The Total Addressable Market (TAM) for Service Robots was valued at USD 24.29 billion in 2022. It is projected to reach USD 40.35 billion by 2031, growing at a CAGR of 21.3% during the forecast period (2023-2031).
Service robots are referred to as robots designed to assist humans and perform useful work, except for manufacturing and industrial automation applications. Service robots are mainly intended to operate in fully automatic or semi-automatic modes and perform various tedious tasks, thereby offering safety and high efficiency in various applications. Additionally, it also reduces work pressure and enhances productivity. The growing adoption of robots for new applications providing high returns on investment, the rising use of IoT in robots for cost-effective predictive maintenance, and increasing funding for research on robots are the factors fueling the market growth. However, growing concern over data privacy and regulations hinders market growth.
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Increasing Adoption of Efficient AI and ML
Due to the rapid technological developments in automation, engineering, artificial intelligence, and machine learning, the robotics industry is accelerating the trends in the service robotics market. The effects of the introduction of robots have changed how well humans are able to perform certain tasks. The number of robots is thought to have tripled over the last 20 years, according to the International Federation of Robotics (IFR). The recently introduced robotics trends will also help the global stock of robots to multiply more quickly over the next 20 years. The effects of the development of robotics will also boost productivity and economic growth in underdeveloped nations. Additionally, since underdeveloped economies lack skilled labor, service robots can open up a wide range of new opportunities across all industrial sectors. However, the industrial and residential sectors are experiencing significant opportunities thanks to the age of automation and robotics. Robotics adoption has progressed to the point where these tools can now be safely used by workers while adding value to the business as a whole.
Growing Automotive Industry
In order to stay competitive in the market and draw in more customers, businesses are refocusing their efforts on the creation of better service robots in response to an increase in demand. The top businesses are using service robots to automate tasks and consequently increase productivity. The two main factors expected to propel this market's growth are the rising popularity of automation and increased efficiency.
Huge Investments and Maintenance Costs
The initial capital expenses needed for the accessories, integration, programming, and other tasks can be a difficult barrier to the market expansion of service robotics. The maintenance cost of service robots is between USD 250000 and USD 10000 annually, according to the Robotic Industries Association (RIA). This limits the amount of money that businesses, especially small and medium-sized ones, can invest. Due to low-volume production and slow return on investments, these businesses frequently struggle to generate significant amounts of cash (ROI). The market is also being pressured downward by the high maintenance costs. The cost of replacing sensors and other devices, upgrading software, and other costs raise the cost of ownership, slowing the market's rate of expansion.
Increasing Technological Advancements
Robot capabilities are being greatly expanded by technology, which has also increased their versatility to complete many tasks quickly. The adoption of robots in a variety of industries—primarily in healthcare, logistics, the military, agriculture, and other fields—has completely changed how work is done. For instance, the use of robots in the healthcare industry has made it possible for surgeons to perform surgeries with the bare minimum of incisions. Moreover, these robots are used by surgeons to make more exact incisions or movements that are otherwise difficult for human hands to duplicate. Such robots have artificial intelligence for data analysis, predictive analytics, vision recognition, and other technologies built in. For instance, the American medical device company Medtronic recently unveiled its new robot-assisted surgical system for laparoscopic and even open procedures.
Additionally, modern agriculture robots have graphic processing units (GPUs), autonomous navigation systems based on LiDAR, and 3D sensing capabilities to assess product ripeness and perform picking and harvesting without damaging the crops.
The global service robots market is segmented by type, environment, component, and application.
Based on type, the global market is bifurcated into professional, and personal & domestic.
The personal & domestic segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The growth is attributed to a broad offering of robots in domestic applications. These include; vacuum cleaning, pool cleaning, lawnmowers, window cleaning, and gutter cleaning. Moreover, growing robots for physically disabled people, such as walking assistance, is also one-factor propelling market growth. Furthermore, developing initiatives to offer domestic robots on a rental basis also led to the market's development. Additionally, increasing the adoption of innovative technologies such as Machine Learning and Artificial Intelligence (AI) for voice assistance escalates market growth.
The professional segment is expected to witness a higher CAGR. Professional service robots are a kind of robot that is frequently used in a professional setting outside of a manufacturing facility. Professional service robots, which can take many different forms and perform a variety of tasks, automate menial, hazardous, time-consuming, or repetitive tasks, freeing up human workers to engage in more cognitive tasks.
Based on the environment, the global market is bifurcated into ground, aerial, and marine.
The ground robots segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The growth is due to broader commercial industry applications such as; hospitality, warehouses, law enforcement, agriculture, and space research. Moreover, the surge in demand for robots in education, human assistance, entertainment, and healthcare is also one factor that fuels the market growth. For instance, According to Economic Forum, China and Japan have a maximum number of aging populations, which creates a necessity for human assistance robots in the region.
The marine robots segment is expected to grow at a significant rate. In the maritime sector, marine robots are employed for a variety of tasks, from general upkeep and maintenance to fully autonomous vessels. There are several dangerous or potentially dangerous situations in the marine sector. Robotic laborers can instantly make an operation safer and frequently more efficient by taking the place of human laborers.
Based on components, the global market is bifurcated into hardware and software.
The hardware segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The growth is attributed to a surge in innovative design required on the hardware side. Moreover, a rise in robots across various industrial verticals has created the hardware segment's demand to integrate a broad range of sensors and control circuits. Furthermore, the availability of low-cost sensors across different developing economies and increasing orders from commercial industries to enhance productivity are factors propelling the market growth for hardware. Additionally, it also led to the hardware segment's development.
The software segment is expected to grow at a significant rate. Artificial Intelligence (AI) is one of the fastest-growing technological fields and is gaining increasing importance worldwide. Service Robots are the leaders in the development of software for autonomous robots. To accomplish its goals/tasks, a service robot requires a highly flexible, extensible, and maintainable software architecture framework. With the development of AI capabilities, the value of robust software is growing.
Based on application, the global market is bifurcated into domestic, medical, defense, educational and personal, and construction
The domestic application segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The growth is attributed to the decline in the cost of robots for domestic applications because of the low cost of sensors. Moreover, increasing trends for smart homes across the globe are also one factor propelling the demand for domestic robots. Also, the growing aging population and an increasing number of the community preferring the adoption of robots for household work boost domestic applications' growth.
The medical application segment is expected to grow at a significant rate. Medical robots are a kind of professional service robot used in and outside of hospitals to enhance the quality of patient care overall. They reduce the workload of medical personnel, allowing them to spend more time directly caring for patients while also generating significant operational efficiencies and cost savings for healthcare facilities.
The global service robots market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America region is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The growth is attributed to significant vendors offering service robots, such as; Stryker Corporation and Starship Technologies, among others. Moreover, the early adoption of technologies to improve productivity and efficiency is also one-factor fueling market growth. Additionally, the increasing adoption of surgical robots by hospitals in the region to improve accuracy also led to the market's development. Increasing investment in robot research on account of developed economies also plays a vital role in adopting service robots in the region. The United States Maritime Administration, or MARAD, has partnered with SEA-KIT to develop robotic oil-cleanup vessels. Human workers are regularly exposed to hazardous chemicals, toxic fumes, and a high risk of fire or explosions, making this occupation extremely hazardous. Marine service robots provide a safer alternative and contribute to the growth of the service robots market throughout the forecast period.
Europe is expected to witness dynamic growth in the service robots market during the forecast period due to the growing demand for personal robots and industrial robots in several nations of this region. A significant number of market participants are located in this region. Numerous manufacturing industries are located in Europe. The medical, defense, logistics, and retail sectors are experiencing rising demand from these industries. As the adoption of robotic solutions increases in countries such as Germany, the United Kingdom, France, and Italy, it is expected that these nations will experience robust growth over the course of the forecast period.
Asia-Pacific is expected to witness significant growth in the service robots market during the forecast period. The growth is attributed to increasing investment in developing economies to improve digitization processes. For instance, in July 2020, ABB Group opened new robots facility in India to support the digitization of the manufacturing sector. Moreover, the increasing disposable income of the people in developing economies such as; India, China, and Japan, which enables consumers to prefer domestic robots such as vacuum cleaners and dishwashers, also led to the escalation of the market. Additionally, increasing government initiatives in developing economies, such as Digital India and smart city projects, is also one of the factors that escalate the region's market growth. Furthermore, the presence of the largest manufacturing sector in the region also paves the way for the adoption of service robots for various domestic and commercial applications.
The LAMEA region is expected to witness moderate growth in the global service robots market during the forecast period. Reem, a novel all-purpose service robot, is being promoted by PAL Technology of Abu Dhabi, which intends to deliver up to 20 units to regional businesses by 2022. By 2030, Saudi Arabia's robotics and artificial intelligence industry are anticipated to contribute over USD 135.2 billion, or 12.4% of the nation's GDP. With the help of a new ABB palletizing robot solution, Nestlé, the largest food and beverages company in the world, is able to increase the productivity of pallet loading in its chocolate manufacturing facilities in Brazil by 53%. Thus, recent developments in the LAMEA region will drive market growth throughout the forecast period.
The global service robots market's major key players are
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