Construction Robotics Market Size, Share & Trends Analysis Report By Type (Demolition, Bricklaying, 3D Printing, Surveillance, Concrete Structural Erection, Finishing Work, Doors and Windows Installation, Others), By Application (Public Infrastructure, Commercial and Residential Buildings, Nuclear Dismantling and Demolition, Others), By End-user (Residential, Industrial, Commercial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global construction robotics market size was valued at USD 60.23 million in 2022, which is expected to grow to USD 186.23 million by 2031, at a CAGR of 14.2% during the forecast period of 2031. The increased focus of construction organizations on reducing the wastage of building resources and materials during any construction activity has driven the adoption of construction robots. Construction is one of the industries where a large amount of material gets wasted due to its traditional construction process. 

Primary factors promoting the shift towards adopting robots in the construction industry are enhanced productivity, quality, worker safety, and growing urbanization globally. Furthermore, the deployment of robotics in the construction industry eliminates and mitigates the risks of human errors and conflicts. Robots can be practical to operate in hazardous environments and enhance productivity, which is an added advantage for adopters.

The principal advantage of employing construction robots in construction activities is saving time and improving precision, accuracy, and efficiency, hence commencing more significant economic benefits. The Hadrian X can be seen as a great example of such a robot technology. It is a bricklaying automated machine capable of building walls of a house by calculating the necessary materials required and movements without any supervision. Additionally, large sums of investments can be witnessed in the deployment of robotic machinery in the construction industry.

Market Dynamics

Global Construction Robotics Market Drivers

• Increased Urbanization to Drive Construction Robotics Market Growth

In the past few years world has evidenced dramatic urbanization. And the rate of urbanization is rising exponentially. As per data from the World Bank, around 55% of the world's population, which contributes to approximately 4.2 billion people, is situated in cities. The population living in urban areas is expected to grow over the coming years. By 2050, the urban population worldwide is expected to double; it is forecasted that around 7 out of 10 people will be living in cities.

The requirement and rapid growth in urbanization bring challenges that include meeting the accelerated demand for affordable housing and accommodations, well-connected transport systems, and other basic necessities for living. Major economies worldwide are thinking of building more housing solutions to control the price of homes in urban areas so that lower-income citizens can afford these. The demand for infrastructure and housing solutions in growing economies, majorly situated in the Asia-Pacific region, is expected to accelerate their investment in construction technologies.

Such a growth rate in urbanization and the increased need for houses to be provided to meet the demands push the market for construction robotics. 

• Government Regulation for the Safety of Worker

Governments have placed stringent regulations and norms that the equipment vendors and construction industries are expected to adhere to to make workplaces and construction sites safe.

The construction industry is mainly subjected to strict regulations due to various safety constraints as the sector is home to some of the highest number of accidents. There are a lot of accidents that have been recorded due to accidents and incidents on construction sites. Therefore government puts efforts into protecting the workers who work in such harsh and difficult situations. When workers enter confined spaces, they are faced with life-threatening hazards like toxic substances, electrocutions, explosions, and asphyxiation. In such areas using Robots can overcome safety adherence and reduce costs associated with ensuring worker safety in such places.

Global Construction Robotics Market Restraints

• High Cost of Setting Up and Expensive Equipment Hampering Construction Robotics Market Growth

The costly expenses associated with acquiring and maintaining technologies such as construction robots are challenges in the implementation of construction robotics. The purchase, along with the performance of the technologies, increases the overall cost of the manufacturer. Therefore, companies and firms with a good turnover and market competition can only afford these technologies. This puts restraints on the growth of the market for construction robots.

Moreover, the automation technologies need to be updated and maintained regularly, and most of them have high updating and maintenance costs. The maintenance cost for new robotics equipment is higher because of the exceptional technicians needed to operate and maintain it. In addition to the equipment costs, the businesses also need to hire specifically trained technicians to set up and maintain the equipment. The companies generally employ robotic vendors or get their employees trained, consuming higher costs and time associated with the work. These cause limitations for the global construction market to grow prosperously.

Regional Analysis

The global construction robotics market share is segmented based on North America, Europe, Asia-Pacific, and the rest of the world. 

North America and Europe have the maximum share among the other regions. 

The high level of unemployment and shortage of skilled labor in The United States has proven to be a key driver in the growth of the construction robotics market in the North American region. Where manual labor has been a huge and very critical element of modern construction, technology, and robots have been steadily improving and advancing. Robots are the beginning to get the work done independently without any burden on humans. This factor is expected to drive the regional market of North America.

The region is expected to have a valuation of USD 54 million during the forecast period. In the United States, the construction industry was majorly dependent on manual labor earlier. However, the industry had to face a labor shortage due to the COVID-19 pandemic, which further complicated the problems for the industry with social distancing policies in the picture. The scenario brought robotics into the picture, pushing the growth of construction robotics in the region. Additionally, it can be witnessed that crucial regional players are launching innovative robots along with various partnerships among players catering to the region's growth, which is expected to hike up demand in the regional market.

A legion of robotics start-ups in Europe has started developing robots focused on the construction industry. This is to resolve the issue faced due to manual labor and make the industry more efficient. There are currently, on average, 1.2 robots for every 10,000 workers in the construction sector in the region. This number is significantly higher than in the United States, where there is 0.2, and in China, where there is 0.1. Such factors drive the European construction robotics market. The market is expected to generate around USD 52 million at a CAGR of 14.2% by 2031.

Segmental Analysis

The global construction robotics market is segmented based on type, application, and region. 

• On the Basis of Application

Based on type, the segments are demolition, bricklaying, 3D printing, Material Handling, and others.

Demolition and 3D printing are the predominant types to have the largest share in the market during the forecast period. 

Demolition to have an expected share of USD 54 million at a CAGR of 13%. 

There are considerable advantages to using demolition robots. It significantly increases safety as robots are operated with wireless remote controls, which allows the human operator to remain at a safe distance. The companies are incorporating multiple product innovation strategies for advancing the design of demolition robots. Brokk Inc., in September 2020, developed a high-heat customization option for its robotic machines. It improved their performance and lifespan in metal processing and other high-temperature applications. 

Demolition of refractory linings to industrial process units is carried out using the latest technology in robotic demolition equipment; this can significantly push the demolition robot market to grow in the upcoming future.

The 3D printing construction robots are anticipated to have a value of USD 52 million at a CAGR of 14%.

The 3D printing robots have evolved significantly in the past few years, and it has now come to a stage where they can print an entire house in less than a day. With more companies realizing the potential of 3D printing, the market is expected to grow at a tremendous rate near the future, with multiple varieties of 3D Printing Robots operating in the construction industry. New technological advancements allow robots to work concurrently on 3D printing concrete structures and are created to bring an on-demand design to construction sites. The 'swarm printing' method makes robots simultaneously 3D print concrete designs, which is not attainable with conventional methods. Such factors are expected to forward the growth of the construction robots in the market in the forecasted period. 

• On the Basis of End-User

The market is bifurcated as per applications into Residential, Industrial, and Commercial.

The commercial segment is to generate the highest revenue during the forecast period. The expected revenue share of the market is USD 78 million, at a CAGR of 13%.

Major companies across the globe, such as Fastbrick Technologies Limited, are exponentially working on several commercial projects in multiple countries, and construction robots are majorly used during the construction process. Numerous commercial buildings utilize construction robots for bricklaying purposes, etc. Robotic systems have been made in a way that can achieve multiple differentiated brickwork designs with high efficiency. Such factors push the growth of the global construction robotics market further.

The residential segment will have USD 62 million at a CAGR of 14% during the forecast period. Construction of public infrastructures like hospitals witnesses significant usage of construction robots. Construction robots are majorly used in educational institutions as well. The Environmental Holdings Group (EHG) was chosen as a demolition contractor for several projects at the University of North Carolina Charlotte Campus. In one project, a smokestack was present in the middle of the campus and was attached to an operating steam plant which required the layered bricks to be mechanically removed from as high as 120 feet in the air. Therefore, a demolition robot was used to move the layer, which was hoisted on a platform and dangled from a crane.

Impact of covid-19

As per the WHO, the number of reported COVID-19 cases jumped from 87,137 on March 01, 2020, to 102,083,344 as of February 01, 2021, with approximately 2,209,195 deaths globally. The rapid rise in the number of confirmed COVID-19 cases globally resulted in the governments of various countries resorting to stringent containment measures to slow down the spread of the pandemic. However, complete lockdowns across countries also resulted in a short-term decline in the GDPs of their respective economies.

The COVID-19 pandemic had e a dual effect on the electronics industry, wherein the manufacturing of electronics components was halted due to lockdowns imposed in various countries, coupled with slower logistical processes and supply interruptions. Furthermore, the unavailability of labor globally has also contributed negatively to the manufacturing of electronic components.

The discontinuation in the delivery of electronics products by e-commerce companies during the lockdown, as they were considered non-essentials, negatively impacted the electronics industry. However, increased demand for laptops, computers, and mobile phones due to work-from-home situations positively affected the electronics industry.

The Chinese economy was hit tremendously as it was the epicenter of the COVID-19 pandemic, disrupting the supply chain for major electronic brands. As China is the major exporter and manufacturer of raw materials required to produce electronic products, this has led to the halting of the ongoing production of electronics in the U.S. and Europe, thereby creating a demand-supply gap.

Recent Developments

• Feb 2022, Husqvarna AB revealed plans to embark on a pilot project in collaboration with Watt Battery.
• April 2022, Fastbrick Robotics Ltd signed MoU with UAE’s Ministry of Energy and Infrastructure. This agreement signifies an important development in the business and technology sector.