by Brianna Crandall — June 24, 2015—A new report from Allied Market Research explores the global robotics technology market, which is growing in numerous industries due to advanced technologies and other drivers. According to the report, the global market is expected to reach $82.7 billion by 2020, registering a compound annual growth rate (CAGR) of 10.11% during 2014 to 2020.
Overview
The increasing demand for automation in all aspects of life has contributed in a large way to the growth of robots, points out the report. Rising labor costs have pushed organizations to automate their processes with the use of robots. Growing adoption of robots by small and medium-sized enterprises (SMEs) will transform the market.
Earlier, the use of robots was restricted mainly to manufacturing. However, with the advent of advanced technologies, they are entering homes, offices, hospitals and other institutions. The Asia-Pacific (APAC) region dominates this market, growing at a CAGR of 8.71%, due to the high density of automotive companies in the region.
Market drivers
The growth of smart technologies like smart phones has fueled the growth of this market. The use of robots has increased across all sectors owing to the increase in labor costs and unavailability of skilled labor. There has been a substantial investment in research and development by public and private organizations to further explore and develop new technologies and applications for robotics.
A number of international organizations like Standardized Procedures for the Advancement of Robotic Combat (SPARC) and International Federation of Robotics (IFR) have been started to support robotics and supplement the industry’s growth. Key players in the market are increasingly developing low-cost, affordable, compact and energy-efficient solutions to cater the growing demands of the customers.
Applications
The adoption of robots across a wide range of industries including manufacturing, healthcare, defense and security, automotive, electronics, and food and beverage has accelerated the growth of the market. According to the report, robots deliver better quality products and services more efficiently, with less wastage and without causing physical damage to humans due to their autonomous nature.
Robots reportedly help to reduce operating costs while increasing production output. The increasing use of robotics will boost the growth of the market in the coming future. Robots are being used in a diverse range of applications including tele-surgery, pharmacy, physical and mental therapy, bomb diffusion, mine detection, rescue of wounded soldiers, space exploration, manufacturing of aircrafts, production of electronics equipment, and domestic chores.
The automotive sector generates a major share of the revenue and constituted 39.04% of the global revenue in 2013, followed by the electronics sector, which accounted for 20.24%.
Industrial robots dominate the robotics market, with a percentage share of 66.10% in 2013, followed by service robots, finds the report. Service robots find applications in healthcare, agriculture, construction and infrastructure. In the coming years, service robotics and mobile robotics would increase their penetration in the market at a rapid pace. However, high initial prices, complex technologies, and safety and ethical issues regarding the use of robots might restrict the growth of this market.
According to the report, SMEs are a largely untapped market. Owing to the high initial investment, SMEs are hesitant toward the adoption of robotics. The key players are now developing affordable, compact, customized and energy-efficient robotics solutions aimed at increasing the efficiency of SMEs.
Labor unions have protested against the use of robotics due to the perceived loss of jobs to robots. However, according to the International Federation of Robotics (IFR), the robotics industry would create more jobs than it replaces. The IFR projects that 1.9 to 3.5 million jobs will be created by the year 2021.
Key findings of the study:
- The Global Robotics Technology Market is expected to grow at a steady rate during the forecasted period owing to the increasing demand for automation and rising labor costs.
- The automotive sector accounted for 39.04% of the global robotics market in 2013. Other industries including healthcare, defense and security and aerospace are expected to grow at a fast pace during 2013-2020.
- High growth is expected in service robotics and mobile robotics due to technological advancements and growing adoption in diverse industries.
Key players
According to the report, there is stiff competition in the global robotics technology market. Key players in the global market including ABB Group, Fanuc Corporation, iRobot, Kawasaki Heavy Industries and KUKA AG are consistently launching new products to enhance their offerings in the market. A number of acquisitions and collaborations occurring in the market enable these vendors to expand their geographic presence and penetrate into emerging economies.
Global Robotics Technology Market—Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013-2020 is available for purchase from the Allied Market Research Web site.
