Service Robotics Market by Application, Environment and Geography - Forecast and Analysis 2023-2027

Service Robotics Market Forecast 2023-2027

The service robotics market is estimated to grow by USD 48.78 billion at a CAGR of 22.75% between 2022 and 2027. The growing demand for robotic automation processes is fueled by the need for increased efficiency, productivity, and flexibility in manufacturing and other industries. The increasing adoption of robotics in diverse application fields, such as healthcare, logistics, and agriculture, is expanding the market reach of robotics. Additionally, the integration of IoT in robots for cost-effective predictive maintenance is enhancing the reliability and performance of robotic systems, driving further adoption across industries. Furthermore, the advancements in robotics technology, such as artificial intelligence and machine learning, are enabling robots to perform more complex tasks with greater precision and autonomy. This is driving their adoption in a wider range of applications and industries, contributing to market growth. Additionally, the increasing focus on improving workplace safety and reducing operational costs is leading companies to invest in robotic solutions.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. 

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

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Market Segmentation

This report extensively covers market segmentation by application (professional robots and personal robots) and geography (APAC, North America, Europe, Middle East and Africa, and South America).

By Application

The market share growth by the professional robots segment will be significant during the forecast period. A professional service robot is a semi or fully autonomous robot designed to perform commercial tasks, excluding manufacturing operations. They are going through a technological revolution. The industry is being pushed by significant advancements in robotic capabilities, which are being propelled by breakthroughs in machine learning, artificial intelligence, adaptive computing, and vision systems. The emergence of the Robots-as-a-Service (RaaS) ownership model increases the adoption of these for professional use. With breakthroughs in 5G telecom services and AI processors, the demand is expected to grow over the forecast period.

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The professional robots segment showed a gradual increase in market share from USD 6.90 billion in 2017. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with their reasons for growth from 2017 to 2027.

The growth of this segment is primarily attributed to the increasing adoption of service robotics by residential consumers, which is driven by an increase in the global demand for the service robotics industry.

By Region

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APAC is projected to contribute 40% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

With the ageing population worldwide, the demand for long-term care and government spending on it is likely to rise throughout the projection period. Long-term care providers encounter issues due to a dearth of experienced people, which is expected to boost the use of service robots in geriatric care. Due to the increased demand, several new companies are projected to enter the industry. Furthermore, service robotics is becoming more popular in the education sector in APAC. For example, Pepper and NAO, SoftBank Robotics' service robots, are used to teach at numerous preschools in Singapore. Such use of service robots in the education sector is projected to boost the growth of the service robotics market in APAC over the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing significant growth driven by advancements in IoT and AI. These technologies are transforming industries like healthcare, agriculture, and transportation, reducing hospital-acquired infections and improving operational efficiency. Drones and robots are revolutionizing critical operations with their endurance and capability. The market is also benefiting from government funding and initiatives like the Moonshot Research and Development Program. With the rising demand for food and the increasing global population, service robotics, including professional UAVs and agricultural robots, are playing a crucial role in research, space exploration, and various industries.  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. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.   

Key Market Driver

The increasing adoption of robotics in diverse application fields is notably driving the service robotics market growth. Robots are being employed in numerous fields today, including in the automotive, healthcare, agriculture, food and beverage industries and robotic surgery. The employment of these has grown in recent years as technological developments have made it easier to design these for specific jobs. Robotic automation has been used in a wide variety of sectors. It is projected that more and more sectors will use robotics to modify their business models during the forecast period. This includes the use of 3D data, research and space exploration, government funding, the European Space Agency, professional robots, personal and domestic robots, agricultural robots, and inspection robots. The automotive sector is the biggest end-user of robotics, accounting for more than 30% of overall industrial robot installations.

Robots are widely deployed in manufacturing lines to assist with operations such as vehicle assembly, welding, and painting. They also enhances the quality and precision of different processes while increasing the overall efficiency of the manufacturing process. Farmers in agriculture have already begun to employ GPS-guided tractors and harvesters because it allows them to manage their farms more effectively, saving them time, energy, and labor expenses. GPS-guided tractors improve farming capacity to suit consumer needs, from harvesting and planting to cutting emissions and boosting crop output. All these factors are driving the market during the forecast period.

Significant Market Trends

Strategic collaborations, partnerships, and mergers and acquisitions (M&A) are the primary trend driving the service robotics market growth. Service robot manufacturers are continuously making efforts toward improving their relationships through collaborations and partnerships with robot system integrators and distributors to attain a competitive advantage over other players in the market. Thus, there is an emphasis on providing integrators with tools such as certain software, along with information and support, to help them serve customers in a better manner.

companies also focus on mergers or acquisitions to get better visibility and recognition in the market through their promotion as certified/ authorized providers of products in marketing campaigns. For instance, ABB supports its channel partners with training in the form of e-learning and webinars, backup support, sales, and technical support, demos, and documentation. This will help the service robotics market to grow during the forecast period.

Major Market Challenge

The high costs associated with robotic systems may impede the service robotics market growth. Several new and advanced models of service robotics are expected to be launched in the market during the forecast period. This is expected to increase the cost of these further. Such an increase in the cost of these is expected to hamper their adoption among middle-class consumers, especially in India, countries from Africa, and other developing countries. Therefore, the high cost of robotics stands as a major challenge to the growth of the market.

Companies of service robotic solutions are expected to follow certain standards and regulations regarding the use of safety-critical components, wireless technologies, and batteries in their product offerings. While regulatory standards in the US and Europe are clearly defined, countries in APAC are gradually coming up with their standards that will make it challenging for international companies to operate in the region since they will incur significantly high costs in modifying their manufacturing methods as per the newly defined, country-specific standards. This will hamper the market growth during the forecast period.

Key Market Customer Landscape

Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, China, Japan, South Korea, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.

Global Service Robotics Market Customer Landscape

Who are the Major Service 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 

YUJIN ROBOT Co. Ltd. - The company develops, manufactures, supplies, and distributes intelligence-type service robots. The company's key offerings include service robotics.

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

• AB Electrolux
• AMP Robotics Corp.
• Blue Ocean Robotics
• Cyberdyne Inc.
• Daifuku Co. Ltd.
• Diligent Robotics Inc.
• Exyn Technologies
• Guangzhou XAG Co. Ltd.
• Harvest CROO Robotics LLC
• Intuitive Surgical Inc.
• Irobot Corp.
• Kongsberg Gruppen ASA
• Samsung Electronics Co. Ltd.
• Singapore Technologies Engineering Ltd.
• SoftBank Group Corp.
• Starship Technologies Inc.
• SZ DJI Technology Co. Ltd.
• Tetra Laval S.A.
• Northrop Grumman Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak. 

Segment Overview

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

• Application Outlook 
  • Professional robots
  • Personal robots

• Environment Outlook 
  • Ground
  • Aerial
  • Marine

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

Market Analyst Overview

The market is experiencing significant growth, driven by factors such as the need to reduce hospital-acquired infections (HAIs). Advancements in AI are enhancing robot capabilities, particularly in user interfaces and navigation, making robots more efficient in uncontrolled environments. Technologies like Wi-Fi and Whizpace are improving robot connectivity and communication. Autonomous delivery robots from companies like Nuro are revolutionizing logistics, overcoming challenges in motion planning and navigation. Robots are also finding applications in aerial drones and UAVs for tasks like surveying, photography, and filmmaking. Additionally, humanoid robots and exoskeletons are aiding in labor-intensive industries, addressing concerns about labor shortages and aging populations. This market growth is further supported by industrial robots and IoT-based devices, highlighting a shift towards automation and advanced technology adoption.

The market is evolving rapidly, with AI researchers driving innovation in robotics. Super Wi-Fi connectivity enhances communication capabilities, though challenges like inaccurate results remain. Robots are increasingly adept at navigating complex environments such as stairs, thanks to advanced motion planning algorithms. Initiatives like the National Artificial Intelligence Research and Development Strategic Plan and efforts by the Department of Transportation are propelling the development of robots with improved endurance and capability. Natural language processing is enhancing human-robot interaction, while UAVs are meeting demands in areas like food delivery and aerial photogrammetry. Robotics also plays a crucial role in surveying, mapping, and construction, addressing challenges such as labor shortages and an aging population. These developments are influenced by factors such as immigration laws and free trade agreements, impacting transportation and logistics.

Market Scope
Report Coverage	Details
Page number	158
Base year	2022
Historical year	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 22.75%
Market growth 2023-2027	USD 48.78 billion
Market structure	Fragmented
YoY growth (%)	20.48
Regional analysis	APAC, Europe, North America, the Middle East and Africa, and South America
Performing market contribution	APAC at 40%
Key consumer countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
Key companies profiled	AB Electrolux, AMP Robotics Corp., Blue Ocean Robotics, Cyberdyne Inc., Daifuku Co. Ltd., Diligent Robotics Inc., Exyn Technologies, Guangzhou XAG Co. Ltd., Harvest CROO Robotics LLC, Intuitive Surgical Inc., Irobot Corp., Kongsberg Gruppen ASA, Samsung Electronics Co. Ltd., Singapore Technologies Engineering Ltd., SoftBank Group Corp., Starship Technologies Inc., SZ DJI Technology Co. Ltd., Tetra Laval S.A., YUJIN ROBOT Co. Ltd., and Northrop Grumman 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, and Market condition analysis for the forecast period.
Customization purview	If our market 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 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 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 companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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