Robotics Market Analysis APAC,Europe,North America,Middle East and Africa,South America - US,China,Japan,South Korea,Germany - Size and Forecast 2023-2027

Robotics Market Forecast 2023-2027

The Robotics Market size is estimated to increase by USD 22.26 billion at a CAGR of 7.71% between 2022 and 2027.

The market's expansion hinges on various factors, notably the rise of medical robotics, which revolutionizes healthcare delivery. Additionally, stringent health and safety regulations drive the demand for advanced robotic solutions to ensure patient well-being. Furthermore, continuous technological advancements in robot hardware enhance their capabilities, making them more efficient and adaptable to diverse medical tasks. These developments collectively propel market growth, as healthcare institutions increasingly recognize the potential of robotic technology to improve patient outcomes and streamline medical procedures.

What will be the Size of the Robotics Market During the Forecast Period?

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The market is experiencing significant growth, with various industries adopting automation solutions to enhance productivity and efficiency. The market is driven by key trends such as the increasing demand for labor-saving technologies, the integration of AI and machine learning, and the rising adoption of collaborative robots. The market is segmented based on components, types, industries, and regions. The components market is further divided into hardware, software, and services. The hardware segment is expected to dominate the market due to the increasing demand for robots and their associated components. The types market is segmented into industrial robots, collaborative robots, and service robots.

Market Definition

A robot is an automated operator control system that is used to speed up industrial processes, applications, and productivity by minimizing the requirement for manual workers. Any robotics system is a combination of hardware that includes the robot and its allied components, a control system, software that is installed in the control panel, and services regarding the installation and after-sales services.

Market Dynamics

With key players like ATI and Cognex involved, the market is witnessing a surge in demand for robotics system and components. These robots are utilized in various industries, including automation and manufacturing, for tasks such as assembly, testing, and consumer handling. The use of robots in these sectors not only increases efficiency but also enhances productivity. Furthermore, the adoption of robots in cleaning and surveillance roles is a growing trend, with companies like Concept Systems offering robotics solutions in these areas. The Data and Digitization trend is also driving the market, as robots are integrated with advanced technologies like AI and IoT to perform complex tasks. Overall, the market is poised for robust growth in the coming years. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Stringent health and safety regulations are the key factor driving the global market growth. The need for personal safety and the reduction of work-related injuries has led the industry to adopt safe material handling equipment. Some industries, such as automotive and heavy oil chemicals, involve harsh working environments and constant exposure to toxic substances. These processes pose a high risk to human workers and can lead to accidents. Conventional handling of materials during processing can lead to permanent product damage and changes in material properties, and can also cause material contamination. The robotics market is experiencing significant growth due to the shortage of healthcare workers and the integration of advanced technologies in medical procedures. Inspection robots and humanoid robots are increasingly being used in healthcare for complex handling tasks.

Powered exoskeletons and ground service robots are also gaining popularity in intralogistics and supply chain management, enhancing operational efficiency and reducing downtimes. Transparency and collaboration among existing players are crucial in this market. The integration of machine learning, artificial intelligence technologies, and 5G technology with low latency and high-speed 5G networks is revolutionizing robotics. The rising labor costs, error rate, and virus transmission concerns have led to the adoption of automated systems in various industries, including car manufacturing and e-commerce shopping. Robots are being used to move packages and materials in factories, reducing the need for human intervention. Electric automobiles are also being produced using robotics, further driving market growth. The market is vast and diverse, with applications ranging from healthcare to manufacturing, and the potential for continued innovation is immense.Occupational injuries and physical exhaustion of human workers are common on assembly lines and can waste plenty of resources on industry players. This has led companies to use robotics to improve employee safety.

Robots can perform routine operations in a systematic manner with minimal human intervention, eliminating risks to human life. The use of robots not only reduces the risk of accidents but also ensures product safety, leading to cost savings for companies. Other costs arising from safety-related incidents include lost personnel, equipment damage, legal costs, lost production, investments in corrective actions, and replacement worker costs. As safe working environments become more important, more companies are expected to invest in it. Therefore, increasing the adoption of robots in the industry to reduce the number of accidents will boost the growth of the market during the forecast period. 

Significant Market Trends

The government initiatives in Europe to improve the industry will fuel the global market growth. Launched in December 2013, Horizon 2020 is the EU's largest research and innovation program worth USD 88.68 billion. The investment was made by European leaders and members of the European Parliament. This is recognized as an important resource that can secure an edge in the global market.

The robotics market encompasses various types of robots, including inspection robots, humanoid robots, ground service robots, and powered exoskeletons. Existing players in the industry are investing in technological innovations, such as machine learning, artificial intelligence, and 5G technology, to enhance their offerings and meet contractual SLAs. Vendors provide robots through the Robotics as a Service (RaaS) model, offering upgrades, maintenance, and real-time remote monitoring. Intralogistics, e-commerce shopping, and factory floors are key sectors adopting automated systems to improve operational efficiency and minimize downtimes. Human intervention remains necessary for complex handling tasks and virus transmission prevention. Collaboration between robotics vendors, car manufacturers, and e-commerce companies is on the rise to optimize supply chain and intralogistics processes. Electric automobiles and ground service robots are expected to be significant growth areas. Transparency, low latency, and high-speed 5G networks are essential for ensuring seamless integration and performance of these advanced robotics system. The rising labor costs, error rate, and the need for automated systems have fueled the demand for robots in various industries.

European governments will help SMEs integrate industrial robots to improve efficiency and create local job opportunities. European production capacity will receive a positive boost by improving the performance and efficiency of SMEs. This will increase employment and create new jobs as companies can enter new markets that are considered expensive and inaccessible due to labor costs.  Europe can therefore compete with economies that have advantages such as low labor costs and high automation rates. This will encourage small businesses to integrate more robotics into their factories for tasks such as metal casting. Hence, such government initiatives will boost the growth of the market during the forecast period.  

Major Market Challenge

A shortage of skilled personnel can majorly impede the growth of the market.  One of the major obstacles that could affect the market is the lack of technical know-how in the workforce. Human personnel require knowledge of how robots work and regular maintenance to keep them running smoothly. Such lack of technical know-how often discourages end-users from using robots, as they see the downtime required for maintenance work as a significant loss. This is a challenge as end users are reluctant to learn and apply new operational technologies. Companies in the market are trying to solve these problems by offering 24/7 remote support and services through cloud monitoring and other advanced services, but this is not the case for all companies. To differentiate themselves in the market, companies have to employ online and offline training and consulting methods to ensure that less tech-savvy end users get the support they need.

The market faces challenges due to the need for human expertise in operating and maintaining robots. This issue is particularly relevant to industries utilizing inspection robots, humanoid robots, powered exoskeletons, and ground service robots. Transparency and collaboration between existing players are essential to address this challenge. Intralogistics, such as those in e-commerce shopping and materials handling, can benefit significantly from automated systems. However, complex handling tasks and the integration of advanced technologies like machine learning, artificial intelligence, and 5G technology require a skilled workforce. Rising labor costs, downtimes, and error rates due to human intervention can impact operational efficiency. Car manufacturers and electric automobiles are also adopting robots for production, but virus transmission and shutdowns pose risks. The integration of low latency 5G networks can enhance the performance of robots and reduce downtime. Overall, the robotics industry must focus on improving technical expertise and collaboration to overcome these challenges and drive growth.
Lack of skilled operators and proper training creates a constant reluctance to undertake large-scale robotic automation as it requires significant investment in time, training, and budget for successful implementation. Familiarity with new technology and the reluctance of end-users to switch to new technology also influences the growth of the market. Therefore, the shortage of skilled manpower to operate robots is likely to hamper the growth of the market during the forecast period.  

Who are the Major Robotics 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.

ABB Ltd: The company offers different types of robotics products for different industries. It also offers electrification and building management solutions.

Clearpath Robotics Inc: The company manufactures, and researches industrial robot applications and offers educational mobile robots and hardware components.

We also have detailed analyses of the market’s competitive landscape and offer information on 18 market companies, including:

• Cyberdyne Inc.
• DENSO Corp.
• FANUC Corp.
• GEA Group AG
• Honeywell International Inc.
• Intuitive Surgical Inc.
• Kawasaki Heavy Industries Ltd.
• KION GROUP AG
• L3Harris Technologies Inc.
• Lely International NV
• MIDEA Group
• OMRON Corp.
• Relay Robotics Inc.
• SMP Robotics Systems Corp.
• Teradyne Inc.
• The Boeing Co.
• Zebra Technologies Corp.
• Irobot Corp.

The report offers, clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The analysis classifies companies into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.

Market Segmentation 

The industrial robots segment is expected to hold the largest market share due to their widespread use in manufacturing industries. The major players in the Robotics market include ABB, Bosch Rexroth, Fanuc, KUKA, and Siemens. These companies are investing heavily in research and development to introduce advanced robotic solutions and expand their customer base. The market is also witnessing significant growth in regions such as Asia Pacific and Europe, due to the increasing adoption of automation technologies in these regions. In conclusion, the Robotics market is poised for significant growth in the coming years, driven by the increasing demand for automation solutions and the integration of advanced technologies such as AI and machine learning. The market is segmented based on components, types, industries, and regions, with the industrial robots segment and the Asia Pacific region expected to dominate the market.

By Application Analysis

The industrial segment will contribute a major share of the market, due to its use in various industrial applications such as material handling, assembly and disassembly, welding and brazing, cutting, deburring, grinding, painting, sealing, bonding, and clean room applications. The industrial segment showed a gradual increase in market share with USD 31.05 billion in 2017 and continued to grow by 2021. Industrial robots will get a big boost from SMEs in China, Japan, and Western European countries such as India, Taiwan, the United States, and Canada, as well as countries outside Central and Eastern Europe. Manufacturers across all industries are expected to increasingly adopt intelligent manufacturing technologies including robotics, automation, AI, and cloud computing during the forecast period. 

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Over the years, industry players have placed increasing emphasis on improving production efficiency, operational excellence, and competitive advantage in a highly competitive scenario. The robotics market encompasses various industries, including automotive, metals and machinery, electrical and electronics, chemicals, and others. Robots are utilized for applications such as material handling, assembling, welding, cutting, and painting. Intralogistics and supply chain are set to witness significant growth, with the adoption of robotics, automation, AI, and cloud computing.

Existing players collaborate to innovate, with new entrants focusing on inspection robots, humanoid robots, powered exoskeletons, and ground service robots. Transparency and operational efficiency are key drivers, with rising labor costs, downtimes, and error rates motivating adoption. The manufacturing sector, particularly car manufacturers, leverages machine learning and artificial intelligence technologies, while 5G technology and low latency networks enhance robot performance. E-commerce shopping and moving packages require human intervention, but automated systems minimize virus transmission and shutdowns. Complex handling tasks in industries such as electric or hybrid cars automobiles necessitate advanced robotics solutions.
Automotive, Metals & Engineering, and Electrical & Electronics industries will continue to thrive due to heavy investments over the forecast period to improve production capacity and production, and a focus on lightweight materials and energy efficiency achievable through the installation of industrial robots. Therefore, the increasing use of robots in major end-use industries such as automotive, metals and mining, food and beverages, etc. will boost the demand for industrial robots and spur the growth of the market during the forecast period. 

End-user Analysis

Robots play a crucial role in streamlining the manufacturing process by handling repetitive tasks. They are widely utilized in various manufacturing operations, including material handling, machining, assembly, and inspection. The top robotics market encompasses various robotics applications, including manufacturing processes and automation. Robots are utilized in material handling, such as material transport via automated guided vehicles (AGVs), and processing operations, like spot welding and continuous arc welding. AI and robotics are revolutionizing industries, with cognitive AI and collaborative robots enhancing productivity and quality. The aging population drives the demand for eldercare robots and healthcare workers' assistance. MIT and the STEM education ecosystem are pioneering organic hardware design and connectivity. Consumer based service robots, like iRobot (US) and vacuuming robots, offer convenience. Surgical robots and telepresence robots are transforming healthcare. Drones and agricultural robots expand industry reach, while cleaning robots and disinfectant robots ensure hygiene. Voice commands and connectivity enable user-friendly interaction. Robot division includes automated guided vehicles (AGVs), collaborative robots, service robots, cleaning robots, disinfectant robots, telepresence robots, drones, agricultural robots, and surgical robots. Labor costs and productivity are significant factors in the robotics market's growth.

These robots efficiently transfer materials, operate tools for machining, and perform tasks like spot welding and spray painting. As labor costs rise, the adoption of robots in assembly and inspection is expected to increase. The market has witnessed significant growth as more companies invest in robotic systems to enhance manufacturing processes and take advantage of Industry 4.0 technologies. The integration of robots into manufacturing processes is expected to positively impact the market during the forecast period.

Regional Analysis

APAC is estimated to contribute 49% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

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Government initiatives, increasing demand for locally manufactured vehicles, and APAC's strong manufacturing sector are some of the key factors leading to the growth of the market in this region. Automakers in countries such as China and India are investing more in manufacturing plant automation solutions to improve productivity and reduce cycle times, giving them a competitive advantage over other players. The robotics market in APAC is experiencing significant growth due to government initiatives, increasing automobile manufacturing, and automation adoption. Key players include China, India, Japan, and South Korea. Manufacturers invest in AI and robotics, such as collaborative and service robots, to enhance productivity, reduce cycle times, and counter challenges like outdated technology and labor costs.

Robotics system include automated guided vehicles (AGVs), disinfectant robots, surgical robots, cleaning robots, and more. MIT and ROBOT division pioneer advancements in cognitive AI, organic hardware design, and connectivity. Consumer robots, eldercare robots, and healthcare workers benefit from voice commands and data digitization. The future will see an increase in demand for robotics in manufacturing processes, agriculture, healthcare, and entertainment. iRobot (US) and AGVs are notable companies in this sector. Additionally, drones and telepresence robots expand the market's scope.Major growth in the APAC region comes from countries such as China, India, Japan, and South Korea. During the forecast period, the demand for robots will increase as manufacturers adopt robotics and automation to address shortcomings from outdated equipment and technology, unstable production, and reliance on manual labor.

Technavio’s Exclusive Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies. 

Global Market Customer Landscape

Market Analyst Overview

AI and robotics integration, particularly in cognitive AI and athletic AI, is notable, alongside advancements in machine capabilities and organic hardware design. Digitization and connectivity are driving forces, with involvement from companies like Siemens, Google Cloud, and Mitsubishi. Warehouses are adopting robot technologies, including cleaning and disinfection service robots to meet uninfected demands post-pandemic. Procter & Gamble is a key player in disinfection robotics.

Service Robotics are expanding, notably in medical robot systems-assisted surgeries seen at Max Super Speciality Hospital, featuring technologies like the Da Vinci Xi Surgical Robot. Concerns for healthcare workers and surgical robots are addressed by organizations like NIOSH, MIT, and the University of Michigan. Building janitors and cleaners are replaced by cleaning robots, aligning with aging population demographics. Factory Safety Service Robots like Spot quadruped robot ensure workplace safety.

The Robotics Market caters to diverse end-users, including industrial robots, automotive, and logistics sectors, alongside service robots in medical, healthcare, and defense industries. Quality is a key focus, as seen in initiatives like the Sanand facility plant by Maruti Suzuki India. Robotics and control systems incorporate voice commands, with advancements like disinfection robots addressing current needs. Market trends highlight innovations such as autonomous mobile robots and eldercare robots, with government support from countries like Japan and China. The industry overview showcases leaders and emerging players, with developments like Adibot UV-C Disinfecting Robot shaping the market landscape.

Consumer robots cover tasks such as vacuuming, with startups like ANSCER Robotics and Robotex India pioneering in the field. Governments worldwide, including Japanese and Chinese, are investing in autonomous drones or robots. Key players in the Industry include Yaskawa Electric Corporation, Denso Corporation, Fanuc Corporation, and Kuka AG. Recent developments include Premier Tech Systems & Automation's RPL SERIES robot palletizers and advancements in gripper technology.

Segment Overview

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

• Application Outlook
  • Industrial
  • Services

• End-user Outlook
  • Manufacturing
  • Healthcare
  • Aerospace and defense
  • Media and entertainment
  • Others

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

Market Scope
Report Coverage	Details
Page number	189
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.71%
Market growth 2023-2027	USD 22.26 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.92
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 49%
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	ABB Ltd., Clearpath Robotics Inc., Cyberdyne Inc., DENSO Corp., FANUC Corp., GEA Group AG, Honeywell International Inc., Intuitive Surgical Inc., Kawasaki Heavy Industries Ltd., KION GROUP AG, L3Harris Technologies Inc., Lely International NV, MIDEA Group, OMRON Corp., Relay Robotics Inc., SMP Robotics Systems Corp., Teradyne Inc., The Boeing Co., Zebra Technologies Corp., and Irobot Corp.
Market dynamics	Parent market 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, Market condition analysis for forecast period.
Customization purview	If our 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 market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market vendors

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