How COVID-19 is impacting the Service Robotics Market

Get in-depth analysis of how COVID-19 is impacting the Service Robotics Market

The service robotics market is projected to grow from USD 37.0 billion in 2020 to USD 102.5 billion by 2025; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 22.6% from 2020 to 2025. The adoption of service robots provides a high ROI for commercial users, mainly due to decrease in labor costs. This is one of the primary drivers for its adoption. In tandem, there has been a sharp increase in the funding for research on robots by both the government as well as key market players.

Market for ground based service robots estimated to grow at highest CAGR during forecast period

Ground robots are being used for various commercial applications in industries such as healthcare, warehouses, hospitality, space research, law enforcement, and agriculture. With increase in nuclear families and world population, the demand for household robots for cleaning, education, elderly assistance, entertainment, and hobby purposes has increased. According to World Economic Forum 2018, “The world needs to build 2 billion new homes over the next 80 years”. Also, the increase in ageing population in countries such as China and Japan is leading increased deployment of assistive robots, contributing to the high growth.

Personal and domestic robots projected to grow at higher CAGR during the forecast period compared to professional robots

Personal and domestic service robots include vacuuming robots, lawn mowers, pool cleaning robots, window cleaning robots, gutter cleaning robots, exoskeletons, toy robots, hobby systems, educational robots and robots for assistance and elderly care. Cleaning robots are now smarter and capable with integration of features such as machine learning and voice control, leading to increased adoption. Exoskeletons are used by people with disability to get assistance in walking or lifting objects due to its growing inclusion in insurance covers. Other initiatives, such as offering service robots on a rental basis is also contributing to the high growth of personal and domestic service robots.

Hardware component of service robots is expected to have larger share of market in 2020 compared to software

The hardware component will dominate the market due to the innovative designs required on the hardware side. Sensors and control units on both domestic and commercial type service robots remain expensive. Operating costs for drones are often high, because the batteries have to be frequently replaced if the drones are flown on a frequent basis. Batteries often contribute to a major portion to the running costs of a drone, especially when used for commercial applications. Exoskeletons remain very expensive for personal use unless some coverage is provided by the insurance. Even pool cleaning robots remain expensive today for majority of urban households. Although hardware component will have the larger share of the market, it is expected to decrease over time due to economies of scale.

Market for domestic applications is expected to grow at significant rate during forecast period

Initially developed for cleaning floors, domestic robots have now been expanded to cover pools and lawns. Robotic kitchen and laundry are still in development. Although these robots were expensive when initially introduced to the market, they are becoming more affordable now due to increased adoption and economies of scale in manufacturing. Also, increasing ageing population and less willingness of the working population to perform household chores is driving the growth of the market for domestic applications. Countries such as China and Japan are expected to be the 2 major countries fuelling market growth for use of service robots in domestic application.

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North America is expected to account for largest share of service robotics market throughout forecast period.

Growing demand from the healthcare sector for rehabilitation, the increasing adoption of surgical robots by hospitals in the region, favorable funding scenario for research on assistive technologies, and the availability of technologically advanced service robots are a few of the key factors driving the growth of the service robotics market in North America. Apart from robots, North America has also been a key region for the market for drones. As per the Federal Aviation Administration (FAA), in 2018, the fleet size of commercial drones was ~277,000 units while in 2019 it was ~400,000 units, i.e. a growth of ~44% in a year. FAA also projects that the fleet size of the commercial drones in the US would cross the mark of ~800,000 units by 2023, i.e. a growth of ~110% during 2019–2023.

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