomous systems
• Interconnected robots bring potential security risks and vulnerabilities
• Lack of standardization and interoperability in robot operating systems
• Certain robots lack flexibility and adaptability, limiting their suitability for complex tasks
• Small and medium-sized enterprises (SMEs) are slower in adopting robotics because of cost constraints

Key Robotics Market Trends

• Collaborative robots (cobots) that can work alongside humans are getting popular
• The emergence of soft robotics for more flexible and adaptable applications
• Autonomous robots and drones are seeing increased development and adoption
• Robots are being integrated with cloud computing and edge computing technologies
• Advancements in sensors, vision systems, and object recognition capabilities
• Mobile robots are emerging for applications in logistics, healthcare, and hospitality industries
• The integration of robots with virtual reality and augmented reality technologies
• Expansion of robotic applications in retail, hospitality, and other sectors
• Healthcare sectors are adopting robots in telemedicine, surgery, and rehabilitation

2023 to 2033 Robotics Demand Outlook in Comparison to Sales Registered from 2018 to 2022

In 2022, the robotics market size stood at an impressive US$ 19.8 billion, showcasing an extraordinary CAGR of 27.6%. The manufacturing industry has experienced a surge in demand for traditional industrial robots, specifically for assembly, welding, and material handling purposes. The widespread implementation of robotics and automation across various industries has ignited the robotics technology market growth.

The surge in demand for robots has led to a substantial inflow of investments in the field of robotics. According to the World Robotics report by the International Federation of Robotics, significant investments have been made to enhance new car production capacities and modernize industrial spaces, thereby fueling the demand for robots. Hyundai Motor Group made a substantial investment of US$ 400 million in August 2022 to establish the Boston Dynamics AI Institute, aiming to propel the fields of AI and robotics forward.

Various crucial aspects of Industry 4.0, such as connectivity and data utilization, have significant implications for robotics. In March 2022, Mitsubishi achieved a breakthrough by creating a robotics system capable of operating at human-like speeds and responding to voice commands. This innovative system incorporates Mitsubishi Electric's Maisart AI technologies, including advanced speech recognition, to initiate work tasks.

Between 2023 and 2033, the market is anticipated to hold immense opportunities, with a projected growth of 6X its current size. Advancements in artificial intelligence and robotics are enabling robots to perform complex tasks and learn from their environments. Moreover, the development of robot programming languages and platforms is on the rise. This makes it easier for users to program and control robots. These factors are likely to open up growth possibilities during this period.

Robotics Market Key Opportunities

• Expansion of robotics applications in healthcare, including surgery, diagnostics, and elderly care
• Evolution of robotic control systems for precise and coordinated movements
• Adoption of robotics in agriculture for precision farming and crop management
• Increased demand for robots in the food and beverage industry for processing and packaging
• Utilization of robots in hazardous environments such as mining as well as oil and gas exploration
• The rise of electric vehicles among new car owners is promising for the industrial robotics industry
• Implementation of 5G is expected to drive robotics adoption in manufacturing
• Integration of robotics in education and training for interactive and immersive learning experiences
• Development of customized robots for specific industrial and consumer needs

Exploring the Regional Patterns of the Robotics Market: An In-depth Examination at the Country Level

Robotics Industry in the United States Soars to New Heights, Dominating Global Market

The growing demand for efficiency, productivity, and automation in various industries has fueled the United States robotics market expansion. The country leads the global robotics industry with a strong focus on innovation and adoption. However, the manufacturing sector faces potential challenges, including a future skill gap due to industry growth, retiring workers, and a lack of interest among millennials in manufacturing professions. Additionally, rising labor and factory insurance costs further contribute to these challenges. As a result, the adoption of robotics is expected to increase in the United States. Robotics enable cost-effective and efficient resource allocation while minimizing disruptions.

Robotics companies focus on providing user-friendly robots that can be easily programmed and integrated into existing workflows. For instance, Amazon unveiled Sparrow, a cutting-edge robot in November 2022. It is designed to handle a wide range of products efficiently. It revolutionizes the fulfillment process by effectively relocating individual items before they are packaged, thereby optimizing the overall operation.

Robotic Innovation Takes Center Stage in China, Paving the Path to a Smart Future

The China robotics market is experiencing significant growth and transformation. China's manufacturing sector embraces automation for enhanced productivity and efficiency. 5G rollout in China is likely to transform the robotics industry by enabling real-time data transfer and enhancing robotics system performance. The Robotics Industry Development Plan of the government provides financial incentives, tax benefits, and supportive policies to foster innovations in robotics technologies. The automotive industry in China has also experienced remarkable growth. It holds a crucial position in the global market which is likely to positively affect the sales of robotics.

Leading manufacturers are investing in innovation and expanding their market presence to capitalize on the growing demand for robotics solutions in China and beyond. Xiaomi introduced its humanoid robot called CyberOne in August 2022. With 21 degrees of motion freedom and a remarkable real-time response speed of 0.5ms per degree, this robot effortlessly imitates human movements. Additionally, it possesses the ability to recognize human emotions and generate 3D visual depictions of its surroundings.

Robotics Revolution Unleashes a New Wave of Automation in the United Kingdom

The United Kingdom robotics market has experienced substantial growth lately, with Robotics-as-a-service gaining popularity. This emerging business model enables companies, particularly SMEs with budget limitations, to access robotic solutions without significant upfront costs. The government offers funding and grants to support robotics research, development, and adoption in different industries. There is a growing interest in autonomous vehicles and drones in the country, presenting opportunities for robotics manufacturers and service providers.

Key manufacturers are implementing strategies focused on innovation, customer-centricity, and industry-specific solutions. For instance, Miso Robotics made its entry into the United Kingdom in November 2022. At a Midlands site of one of the top quick-service restaurant companies in the world, it unveiled their flagship product, Flippy 2. Simultaneously, Miso Robotics decided to expand its Series E funding round.

Robotics Boom in Japan Fuels Economic Growth and Job Creation

The Japan robotics market is anticipated to grow substantially during the forecast period. The growth can be attributed to the country's strong technological prowess. Japan's service robotics sector grows with government support for worker shortages. The government aims for all newly sold cars to be electric or hybrid by 2050. This effort is expected to boost the use of eldercare robots in residential settings.

Japan favors humanoid robots, with local manufacturers leading in advanced human-like robotic system development. Japan utilizes robotics for disaster management and recovery given its vulnerability to natural disasters. Robotic systems like UAVs and ground-based robots are deployed for search and rescue, damage assessment, and infrastructure inspection after natural disasters. Robotics is also adopted in Japan's agricultural sector to tackle labor shortages and improve efficiency.

Innovative Robotics Solutions from South Korea Reshape Industries Worldwide

South Korea highly focuses on innovation and automation. The country boasts a robust research and development ecosystem, fostering innovation in robotics. It also has a highly advanced and dense robotics sector owing to early adoption by manufacturers. The adoption of cobots is on the rise in South Korea. South Korean robotics firms integrate AI for enhanced robot capabilities. Moreover, the government is focusing on smart manufacturing lately to boost industrial robot adoption.

Key manufacturers are employing innovative strategies to capitalize on the growing opportunities in the South Korea robotics market. SK Telecom and Doosan Robotics jointly introduced the AI Barista Robot in January 2023. This compact coffee-making robot aims to optimize operational efficiency within traditional coffee shops.

Sudip Saha

Principal Consultant

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Exploring the Robotics Market: An In-depth Segment Analysis

Security & Inspection Segment Takes the Lead in Robotics Sector

Security concerns have been increasing across the world. This rise in concerns has created a growing necessity for advanced security solutions. Robotic systems provide enhanced capabilities for surveillance, threat detection, and monitoring. These capabilities make robotics systems an ideal choice for security applications. Inspection processes in several industries demand efficiency and consistency. Robotic systems excel at performing repetitive inspection tasks with high precision.

By automating labor-intensive inspection processes, robotics systems reduce associated costs. Certain security and inspection tasks carry hazards or risks for human operators. Robotic systems can handle hazardous materials, ensuring the safety of human operators. These factors contribute to the domination of the security & inspection segment in the global market.

Retail Industry Claims the Spotlight in the Robotics Industry

Retailers face challenges in managing large inventories, stocking shelves, and fulfilling orders efficiently. Robotic automation offers the potential to streamline these processes. They also reduce labor costs and improve overall operational efficiency.

The rise of e-commerce has significantly transformed the retail landscape. As online shopping continues to grow, retailers are increasingly investing in robotics to meet demands. Moreover, consumers expect faster order fulfillment and seamless shopping experiences.

While robotics technology requires an upfront investment, it can lead to long-term cost savings for retailers. Automation reduces labor costs, minimizes errors, optimizes inventory management, and improves overall operational efficiency. These factors have collectively contributed to the supremacy of the retail industry segment in the global market.

Robotics Market: Analyzing Key Players, Start-ups, Strategies, and Market Share in the Global Landscape

Key players are actively involved in the development and deployment of front-line robotic technologies. They are investing massively to create advanced robots with enhanced capabilities. Robotics companies are also exploring partnerships and collaborations to expand their market presence as well as accelerate innovation. They aim to drive the adoption of robotics on a global scale and shape the future of automation.

Start-ups are revolutionizing various industries by developing innovative robotic solutions. They focus on machine learning algorithms and artificial intelligence capabilities to enhance productivity. By doing so, they drive the growth and adoption of robotics technology.

Top 3 Start-ups

1X:It is a Norway-based engineering and robotics company that specializes in manufacturing androids that exhibit remarkably human-like movements and behaviors. The primary objective of 1X is to develop practical and applicable robots that can enhance human labor on a global scale.

In May 2023, 1X, a robotics startup supported by OpenAI, achieved a notable milestone by deploying humanoid robots as security guards. These robots possess the ability to undertake tasks such as nursing and bartending, leveraging their human-like arms. Currently, they are operational in the United States as well as specific areas of Europe.

Figure:It is a United States-based innovative AI robotics company that is revolutionizing the field by introducing a groundbreaking general-purpose humanoid. The company's objective is to enhance human capabilities and potential through the development of this humanoid.

In March 2023, Figure publicized its intentions to develop a commercially-viable humanoid robot suitable for general-purpose. Unlike robots designed for specific tasks, this humanoid robot aims to be versatile and adaptable for various applications.

ANSCER Robotics: It is an India-based company that prioritizes safety, ergonomics, and user-friendly design to provide cutting-edge Automated Mobile Robot (AMR) solutions in the era of Industry 4.0. It aims to cater not only to the Indian market but also to expand its presence globally.

In January 2022, ANSCER Robotics unveiled its lineup of autonomous mobile robots (AMRs) to the public. ANSCER Robotics is known for developing the world's first AMR brain to make robotics technology accessible to everyone.

Top 3 Key Market Players

Siemens:It is a Germany-based global technology company that operates in various sectors, including energy, healthcare, industry, and infrastructure. The company invests heavily in new technologies. It provides automation and control solutions for industrial robots used in manufacturing and production processes.

Siemens and Comau, an Italian robot manufacturer, joined forces in January 2023 through a cooperative agreement. They introduced a jointly engineered product called Sinumerik Run MyRobot / DirectControl. This seamlessly integrates robot kinematics into a CNC system. It enables optimized control over robotic machining and handling tasks.

Brain Corp:It is a United States-based software technology company that specializes in the development of autonomous navigation systems for robots. It provides automation and control solutions that can be utilized in conjunction with robotic systems.

Brain Corp, in November 2022, introduced its third-generation AI autonomy platform designed to empower the next generation of autonomous commercial robots. This advanced platform, known as BrainOS®, facilitates faster deployment of reliable and efficient autonomous robots, accelerating innovation and market adoption in the field of automated robotics.

Honeywell International Inc.:It is a United States-based multinational conglomerate company with a diverse range of products and services. It functions in multiple industries, including aerospace, technologies, safety and productivity solutions, and others. It also has a presence in the field of robotics through its safety and productivity solutions segment.

Honeywell International Inc. unveiled its state-of-the-art robotic technology innovation in September 2021 aimed at automating the manual process of unloading pallets in warehouses and distribution centers. This new development, called the Smart Flexible Depalletizer, addresses operational risks such as potential injuries and labor shortages by minimizing the reliance on manual labor to break down pallet loads.

How can Robotics Market Players Grow Their Businesses?

• Capitalize in research and development to Develop innovative robotic solutions
• Collaborate with research organizations for expertise and innovation
• Form strategic partnerships with complementary technology companies
• Implement a strong marketing strategy to raise awareness and highlight benefits
• Provide excellent customer support and after-sales services
• Offer customization options to meet specific needs
• Ensure compliance with regulations and standards
• Stay updated on relevant technologies

Key Players

• Blue Ocean Robotics
• Brain Corp
• Fetch Robotics, Inc.
• Honeywell International Inc.
• Motorola Solutions Inc.
• RoboAds
• Siemens
• Simbe Robotics
• SMP Robotics
• Xenex Disinfection Services

Robotics Market Segmentation

By Application:

• Disinfection
• Shelf Scanning
• RFID Scanning
• Delivery
• Security & Inspection
• Advertising

By End User:

• Automotive
• Retail
• Healthcare
• Electronic
• Others

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa