According to a recent report published by Allied Market Research, titled, “Robotics Technology Market by Component, Type, and Application: Opportunity Analysis and Industry Forecast, 2020–2027,” the global robotics technology market size was valued at $62.75 billion in 2019 and is projected to reach $189.36 billion by 2027, growing at a CAGR of 16.2% from 2020 to 2027.
Robotics technology are used by various industries for developing machines which can substitute humans and replicate human work. Numerous benefits provided by the robotics technology include safety at workplace, increasing the speed of the work and enhancing the productivity of the organization. In addition, various industries are adopting robotics technology to increase their production and profit margin as robots can complete tasks faster. Moreover, rise in need for automation and safety in organization and availability of affordable, energy efficient robots drive the growth of the market. In addition, rising labor & energy costs and increase usage of robotics technology in different industry vertical fuels the growth of the market. However, high initial cost of the robots and lack of awareness among the SMEs hampers the growth of the market. Furthermore, growth in adoption of robotics technology in emerging economies and increase use in adverse applications are expected to provide lucrative opportunities for the growth of the market.
By application, the global robotics technology market was led by the manufacturing segment in 2019 and is projected to maintain its dominance during the forecast period. The major factors that drive the adoption of robotics in the manufacturing sector include shortage of labor in the manufacturing sector and rise in need of automation in this sector. However, the healthcare segment is expected to grow at the highest rate during the forecast period, owing to increased government spending, technology maturity, and increased adoption of robotics technology in healthcare sector.
Region wise, the robotics technology market was dominated by Asia-Pacific in 2019 and is expected to witness the highest growth rate during the forecast period due to increase in presence of robotics vendors and surge in its requirement from the industrial sectors in the Asia-Pacific region.
The outbreak of the COVID-19 pandemic has a significant impact on trade. For instance, as coronavirus cases continue to increase at an alarming rate across the globe, many countries have realized that their supply chains are dependent on others. Supply chains that have been disrupted include hardware components of robots. Thus, the robotic technology market is experiencing supply shortages or halted shipments of these components around the world, as workforce is reduced and nonessential businesses have stopped operations. The impact is majorly seen in Germany, where majority of the hardware components are produced, and subsequently rippled out to rest of Europe. However, some countries may choose to start manufacturing these components domestically in the future to be better prepared for new outbreaks.
Key Findings Of The Study
- By component, the hardware segment led the robotics technology market, in terms of revenue in 2019.
- By type, the traditional industrial robots segment accounted for the highest robotics technology market share in 2019.
- By region, Asia-Pacific generated the highest revenue in 2019.
The key players profiled in the robotics technology market analysis include ABB Ltd, Denso Corporation, Fanuc Corporation, KUKA AG, Kawasaki Robotics (Kawasaki Heavy Industries, Ltd.), Mitsubishi Electric Corporation, OMRON Corporation, Seiko Epson Corporation, Stäubli International AG and Yaskawa Electric Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.