Global Cloud Robotics Market - Segmented by Type (Industrial Robot, Service Robot), End-user, and Region - Growth, Trends, and Forecast (2018 - 2023)
The Cloud robotics market was valued at USD 2.43 billion in 2017 and is expected to register a CAGR of 27% during the forecast period (2018 - 2023), to reach USD 10.16 billion by 2023. Cloud robotics is based on a model where remote computing resources enable higher memory, computational power, collective learning, and interconnectivity for robotics application. It can be classified as hardware, software, and services. The scope of our study is geographically limited to North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Cloud robotics are becoming increasingly popular as cloud-based artificial intelligence (AI) progresses and robotics get increasingly competent. Features of cloud robotics in comparison to stand-alone ones are expected to manifest themselves in a variety of industries ranging from logistics, monitoring, entertainment, and education, to the tasks involved in housekeeping. It enhances the functionality of simple robots by relying on the clouds computing as an extra source of memory and processing. Hence, employing the physical features of the usual robots in addition to the exceptional virtual innovations of cloud computing results in smarter robots, with great tolerance to possible intelligent adjustments. The growing adoption of robots across end-users, especially in the manufacturing segment, is expected to drive the market. Moreover, rising penetration of cloud computing is further fueling the cloud robotics market growth. However, privacy and security related issues regarding cloud platforms can hinder the growth of the market.
Rising Demand for Industrial Robotics to Augment the Market Growth
Industrial robotics have been witnessing huge demand over the past decade, owing to the adoption of smart factory systems. Growing penetration of the IoT and investments in robotics have been the major contributors to the growth of industrial robotics. Increased workplace safety and enhanced production capabilities have further driven industries to invest in robotic systems. Besides, the market is further expanding into new territories, with small-and medium-sized industries adopting industrial automation, thereby creating demand. Also, the availability of small-capacity and cost-effective solutions from major players is enabling further penetration. Apart from this, connecting robots, machines, and automation equipment to the cloud could allow manufacturers to unlock the highest levels of performance and uptime from their automation systems.
Asia Pacific is the Fastest Growing Region
The market in the region is driven by the growing penetration of cloud computing coupled with the incorporation of robotics and automation in the end-users. China is one of the biggest markets for robotics in the world. According to the IFR, 30% of the total supply of industrial robots in 2016 were installed in China. Furthermore, retail/e-commerce in the country is another great source of demand for the robotics. The country’s 413.3 million e-shoppers lead a turnover of USD 681.9 billion in B2C e-commerce sector of the country in 2017, indicating a 19.6% growth when compared to 2016. Besides, In India, the interest in the cloud is being driven by the increasing need for business innovation and agility, the ability to scale fast in a competitive market, and the government’s thrust towards Digital India initiative.
Key Developments in the Market