Skip to main content

Worldwide Revenue for Robotics will Reach $230.7 Billion

New applications for robots are growing rapidly, as more industries adopt the technology. Worldwide purchases of robotics, including drones and robotics-related hardware, software and services, will total $97.2 billion in 2017 -- that's an increase of 17.9 percent over 2016, according to the latest market study by International Data Corporation (IDC).

IDC forecasts that overall robotics related spending will accelerate over a five-year period, reaching $230.7 billion in 2021 with a compound annual growth rate (CAGR) of 22.8 percent.

Robotics and AI Market Development

"The convergence of robotics and artificial intelligence or machine learning are driving the development of the next generation of intelligent robots for industrial, commercial, and consumer applications," said Dr. Jing Bing Zhang, research director at IDC.

Robots with innovative capabilities such as ease of use, self-diagnosis, zero downtime, learning and adaptation, and cognitive interaction are emerging, thereby driving wider adoption of robotics solutions to a wide variety of applications.

The Discrete Manufacturing and Process Manufacturing industries will continue to be the largest purchasers of robotics products and services with 2017 spending totals of $30.5 billion and $24.1 billion, respectively.

Combined, these two industries will account for more than half of all robotics spending throughout the forecast period. The Resource industries -- which include mining, oil & gas extraction, and agriculture -- will be the third largest robotics market in 2017 with global spending of nearly $9.0 billion.

The industries that will see the fastest spending growth over the 2016-2021 forecast period are Education (71.9 percent CAGR), Retail (51.3 percent CAGR), Construction (38.3 percent CAGR), Wholesale (37.2 percent CAGR), and Insurance (36.3 percent CAGR).

Technology advancements in mobile robots and collaborative robots are creating opportunities to deploy robots in new areas outside of the more traditional industrial manufacturing processes. The use cases that will capture the largest share of robotics spending are driven by their respective industries.

As the primary use case in the Discrete Manufacturing industry, assembly, welding and painting is forecast to receive nearly a quarter of all robotics spending worldwide throughout the forecast. Similarly, the primary use case in the Process Manufacturing industry (mixing) will capture more than 15 percent of all robotics spending.

Other robotics use cases that will drive spending include automated production – mining and pick and pack (Wholesale). The use cases that will see the fastest growth in robotics spending over the forecast period include break bulk (71.6 percent CAGR), educational assistance (68.3 percent CAGR), and delivery to customer (60.6 percent CAGR).

Outlook for Robotic Systems and Services

According to the IDC assessment, more than half of all robotics spending this year ($50.7 billion) and throughout the forecast will go to robotics systems, after-market robotics hardware, and systems hardware.

Services-related spending, which encompasses applications management, education & training, hardware deployment, systems integration, and consulting, will total more than $24 billion in 2017 while spending on command and control, specific robotics applications, and network infrastructure software will reach $15.2 billion.

Purchases of drones and after-market drone hardware will be nearly $7 billion this year and represent the two fastest growing categories of robotics spending throughout the forecast, followed by education and training.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno