Robotics as a Service Market by Type (Personal, Professional), Application (Handling, Processing, Dispensing, Welding & Soldering), Vertical (Logistics, Manufacturing, Automotive, Retail, Food & Beverage) and Region - Global Forecast to 2028
Updated on : March 06, 2023
The global robotics as a service market size is valued at USD 1.8 billion in 2023 and is anticipated to USD 4.0 billion by 2028; growing at a CAGR of 17.4% from 2023 to 2028.
Factors such as rising demand for collaborative robots across industries and robotics as a service lowers cost in long run are fueiling the market growth for market.
Robotics as a Service Market Forecast to 2028
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Robotics as a Service Market Dynamics
Driver: Lowers cost in long run
Robotics as a service model offers customers a lower cost of upfront investment, as well as provides an opportunity to subscribe for access to a complete, connected, and interoperable autonomous mobile robotic fleet with the latest enhancements.
In contrast to traditional ways of buying and implementing industrial automation, paying per item of work speeds up the Return On Investment (ROI) and reduces the Total Cost of Ownership (TCO) for the deployment in comparison to traditional buying and implementing methods. A significant advantage of the robotics as a service model is that operators of robotics as a service are constantly updating and improving their technology, so customers do not have to worry about obsolescence.
Restraint: Lack of interaction between robots and human workforce
Robots require expert programming and training to perform tasks, so companies need to hire experienced engineers and programmers to oversee the installation of robots. On top of that, even experienced personnel might need retraining when new software is developed or new robots appear on the market.
The complexity of challenging real-world tasks requires robotics systems with the spatial, temporal, physical, and social understanding that can be best addressed by a broad range of methodologies and tools.
Opportunity: Data-driven process improvement
Large-scale machine learning is one of the greatest triumphs of artificial intelligence in the last decade. Robotics as a service is able to achieve the goal of democratizing robotics automation because it lowers the cost of entry for users and brings cutting-edge robotics technology to warehouses of all sizes.
Robotics research has provided a wealth of powerful models for perception, estimation, planning, compliant strategies, and control and its guarantees. With cloud technology, cloud-based systems can communicate data smoothly to any distribution channel to aid with the supply chain, which in turn can help with the complete value chain and improve costs over the long term for businesses.
Challenge: Interoperability and integration issues
The amount of customization required for the robots to be useful for specific organizations still needs to be overcome. It is important to note that although a base platform might be the same across many entities, adaptations will need to be made for a robot to function, which will cause a longer implementation window as well as increased costs.
Robotics as a service is the solution of choice for many organizations, regardless of the growing pains involved. Providing technical expertise, upskilling human workers, and improving a common base, with improved robotic tools and general collaborative robots, are critical pieces of the puzzle robotics as a service organizations need to get a better handle on to improve the adoption of smarter robotics.
Robotics as a Service Market Segment Overview
Logistics vertical to hold largest share in market in 2023
The demand for robotics as a service has seen growth in the logistics industry due to its use in handling and dispensing. The logistics vertical accounted for the largest market share of the market in 2022.
Warehouses are becoming smarter with plant operators implementing mobile robots, picking robots, and even autonomous forklifts to achieve efficiency in picking, placing, and fulfilling orders. Instead of buying these robots outright, many robot suppliers are supporting warehouse transformation by offering flexible pricing options through robotics as a service.
Handling application segment to account for highest market share in market during forecast period
Owing to the high rate of adoption of robotics as a service in the logistics vertical, the handling application accounted for the largest share of the market in 2022. Processing tasks such as polishing and burring (repetitive tasks in various industries, such as automotive; plastics, rubber & chemicals; and wood) are being automated which results in optimized processing. SMEs predominantly undertake these processing applications in their manufacturing plants. As they have a faster growth rate than large-scale industries, the adoption of robotics as a service to automate processing applications is also expected to rise during the forecast period.
Robotics as a Service Market in asia pacific to grow at highest CAGR during the forecast period
The rising costs of labor in Asia Pacific have encouraged SME industries to start integrating robotics in their manufacturing processes to make operations more efficient and cost-effective. Government initiatives in China, such as Industry 4.0 and Made in China 2025, and the penetration of IoT and AI are expected to drive the robotics
Robotics as a Service Market by Region
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Top Robotics as a Service Companies - Key Market Players
The key players in the market are
- KUKA AG (Germany),
- Berkshire Grey, Inc. (US),
- Locus Robotics (US),
- Exotec (France),
- Knightscope, Inc. (US),
- CYBERDYNE, Inc. (Japan),
- CAJA (Israel),
- Hirebotics (US),
- Cobalt Robotics (US),
- Relay Robotics (US), and
- inVia Robotics (US). These players have adopted product launches/developments, contracts, collaborations, agreements, and acquisitions to grow in the market.
Robotics as a Service Market Report Scope
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Report Metric |
Details |
| Market Size Value in 2023 | USD 1.8 billion |
| Market Size Value in 2028 | USD 4.0 billion |
| Growth Rate | CAGR of 17.4% |
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Market size available for years |
2019–2023 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million) |
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Segments covered |
By Type, By Application, By Vertical and By Region |
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Geographies covered |
Asia Pacific, Europe, North America and Rest of World |
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Companies covered |
The key players operating in the market KUKA AG (Germany), Berkshire Grey, Inc. (US), Locus Robotics (US), Exotec (France), Knightscope, Inc. (US), CYBERDYNE, Inc. (Japan), CAJA (Israel), Hirebotics (US), Cobalt Robotics (US), Relay Robotics (US), and inVia Robotics (US). |
Robotics as a Service Market Highlights
The study categorizes the robotics as a service based on By Type, By Application, By Vertical and By Region
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Subsegment |
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By Type: |
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By Application: |
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By Vertical: |
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Recent Developments in Robotics as a Serivce
- In November 2022, KUKA announced the launch of its new industrial robot, KR 3 D1200, designed for bearing loads of up to 6 kg. The robot can be used in the pharmaceuticals and food & beverage end-user industry as it contains food-safe H1 lubricants as standard, qualifying it for handling foodstuffs in secondary applications.
- In September 2022, Knightscope, Inc. launched its automatic criminal detection capability (ACDC) feature, a real-time and comprehensive criminal data intelligence solution, to help public safety officials better prepare for today’s threats by delivering real-time, hyper-local information for improved situational awareness.
- In May 2022, Berkshire Grey, Inc. launched BG Flex, a next-generation mobile robotic platform, including dynamically controlled fleets of Berkshire Grey’s industrial-grade mobile robots that work together to induct, transport, sort, sequence, and fulfill items, cases, and containers of merchandise.
Frequently Asked Questions (FAQ):
What is the current size of the robotics as a service market?
The global robotics as a service market is estimated to be valued at USD 1.8 billion in 2023 and reach USD 4.0 billion by 2028, at a CAGR of 17.4% between 2023 and 2028.
What is robotics as a service?
Robotics as a service is a subscription-style business model where robotics companies offer clients and customers the opportunity to rent robots across industries.
Robotics as a service operates in two business models:
- Time-based leases: With time-based robotics as a service models, customers lease a robot from a robotics company for a specific period.
- Task-based leases: With task-based robotics as a service models, customers lease a robot and pay the robotics company based on how many tasks the robot performs.
What are the challenges in the robotics as a service market ?
Interopratability and integration issues and safety concerns related to industrial robotic systems are some of the challenges faced by robotics as a service market.
What are the technological trends going in the robotics as a service market?
Integration of industrial robots and vision systems and penetration of industrial internet of things and AI in industrial manufacturing are some of the technological trends in robotics as a service market.
Which are the major companies in the robotics as a service market?
The key players in the robotics as a service market are KUKA AG (Germany), Berkshire Grey, Inc. (US), Locus Robotics (US), Exotec (France), Knightscope, Inc. (US).
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The study involved four major activities in estimating the size of the robotics as a service market. Exhaustive secondary research has been done to collect information on the market, peer market, and parent market. Validation of these findings, assumptions, and sizing with industry experts across the value chain through primary research has been the next step. Both top-down and bottom-up approaches have been employed to estimate the global market size. After that, market breakdown and data triangulation have been used to estimate the market sizes of segments and subsegments.
Secondary Research
Secondary sources that were referred to for this research study include corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; certified publications; articles from recognized authors; directories; and databases. Secondary data was collected and analyzed to arrive at the overall market size, further validated by primary research.
Primary Research
Extensive primary research was conducted after understanding and analyzing the robotics as a service market scenario through the secondary research process. Several primary interviews were conducted with key opinion leaders from both the demand- and supply-side vendors across four major regions—North America, Asia Pacific, Europe, and RoW (including the Middle East & Africa and South America).
After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Top-down and bottom-up approaches have been used to estimate and validate the overall robotics as a service market size and the various dependent submarkets. The key players involved in robotics as a service in the market have been identified through secondary research, and their market shares in the respective geographies have been determined through primary and secondary research. The research methodology includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives.
All the percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in detail, verified through primary research, and analyzed to derive the final quantitative and qualitative data. This data is consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Market Size Estimation Methodology-Bottom-up approach
The bottom-up approach was employed to arrive at the overall size of robotics as a service market from the subscriptions. Key players have been identified based on several parameters, such as product portfolio analysis, revenue, R&D expenditure, geographic presence, and recent activities.
Data Triangulation
After arriving at the overall market size from the market size estimation process explained above, the total market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, the market breakdown and data triangulation procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
The main objectives of this study are as follows:
- To define, describe, segment, and forecast the robotics as a service market in terms of value and based on application, vertical, and type (qualitative information)
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To forecast the market size of the various segments with respect to four main regions:
North America, Europe, Asia Pacific, and the Rest of the World (RoW) - To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market
- To profile the key players and their core competencies2 and provide the details of the competitive landscape for market leaders
- To analyze competitive developments such as joint ventures, collaborations, agreements, contracts, partnerships, mergers and acquisitions, product launches, and research and development (R&D) activities in the robotics as a service market.
Available Customizations:
MarketsandMarkets offers the following customizations for this market report:
- Further breakdown of the market in different regions to the country-level
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Robotics as a Service Market