Industry Overview

In the past few years, robots have gained a colossal adoption rate within the commercial and industrial applications, however this trend is also being observed for personal/ domestic based applications. Personal applications such as floor cleaning, pool and lawn maintenance, hobbies management are some of the on demand function where robots are being widely used. For getting a clear scenario about the adoption rate of service robots, we conducted a survey with a total sample size of 600-800 respondents. Major respondents were primarily the distributors operating in the service robots market, of the total 800 sampling done around 700 respondents were recorded, which primarily portrayed that penetration rate for service robots for personal application has achieved a value of 16-18% in 2022, thereby reaching a market value of USD 5,822 million in 2022.Below figure primarily shows the share breakdown of service robots that has gained a strong demand within the personal use category:

Vacuum and floor cleaning robot take the major share primarily backed by more time consumption in sweeping and dusting chores. As per the survey conducted by AMR, household chores consume around 24 hours and 56 minutes per month, out of which sweeping and dusting take around 50%, followed by bathroom cleaning and laundry. This scenario has increased the need for personal service robots, which is estimated to create a lucrative opportunity for the overall market. Globally, the service robotics market was valued at USD 36,523 million in 2022 and is estimated to reach a value of USD 263,857 million by 2031 with a CAGR of 24.6% during 2022-2031. 

Market Dynamics with COVID Impact

Colossal demand for service robots from the personal/domestic application, specifically in the U.S. and Europe has acted as one of the key drivers in propelling the market growth during the forecast period. This huge demand coupled with ease of acquiring raw materials for the robot manufacturing has, lowered the pricing for service robots, thereby creating billion-dollar market value for the service robots in the coming year. For a better understanding we have portrayed the average pricing trend for the domestic robots from 2018 to 2023.

From the past three to four years, especially from the pandemic era healthcare & medical technology sector has shown a colossal growth of around 44.6% and 40.4% in 2020 and 2021. This trend is set to gain a linear path in the coming years backed by technologies such as AU, telehealth, mixed reality and various others. During the pandemic when human to human intervention was on its lowest side, medical robots played a significant role that has opened the colossal scope for technology growth. For instance, as per the numbers released by International Federation of Robotics (IFR) in 2019, Sales of medical robots increased by 50% to 5,100 units. Medical robots accounted for 31% of the total sales value of the professional service robots. The total value of sales increased by 27% to USD 2.8 billion. Medical robots are the most expensive service robots with an average unit price of USD 548,000, including accessories and services. The demand for supportive robot solutions for the ageing societies in Europe and Asia also represents a considerable growth potential for medical robots.

COVID Impact

COVID has brought a positive phase for the service robots market specifically from the medical and logistics sector. COVID-19 has placed an immense pressure various manufacturing sector right from food and beverages to high end machineries. With rising need to maintain a social distancing measure these industries faced labor shortages, that has opened wide opportunities for robotics and automation measures. As per the facts released by IFR, the market value of logistics robots sold or leased increased 110%, to $1.9 billion, reported the IFR. Almost all of the logistics turnover was generated with service robot designs for indoor use. Autonomous mobile robots (AMRs) have initially been used in warehouses, but with digitalization of production, they are also part of today’s smart factory. Therefore, a continued strong turnover growth of 40% or more per year seems possible, speculated the organization.

Further, the emerging trend of Robotics-as-a-Service (RaaS) that primarily deals with leasing/subscription model can lower the service robot adoption hurdle for customers. The use of logistics systems in non-manufacturing industries has been strongly driven by warehouse solutions for major e-commerce companies. A strong potential can also be found in hospitals running their logistics with the help of professional service robots. In that service robot segment, about 90% of the sampled logistics robots were produced in Europe and North America, and about 10% in Asia.

Regional Trend

Global service robotics market is primarily analyzed across the regions of North America, Europe, APAC, South America and Middle East and Africa (MEA). Europe dominates in the service robotics market, owing to its high adoption in non-manufacturing sectors primarily concentrated in Retail, telecom, and ICT sector and others. Within the services sector, retail sector are the major adopters of service robots, mainly used in warehouse management and logistics functions.

Countries such as the UK and Germany are likely to experience serious labor shortages over the coming decade, especially in relation to technical specialists. In the UK alone, 63% of organizations are currently experiencing a skills shortage, while 68% of employers found that they were unable to find candidates who were suitable for vacant roles. At the same time, product life cycles are becoming shorter. The corona pandemic has posed further challenges to companies of all sizes across all industries, with companies facing significantly reduced consumption as well as disrupted supply chains. This scenario has raised the demand for robotics and automation, however the high cost factor is also a valid point that is pulling back small and medium sized manufacturers in adopting it. The upcoming trend of Robots-as-a Service is estimated to ease the aforementioned scenario of higher pricing and turn it to a lucrative billion-dollar industry. 

Competitive Landscape

Some of the major companies studied under the market scope are as follows: IROBOT, Softbank Robotics Group, Intitutive Surgical, Delaval, Daifuku, Cyberdyne, DJI, Kongsberg Maritime, Northrop Grumman, Neato Robotics, Kuka, Lely, ECA Group, 3DR, Stryker Corporation, GE, Amazon Robotics, XAG, Parrot SA, AMP Robotics and others…

In September 2022, Avidbots, a robotics company based in Canada, raised USD 70 million in the Series C funding round. The company primarily develops autonomous cleaning robots and has built Neo 2, a robotic floor cleaner designed for commercial environments such as warehouses, airports, and shopping malls.

In September 2022, Jacky's Business Solutions, a leading B2B technology solutions provider, announced a showcase of its latest iteration of Temi Robot (V3) at the Gitex event. The company launched this new personal assistance robot in the Middle East with Robot-as-a-service (RaaS) business model.

By Sale Mode

·         Lease/Subscription

·         Complete Sale

By Environment

·         Aerial

·         Ground

·         Marine

By Industry

·         Medical

·         Transportation and Logistics

·         Defense and Security

·         Construction

·         Marine

·         Education and Research

·         Field

·         Others

By Application

·         Personal/Domestic Use

·         Professional

Global Service Robotics Market: Regional Analysis
All the regional segmentation has been studied based on recent and future trends, and the market is forecasted throughout the prediction period. The countries covered in the regional analysis of the Global Service Robotics market report are U.S., Canada, and Mexico in North America, Germany, France, U.K., Russia, Italy, Spain, Turkey, Netherlands, Switzerland, Belgium, and Rest of Europe in Europe, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, China, Japan, India, South Korea, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), and Argentina, Brazil, and Rest of South America as part of South America.

Global Service Robotics Market: Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of various marketspaces. The key players in the markets are identified through secondary research, and their market contributions in different applications across regions and globally were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to arrive at the final quantitative and qualitative data. This data has been consolidated, and detailed inputs and analysis from Analytics Market Research added before being presented in this report.

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