Robotics Market: Intelligence and Mobility Have Potential to Change Industry Growth

Global Robotics Market size was valued at USD 88.60 Bn in 2023 and is expected to reach USD 299.41 Bn by 2030, at a CAGR of 19%.

The Robotics Market is a fast-growing industry of engineering and computer science that includes the creation, production, and use of different types of robots. These robots include everything from industrial arms to self-driving cars or even human-like figures. Robotics is used in various ways across different sectors like production, health care services transport management on farms exploration for resources defense strategy, teaching tools/education methods, amusement activities etc.

Automation, especially in areas such as manufacturing, logistics and healthcare, is a key factor for the growth of Robotics Market. The adoption of Industry 4.0 with digital technology integration along with data analytics and Internet of Things (IoT) has increased demand for systems that use robotics. There are many smart factories and warehouses coming up where robots work together with people to improve productivity, flexibility as well as decrease margin of error made by humans. Artificial intelligence, robotics, Internet of Things (IoT) and augmented reality/virtual reality (AR/VR) are the main technologies that transform value chains. These technologies make use of real-time data to establish fresh business models and improve operations.

As labor costs increase, there is a lack of workers worldwide, thereby pushing industries towards investing in robotics. Robotics automation solve tasks that are hard to fill with human workers because they require repetition or high precision. For example, the health sector which has been hit by both the pandemic and workforce shortage is utilizing robotic aid to fulfill needs.

Progress in AI and sensing technologies is pushing robotics towards more independence and complexity. AI algorithms make robots better at adjusting and responding to their environment, while sensors such as computer vision or LiDAR help with navigation or interaction tasks. This progress is observed in fields like self-driving vehicles, drones, service robots for different uses - all contributing to the expansion of market size.

Asia Pacific region held the largest Robotics Market share in 2023. Countries such as China, South Korea and Japan showed strong demand. China has become a big manufacturer because of its industrialization and automation drive. Japan is known for precision manufacturing and service robotics for its aging population while South Korea's electronics as well as automotive sectors are advancing, reaping the benefits of robotics. The Asia Pacific region, particularly due to industrial robotics is leading in the Robotics Market. This comes from high requirement seen in countries like China, South Korea and Japan: China has turned into a huge manufacturer thanks to its process of becoming an industry nation along with automation push; Japan stands out for precision manufacturing plus service robotics related to their aging society whereas advancements made by South Korea in both electronics and automotive sectors also contribute towards regional growth.

Huge initial investment, as well as difficulties in finding enough workers and dealing with regulations are stopping small and medium-sized enterprises (SMEs) from using robots. But, firms are creating unique robotic systems for certain tasks that come with smart software inside them to make work more productive.

In the Robotics Market, ABB Group, Fanuc Corporation and Yaskawa Electric Corporation show strong competition among themselves in terms of innovation. Universal Robots and KUKA AG also present collaborative and versatile solutions. The disruption is encouraged by partnerships, alliances as well as startups which are mainly seen in medical robotics and agriculture sectors. These portray how the industry constantly seeks new breakthroughs and cooperation opportunities.

There is high potential for growth in the Robotics Market due to automation, AI progress and demand for effectiveness across different sectors. The scene shows quick changes in technology, wide-ranging uses of robotics and a competitive spirit towards innovation.

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Applications span industries such as manufacturing, healthcare, logistics, agriculture, and more, while ongoing advances in AI and human-robot interaction further propel robotics' transformative impact on society, enhancing efficiency, safety, and innovation across various domains.
Robotics Market Dynamics:
Automation and Industry 4.0 to Drive the Market Growth

The increasing demand for robotics is the current trend of automation especially in industries such as manufacturing, logistics, and healthcare. The concept of Industry 4.0, which focus on the integration of digital technologies, data analytics and IoT with manufacturing processes is expected to influence the adoption of robotics in the Robotics Market. These technologies allow smart factories and warehouses where robots work alongside human workers, enhancing productivity and flexibility while reducing human error. Modern industrial automation includes the use of data acquisition systems, distributed control systems, supervisory control and programmable logistics controllers. They are consistent and predictable, making them ideal for processing chemicals, pulp, paper, oil and gas, or other raw materials. By adding Industry 4.0 capabilities to these systems, industrial automation includes access to peripheral data to further optimize operations based on real-time data.

Digital technologies are disrupting all elements of the value chain including product design, supply chain, manufacturing, and customer experience, while creating new business models. Global manufacturing giants such as Germany, France, the U.S., Japan, and Mainland China have all launched government-backed strategic initiatives to digitalize production across various industries. Even though there are many technologies currently playing a role in Industry 4.0 and the smart factory, for the purpose of this report, we have focused on five key ones: additive manufacturing, artificial intelligence (AI), robotics, internet of things (IoT), and augmented and virtual reality (AR/VR).

DataRobot is another key automation start-up that managed to secure approximately USD 1.01 Bn in funding. Large manufacturing companies such as ABB, OMRON Corporation, Schneider Electric, Siemens, ST Engineering, Teradyne, and Tesla are acquiring smaller companies in order to leverage their technological expertise and decrease their learning curve.

Rising Labor Costs and Workforce Shortages to Fuel the Market

Growth of labor costs is due the factors like changing demographics and minimum wage hikes. Most of the industry faces a shortage of workforce and required increasing the need for some specialized expertise. Robotics offer a solution by automating tasks that are difficult to fill with human workers, either due to their repetitive nature or the need for high precision. Since these factors are expected to drive the Robotics Market growth during the forecast period.

For example, in 2023, more than 50 million workers quit their jobs, many in search of an improved work-life balance and flexibility, increased compensation, and a strong company culture. The US healthcare industry is experiencing a severe shortage of workers at every level a crisis worsened by the COVID-19 pandemic. The American Hospital Association estimates that the industry will face a shortage of up to 124,000 physicians by 2033. This is a key driver for the robotics industry expansion in the US.

Advancements in Artificial Intelligence and Sensing Technologies in Robotics to Create Lucrative Opportunity for the Market

Robotics is a key advancement in artificial intelligence (AI) and sensing technologies, enabling robots to perform more complex tasks and interact with their environments in a more sophisticated manner. AI algorithms improve robots' ability and their experiences to adapt to new situations. Sensing technologies such as computer vision, tactile sensors, and LiDAR enable robots to navigate and interact with their surroundings more effectively. These advancements are driving the development of robots that can perform tasks with greater autonomy, such as autonomous vehicles, drones, and service robots for various industries. As a result, such technology implementation is expected to drive the Robotics Market growth during the forecast period.

Technology development initiated by the key participants in terms of partnerships, M&A, and funding to accelerate the development of advanced sensors is included with information on the related technology coupled with case studies on robotics illustrated in the report. Regional analysis investments, R&D activity, advanced sensor manufacturing companies, and regional collaborations are included in the research study. Advanced sensors have led to the development of advanced robotics systems. This research is primarily focused on the advancements in sensors for robotics used for industrial, logistics, and defense applications. Such all factors are expected to drive the Robotics Market growth.

The European Union´s (EU) 27 member states installed almost 72,000 units in 2023 up 6% year-on-year. These are preliminary results, presented by the International Federation of Robotics (IFR). The top five adopting countries within the EU are Germany, Italy, France, Spain and Poland accounting for about 70% of all industrial robots installed within the EU in 2023.



High Initial Investment Costs to Hinder the Market Growth

The adoption of robotics required high investment in terms of purchasing robots. This high initial cost act as a barrier for small and medium-sized enterprises (SMEs) and industries with limited capital resources. Also, the lack of skilled work staff, and regulatory and safety challenges are expected to restrain the Robotics Market growth. However, companies focus on developing robotic systems for a specific application segment or customer group. This approach will likely involve embedding relevant smart software as it emerges and could be adopted by companies that make modules for robot frames or the entire mechatronic system.
Robotics Market Segment Analysis
By Type:
Industrial robots are widely used across various industries for tasks such as manufacturing, assembly, and material handling. The demand for industrial robots is expected to grow steadily as industries continue to adopt automation for increased efficiency and productivity. Service robots, designed to assist humans in various tasks, are gaining popularity in sectors like healthcare, hospitality, and logistics. The growth of the service robotics market is driven by advancements in AI and sensor technologies, enabling robots to perform a broader range of functions.

By Environment: Traditional industrial robots operate in controlled environments and are programmed for repetitive tasks. These robots are extensively used in manufacturing settings, contributing to increased production speed and precision. Collaborative robots, or cobots, work alongside humans without the need for strict safety measures. This segment is witnessing growth due to the increasing focus on human-robot collaboration for tasks that require dexterity and adaptability.



By Application:
Handling applications involve the manipulation and transportation of materials within a manufacturing facility. The demand for robots in handling applications is driven by the need for faster and more efficient material handling processes. Robotic welding and soldering are becoming prevalent in industries like automotive and metal fabrication, offering increased precision and consistency in these critical processes. Assembling and disassembling applications involve the automation of complex tasks in manufacturing. Robotics play a crucial role in streamlining assembly lines and ensuring product quality.

Dispensing applications involve the precise application of liquids or adhesives. The use of robots in dispensing ensures accuracy and reduces material wastage. Robotic processing involves tasks such as cutting, grinding, and polishing. In industries like precision engineering, robotics contribute to improved product quality and consistency. Other applications include a diverse range of tasks where robots are employed, reflecting the versatility of robotics technology across various industries.
Robotics Market Regional Analysis
Asia Pacific dominated the largest Robotics Market share of industrial robotics in 2023 and the region is a dynamic hub for the robotics market. China, South Korea and Japan countries have a high demand for industrial robots. China's rapid industrialization and investments in automation have influenced it to become a global manufacturing powerhouse, driving significant demand for industrial robots. Japan, with its focus on precision manufacturing and its aging population, has pioneered the development of service and healthcare robotics. South Korea's advancements in electronics and automotive manufacturing have also contributed to the region's overall growth. The rise of e-commerce and demand for automation in logistics further boost the robotics market in this region.



North America represents the second-largest operational stock of industrial robots in the world after China. Total installations in manufacturing rose by 12% and reached 41,624 units in 2023. The number one adopter is the automotive industry/companies based in the US, Canada and Mexico installed 20,391 industrial robots up 30% compared to 2021.

North America is a significant player in the global robotics market, driven by its robust technological ecosystem, strong investment in research and development, and diverse range of industries. The United States, in particular, has been a key contributor to the region's growth due to its leadership in technology innovation and adoption. The automotive, manufacturing, and logistics sectors have embraced robotics to enhance efficiency and maintain competitiveness. Additionally, the presence of prominent robotics companies and startups has spurred innovation and drive market expansion.

The Robotics Market report shows an all-time high of 517,385 new industrial robots installed in 2021 in factories around the world. This represents a growth rate of 31% year-on-year and exceeds the pre-pandemic record of robot installation in 2018 by 22%. Today, the stock of operational robots around the globe hits a new record of about 3.5 million units.

Competitive Landscape

Robotics Market players have placed increasing emphasis on improving production efficiency, operational excellence, and competitive advantage in a highly competitive scenario. Companies are increasingly turning to robotics to reduce costs and lead times, reduce human interaction to improve safety and increase production throughout.

The competitive landscape analysis of the robotics industry reveals a dynamic ecosystem characterized by key players such as ABB Group, Fanuc Corporation, and Yaskawa Electric Corporation leading innovation and technological advancements across diverse applications. Notable forerunners like Universal Robots and KUKA AG contribute with collaborative and versatile robotics solutions. Partnerships, strategic alliances, and startups further drive disruption and specialization in areas like medical robotics and agriculture. This landscape reflects a constant pursuit of innovation, collaboration, and adaptation as the industry reshapes global automation paradigms.
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Global Robotics Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 88.60 Bn.


Forecast Period 2024 to 2030 CAGR:
19%
Market Size in 2030:
US $ 299.41 Bn.


 Segments Covered:
by Type
Industrial
Service


by Environment
Traditional Industrial Robots
Collaborative Industrial Robots


by Application
Handling
Welding and Soldering
Assembling and Disassembling
Dispensing
Processing
Others


by End-User
Automotive
Electrical & Electronics
Metals & Machinery
Plastics, Rubber, and Chemicals
Food & Beverages
Precision Engineering & Optics
Pharmaceuticals & Cosmetics
Others (Paper & Printing, Foundry & Forging, Ceramics & Stone, and Wood)



Robotics Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Robotics Key Players are:
1. Blue Ocean Robotics - Odense, Denmark
2. Brain Corporation - San Diego, California, United States
3. Fetch Robotics, Inc. - San Jose, California, United States
4. Honeywell International Inc. - Charlotte, North Carolina, United States
5. RoboAds - Dubai, United Arab Emirates
6. Siemens - Munich, Germany
7. Simbe Robotics, Inc. - San Francisco, California, United States
8. SMP Robotics - St. Petersburg, Russia
9. Xenex Disinfection Services Inc. - San Antonio, Texas, United States
10. ABB Group - Zurich, Switzerland
11. Fanuc Corporation - Yamanashi Prefecture, Japan
12. Yaskawa Electric Corporation - Kitakyushu, Japan
13. Teradyne - North Reading, Massachusetts, United States
14. KUKA AG - Augsburg, Germany
15. Mitsubishi Electric Corporation - Tokyo, Japan
16. Denso Corporation - Kariya, Aichi Prefecture, Japan
17. Kawasaki Heavy Industries Ltd. - Kobe, Japan
18. Omron Corporation - Kyoto, Japan
19. Rethink Robotics (acquired by HAHN Group) - Boston, Massachusetts, United States
20. NVIDIA - Santa Clara, California, United States
21. GrayMatter Robotics - Pittsburgh, Pennsylvania, United States
22. Arrow Electronics - Centennial, Colorado, United States
23. Carbon Robotics - San Francisco, California, United States
24. Boston Dynamics - Waltham, Massachusetts, United States
25. Symbotic Inc. - Wilmington, Massachusetts, United States

Frequently Asked Questions:

1] What is the growth rate of the Global Robotics Market?
Ans. The Global Robotics Market is growing at a significant rate of 19% during the forecast period.

2] Which region is expected to dominate the Global Robotics Market?
Ans. Asia Pacific region is expected to dominate the Robotics Market growth potential during the forecast period.

3] What is the expected Global Robotics Market size by 2030?
Ans. The Robotics Market size is expected to reach USD 299.41 Bn by 2030.

4] Which are the top players in the Global Robotics Market?
Ans. The major top players in the Global Robotics Market are Blue Ocean Robotics, Brain Corporation, Fetch Robotics, Inc.and others.

5] What are the factors driving the Global Robotics Market growth?
Ans. The shortage of workforce staff and increasing demand for industrial robots for various applications is the primary driver for the Robotics Market growth.