Robotics as a Service (RaaS) Market Analysis APAC,North America,Europe,South America,Middle East and Africa - US,China,Japan,South Korea,Germany - Size and Forecast 2023-2027

Robotics as a Service (RaaS) Market Forecast 2023-2027

The robotics as a service (RaaS) market size is forecast to increase by USD 1.50 billion, at a CAGR of 18.29% between 2022 and 2027. The market's growth hinges on several factors, notably the swift industrialization witnessed in developed nations. Additionally, the proliferation of remote services and the Internet of Things (IoT) play pivotal roles in driving market expansion. The increasing integration of industrial automation further fuels this growth trajectory. With industries leveraging advanced technologies for streamlined operations and enhanced efficiency, demand for associated products and services experiences a notable surge. This trend is particularly prominent in developed economies where modernization efforts are robust. As industries continue to prioritize innovation and adopt cutting-edge solutions, the market is poised for sustained growth, offering promising opportunities for stakeholders across various sectors. Our market report examines historic data from 2017 to 2021, besides analyzing the current market scenario.

What will be the size of the Market During the Forecast Period?

 Market Forecast 2023-2027

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Market Segmentation

This report extensively covers market segmentation by type (professional and personal), application (intralogistics, medical applications, surveillance and security, field robotics, and others), and geography (APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. 

Market Dynamic

The market is being propelled by the widespread adoption of robotics across various sectors. Key drivers include the surge in demand for food delivery services, leading to the emergence of autonomous food delivery and last mile delivery solutions. Additionally, advancements in self-driving cars and sidewalk robots are shaping the RaaS landscape. Challenges such as procuring the right technology and navigating regulatory frameworks persist. Moreover, the healthcare sector presents promising opportunities for personal assistance robots, albeit with complexities in deployment. As the market evolves, sales strategies and business models adapt to meet the diverse needs of enterprises, both large and small. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. A holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.    

Driver- Increased remote services and the adoption of IoT

With the increasing use of the Internet, providers are changing the way they provide customer service by including more online options that rely on using the Internet to interact with customers and solve the problems they face. IoT ensures that remote players are informed in real-time about the status of robots and devices by monitoring parameters such as temperature, CPU load, and hours the robot has been active, thereby ensuring effective predictive maintenance planning.

Furthermore, to capitalize on this trend, market players are mainly focusing on changing their business models to ensure that they meet the standards for interoperability and device-to-network connectivity security and data models that collect real-time information that responds to triggers and send alerts to the service staff. This will ensure that RaaS services are more proactive in diagnosing and resolving issues before serious problems arise. Hence, increasing adoption of remote services and IoT will drive the growth of the global RaaS market during the forecast period. 

Trends- Adoption of operational intelligence and data analytics

In addition to drone innovations, there are also significant improvements in operational intelligence and data analytics software solutions for automating image analysis. Robotics as a service market player is working tirelessly to ensure improved real-time operational information and data are available to different teams of experts performing analysis.

Moreover, along with improvements in features related to artificial intelligence (AI), robotics as a service market players will also focus on improving real-time data analytics. They will focus on improved and seamless integration of data collected over time from disparate sources, allowing data validation between experts in different locations to work on shared data. Hence, the adoption of operational intelligence and data analytics will drive market growth and trends during the forecast period. 

Challenge- Lack of awareness and acceptance

Although robots provide significant labor cost savings, potential end users are not fully aware of this cost reduction. This is a major drag on the robotics as a service market, especially in the labor-intensive economies of APAC, where human resources are abundant at low costs. It is essential that market players adopt comprehensive marketing campaigns and conduct cost-benefit analyses for end-users to help them assess the feasibility of deploying mobile robots.

Furthermore, the market will also face challenges related to robot adoption, because of a lack of confidence in the use of advanced technologies in the healthcare and medicine sectors, as well as a lack of knowledge. knowledge about the use of these technologies. In some cases, patients refuse to accept robots because they prefer human contact (i.e. humans or medical staff) over robots. Hence, the lack of awareness will be a major challenge that will impede the growth of the market during the forecast period. 

Market Segmentation by Type, Application, and Geography

The market is witnessing a significant surge driven by diverse factors such as the widespread adoption of robotics across industries. Notably, the proliferation of food delivery services and the emergence of food delivery giants have propelled the demand for RaaS technology. Additionally, the advent of last mile delivery solutions, including autonomous food delivery services and self-driving cars, further accentuates the need for RaaS. In sectors like the healthcare industry, RaaS facilitates the deployment of personal assistance robots, while in security, it supports the operation of self-driving security robots. Moreover, the subscription model and cloud-based robotics platforms cater to the requirements of both large enterprises and small & medium enterprises (SMEs) across industries like automotive and BFSI. 

Type Segment Analysis: 

The professional segment will account for a major share of the market's growth during the forecast period.?Companies are increasingly using RaaS to access advanced automation technologies without incurring significant upfront costs. This trend can be seen in sectors such as manufacturing, healthcare, and logistics, where robots perform tasks such as assembly, surgery, and warehouse management.

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The professional segment was valued at USD 641.83 million in 2017 and continued to grow until 2021.?Collaborative robots or cobots are gaining popularity due to their adaptability and ease of integration. The evolution of cloud-based platforms and AI-driven analytics expands the capabilities of RaaS, allowing businesses to optimize operations and increase productivity. As RaaS gains traction by reducing costs and increasing productivity, the professional robotics market will grow significantly during the forecast period. 

Application Segment Analysis: 

Based on application, the market has been segmented into intralogistics, medical applications, surveillance and security, field robotics, and others. The intralogistics?segment will account for the largest share of this segment.?The retail industry has a great need for robots to ensure good logistics management. Most of this demand comes from e-commerce merchants, whose greatest value proposition is based on on-time order fulfillment, requiring the use of automation and robotics to meet business challenges. Market players integrate additional features such as biometrics to enhance security. Furthermore, hospitals and other healthcare facilities that employ a concierge or room service model to care for patients' families will greatly benefit from the use of such robots. Hence, increasing adoption of RaaS for intralogistics applications in retail, warehousing, and healthcare will drive the growth of the intralogistics segment of the RaaS market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 37% to the growth by 2027. Technavio’s analysts have elaborately explained the regional market trends and analysis, drivers, and challenges that are expected to shape market research and growth during the forecast period. The market in APAC is expected to grow due to the increase in government initiatives to fund innovations in the robotics sector, along with the growing interest of international companies in entering markets such as China, Japan, South Korea, Australia, Taiwan, India, and Hong Kong.

Japan has witnessed increased adoption of robots over the years, owing to the rise in the aging population in the country, which has, in turn, created the demand for robots to substitute human personnel in sectors such as healthcare, hospitality, and tourism. In countries such as South Korea and Singapore, the availability of a qualified labor force will be an important factor for this market. While initiatives to improve the delivery of healthcare will help propel the market toward growth, the lack of awareness, low purchasing power, and the preference for traditional modes of treatment will restrain market growth to a considerable extent.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Ademco Security Group Pte Ltd.: The company offers robotics as a service such as Ademco Robotic Security Guard, which is a security robot that can patrol an area and detect suspicious activity.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Caja Elastic Dynamic Solutions Ltd., Cobalt Robotics Inc., Exotec SAS, Field Group AS, HAHN Group GmbH, Harvest Automation, inVia Robotics Inc., Irobot Corp., Knightscope Inc., Kraken Robotics Inc., Locus Robotics Corp., Marks and Spencer Group plc, OhmniLabs Inc., Rapyuta Robotics Co. Ltd., RedZone Robotics Inc., Relay Robotics Inc., Sarcos Technology and Robotics Corp., Singapore Technologies Engineering Ltd., and Zebra Technologies Corp.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market growth and forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook
  • Personal
  • Professional

• Application Outlook 
  • Intralogistics
  • Medical applications
  • Surveillance and security
  • Field robotics
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview 

The market is evolving rapidly with advancements in technology and business models. Companies are increasingly integrating robotics into their operations, with a focus on coding and accessorizing robots to meet specific needs. Software upgrades, sensor replacements, and part replacements are common practices to ensure optimal performance and longevity, reducing the total cost of ownership. However, challenges such as insufficient production and slow return on investment (ROI) persist, prompting businesses to explore revenue generation opportunities and consider low-cost alternatives. In sectors like logistics, warehouse automation and seamless material handling are key priorities, driving investments in robotic equipment across industries including the Automotive industry and BFSI industry.

The market addresses various challenges, including concerns regarding slow ROI and high capital expenditure, particularly in the logistics end-use segment. By offering flexible solutions, RaaS enables businesses to optimize supply chain operations without significant upfront investment. Robotics service partners play a crucial role in implementing tailored solutions for diverse handling applications, reducing operating costs, and improving efficiency. In sectors like healthcare, RaaS facilitates the deployment of specialized equipment such as surgical robots. Additionally, RaaS supports the deployment of personal assistance robots and self-driving security robots, enhancing safety and operational efficiency. With a strategic sales strategy and a broad geographical footprint, RaaS providers cater to the needs of businesses across various industries, including the burgeoning autonomous security business sector.

Market Scope
Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 18.29%
Market growth 2023-2027	USD 1.50 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	17.09
Regional analysis	APAC, North America, Europe, South America, and the Middle East and Africa
Performing market contribution	APAC at 37%
Key countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Ademco Security Group Pte Ltd., Caja Elastic Dynamic Solutions Ltd., Cobalt Robotics Inc., Exotec SAS, Field Group AS, HAHN Group GmbH, Harvest Automation, inVia Robotics Inc., Irobot Corp., Knightscope Inc., Kraken Robotics Inc., Locus Robotics Corp., Marks and Spencer Group plc, OhmniLabs Inc., Rapyuta Robotics Co. Ltd., RedZone Robotics Inc., Relay Robotics Inc., Sarcos Technology and Robotics Corp., Singapore Technologies Engineering Ltd., and Zebra Technologies Corp.
Market dynamics	Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market analysis and report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of the market companies

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