Smart Robot Market Size

Increased adoption of smart robots in industries is driving the market growth

In the upcoming years, the market for smart robots is expected to expand due to the growing use of these machines in many industries. Smart robots use smart sensor technologies (such as ultrasonic, light, and touch sensors) to connect with the physical environment around them. Smart robots are a combination of cutting-edge technology with effective hardware. Modern robots are used in industrial processes in Industry 4.0, frequently operating continuously without human supervision. According to the International Federation of Robotics' (IFR) most recent World Robotics 2020 study, around 2.7 million industrial robots are now employed globally, an increase of 12%.

Additionally, the International Federation of Robotics (IFR), a nonprofit organization headquartered in Germany, said that in June 2021, robot installations in Europe increased by 15% and reached 78,000 units. Therefore, the market for smart robots is growing as a result of the rising use of these machines in many industries.

However, there is a labor shortage in a number of nations worldwide. In many industrialized economies, there is a negative growth in the labor force due to declining birth rates and an aging population. In contrast, the need for labor has increased in developing areas due to rapid expansion. Nevertheless, the demographic peak is likely to reach its ultimate stage in many emerging economies. Europe is expected to be badly impacted by a labor shortage, according to the databases of the UN Population Division and ILO LABORSTA.

Due to its adaptability, cost, and efficiency, robotics is a well-liked form of automation. Robots have found use throughout the supply chain, from pick and pack to sorting and transportation. Robots also eliminate the need for insurance and benefits and can cut down on the price of seasonal and temporary staffing, overtime pay, and skill development. Additionally, robotic automation returns on investment are frequently reached in less than two years. Smart robots are increasingly being used in various industries because of the labor crisis in many areas and their financial benefits.

Furthermore, agriculture is currently one of many sectors where smart robots are employed, and this is a crucial trend that is growing in popularity in the market for smart robots. Businesses in the smart robots sector are concentrating on creating intelligent machines that may be utilized in agriculture. For instance, Farmwise, a robotics business based in the US, is developing autonomous agricultural robots in 2020 to give farmers more harvests, more revenue, and a healthier environment. The business starts with a high-tech weeding robot that can effectively collect weeds from farms, lowering or eliminating the need for chemical pesticides.

The robots have successfully removed weeds from over 10 million plants, claims FarmWise. Thus, driving the smart robot market revenue.

The Global Smart Robot Market Industry is significantly influenced by ongoing labor shortages in various sectors. As the workforce ages and fewer individuals enter skilled labor roles, companies are turning to smart robots to fill the gap. In agriculture, for instance, robots are increasingly used for planting and harvesting, addressing labor shortages while maintaining productivity levels. This shift not only mitigates the impact of labor shortages but also enhances operational efficiency. Consequently, the market is anticipated to grow substantially, reaching 33.3 USD Billion by 2035, as organizations invest in robotic solutions to sustain their operations.

The Global Smart Robot Market Industry is experiencing rapid growth due to continuous technological advancements. Innovations in artificial intelligence, machine learning, and sensor technologies are enhancing the capabilities of smart robots. These advancements enable robots to perform complex tasks with greater efficiency and accuracy. For instance, in manufacturing, robots equipped with advanced vision systems can identify defects in real-time, reducing waste and improving quality. As a result, the market is projected to reach 4.53 USD Billion in 2024, indicating a strong demand for smarter, more capable robots across various sectors.

The Global Smart Robot Market Industry is driven by the rising demand for automation across multiple sectors. Industries such as manufacturing, healthcare, and logistics are increasingly adopting smart robots to streamline operations and enhance productivity. For example, in warehouses, autonomous robots are utilized for inventory management, significantly reducing labor costs and improving efficiency. This trend is expected to contribute to a compound annual growth rate of 19.88% from 2025 to 2035, as businesses seek to leverage automation to remain competitive in a rapidly evolving market.

The Global Smart Robot Market Industry is also shaped by rising consumer expectations for efficiency and service quality. As consumers demand faster and more personalized services, businesses are integrating smart robots to meet these expectations. In the retail sector, for example, robots are deployed for customer service and inventory management, enhancing the shopping experience. This trend is likely to drive market growth as companies recognize the need to adopt innovative solutions to satisfy consumer demands. The increasing integration of smart robots in various industries reflects a broader commitment to improving service delivery and operational efficiency.

The Global Smart Robot Market Industry is bolstered by supportive government initiatives and funding aimed at promoting robotics and automation. Governments worldwide are investing in research and development to foster innovation in smart robotics. For instance, various countries have established grants and incentives for companies developing robotic technologies. These initiatives not only stimulate growth in the market but also encourage collaboration between public and private sectors. As a result, the market is likely to witness accelerated growth, driven by increased investment in smart robotics and automation technologies.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the smart robot market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, smart robot industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the smart robot industry to benefit clients and increase the market sector. In recent years, the smart robot industry has offered some of the most significant advantages to market. Major players in the smart robot market attempting to increase market demand by investing in research and development operations include Honda Motor (Japan), iRobot Corporation (US), Seiko Epson Corporation (Japan), GreyOrange Pte Ltd (Singapore), Rethink Robotics (US), KUKA AG (Germany), F&P Personal Robotics (Switzerland), SoftBank Robotics (Japan), Yaskawa Electric Corporation (Japan) and FANUC (Japan).

Factory automation and industrial robots are two business specialties of Fanuc Corp. The company creates, manufactures, and markets computer numerical control (CNC) systems, lasers, robotics, and factory automation solutions. The business provides a wide selection of robot models with various payloads for aerospace, automotive, alternative energy, consumer goods, education, food, pharmaceuticals, medical devices, and other industries. Fanuc distributes its goods via a network of branch offices, central technical centers, and international group companies. In August 2020, a cooperation between FANUC and Deep Learning Robotics Ltd., a pioneer in autonomous robotic learning, was formed.

The collaboration aimed to provide compatibility between the industrial robots made by FANUC and DLR's Smart Robot Learning Technology.

Manufacturing servos, motion controllers, switches, AC motor drives, and industrial robots are all products of the Japanese company Yaskawa Electric Corporation. Their Motoman robots are robust industrial machines for welding, packaging, assembly, painting, cutting, material handling, and general automation. The company's head office is in Kitakyushu, Fukuoka Prefecture, established in 1915. In September 2020, a contract was struck by Yaskawa and Phoenix Contact, a provider of industrial automation, connectivity, and interface solutions.

According to this contract, Yaskawa will lead the development of the i3-Mechatronics solution, which will leverage PLCnext Technology from Phoenix Contact as the basis for the next-generation machine controller and PLC.