Robotics technology market skyrockets to $189 billion by 2027

Its common knowledge that whenever technological innovation occurs, it trickles down and morphs into other forms; while the creation of the telegraph occurred almost 200 years ago, the technology continued to shapeshift until it led to the inception of 5G.

Subsequently the fifth generation of mobile networks has brought with it a plethora of new technologies, while accelerating new ones; robotics is considered to be one of the main aspects that will be much more developed as time passes on, and its market is growing even larger.

According to a recent report by Allied Market Research, the global robotics technology market generated $62.75 billion in 2019 and is expected to reach $189.36 bill1ion by 2027, growing at a CAGR of 13.5 percent from 2020 to 2027.

“Cobots is expected to experience significant growth in the coming years, owing to its growing adoption in SMEs for performing tasks that require higher payload capacity,” Pramod Borasi, Research Analyst, ICT at Allied Market Research, highlighted.

Among the pioneers of this industry are Asia-Pacific (APAC), whose market dominated with the largest revenue share in 2019. The same region would also grow at the fastest CAGR throughout the forecast period due to a surge in growth in automation and intensive research and development in several countries including Japan, China, India, Australia, and Taiwan fuels the market growth.

COVID-19 and Robotics Technology Market

The outbreak of the pandemic led to increase in adoption of robotics technology in several industry verticals to reduce the impact of the virus on human workers.

“This trend is likely to continue even in the coming years after the recovery from the COVID-19 pandemic,” the report noted.

The global robotics technology market is analyzed across component, robot type, application, and region. Based on components, the hardware segment accounted for the major market share in 2019 and is projected to dominate by 2027.

“This is due to the fact that hardware components are cheaper than software modules and are also faster to set up,” the authors said.

Simultaneously, the service segment would manifest the fastest CAGR during the forecast period. Increase in demand for different services such as managed services and professional services fuel the segment growth.

Based on application, the manufacturing segment contributed to the highest market revenue in 2019 and is expected to lead the trail by 2027.

“This is due to high labor costs, new safety regulations, and stringent emission norms issued by several government bodies,” the report added.

Meanwhile, the aerospace & defense segment, on the other hand, would cite the fastest CAGR throughout the forecast period. Increased rate of unmanned systems, high-end technological advancement, and rise in government expenditure propel the growth of the segment.