Rising integration of IoT in robots for cost-efficient predictive maintenance is one of the drivers for the Smart Robot Market, which is expected to grow rapidly the coming years. According to a report by Research and Markets the global Smart Robots Market is expected to grow from USD 6.1 Billion in 2020 to USD 23.0 Billion by 2025.
Predictive maintenance is forecasting potential issues before they happen. An IoT-based solution allows storing terabytes of data and running machine learning algorithms on several computers parallel to forecast potential hazards and pinpoint when industrial equipment is likely to fail, thereby assisting in predictive maintenance. Robots are increasingly being adopted for new applications due to various advantages such as increased productivity, streamlined processes, and greater workplace safety.
The main advantage of using robots is the reduction in the cost of operations and high ROI. One of the restraints for this market is data privacy concerns and stringent regulations. There are ethical issues concerning the ownership of data, especially with the rise of software services for robots. With the increase of domestic robots for household chores, education, and entertainment, the private information of individuals is available on the cloud. This data can often be purchased by third parties such as marketing agencies, and the privacy of individuals can be infringed upon.
Market for software is expected to grow at the highest CAGR
The smart robots software market is expected to grow at a higher CAGR during the forecast period. To facilitate inter-device connectivity, autonomous operations and to integrate advanced technologies such as AI, robotic systems are increasingly becoming more complex. Software is a critical component of a robotic system as it assists in processing complex functionalities efficiently and accurately. Thus, the software segment is likely to grow at a higher CAGR in the overall smart robots market during the forecast period. Due to the COVID-19 outbreak, hardware companies have suffered more due to a decrease in demand for robots. On the other hand, software companies are a little less affected due to the facility of remote working.
Service robots to hold a larger share of smart robots market in 2020
Service robots hold a larger share of smart robots market in 2020. Smart technology has mostly been implemented on collaborative robots and mobile robots, among various industrial robots. According to analysis, collaborative robots constituted only ~4% of the industrial robot market in 2019. Other industrial robots are yet to be introduced to smart technologies. The high cost of smart technology for industrial robots is slowing the process of penetration. Meanwhile, most of the service robots are integrated with smart technology like AI to enable various features such as facial recognition and taking adequate actions based on previous experience.
In 2020, North America to hold the largest share of smart robots market
The region is an early adopter of smart robots for all major industrial and service applications; thus, it generates maximum demand for robots. North America is home to a number of industry players, which provides it unprecedented leverage over other regions. According to the International Federation of Robotics (IFR), in 2017, out of 700 registered manufacturers of service robots, 240 were located in North America.
In addition, North America has witnessed the emergence of several startups in the region who are coming up with disruptive technologies. As per IFR, in 2017, about 200 startup companies were working on new service robots in the US. North America and Europe regions are expected to be the most affected during the COVID-19 pandemic, although most regions are negatively impacted. Due to globalization, the economy of one region is impacting the economy of other regions. For instance, conditions in the US are negatively affecting the IT industry in India and other countries.