The Global Service Robotics Market Size Was Valued At USD 16.95 Billion In 2021. The Market 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.

Service Robotics Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. As a result, demand for service robots is lower than expected in all regions compared to levels before the pandemic. Based on our research, the average drop in the global market between 2019 and 2020 was 14.6%.

Service robots are machines that help people by doing things for them that are useful. They can mostly be put into two groups: robots used for work and robots used for fun. The way they are used also divides them into two groups: domestic and industrial.

The domestic segment is made up of all the robots that are used for personal and indoor tasks. The use of Internet of Things (IoT) devices in homes and the release of more accurate and less expensive robots for home use are two of the reasons why domestic robots are becoming more popular in all parts of the world. The industrial/commercial segment is about the tools that are used in factories to do work that has to do with factories. The market for industrial service robots is being driven by efforts to automate industrial facilities and cut down on labour costs by reducing the amount of human involvement in industrial operations.

Also, these robots are used in the medical, defence, construction and demolition, agriculture, retail, and transportation and logistics fields.

Market Dynamics:

Latest Trends:

Service robots are getting more and more useful as technology improves. They can now do more tasks in less time and do more of them at once.

The use of these robots in many different fields, such as healthcare, defence, logistics, agriculture, and others, has changed the way work is done in a big way.

For example, the use of these robots in healthcare has made it possible for surgeons to do surgeries with less damage to the body. These robots are used as tools to make cuts or movements that are more precise than what people can do with their hands. For example, in 2020, Johnson & Johnson, a company based in the United States that makes medical devices, launched a new robot-assisted surgical system that can be used for both laparoscopic and open surgery.

Driving Factors:

Due to fast changes in technology and more robots being made, the cost of making robots has gone down by a lot. In real terms, the cost of a robot has gone down by half in the last 30 years, and even more when compared to the cost of labour. Also, because robots are becoming more popular in emerging economies, the production of robots is likely to move to low-cost areas, which will cut the cost of making them even more. Also, in major manufacturing economies, where labour costs are rising faster than the cost of robots, prices are becoming more attractive, which helps the market grow.

The market grew because technology made robots smarter and better, and because service robots made businesses more productive and better at what they did.

Restraining Factors:

The cost of buying, programming, integrating, and adding other parts and accessories is quite high at first, which makes it hard for the service robotics market to grow. Also, the Robotic Industries Association says that these robots cost between US$2.5 million and US$10,000 per year to keep up. This makes it hard for businesses, especially small and medium-sized ones, to invest in these robots because they have a hard time getting large amounts of capital because they don't make as much money. Service robots are more expensive to own because it costs money to update software and replace sensors and other devices. This slows the growth rate of the market. Because of all of these things, the growth of the market has slowed down.

Segmentation Analysis:

By Type:

Between these two types, the professional segment has a bigger share of the market and is expected to grow quickly over the next few years. This is mainly because service robots are becoming more popular in fields like defence, medicine, construction, logistics, and others. Aside from this, the use of automation and mobility in industrial sectors is also having a big effect on the market share as a whole. This segment is growing even faster because labour costs are going up, R&D spending is going up, there aren't enough skilled workers, and more people are learning about service robots and industrial automation.

The market for personal robots is expected to grow a lot in the residential home sector. Most of the time, these robots are used to help, teach, and tutor people at home. Aside from that, personal robots can be used to clean floors, vacuum, clean pools, mow lawns, and even just for fun. Over the next five years, these kinds of robots are expected to become more popular in Europe, ASEAN, and the United States. But there isn't much demand for it right now because of how it works and how much battery it has.

By Application:

The industrial/commercial segment is expected to become the most important over the next few years, and it is also expected to grow a lot over the next few years. This segment is further divided into agriculture and forestry, defense, transportation and logistics, unmanned vehicles, construction and demolition, medical, retail, and others, which include public relations.

Among these, the transportation and logistics segment has a big share because automation has been added to the way goods are stored and moved. Also, there is a growing need for service robots in this sector to improve the supply chain processes in many industrial sectors. People are becoming more interested in using robots for important medical procedures, and high-tech testing labs are starting up. This should lead to a lot of growth for medical robots. UAVs are used in both agriculture and defense because they can improve the abilities of soldiers by keeping them safe, figuring out when products are ready to be sold, inspecting crops, and figuring out how fertile the land is.

Aside from these, the construction and demolition sub segment is expected to grow steadily because more residential and commercial projects are being built in both developed and developing economies. Also, the growth would be helped by governments spending a lot of money to reorganize the infrastructure they already have. Since more people are using service robots for personal use at home, the domestic sub segment is also expected to have a big share of the residential market.

Regional Insights:

Asia-Pacific is expected to grow a lot because technology is getting better and more factories in all sectors of the region are becoming more and more automated. The Asia Pacific market is driven by the big and important economies of Japan, China, and India. In addition, promising government policies in the manufacturing industry and a greater focus on economic diversification in emerging countries are the two main growth drivers that drive industrial automation. Because of this, there is more demand for this kind of robotics. The growing number of robots on the regional market is the most promising reason why the market is expected to grow a lot over the next few years in the region.

China is expected to grow a lot, and its CAGR is expected to be the highest over the period of the forecast. The country is at the top of the market because it has put a lot of money into its manufacturing sectors. China is a manufacturing hub because it has low manufacturing costs, low labour costs, and low raw material costs. Because of this, suppliers believe that they can make a lot of money by making a lot of electronic products and selling them in other parts of the region. But domestic manufacturers with local consumers as their target audience have a very weak position in the market, even though they have a sustainable and profitable manufacturing model that has helped them build a large manufacturing cluster in the market of the country.

For example, by the end of 2017, the share of the Chinese market that was served by local manufacturers had dropped from 31% in 2016 to almost 25%. The poor performance of local vendors in the region's market can be mainly blamed on the fact that global giants are making more of their products in China. ABB Ltd. decided in 2020 that they would build a factory by the end of 2020.

After Asia Pacific, Europe had the second largest share of the global market. This was mostly because many countries in Europe wanted personal and professional robots. According to the International Federation of Robotics, Europe has the most companies that make service robots. This is because industries like medicine, logistics, retail, and defence are using them more and more. 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.

North America also has a good share of the market because many of the world's biggest manufacturers are based there. Even though the top four automation solution providers, ABB Ltd., FANUC, KUKA AG, and Yaskawa, have home markets outside of North America, there is a high demand for their products in North America due to their high level of technological innovation, which is pushing these companies to work more efficiently across the region. North America's development potential is also boosted by these companies' efforts to improve technology. They do this by putting a lot of money into research and development, strategic partnerships, acquisitions, collaborations, and joint ventures, all of which are key factors.

In the Middle East and Africa region, GCC has the largest share of the service robotics market. This is because the developed Gulf countries use a lot of automation and modernised techniques in their manufacturing and warehouse management systems. In the future, the growing use of service robots in the healthcare and auto industries in the regional market is likely to be the biggest factor in the market's growth.

Due to the slow rate of technological development in Latin America, it is likely that the region will slowly move into the service robotics sector. Also, Brazil is expected to have the largest share of the market. Also, the big shift of Latin American consumers toward automated solutions is the market's biggest growth driver.

Scope Analysis

Recent Development:

• In February 2022 – Ricoh acquired Axon Ivy AG as a part of its strategic investment with an objective to expand its digital process automation capabilities.
• In November 2021 – KUKA AG and MHP collaborated to work on Smart Intelligence Robotic Project Cockpit (SIRPCO).
• In November 2021 - iRobot Corporation acquired Aeris Cleantec AG, an air purification company with an objective to diversify the product portfolio with air purification systems.
• In June 2021 - HYUNDAI MOTOR GROUP acquired 80% stake in Boston Dynamics to strengthen its position in the field of robotics.

Market Segmentation

By Type:

• Professional
• Personal
• Others

By Application:

• Domestic
• Industrial/Commercial
• Transportation & Logistics
• Medical
• Defense
• Construction & Demolition
• Unmanned Vehicles
• Agriculture & Forestry
• Retail
• Others (Public Relations)

By Companies:

• 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)
• Others