The global Service Robotics market was valued at USD 30.51 Billion in 2022 and is projected to reach USD 92.34 Billion by 2030, registering a CAGR of 17.14% for the forecast period 2023-2030.
Market Definition
Service robotics refers to a wide range of robots that are designed to assist and execute activities in a variety of sectors and everyday contexts. These robots are designed to interact with and support humans in a variety of capacities, with the goal of improving efficiency, safety, and convenience. Service robots are being used in a variety of industries, including healthcare, hospitality, retail, logistics, and residential settings, with solutions ranging from autonomous delivery robots and automated guided vehicles in warehouses to robotic companions for the elderly or those with disabilities. They frequently employ modern technologies like artificial intelligence, computer vision, natural language processing, and machine learning to explore environments, understand human orders, and perform difficult jobs with accuracy and adaptability. The field of service robotics is evolving, driving innovation and pushing boundaries to produce robots that work seamlessly with humans in a variety of scenarios, boosting our capabilities and improving quality of life.
For instance, in October 2023, Amazon announced two new applications for robotics. The two robotic technologies, Sequoia and Digit, will increase worker safety and allow Amazon to deliver to customers faster. With over 750,000 robots collaborating with our humans, performing highly repetitive activities and freeing up employees to better serve our clients.
Market Size:
- 2022: USD 30.51 billion
- 2030: USD 92.34 billion
- CAGR (2023-2030): 17.14%
Service Robotics Market Dynamics
Drivers Propelling the Demand for Service Robotics include:
Growing investment by knowing the benefits of the robotics is driving the market:
Increased investment in robotics research & development is a critical driver of industry growth, stimulating innovation, and pushing the limits of what robots can accomplish. This rush in investment stimulates technological improvements, allowing for the development of increasingly complex, capable, and cost-effective robotic solutions. More funding allows academics to investigate developing technologies such as AI, machine learning, sophisticated sensors, and materials science, which will improve the capabilities and versatility of robots across industries. These investments also help to fund the development of collaborative and autonomous robots that can collaborate with humans, opening up new opportunities in industries such as manufacturing, healthcare, agriculture, and logistics. Furthermore, R&D investments allow for the improvement of safety features, regulatory compliance, and scalability, all of which are important elements in general adoption and market expansion. Overall, increased investment in robotics research and development acts as a catalyst, propelling the market forward by stimulating innovation and driving the development of more efficient, intelligent, and adaptable robotic systems.
For instance, in September 2023, Government of UK announced £12.5m funding for robotics and automation inorder to boost sustainable farming.
Recent Developments
In March 2023, ABB to strengthen its leadership made an investment of $20 million that will help increase production at its existing Auburn hills facility and the newly extended facility will create new jobs in the state of Michigan.
In October 2023, Neura robotics an emerging AI & robotics startup announced closure of $16 million funding from American private equity firm InterAlpen Partners.
Restraint
High initial costs may hamper the market growth:
The high initial cost of installing robotics technology is a significant barrier to market penetration and widespread adoption. The initial investment required to acquire and deploy robotic systems can be too expensive for many organizations, particularly small and medium-sized enterprises (SMEs). The cost covers not just the hardware but also the costs of system integration, customization, training, and maintenance. This financial barrier frequently prevents businesses from adopting robotics, particularly in industries with thin profit margins or uncertain returns on investment. Furthermore, the impression of risk associated with such significant initial investments discourages firms from committing to robotics adoption, particularly if they lack clarity on the long-term advantages or are constrained by budget constraints. As a result, despite the potential efficiency and productivity increases provided by robotics, the high initial cost remains a significant barrier to greater market entrance and adoption.
Challenges
Lack of standardization can put up various challenges:
The lack of defined frameworks and protocols in the robotics sector creates substantial hurdles to market expansion and widespread acceptance. Integration becomes hard and costly in the absence of established standards controlling interoperability, safety precautions, and communication protocols across different robotic systems. This lack of standardization hampers the establishment of unified ecosystems in which robots can interact and complement each other's functionalities. Furthermore, the lack of established norms in terms of safety and ethics causes concerns among users and regulatory organizations. This uncertainty can cause regulatory approvals to be delayed, new robotic technology to enter the market slowly, and their deployment in sensitive sectors such as healthcare or autonomous vehicles to be limited. Scalability is also affected by standardization; without consistent norms, firms may struggle to scale out their robotic deployments over various sites or regions, resulting in fragmented implementations and increased operational complications. Addressing these problems by establishing industry-wide standards is critical to encouraging confidence, ensuring safety, and facilitating smoother integration and scaling of robotic systems, thereby unlocking the market's full potential.
Opportunities
Retail sector creating new opportunities for the service robotics market:
Service robotics in the retail sector offer a variety of potential for improving customer experience and operational efficiency. Retailers are utilizing robots for a variety of duties, ranging from inventory management to customer service, in order to improve overall operations. Inventory tracking is aided by autonomous robots equipped with sensors and AI capabilities, which reduce inaccuracies and ensure shelves are appropriately stocked. This not only reduces stockouts but also facilitates efficient refilling and streamlines supply chain operations. Furthermore, within stores, robots are improving customer encounters by providing direction, answering questions, and providing product information. Some stores use robots as greeters or helpers, directing guests to different sections or assisting with checkout operations, thereby increasing consumer engagement. Furthermore, robots in online order fulfillment centers optimize order picking and packing, reducing e-commerce delivery times. Overall, service robotics in retail is increasing efficiency, lowering operating costs, and improving consumer experiences by providing personalized and interactive services, ultimately transforming the retail sector's dynamics.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 30.51 Billion |
| Market Forecast in 2030 | USD 92.34 Billion |
| Compound Annual Growth Rate (CAGR) | 17.14 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Tutoring Type, By Course Type, By Duration & By Region |
| By Type |
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| By Component |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Service Robotics Market
The service robotics’ market is segmented by type, by component, by environment, by end-user, & by region.
By Type
The service robotics market based on the segment type is classified into personal & domestic, professional. The professional segment expected to hold largest market share during the forecasted period. Because of its numerous applications in industries such as healthcare, logistics, agriculture, hospitality, and retail, the category occupies a significant proportion of the service robotics market. Professional service robots include self-driving delivery robots, robotic surgical systems, warehouse automation robots, commercial cleaning robots, and robots used for customer support or information guidance. The professional segment's market share dominance is primarily due to the substantial demand and numerous uses of robots in commercial and industrial contexts, which drives innovation and adoption across multiple sectors.
By End-User
The automotive segment dominated market in 2022:
Based on the end-user segment the market for service robotics is classified into construction, automotive, defense, electronics, healthcare, transportation, and others. The automotive segment dominated the market in 2022 the segments dominance can be attributed as robotics plays a pivotal role in automotive manufacturing, facilitating tasks such as assembly, welding, painting, quality inspection, and material handling. The industry's pursuit of efficiency, precision, and cost-effectiveness has led to extensive adoption of robots on production lines. These robots help streamline processes, improve productivity, and ensure consistency in manufacturing, making them integral to the automotive sector's operations. Furthermore, developments in automation technology, as well as the rise of electric automobiles, have increased the demand for robotics in automotive manufacturing. As manufacturers strive for higher production capacity and improved product quality, robotics solutions have become critical to achieving these goals.
Regional Analysis
North America holds the largest share during the forecasted period:
The North America holds the largest market share during the forecasted period. North America dominates the service robotics market due to a number of factors that contribute to its rapid expansion. The region has made substantial technological advances and has a robust environment that supports robotics research and development. The presence of significant market companies, innovative startups, and premier research institutes propels the field forward. Furthermore, North American businesses such as healthcare, logistics, manufacturing, and retail are progressively embracing automation and robotics to improve operational efficiency and competitiveness. Favorable government efforts, significant investments in robotics research and development, and widespread acceptance of advanced technology all contribute to the region's dominance in the service robotics market.
List of the prominent players in the Service Robotics Blade Market:
- Panasonic Corporation
- Robert Bosch Gmbh
- Kongsberg Maritime As
- Ab Electrolux
- Jbt Corporation
- Neato Robotics
- Medtronic Plc
- Vision Robotics Corp.
- Bae Systems
- Husqvarna Ab
- Ssi Schaefer Ag
- Omron Corp.
Segmentation Analysis of the Service Robotics Market
By Type
- Personal & Domestic
- Professional
- Hardware
- Software
- Marine
- Ground
- Aerial
- Others
- Construction
- Automotive
- Defense
- Electronics
- Healthcare
- Transportation
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Service Robotics Market:
The COVID-19 epidemic has had a significant impact on the service robotics business, hastening its adoption in a variety of industries. The crisis brought to light the necessity of automation and contactless solutions, sparking growing interest in robots to reduce human-to-human interaction and ensure business continuity. Robots were used in healthcare for activities including cleaning, delivering supplies, and even remotely monitoring patients, decreasing the virus's exposure to healthcare professionals. Similarly, in areas such as retail and hospitality, robots were used for cleaning, customer service, and imposing social distancing rules, allowing operations to continue while focusing on safety.
Furthermore, pandemic-induced disruptions in global supply chains and manpower shortages spurred corporations to invest in robotics for traditionally manual labor-intensive jobs. This spike in demand for automation solutions, combined with the demonstrated efficiency of robots in crisis management, has moved the service robotics industry forward, stimulating growth and opening the way for broader acceptance and integration of robotic technology across varied industries.
