Smart Robots Market

Market Overview

The global smart robots market size was valued at USD 12,089.23 million in 2022. It is estimated to reach USD 56,252.52 million by 2031, growing at a CAGR of 18.63% during the forecast period (2023–2031).

Smart robots are machines integrated with artificial intelligence to augment and assist humans in various activities. Advancements in AI have brought evolution and better capacity in robots. Smart robots collaborate with humans and learn from their behavior while working alongside them. The number and types of operations that can be automated or augmented with the help of smart robots and other smart machines are rapidly increasing. Smart robots can do manual labor as well as perform cognitive tasks. Smart robots have found their applications in various industries across the supply chain, from pick and pack to sortation and transport. The cost savings associated with smart robots attracts many organizations.

Highlights

• Software dominates the component segment
• Industrial dominates the application segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Smart Robots Market Drivers

Development in Robotic Technology

The robotics industry is rapidly encouraging the smart robot market due to the fast-paced technological advancements converging in engineering, automation, artificial intelligence, and machine learning. The consequences of the emergence of smart robots have resulted in the transformation of humans' task-performing capacity. As stated by the International Federation of Robotics (IFR), the number of robots is projected to be augmented three-fold over the past two decades. Moreover, the trends introduced in robotics project the international stock of robots to multiply faster in the next twenty years.

Furthermore, several governments and private organizations are spending heavily on R&D activities to boost advancements in the field of robotics and AI. For instance, the National Research Foundation of Singapore is anticipated to invest USD 150 million into a new national program in AI. While in the UK, EUR 270 million were invested from 2017 to 2018 to boost science, research, and innovation. This was done with the help of the Government's new industrial strategy, which is expected to fund EUR 4.7 billion by 2021. Similarly, the Intelligent Robot Development and Supply Promotion Act of Korea offers opportunities to develop the robot industry in Korea as a core industry in the fourth industrial revolution. Therefore, such developments in the robotics industry are anticipated to augment the market growth for smart robots.

Increasing Labor Shortage Across Various Regions

Several countries across the world are facing a shortage of labor. The falling birth rates and an aging population in many developed economies are leading to negative labor growth. While in developing regions, rapid growth has created a higher demand for labor. However, many emerging economies are expected to reach the final phase of their demographic peak. According to the UN Population Division database and ILO LABORSTA database, Europe is anticipated to be severely affected by a labor shortage.

Robotics is a popular type of automation due to its versatility, affordability, and efficiency. Robots have found applications across the supply chain, from pick and pack to sortation and transport. In addition, robots do not require insurance or benefits and can reduce costs related to employee overtime, seasonal and temporary staffing, and skills training. Additionally, ROI for robotic automation is typically achieved in under two years. The labor shortage across various regions and smart robots' monetary advantages augment their adoption across different industries.

Global Smart Robots Market Restraint

Concerns over Data Privacy and Security

The rapid growth of robotic systems has implications for various fields. It can be a boon to disparate fields such as healthcare, education, logistics and transportation, and several others. Conversely, the robotic system will also bring forth far-reaching employment, economy, and security variations. The primary issue concerning privacy involves data protection and data transfer.

Smart robots continuously interact with the environments in which they operate. This includes constantly transmitting large amounts of data in and out of the system. In healthcare, concerning smart robots, the data is not just environmental and contextual data but also those that relate to the particular humans to which these robots are attached. This data could contain sensitive health and financial information. Hence, smart robots' security and discreetness are critical design imperatives. It compromises the qualities of the individual while upsetting the robot's and that person's safety and security.

Global Smart Robots Market Opportunities

Technological Progress in Automation

The potential of artificial intelligence (AI) and automation superiority have rendered a ripe market for the global smart robots market. Smart robots have come a long way in the past decade, from performing complex logistics to allowing effortless unmanning of defense vehicles. Furthermore, the technical ability to automate various tasks with changing complexities has encouraged an exponential demand for smart robots in numerous industries, such as agriculture, defense, healthcare, infrastructure, aerospace, logistics, entertainment, research, and development. Therefore, the bourgeoning applications of smart robots in various fields could soon cause these products to become essential.

Regional Analysis

Based on region, the global smart robots market is bifurcated into North America, Europe, Asia-Pacific, and RoW. 

North America Dominates the Global Market

North America is the most substantial shareholder in the global smart robots market and is anticipated to grow at a CAGR of 16.99% during the forecast period. North America is expected to proliferate in the smart robot market over the forecast period owing to the early adoption of technically advanced products in the end-user industries. Owing to the rising demand from the medical field for rehabilitation in the region, favorable funding for assistive technologies for research, various hospitals adopting surgical robots, and the availability of technologically smart robots are driving factors for the service robotics market in the region. In addition, around 35% of the producers of smart robots are located in North America, which is the ultimate potential for regional market growth in North America. The smart robot market is driven by rapid commercialization and the progress of its manufacturing industry. Additionally, the early acceptance of technology in this region has encouraged the smart robot market to flourish briskly. The U.S. doubles its robotic investments to establish itself as a world leader in robotics technologies. Further, the National Robotics Initiative (NRI) of the U.S. supports essential research in the United States that will accelerate the growth and ubiquitous use of collaborative robots (co-robots).

Europe is estimated to grow at a CAGR of 17.84% over the forecast period. Smart robots are becoming increasingly helpful and can significantly help people in their everyday lives, in private and professional spheres. The European Commission is determined to collaborate at all levels, from the regional to the European level, because Europe is a global leader in this field and stands to gain from it. The government's increased focus on energy efficiency and emission control standards has resulted in the proliferation of gas sensors in the European automotive sector. In addition, the growth in end-user industries and increasing avenues for gas sensors are also expected to be significant growth drivers in this region. Some major players operating in the smart robot market are ABB, KUKA, BLUE FROG ROBOTICS, Kongsberg Maritime, and Universal Robots. These companies are active on several fronts of rising and disruptive ICT technologies and are supplying the market with significant products and services. Further, robotics research and education are performed at technical universities and research labs all over Sweden, fueling the market's growth.

The Asia-Pacific region has long been seen as an innovator in industrial and consumer robots. High regulatory and financial support by various governments for Asian companies to add service robotics technologies in personal, industrial, and professional applications. Some major players operating in the smart robot market are SoftBank Robotics Group, FANUC, Hanson Robotics, YASKAWA, and Samsung Electronics. The Asia-Pacific is anticipated to be the highest growing regional market owing to the rising economies in the region, including India, Japan, and China. Additionally, the present boom in the automotive sector is predicted to drive the smart robot markets in Asia-Pacific.

Over the next decade, China plans to play a leading role, utilizing the strengths of its existing businesses and through a new government plan announced in July 2017 by China's State Council. The program aims for China to be a world leader by 2030 in areas such as self-driving cars and smart robots that can learn from their environment and build on their capabilities based on that knowledge. Furthermore, high costs, end-user difficulties, and poor audio/video and internet connectivity issues in certain countries are the major factors hampering the market's growth in the Asia-Pacific region.

The RoW comprises the Middle East and Africa and Latin America region. Latin America, the Middle East, and Africa are anticipated to show moderate growth due to the relatively low technological progress in the region. However, the Latin American Robotics Council has been actively organizing student competitions, symposia, and summer schools, to promote robotics and bring together students and researchers across the region, fueling the market's growth. The focus on robotic urban restructuring in Dubai primarily focuses on attracting overseas participants to engage with the Dubai Future Accelerators in partnership with key government agencies, thereby driving the market in the Middle East and Africa region.

Segmental Analysis

The global smart robots market is segmented by component and application.

Based on component, the global market is divided into hardware and software. 

The software segment is responsible for the largest market share and is anticipated to grow at a CAGR of 18.31% over the forecast period. The software segment is expected to witness substantial growth during the forecast period owing to the adoption of the Internet of Things, artificial intelligence, and other software technologies. The growing demand for automated technology drives the smart robot's software segment. Moreover, the software provides well-integrated tools that aid developers in incorporating AI into the system to make it possible for the machine to tackle problems such as language interactions. As a result, the demand for the software segment is estimated to continue increasing over the forecast period. Nevertheless, a major restraining factor for the development of the robot software segment is a malware attack on data engulfed by robots.

The hardware segment comprises sensors, actuators, power sources, control systems, and other components. In the smart robots market, hardware components are anticipated to gain high traction due to their implementation in numerous robotic systems such as technological, vocational, literature, etc. These vital functioning parts will help robots perform movement and analysis. The hardware components have gained popularity worldwide owing to their efficient human motion detection features with the help of cameras and sensors.

In addition, the hardware segment dominated the smart robot market due to the growing demand for components such as actuators, sensors, power modules, and controllers. Smart robotics use high-accuracy sensors for detecting the surrounding environment. Furthermore, LiDAR and RADAR solutions support robotic systems in facial, gesture, and object recognition functions. The microphone is used for the voice and command recognition feature. These features delivered by hardware components lead to rapid development in the global smart robot market demand.

Based on application, the global market is segmented into industrial and service. 

The industrial segment owns the highest market share and is estimated to grow at a CAGR of 17.72% during the forecast period. The demand for industrial robots is mainly observed in industries such as automobiles and heavy engineering. Industrial robots are being developed to overcome the limits of traditional labor tasks, which is anticipated to be the primary factor driving market growth. Additionally, an increase in the need for automation in microelectronics and the technology set by the government and industry associations are escalating the demand for the industrial robotics market. However, the high initial cost of purchasing this equipment, followed by installation cost and high maintenance costs, are the factors that are likely to restrain the growth of the industrial robotics market. Moreover, using industrial robots to help achieve automation in the manufacturing process provides significant growth opportunities for the key players in the industrial robotics market.

Service robots were designed to serve humans and conduct valuable tasks. These service robots are semi-automated or fully- automated. They can perform all kinds of dangerous or monotonous tasks and provide intensifying efficiency and high-security level. It reduces human work pressure and provides results that are efficient and accurate. The revenue generation of industries has increased after the service robots have become used. They provide smooth functioning of repetitive tasks, manage day-to-day tasks very effectively, and carry out critical operations effortlessly. In addition, due to the upsurge in the usage of smartphones, growing application areas and emerging economies provide a growth bar to the service robot market. The industries that seek the support of service robots include healthcare, forestry, logistics, construction, and professional cleaning. The emerging needs of such industries boom the growth of the service robot market.

Recent Developments

• February 2023- Xiaomi plans to launch the CyberOne and CyberDog robots apart from the smartphone at MWC 2023 (Mobile World Congress 2023). CyberOne is a bipedal robot, whereas CyberDog robot is a quadrupedal robot.

• February 2023- AAEON, a leader in IoT solutions, is collaborating with PlayRobot to produce an educational robot development kit. The academic community is eager to include the kit in their curriculum after the team demonstrated the gear at National Central University.