The global robotics technology industry was estimated at $62.75 billion in 2019, and is expected to hit $170.08 billion by 2027, registering a compound annual growth rate (CAGR) of 13.5 percent from 2020 to 2027, according to a new report by Allied Market Research.
The rise in need for automation and safety in organizations, availability of affordable and energy efficient robots, increase in deployment of robots in several industries, and surge in labour and energy costs are driving the growth of the global robotics technology market. On the other hand, high implementation costs and lack of awareness about automation among the SMEs impede the growth to certain extent. However, growth in adoption of robotics technology across the world is projected to create multiple opportunities in the industry.
Due to the global lockdown, there has been a lack of demand for automated machines from the construction, automotive, and many more other industries which, in turn, has impacted the robotics technology market badly. Also, disruptions in the supply chain have curtailed down the growth to some extent.
However, with several relaxations coming up over the restrictions, the market is expected to make up the blocks soon.
Hardware Segment to Lead the Trail
Based on component, the hardware segment contributed to nearly three-fourths of the global robotics technology market share in 2019, and is expected to retain its dominance by the end of 2027, owing to the fact that hardware components are cheaper than software modules and are also faster to deploy.
The service segment, on the other hand, would grow at the fastest CAGR of 16.7 percent throughout the forecast period. Rise in need of different services such as managed services and professional services propel the growth of the segment.
Manufacturing Segment to Dominate End-application
Based on application, the manufacturing segment accounted for more than three-fourths of the global robotics technology market revenue in 2019, and is anticipated to rule the roost by 2027. This is attributed to high labour costs, new safety regulations, and stringent emission norms issued by several government bodies.
Simultaneously, the aerospace & defence segment would portray the fastest CAGR of 16.7 percent during the study period. Increased rate of unmanned systems, high-end technological advancement, and surge in government expenditure fuel the segment growth.
Asia-Pacific to Maintain Top Status Until 2027
Based on geography, Asia-Pacific held the major share in 2019, generating more than two-thirds of the global robotics technology market. The same region would also manifest the fastest CAGR of 14.4 percent till 2027.
The rise in growth in automation and intensive R&D in a number of countries including Japan, China, India, Australia, and Taiwan is driving the market growth. Meanwhile, North America is anticipated to portray the CAGR of 13.3 percent from 2020 to 2027.
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