Status : Published Published On : Jun, 2021 Report Code : VRICT5158 Industry : ICT & Media Available Format : Page : 215

Global Service Robotics Market – Analysis and Forecast (2020-2027)

Industry Insights by Type (Professional Service Robots and Personal Service Robots), Component (Hardware and Software), Application (Domestic, Medical, Field, Defense, Rescue, & Security, Entertainment, Education, & Personal, Public Relations, Inspection and Maintenance, Logistics, Construction, Marine, and Others), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The service robot market is anticipated to grow at an exponential rate i.e. projected to reach USD 125 billion by 2027. It will grow at a CAGR of 24.7% during the forecast period 2021-2027. According to the International Organization of Standardization,” Service robot is a robot that performs useful tasks for humans.” This device is operated in semi or fully automatic tasks and assists humans in dangerous, repetitive, and tedious jobs. It helps in reducing accidents and increases efficiency. They are not used in manufacturing automation and industrial applications.

The service robot market is growing at a significant rate, due to the increase in the use of robots in different applications giving high returns on investment, the increased usage of IoT for maintenance cost, and the rise in investment in R&D on robots by the government and the competitors. These factors are expected to boost the growth of the robot market. Furthermore, the use of robots for companionship, disability, assistance for the elderly population, the need to improve the ability and operation capability of robots, and approval of swarm intelligence technology which helps robots to perform many complex tasks with ease will propel the growth of the service robotics market in the forecast period. However, the data secrecy, protocols that are needed to be followed, and sometimes incorrect results in the critical operations will disrupt the growth of the service robotics market. 

The COVID-19 pandemic will accelerate the use of service robots in various activities like disinfecting, contactless delivery, delivering food & medications, and helping in border control. Additionally, robots are playing an important role in fighting coronavirus SARS-CoV-2. For example, Chinese hospitals are purchasing more than 2000 disinfection UVD robots from Blue Ocean Robotics. These robots move freely inpatient rooms and cover all surfaces with the right amount of UV-C light to kill coronavirus.

Market Segmentation

Insight by Type

On the basis of type, the market is bifurcated into professional service robots and personal service robots. Professional service robots dehumanize time-consuming repetitive tasks, thus allowing humans to work on intellectual functions. The professional service robots segment will grow exponentially over the forecast period due to the increase in demand for robots in various industries like medical, defense, logistics, construction, etc. Also, the need for mobility and automation in industrial sectors impacts the market share for service robotics. The rising labor cost, investments in R&D, lack of skilled labor, an increase in awareness for service robots, and industrial automation are the factors that are propelling the growth of the segment.

The personal service robots consist of cleaning robots, vacuuming, assistive robots for elder care and lawn-mowing robots, entertainment & leisure robots, and education and training robots. They are used to automate normal mundane, dangerous and repetitive tasks so that humans can work on intellectual work. They are usually operated by one person and can be given on a rental basis to the customers which propel the demand for personal service robots. These types of robots have high potential growth opportunities in American, European, and ASEAN countries during the forecast period. However, the demand is limited due to its operational and battery capacity.

Insight by Component

On the basis of component, the service robotics market is segmented into hardware and software. Hardware is further subdivided into airframes, sensors, cameras, actuators, power supply, control systems, navigation systems, propulsion systems, and others. The hardware segment will grow during the forecast period because of the innovative designs needed on the hardware side. The use of robots in different industrial sectors has created the need to link sensors and control units in hardware. So, the need for low-cost sensors across various emerging economies and the rise in orders from commercial industries to increase productivity are the factors driving the market of hardware.

Insight by Application

On the basis of application, the service robotics market is divided into domestic, medical, field, defense, rescue, & security, entertainment, education, & personal, inspection and maintenance, logistics, construction, marine, and others. Domestic is further subdivided into floor cleaning, lawn mowing, pool cleaning, assistive robots, home security & surveillance robots, and others. Medical is further subdivided into surgical robots, rehabilitation robots, diagnostic robots, emergency response robotic systems, handicap assistance, prosthetics/exoskeletons, and others. The field is further subdivided into harvest management, field farming, dairy and livestock management, agriculture robots, forestry robots, space robots, and others. Defense, rescue & security is further sub-segmented into unmanned aerial vehicles (UAV), unmanned ground vehicle (UGV), firefighting & disaster management robots, demining robots, border security and surveillance, and others. Entertainment, educational, & personal segment is further subdivided into toy robots, education & research robots, and robotic companion. Inspection and maintenance are further subdivided into pipe or pipeline inspection, power plant inspection, an inspection of energized transmission lines, and others. Logistics is further subdivided into factory logistics robots, outdoor logistics robots, cargo handling robots, mail sorting robots, and others. Construction is subdivided into excavator robots, bulldozer robots, demolition robots, welding robots, material handling robots, and others. Marine is subdivided into oceanography, environmental protection & monitoring, archaeological exploration, and others.

Domestic robots are presumed to grow during the forecast period. This is due to a decline in the cost of robots for domestic applications because of the decrease in the price of sensors. Furthermore, the increasing trend for smartphones, the growing aging population, and awareness about the adoption of robots for household work will propel the demand for domestic robots. The logistics sector holds the largest market share due to the automation of moving and storing of goods. Medical service robots are anticipated to grow at a significant rate due to their support in therapy, robot-assisted surgery, and the introduction of high-tech testing labs. Also, the construction segment will grow at a constant pace due to an increase in the number of commercial and residential projects in developed and developing countries.

Industry Dynamics

Industry Trends

An increase in the geriatric population requiring assistance, mobile technology & other smart devices using robotics, funds & grants by the government, augmentation of technology, and venture capital investments in R&D activities are expected to positively impact the market demand. Service robotics has witnessed a boom in its use due to high labor costs, lack of skilled workforce, reducing human error, awareness about the benefits of robots, and the need for automation in personal and professional sectors. The government is driving the robotic revolution. For example, India is planning to invest in military robotics and is deploying advanced robotic soldiers by 2023 However, the high cost of robots and barriers for small companies to enter the market because of high capital to set a plant layout are the hurdles in the market.

The lives of the people are affected by the COVID-19 pandemic. The service robotics market has shown a downfall in sales during the lockdown period because many manufacturing units were shut down. Nevertheless, the service robotics market will recover because of the contact-free alternatives to healthcare workers and the delivery of food. In hotels, front desk employees use robots to interact with guests from a safe distance. In the real estate sector, realtors are using teleoperating robots to display properties from the safety of their homes. Therefore, service robots are a big game-changer in the pandemic situation.

Growth Drivers

Technology expansion, growing innovation, insurance coverage for the medical exoskeletons, robotics surgeries are the key drivers for the market growth due to which the price for service robotics is expected to see a fall. The integration of advanced technologies such as artificial intelligence (AI) along with the demand for automation has rendered a ripe market for the global service robotics market. Service robots have become indispensable due to the use of robotics in different applications across various segments. Service robots are gaining importance as regular mundane works are handled with more efficiency and human can concentrate on intellectual tasks. As there is no issue of tiredness in robots, manufacturing and assembly time is reduced, which will result in huge profits for the company. Service robots are designed to assist humans in dangerous and distant works as a result they are an integral part of the armed forces across the globe and reduce the fatality risk. All these factors will impact the service robotics market in near future. 

Challenges

The need for the high capital investment required for the procurement, integration, programming, accessories, and other activities retrain the growth of the service robotics market. Sensors are the most critical part of robotics and are highly-priced. As a result, robots become expensive which will hamper the global service robotics market. Moreover, the maintenance cost of service robotics is high as a result it creates barriers for small and medium enterprises to enter the market. It is very difficult for small and medium enterprises to sustain in the market because of the low-volume production and slow return on investments (ROI). The use of service robotics will result in labor savings cost but there will be fear of loss of jobs as many individuals will be unemployed.

Opportunities

The market is providing numerous growth opportunities in the forecast period due to initiatives taken by the government, investment in R&D, growing concern for safety, the use of smartphones, and growth in emerging economies. The application of service robotics for domestic purposes will further provide opportunities for the growth of the market. Service robotics will reduce the cost in commercial applications like cleaning, delivery, and security. Insurance companies are now providing coverage for medical exoskeletons and robotics surgeries which will provide many avenues for the growth of the robotics market.

Geographic Overview

North America has the largest market share in the global service robotics market due to the increase in investment and use of robotics in the defense sector. The continuous use of robots for automation has generated revenue for the service robotics market in North America. Furthermore, the large-scale production of service robots due to the strong presence of vendors has led to the expansion of the service robotics market in North America. The increasing demand for robots for the healthcare sector (rehabilitation & therapy), the use of surgical robots in hospitals, funding for research technologies, and availability of technologically advanced service robots are the factors that propel the growth of the service robotics market in North America.

APAC is projected to have a significant growth in the service robotics market because of the thriving automotive industry. In emerging economies, the demand for service robotics will increase because of the establishment of a manufacturing and production base in developing countries. Japan is one of the strongest robotics solution providers and will increase its market share and technical expertise in the forecast period.

Competitive Insight

The global service robotics industry is driven by the increase in investment by the key players and their collaborations with healthcare companies like Investments made by Intuitive Surgical Inc. for improving its surgical systems and enhancing the patients’ experience. These advancements will propel the demand for service robots in the healthcare industry.
Also, there many acquisitions and collaborations by different players in the global service robotics market to enhance their portfolio and expand their customer base. In June 2019, the iRobot Corporation innovated the Root coding robot in the product portfolio by acquiring Root Robotics. The users can instruct Root to draw artwork, scan colors, play music, respond to touch and sound, climb whiteboard walls, and explore the essentials of robotics.

Some of the key players in the global service robotics market are IRobot Corporation, Honda Motor Company, Ltd., Intuitive Surgical, Inc., GeckoSystems Intl. Corp., Daifuku Co., Ltd., SZ DJI Technology Co., Ltd., Neato Robotics, YUZIN ROBOT Co., Ltd., Samsung Electronics Co., Ltd., and LG Electronics Inc.

Service Robotics Market Size

Source VynZ Research

Service Robotics Market Analysis

Source VynZ Research

Frequently Asked Questions

Service Robotics Market will grow at a CAGR of 24.7% during the forecast period 2021-2027
North America has the largest market share in the global service robotics market.
Some of the key players in the global service robotics market are IRobot Corporation, Honda Motor Company, Ltd., Intuitive Surgical, Inc., GeckoSystems Intl. Corp., Daifuku Co., Ltd., SZ DJI Technology Co., Ltd., Neato Robotics, YUZIN ROBOT Co., Ltd., Samsung Electronics Co., Ltd., and LG Electronics Inc.
Technology expansion, growing innovation, insurance coverage for the medical exoskeletons, robotics surgeries are the key drivers for the market growth due to which the price for service robotics is expected to see a fall.
The logistics application sector holds the largest market share due to the automation of moving and storing of goods.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Service Robotics Market