Robotics as a Service Market Size, Share & Industry Trends Analysis

Updated on : Oct 04, 2024

Factors such as rising demand for COBOTS; anticipated labour shortage in manufacturing industries; growing adoption of robotics-as-a-service market growth. The emergence of Industry 5.0 and data-driven process improvement are a few of the market opportunities that lie ahead for market players. However, challenges such as interoperability & integration issues, and safety concerns related to industrial robotic systems still need to addressed in the market.

Robotics as a Service Market Size & Share

The global robotics-as-a-service market Size is expected to be valued at USD 1.8 billion in 2023 and is projected to reach USD 4.0 billion by 2028; growing at a CAGR of 17.4% during the forecast period.

Robotics as a service (RaaS) is a business model in which robotics companies offer the use of their robot devices via a subscription-based contract. The benefits of the RaaS model over the traditional robotic program, such as higher flexibility, scalability, and lower cost of entry, are the key factors driving the robotics as a service industry.

Robotics as a Service Market Forecast to 2028

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Robotics as a Service Market Trends

Driver: Anticipated skilled labor shortage in manufacturing industries

As a result of increasing labor costs and limited availability of labor, robotics as a service has been deemed to be the future of automation as robotics as a service has the ability to scale as needs change, operators can now take control of their business and deliver high levels of productivity and throughput today, as well as in the future, with the ability to gain control over their business as needs change, thus driving the market growth. Manufacturing industries in the developed nations like US, Germany, have experienced tremendous growth over the past decade; however, they are expected to face a workforce shortage within the next few years. To compensate for the shortage, stakeholders find solutions in RaaS; thus improving productivity and substituting human labor.

Restraint: Lack of interaction between robots and the human workforce

Hiring professionals; expert engineers and programmers from overseas for robotic installations is a time taking task. The limited interaction between unskilled labor and robots acts a restraint in market hindering market growth. The complexity of challenging regular tasks requires robotics systems with the temporal, spatial, physical, and social understanding that a broad range of methodologies and tools can best address.

Opportunity: Emergence of Industry 5.0

Industry 5.0 provides a vision of a sector that aims beyond efficiency and productivity as the sole goals and reinforces the role and contribution of industry to society. It places the worker's well-being at the center of the production process. It uses new technologies to provide prosperity beyond jobs and growth while respecting the production limits of the planet. Industry 5.0 complements the Industry 4.0 approach by specifically putting research and innovation at the service of the transition to a sustainable, human-centric, and resilient European sector.

Challenge: Safety concerns related to industrial robotics systems

Numerous safety issues are associated with industrial robots. Some robots, notably those in a traditional industrial environment, are fast and powerful. This increases the potential for injury as one swing from a robotic arm, for instance, could cause serious bodily harm. There are additional risks when a robot malfunctions or requires maintenance. A malfunctioning robot is typically unpredictable and can cause injury to workers, acting as a challenge for RaaS market growth.

Robotics As A Service Market Ecosystem

This section describes robotics as a service market ecosystem, describes the applications of robotics in different industries and sectors, and discusses the impact of emerging technologies on the market.

Assembling & disassembling by application to hold second-highest market share during the forecast period

Robots for assembling & disassembling applications are deployed to ensure quality and consistency in manufacturing. The robotic assembly process requires speed and precision without compromising on accuracy. Use cases can include assembling automotive components such as engines gearboxes, and complex operations such as clutch plate assembly. These robots can also assemble small and intricate consumer electronics and medical device parts.

Logistics by vertical to dominate market growth during forecast period

Robotics as a service has seen growth in the logistics industry. The logistics vertical holds the largest market share of RaaS in 2022 owing to the increased adoption rate of RaaS in logistics for tasks such as handling and dispensing. Warehouses have become smarter, with implementation of autonomous forklifts, mobile robots, and picking robots, to achieve efficiency in operations. Renting and leasing options by many robot suppliers support warehouse transformation by offering flexible pricing options through robotics as a service.

Europe to hold second-highest market share and CAGR during forecast period

In 2022, the European market accounted for the second-largest market share. RaaS in Europe is incorporated mostly in SMEs. Germany being the largest market for industrial robotics in the region. The automotive industry witnesses the introduction of RaaS with the introduction of hybrid and electric vehicles. European SMEs are increasingly considering deploying robotics to perform messy and dangerous jobs. Polishing tasks, for example, are done by collaborative robots, with workers performing the final inspection. SMEs grow at a rapid pace compared to large-scale enterprises. Thus, considerable growth is expected in the European market for robotics as a service during the forecast period.

Robotics as a Service Market by Region

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Key Market Players

The key players in the RaaS companies include 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

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

Recent Developments in Robotics as a Service Industry

• 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.

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