Skip to main content

Robotics and Drone Revenues will Reach $201.3 Billion

Worldwide spending on robotics and drones solutions will reach $201.3 billion in 2022 and achieve a compound annual growth rate (CAGR) of 19.6 percent over the 2017-2022 forecast period, according to the latest market study by International Data Corporation (IDC).

Spending on robotics solutions is expected to total $86.6 billion in 2018 and will account for more than 85 percent of all spending throughout the five-year forecast. Industrial robotic solutions will account for the largest share of robotics spending (more than 57 percent), followed by service robots and consumer robots.

Discrete and process manufacturing will be the leading industries for robotics spending at more than $54 billion combined in 2018. The resource and healthcare industries will also make significant investments in robotics. That said, the retail and wholesale industries will see the fastest robotics spending growth over the forecast with CAGRs of 32.7 percent and 30.7 percent, respectively.

Robotics and Drone Market Development

"Collaborative robots are taking off in industrial applications, driven by customer demands for product quality, delivery, and mass customization," said Dr. Jing Bing Zhang, research director at IDC. "While being safe is the prerequisite for any collaborative robot, the market is already shaping the development of collaborative robots towards simplicity, smartness, and ease of redeployment."

Worldwide drone spending will be $9.3 billion in 2018 and is expected to grow at a faster rate than the overall market with a five-year CAGR of 32.1 percent. Enterprise drone solutions will deliver more than half of all drone spending throughout the forecast period with the balance coming from consumer drone solutions.

Enterprise drones will increase its share of overall spending with a five-year CAGR of 37.1 percent. The utilities and construction industries will see the largest drone spending in 2018 ($925 million and $808 million, respectively), followed by the process and discrete manufacturing industries. Key growth in drone spending will come from various industries including education (72.8 percent CAGR) and federal or central government (70.1 percent CAGR).

The use cases that will capture the largest share of robotics and drones spending are driven by their respective industries. As the primary use case in the Discrete Manufacturing industry for robotics, welding is forecast to receive over 15 percent of all robotics spending worldwide throughout the forecast. Other robotics use cases that will drive spending include assembly, painting, mixing, automated production in mining, and pick and pack.

The use cases that will see the fastest growth in robotics spending over the forecast period include break bulk (53.4 percent CAGR), shelf stocking (45.6 percent CAGR), and customer service (42 percent CAGR). For drones, the use cases that will see the fastest growth over the forecast period include dispensing pesticides and fertilizer (109.4 percent CAGR), emergency service (86.4 percent CAGR) and precision agriculture/crop scouting (86.1 percent CAGR).

More than half of all robotics spending this year ($58.1 billion) and throughout the forecast will go to robotics systems, after-market robotics hardware, and systems hardware.

Services-related spending, which encompasses application management, education & training, hardware deployment and support, systems integration, and others will total more than $16.7 billion in 2018 while spending on command and control, specific robotics applications, and network infrastructure software will reach $11.8 billion.

Purchases of drones and after-market drone hardware will be nearly $7.9 billion in 2018 while spending on command and control, specific drone applications, and network infrastructure software will reach $611 million.

The Outlook for Regional Market Growth

On a geographic basis, China will be the largest geographic market for robotics, delivering more than 30 percent of all robotics spending throughout the forecast, followed by the rest of the Asia-Pacific region (excluding China and Japan), the United States, and Japan.

The United States will be the largest geographic market for drone spending at $4.3 billion in 2018, followed by Western Europe and China. However, according to the IDC assessment, exceptionally strong spending growth in China (63.2 percent CAGR) will move this market ahead of the United States by 2022.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C