Global Robot As A Service Market Is Estimated To Witness Significant Growth Due To Increasing Demand For Automation And Growing Adoption Of Cloud Technologies
The Global Robot As A Service Market is estimated to be valued at US$ 2.05 Bn in 2024 at a CAGR of over 17.7% over the forecast period from 2024 to 2031. Furthermore, growing implementation of advanced technologies like Artificial intelligence and machine learning is expected to boost the market growth.
Market Dynamics:
There are two major factors driving the growth of the global robot as a service market - increasing demand for automation across industries and growing adoption of cloud technologies.
Firstly, various industries are increasingly automating their industrial processes to improve efficiency and reduce costs. The robot as a service model allows industries to leverage automation solutions without significant upfront capital investments. This has increased the adoption of RaaS solutions in industries such as manufacturing, healthcare, logistics, and others.
Secondly, most modern robots and automation solutions are cloud-enabled and rely on cloud infrastructure for storage, analytics, and remote operations. The growth of cloud technologies has made it easier for vendors to provide robotic solutions in the service model by hosting robots and software on the cloud. This has further fueled the deployment of robots in the service model globally. The growing demand for automation combined with the widespread adoption of cloud is expected to continue propelling the robot as a service market during the forecast period.
Market Drivers
Increasing Demand for Automation Across Industries
One of the major factors fueling the growth of the global robot as a service market is the rising demand for automation across various industries such as manufacturing, logistics, healthcare, and others. With Industry 4.0 revolutionizing manufacturing processes, there is a growing need to automate repetitive and mundane tasks. Robots deployed as a service allow industries to leverage automation without significant upfront investments. This has made robot as a service an attractive option for small and medium enterprises looking to automate their processes. The rental and subscription-based model of robot as a service eliminates large capital expenditure and reduces operational costs for industries.
Focus on Developing Cost-effective and Flexible Robotic Solutions
Another key driver for the robot as a service market is the focus of players on developing cost-effective and flexible robotic solutions that can be deployed on a rental or subscription basis. Earlier robots were expensive to purchase and maintain which limited their adoption. However, robot as a service vendor is now offering robots that are easy to deploy, can be quickly configured for new tasks, and require minimal maintenance. They are also developing modular robotic systems that can be easily upgraded or reconfigured based on changing needs of customers. This flexibility and cost-effectiveness have increased the appeal of robot as a service across various end-use industries.
Restraints
Lack of Standardization
One of the key challenges faced by the robot as a service market is the lack of standardization. While different vendors are offering varied types of robotic solutions, there are no common industry-wide protocols or standards in place. This leads to vendors facing integration issues when robots need to communicate and work together in a coordinated manner. The lack of standardization also creates barriers for robots to seamlessly move across different operational environments. These restraints broader the adoption of robot as a service especially in industries with complex systems.
Resistance to Adopt New Technologies
Another major market restraint is the resistance from certain industries and organizations to embrace new technologies like robotics due to concerns around job losses. While robots can handle repetitive and hazardous tasks, there is a perception that they will replace human workers. This leads to increased scrutiny and longer adoption timelines especially in labor intensive industries. The reluctance to change existing business models and embrace new operational paradigms also limits the pace of adoption of robot as a service in some sectors.
Opportunities
Growing Demand from Healthcare Sector
The healthcare sector presents a major growth opportunity for the robot as a service market. Robots are increasingly being used in healthcare for tasks like surgeries, rehabilitation, medication management, and elderly care. The usage of robot as a service allows hospitals and clinics to leverage these solutions without large investments. It also provides flexibility to upgrade robotic systems or add new functionalities to meet the evolving needs of the healthcare sector. This growing demand from healthcare institutions is projected to provide significant opportunities for vendors in the coming years.
Scope for Adoption in Logistics and Warehousing
The logistics and warehousing industry offers another key growth opportunity. Here robots can be deployed for tasks like packaging, palletizing, sorting, assembling, and material handling. The adoption of robot as a service eliminates the need for major capital outlays for automating warehouse operations and supply chain processes. Vendors are developing automated logistics solutions like autonomous mobile robots that can be provided through robot as a service offering. The massive scope for automation in logistics and warehousing will drive considerable demand and provide opportunity for exponential growth in the foreseeable future.
Link - https://www.coherentmarketinsights.com/market-insight/robot-as-a-service-market-4538
Key Developments:
- In March 2023, Körber, a prominent automation solutions provider, announced the launch of a new Robotics-as-a-Service (RaaS) program. This program aims to provide Körber's clients with simple access to a global network of robotics service partners, allowing them to leverage advanced automation technologies and solutions without the need for substantial upfront investments or in-house robotics expertise.
- In November 2022, Smart Robotics Inc. launched a collaborative robot (COBOT) capable of selecting products from production facilities owned by businesses. This smart robot, designed for handling lightweight items, such as office supplies and papers, is part of the company's efforts to provide innovative, user-friendly, and flexible solutions for packaging and logistics applications across various industries.
- In February 2022, Ricoh Company, Ltd. acquired Axon Ivy AG, a Swiss-based digital process automation company, as a strategic investment to enhance its capabilities in digital services and support its transformation into a global digital services provider
- In May 2020, IPsoft's conversational AI platform, Amelia, partnered with GlobalDWS, a Canada-based automation company, to create disinfection service robots (DSRs). These robots are designed with high-pressure atomizers to effectively eliminate harmful bacteria and viruses from targeted areas.
Key Players:
ABB Ltd., Amazon Robotics, Boston Dynamics, Dyson Ltd., FANUC Corporation, Hanson Robotics Limited, iRobot Corporation, Intuitive Surgical Inc., KUKA AG, Northrop Grumman Corporation, SoftBank Robotics Holdings Corp., UBTECH Robotics Corp., Yaskawa Electric Corporation, Yujin Robot, Co., Ltd., and Zebra Technologies Corporation
