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- What’s Driving the Growth of the Global Robotics Market?
- The Investment Paradigm in Robotics
- Wrapping-Up: Capital Flows & Robotics
2 min to read
Advancements in robotic technologies are changing the status quo in nearly every industry around the world and power what many call the next technological revolution.
The global robotics sector worldwide is witnessing significant revenue growth with the potential to surpass $46 billion in 2024.[1] Service robotics, in particular, dominate the anticipated market volume in the United States, China, Germany, South Korea, and Japan.
With expectations of a steady annual growth rate and CAGR of 9.94% for the next four years, the global robotics market sector is forecasted to reach over $67 billion by 2028.[1]
What’s Driving the Growth of the Global Robotics Market?
In terms of global comparison, the United States is likely to generate the highest revenue in the robotics market, with an expected income generation of nearly $8 billion in 2024.[1]
Worldwide, governments and the private sector alike are increasing investment in robotics initiatives and development, striving to enhance productivity and efficiency across critical industries. The growth trajectory of the global robotics market is far from haphazard— its growing momentum is rooted in a variety of influential trends and technological advancements that are in its infancy.
Key among these influences is the development of the Industrial Internet of Things (IIoT), mobile autonomous robots, collaborative robots and open-source software. The global market for the IIoT, for instance, was approximately $544 billion dollars [2] in 2022 and is expected to grow to an incredible $3.3 trillion by 2030, alongside increased integration and specialization.
The anticipated demand for autonomous mobile robots is on track to reach over $13 billion by 2030, marking a substantial growth from its market size of under $4 billion in 2022.[2]
Moreover, trending topics such as 5G, edge computing, and smart mobility exert significant influence on the robotics industry, propelling the market forward with its transformative capabilities. And let's not forget just how pivotal artificial intelligence (AI) stands in catalyzing further innovation in robotics automation—lending a significant boost to programming and engineering alike.
The Investment Paradigm in Robotics
The Hollywood-inspired concept of "robots everywhere" may instill a sense of unease reminiscent of dystopian science fiction tales, especially for those concerned about its potential impact on job security for humans. However, many manufacturing powerhouses have already implemented advanced systems robots in their facilities.
The rising adoption of robotics has yielded significant advantages for consumers and businesses alike—as reflected in modern factory settings. Their popularity and increased utility in manufacturing is driven by mechanical automation, which lowers production costs while boosting operational efficiency.
As automation becomes an increasingly critical technology across global industries, demand for robotics is surging, particularly in the United States and Europe, along with its range of capabilities.
This sustained demand is expected to maintain the price increase per robot unit to a relatively modest level, showcasing the enduring value and lucrative opportunities automation provides in various industries.
Wrapping-Up: Capital Flows & Robotics
As businesses recognize the transformative impact of automation in streamlining operations and securing a competitive edge, investments in the robotics sector are poised to soar alongside the industry's expanded utility.[3]
The escalated demand for products from industry leaders such as NVIDIA, which are at the forefront of powering robotics and AI innovations, is receiving accelerated interest from investors, thereby propelling global stock markets to record highs.
Moreover, advancements in robotics technology, such as further AI integration and enhanced sensor capabilities, continually widen the scope of applications and increase the potential for innovation. As the market continues to grow and mature, investors are potentially poised to witness sustained momentum and attractive opportunities for capital growth in this burgeoning industry.
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