Robotics as a Service Market Size, Share, Opportunities, And Trends By Type (Personal, Professional), By Application (Handling, Processing, Dispensing, Welding & Soldering, Others), By Industry Vertical (Logistics, Manufacturing, Automotive, Food & Beverages, Retail, Others), And By Geography - Forecasts From 2023 To 2028

The robotics as a service (RaaS) market is expected to grow at a CAGR of 13.92% from US$1.299 billion in 2021 to US$3.236 billion in 2028.

RaaS refers to subscription-based access to robotic solutions and services. This innovative approach eliminates the need for significant upfront investments, allowing businesses to leverage advanced automation technologies and realize improvements in efficiency and productivity. The RaaS market encompasses diverse industries, including manufacturing, healthcare, logistics, agriculture, retail, hospitality, and construction. Several drivers fuel the growth of the RaaS market. These include its cost-effectiveness, scalability, continuous technological advancements, the mitigation of labor shortages, and expedited time-to-market. Notable players include industry leaders such as Boston Dynamics, Fetch Robotics, ABB Ltd., and Universal Robots.

Nevertheless, the RaaS market presents abundant opportunities for businesses to harness the potential of robotics without significant upfront costs. It empowers them to adapt to evolving operational needs, enhance efficiency, and gain a competitive edge. By embracing RaaS solutions, businesses can access cutting-edge robotics technology while concentrating on their core operations, thus optimizing their resource allocation and driving RaaS market growth.

Growing technological advancements and labor shortage.

The RaaS model addresses labor shortages and workforce challenges faced by businesses. With increasing difficulties in finding skilled labor, robots can be deployed to automate repetitive and labor-intensive tasks. RaaS allows companies to augment their workforce with robots, alleviating the strain on human resources and enhancing overall operational efficiency.

Furthermore, the ongoing advancements in robotics technology, including improved capabilities, increased autonomy, and enhanced artificial intelligence, are driving the demand for RaaS. Businesses are keen to leverage the latest technologies to gain a competitive edge and stay at the forefront of innovation within their industries. RaaS enables companies to access cutting-edge robotics technology without heavy upfront investments, stimulating demand in the market.

Processing is among the key applications.

Industries such as automotive, electronics, pharmaceuticals, and food and beverage are increasingly adopting robotic systems for processing tasks. RaaS offers cost-effective solutions, enabling businesses to access advanced robotics without large upfront investments. Improved efficiency, flexibility, and scalability contribute to market expansion. Technological advancements in AI and machine learning enhance processing capabilities. RaaS in processing provides a competitive advantage, boosting productivity, quality control, and meeting customer demands.

High cost remains a key challenge. 

A significant challenge to the growth of this industry relates to the need for an immense amount of programming and training to be provided to robots to perform the necessary tasks. This involves hiring technically skilled programmers and other engineers to ensure that the robots are properly trained and installed to carry out the tasks. Additionally, the robots will need to be upgraded or replaced occasionally as new software or upgraded robots are launched in the market. All these activities translate into significant costs for the organization, making it unaffordable for several small and medium-scale units to use robotics as a service.

Another challenge relates to the complexities of properly equipping the robots to handle real-world tasks, requiring programming of physical, spatial, social, and temporal understanding in the robotic systems. Similarly, the programming customization needed will also differ from industry to industry, business to business, and sometimes from product to product within the same business operation. This increases the difficulty of properly implementing robotics as a service and adds to the operation's high overall costs.

Market Developments:

• In April 2020, Berkshire Grey, a robotics and AI company, introduced Robots as a Service (RaaS) implementation options for its retail and e-commerce fulfillment automation solutions. This RaaS solution allows retailers and eTailers to deploy robotic solutions without upfront capital expenditures, enabling them to adapt to current demand and future surges. Berkshire Grey's automated solutions address various supply chain challenges, such as store replenishment, pick and put operations, and parcel sortation.
• In March 2023, Supply chain specialist Körber launched a Robotics-as-a-Service (RaaS) program, enabling customers to access a network of robotics service partners. The offering allows customers to purchase robots on a subscription basis, reducing upfront costs and deployment time. Körber's RaaS aims to address challenges related to labor, safety, and fulfillment efficiency. By leveraging autonomous mobile robots (AMRs), the program offers scalable fulfillment operations and easier access to heterogeneous AMR fleets.
• In December 2022, ARO, a robotics service provider, launched a Robots-as-a-Service (RaaS) partnership program to assist robotics OEMs in adopting the RaaS business model while remaining hardware manufacturers. ARO owns the fleet of robots and offers extended warranties, device upgrades, customer success programs, and operational support, allowing OEMs to focus on hardware development while benefiting from the RaaS model. The program aims to lower barriers to adoption, preserve capital, increase sales, and enhance customer success and device utilization for OEMs utilizing RaaS.

Positive growth in the logistics vertical.

The robotics as a service market can be segmented into the following industry verticals: Logistics, Manufacturing, Automotive, Food & Beverage, Retail, and Others. Of these several verticals, the logistics vertical is expected to experience significant growth owing to the widespread usage of robotic systems in dispensing and handling operations. Warehouses are increasingly adopting robotics as a service to become smarter and more efficient in their workings, with autonomous forklifts, picking robots, etc., being used by warehouse operators for the smooth functioning of operations.

North America accounted for a significant share of the global robotics as a service market.

Based on geography, the robotics as a service market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific. The North America RaaS market demonstrates promising potential. The region's advanced manufacturing infrastructure, diverse industry adoption, and favorable regulatory environment contribute to market growth. Technological advancements and innovation in robotics further drive RaaS adoption. The cost-effectiveness and flexibility of RaaS models make them attractive, particularly for small and medium-sized enterprises (SMEs).

North America's strong ecosystem of service providers offers expertise in deploying and maintaining robotic systems. Government support through funding, incentives, and regulations stimulates market expansion. Focusing on collaborative and autonomous robots in various industries enhances safety and productivity.

Robotics as a Service Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$1.299 billion
Market Size Value in 2028	US$3.236 billion
Growth Rate	CAGR of 13.92% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Type, Application, Industry Vertical, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	KUKA AG, Berkshire Grey, Inc., Locus Robotics, Exotec, Knightscope, Inc., CYBERDYNE, Inc, CAJA, Hirebotics, Cobalt Robotics, Relay Robotics, inVia Robotics
Customization Scope	Free report customization with purchase

 

Market Segmentation:

• BY TYPE
  • Personal
  • Professional
• BY APPLICATION
  • Handling
  • Processing
  • Dispensing
  • Welding & Soldering
  • Others
• BY INDUSTRY VERTICAL
  • Transportation and Logistics
  • Manufacturing
  • Automotive
  • Food & Beverage
  • Retail
  • Others
• BY GEOGRAPHY
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East And Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. ROBOTICS AS A SERVICE MARKET BY TYPE

5.1. Introduction

5.2. Personal

5.3. Professional 

6. ROBOTICS AS A SERVICE MARKET BY APPLICATION

6.1. Introduction

6.2. Handling

6.3. Processing

6.4. Dispensing

6.5. Welding & Soldering

6.6. Others

7. ROBOTICS AS A SERVICE MARKET BY INDUSTRY VERTICAL

7.1. Introduction

7.2. Transportation and Logistics

7.3. Manufacturing

7.4. Automotive

7.5. Food & Beverage

7.6. Retail

7.7. Others

8. ROBOTICS AS A SERVICE MARKET BY GEOGRAPHY

8.1. Introduction 

8.2. North America

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. Germany

8.4.2. France

8.4.3. United Kingdom

8.4.4. Spain

8.4.5. Others

8.5. Middle East And Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Israel

8.5.4. Others

8.6. Asia Pacific

8.6.1. China

8.6.2. Japan

8.6.3. India

8.6.4. South Korea

8.6.5. Indonesia

8.6.6. Taiwan

8.6.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix

10. COMPANY PROFILES

10.1. KUKA AG 

10.2. Berkshire Grey, Inc. 

10.3. Locus Robotics 

10.4. Exotec

10.5. Knightscope, Inc. 

10.6. CYBERDYNE, Inc

10.7. CAJA 

10.8. Hirebotics 

10.9. Cobalt Robotics 

10.10. Relay Robotics 

10.11. inVia Robotics

KUKA AG

Berkshire Grey, Inc.

Locus Robotics

Exotec

Knightscope, Inc.

CYBERDYNE, Inc

CAJA

Hirebotics

Cobalt Robotics

Relay Robotics

inVia Robotics