Global AI in Robotics Market By Offering (Software, Hardware), By Robot Type (Service Robot, Industrial Robot), By Technology (Machine Learning, NLP, Computer Vision, Context Awareness), By End-use Industry (Automotive, Retail & E-commerce, Healthcare, Food & Beverage, Military & Defense, Other End-user Industries), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global AI in Robotics Market size is expected to be worth around USD 146.8 Billion by 2033, from USD 12.3 Billion in 2023, growing at a CAGR of 28.12% during the forecast period from 2024 to 2033.

AI has revolutionized the field of robotics, bringing about significant advancements in automation and intelligent machines. The integration of AI technology in robotics has led to more efficient and capable robots, enhancing their ability to perform complex tasks and interact with the environment.

The AI in robotics market is witnessing substantial growth due to several key factors. One of the primary growth drivers is the increasing demand for automation across various industries. AI-powered robots can perform repetitive and labor-intensive tasks with precision and consistency, leading to improved productivity and cost savings. Industries such as manufacturing, logistics, healthcare, and agriculture are adopting AI robots to streamline operations and enhance efficiency.

Furthermore, advancements in machine learning algorithms and computer vision have greatly improved the perception and decision-making capabilities of robots. AI enables robots to analyze and interpret sensory data, adapt to changing environments, and learn from experience. This enables them to perform complex tasks, navigate obstacles, and interact with humans and objects in a more intuitive and natural manner.

Despite the significant growth potential, the AI in robotics market also faces certain challenges. One of the major challenges is the ethical and societal implications of AI-powered robots. As robots become more intelligent and autonomous, concerns arise regarding job displacement, privacy, and safety. Striking a balance between the benefits of automation and addressing these ethical concerns is essential for the wider acceptance and adoption of AI in robotics.

According to the 2021 reports from the International Federation of Robotics, around 3 million industrial robots were operational globally in 2020. This substantial figure underscores the significant role that robotics plays in modern industrial processes. Looking ahead, the adoption of industrial robots is projected to continue its upward trajectory, with approximately 518,000 new industrial robots expected to be deployed in 2024.

As of 2021, iRobot Corporation has achieved significant market penetration, with sales surpassing 40 million artificial intelligence robotic systems globally. This impressive figure is largely driven by the popularity of its flagship products, the Roomba robotic vacuum and the Braava robotic mop. Both devices leverage iRobot’s AI-powered platform, iRobot Genius Home Intelligence, which enhances their functionality and user interaction.

The financial success of iRobot is further highlighted by its recent quarterly earnings report. In the fourth quarter of 2023, mid-tier and premium robots represented a substantial 83% of total robot sales. This trend underscores a strong consumer preference for higher-end models, which typically offer more advanced features and capabilities.

Key Takeaways

• The global AI in Robotics Market is estimated to grow from USD 12.3 billion in 2023 to a staggering USD 146.8 billion by 2033, exhibiting a robust CAGR of 28.12% throughout the forecast period.
• In 2023, the Hardware segment held a dominant market position in the AI in robotics sector, capturing more than a 65% share.
• In 2023, the Industrial Robot segment held a dominant market position, capturing over 78% share. Industrial robots, equipped with AI, are vital in sectors like automotive, electronics, and heavy machinery, driving efficiency and productivity.
• Machine Learning emerged as the leading technology segment in 2023, capturing over 45% share. Its widespread application enhances robots’ adaptability, precision, and efficiency across industries like manufacturing and healthcare.
• The Automotive segment held a dominant market position in 2023, capturing over 24% share. Automotive manufacturers deploy AI-driven robots for tasks like welding, painting, and assembly, enhancing precision and production speed.
• North America led the AI in Robotics market in 2023, capturing over 41% share. The region’s robust technological infrastructure, coupled with government support and venture capital presence, drives innovation and market growth.

Offering Analysis

In 2023, the Hardware segment held a dominant market position in the AI in robotics sector, capturing more than a 65% share. This significant market share can be attributed to several pivotal factors. Firstly, the surge in demand for intelligent and automated systems across various industries, including manufacturing, healthcare, and automotive, has driven substantial investments in robotics hardware. These hardware components, such as sensors, actuators, and robotic arms, are essential for the physical construction and operation of robots, making them a fundamental expenditure for companies venturing into robotics.

Moreover, the advancements in technologies such as machine learning algorithms, computer vision, and motion control systems have necessitated sophisticated hardware that can support these complex functionalities. This need for high-performance computing hardware and durable robotic components ensures that the hardware segment not only maintains its lead but also continues to expand as the capabilities of AI-driven robotics evolve.

As industries push for higher efficiency and precision, the reliance on advanced hardware that can seamlessly integrate with AI software is expected to grow, further cementing the hardware segment’s leading position in the market. Additionally, the development of AI in robotics is heavily reliant on the continuous improvement and integration of hardware technologies.

Innovations in materials science, for example, allow for lighter, more efficient robots, while improvements in electronic components like microprocessors and GPUs enhance the robots’ abilities to process data and perform complex tasks. This synergy between hardware advancements and AI capabilities is essential for the progression of robotics, making the hardware segment not only a market leader but also a critical driver of innovation and growth in the field of AI-driven robotics.

Robot Type Analysis

In 2023, the Industrial Robot segment held a dominant market position within the AI in robotics sector, capturing more than a 78% share. This dominance is largely driven by the extensive deployment of industrial robots in manufacturing environments where precision, efficiency, and productivity are paramount.

Industries such as automotive, electronics, and heavy machinery have increasingly integrated industrial robots to automate complex assembly lines and processes. This shift not only helps reduce human error and increases production speeds but also significantly cuts down on costs associated with labor and workplace injuries. The leading position of the Industrial Robot segment is further bolstered by advancements in AI technologies, which have dramatically enhanced the capabilities of these robots.

Modern industrial robots are equipped with AI-driven vision systems, enhanced decision-making capabilities, and adaptive learning technologies, allowing them to perform tasks ranging from intricate component assembly to quality inspection with high precision. This ability to adapt and learn from real-time feedback makes industrial robots invaluable assets in settings that demand high levels of accuracy and consistency.

Moreover, the push towards smart manufacturing and Industry 4.0 has created a surge in demand for robots that can seamlessly communicate with other machines and systems within interconnected factories. Industrial robots, equipped with AI, play a crucial role in these environments, facilitating automated and optimized production processes. With industries increasingly leaning towards automation to gain a competitive edge, the industrial robot segment is expected to maintain its leadership through continuous innovation and integration of the latest AI technologies.

Technology Analysis

In 2023, the Machine Learning segment held a dominant position in the AI in robotics market, capturing more than a 45% share. This leading segment has been propelled by its widespread application across various robotic functions including motion control, navigation, and task automation.

Machine learning algorithms are crucial for enabling robots to process and interpret vast amounts of data, learn from their environments, and make autonomous decisions, which enhances their efficiency and effectiveness in industries such as manufacturing, healthcare, and logistics.

Machine learning’s dominance in the market is further bolstered by its role in improving the adaptability and precision of robots. For instance, in manufacturing settings, machine learning-driven robots can predict equipment failures, optimize production processes, and maintain high-quality control standards without human intervention.

Additionally, the surge in investments from leading tech companies to develop advanced ML algorithms for robotic systems has significantly contributed to the growth of this segment. Technological advancements in deep learning and neural networks have also played a pivotal role in enhancing the capabilities of robotic systems, making machine learning the most impactful technology in the AI robotics field.

End-use Industry Analysis

In 2023, the Automotive segment held a dominant market position in the AI in robotics sector, capturing more than a 24% share. This prominence is primarily attributed to the increasing automation in vehicle manufacturing and assembly processes. Automotive manufacturers have heavily invested in robotic systems to enhance precision, increase production speed, and reduce labor costs.

Robots equipped with AI are utilized for tasks such as welding, painting, assembling, and quality control, which are critical for maintaining high standards in automotive production. The leadership of the Automotive segment is further reinforced by the integration of AI in advanced robotics to address complex manufacturing challenges and adapt to changing consumer demands.

For example, AI-driven robots are being used to customize car manufacturing in ways that were previously unfeasible, allowing for greater flexibility in production lines and enabling manufacturers to offer more customization options to their customers. The push towards electric vehicles and the need for new production techniques suitable for these innovations also drive the adoption of AI in automotive robotics.

Key Market Segments

By Offering

• Software
• Hardware

By Robot Type

• Service Robot
• Industrial Robot

By Technology

• Machine Learning
• NLP
• Computer Vision
• Context Awareness

By End-use Industry

• Automotive
• Retail & E-commerce
• Healthcare
• Food & Beverage
• Military & Defense
• Other End-user Industries

Driver

Increased Adoption of Automation in Manufacturing

The significant shift towards automation in the manufacturing sector acts as a major driver for the AI in robotics market. As industries strive to enhance efficiency, reduce costs, and increase production rates, there is a growing reliance on industrial robots. These machines, equipped with advanced AI, can perform tasks with greater precision and speed than human workers.

This drive is particularly strong in sectors like automotive, electronics, and consumer goods, where the accuracy and consistency provided by robots are crucial. The adoption of AI-driven robots not only improves operational efficiencies but also helps companies meet rising consumer expectations for quality and speed, thereby driving the expansion of the robotics market.

Restraint

High Initial Investment and Maintenance Costs

One significant restraint in the AI in robotics market is the high initial investment and maintenance costs associated with robotic systems. Setting up an automated production line with advanced robots requires substantial capital, making it a challenging proposition for small to medium-sized enterprises (SMEs).

Additionally, the ongoing expenses related to upgrades, repairs, and technical support can further strain a company’s financial resources. These costs often deter businesses from adopting robotic solutions, slowing market growth and limiting the widespread integration of AI technologies in industries that could otherwise benefit from automation.

Opportunity

Expansion into Emerging Markets

Emerging markets present a substantial opportunity for the expansion of the AI in robotics sector. Countries in regions such as Asia-Pacific, Latin America, and parts of Africa are experiencing rapid industrial growth, increasing labor costs, and rising technological adoption, making them fertile ground for the introduction of robotic systems.

These markets are relatively untapped compared to saturated Western markets, offering robotics companies the chance to establish a strong presence and expand their global footprint. By capitalizing on these emerging markets, companies can not only boost sales but also aid in the technological advancement of developing economies.

Challenge

Integration with Existing Systems

A major challenge facing the AI in robotics market is the integration of advanced robots with existing industrial systems. Many manufacturing facilities are equipped with older machinery and technology that are not readily compatible with new, AI-enabled robots. Upgrading these systems to accommodate modern robotics involves complex and costly modifications.

Additionally, the need for personnel skilled in robotics and AI to manage and maintain these integrated systems can pose a significant hurdle. Overcoming this challenge requires substantial investment in both technology and workforce training, which can be a daunting task for many organizations.

Growth Factors

• Rising Labor Costs: As labor costs increase globally, the economic rationale for replacing manual labor with robots, especially in high-wage economies, becomes more compelling, driving adoption.
• Technological Advancements: Continuous improvements in AI algorithms, computing power, and sensor technology enhance the capabilities and efficiency of robots, making them viable for a broader range of applications.
• Government Initiatives and Funding: Many governments are supporting the automation and robotics industry through incentives, grants, and subsidies, particularly in manufacturing and healthcare, to boost productivity and innovation.
• Demand for Precision and Efficiency: High demand for precision and operational efficiency in sectors like automotive, electronics, and pharmaceuticals fuels the growth of AI-driven robotics to meet stringent quality standards.
• Increased Focus on Worker Safety: In industries where dangerous tasks are common, robots are increasingly used to perform hazardous jobs, reducing workplace accidents and improving overall safety. This not only protects workers but also reduces the economic impact of workplace injuries.

Emerging Trends

• Collaborative Robots (Cobots): Cobots are designed to work alongside humans in a shared workspace without the need for safety cages. Their use is increasing due to their flexibility, safety features, and ease of integration with human workers.
• Advanced Vision Systems: The integration of sophisticated vision systems in robots, using AI to process and analyze visual data, allows for greater adaptability and application in complex tasks such as quality control and precision assembly.
• Robot-as-a-Service (RaaS): Offering robotics systems as a service is becoming more popular. This model lowers the barrier to entry for smaller businesses by reducing upfront costs and shifting to a subscription-based approach.
• Increased Autonomy: Robots are becoming more autonomous due to advancements in AI, capable of making decisions and performing tasks with minimal human intervention. This trend is particularly prevalent in logistics and warehousing.
• Edge Computing in Robotics: By processing data on the robot itself or close to it, edge computing reduces latency and enhances the efficiency of data handling in robotics systems, crucial for real-time operations.

Regional Analysis

In 2023, North America held a dominant market position in the AI in robotics sector, capturing more than a 41% share. The demand for AI in Robotics in North America was valued at USD 5.5 billion in 2023 and is anticipated to grow significantly in the forecast period. This leadership can be attributed to several factors, including the region’s robust technological infrastructure and the presence of leading robotics companies.

North America, particularly the United States, is home to a vibrant tech industry characterized by heavy investments in research and development and innovation in fields such as AI and robotics. This environment fosters the development of advanced robotic solutions, which are then rapidly adopted across various industries, including automotive, healthcare, and defense.

According to the 2023 report by the International Federation of Robotics, robot installations in North American manufacturing saw significant growth in 2022, reaching 41,624 units. This represents a 12% increase from the previous year. The automotive sector, in particular, showed remarkable expansion. In the United States, Canada, and Mexico, around 20,391 industrial robots were installed in the automotive industry alone, marking a 30% increase compared to 2021.

The region’s dominance is also supported by favorable government policies promoting AI and robotics research, as well as a strong ecosystem of universities and research institutions that collaborate closely with the industry on cutting-edge technologies.

Moreover, North America’s market is driven by a high demand for automation solutions that can enhance productivity and maintain competitiveness in a global market. This is particularly evident in the manufacturing sector, where there is a continuous push to integrate AI-driven robots to streamline operations and increase efficiency.

Additionally, the venture capital presence in North America significantly contributes to the region’s leadership in the AI in robotics market. The availability of funding allows startups and established companies alike to innovate and scale their solutions, thereby driving forward the adoption and development of robotics technology.

The region’s commitment to maintaining its technological lead, combined with a strong industrial base and a proactive approach to adopting new technologies, ensures that North America not only retains a significant market share but also drives global trends in the AI in robotics industry.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The AI in robotics market is characterized by the presence of several key players who are actively involved in driving innovation and shaping the industry. These companies are at the forefront of developing AI-powered robotics solutions and technologies to cater to a wide range of industries and applications.

In the rapidly evolving AI in robotics market, several key players are driving innovation and shaping industry trends. Veo Robotics Inc. is enhancing human-robot collaboration with advanced safety systems, allowing robots and humans to work together more seamlessly. NVIDIA Corporation is pivotal, leveraging its robust GPU technology to enhance machine learning applications in robotics. IBM Corporation contributes with its extensive AI research, developing cognitive systems that can reason and learn from interactions.

Brain Corporation specializes in autonomous robots for commercial floor care, emphasizing practical applications of AI in everyday environments. Vicarious Inc. focuses on creating robots that can adapt to varied tasks through general intelligence algorithms, pushing towards more versatile robotic solutions. Neurala Inc. and Microsoft are key contributors in the realm of neural networks and cloud-based AI solutions, respectively, facilitating smarter, faster decision-making processes in robotics.

Top Market Leaders

• Veo Robotics Inc.
• NVIDIA Corporation
• IBM Corporation
• Brain Corporation
• Vicarious Inc.
• Neurala Inc.
• Microsoft
• Hanson Robotics
• ABB Ltd
• Intel Corporation
• Blue Frog Robotics
• Promobot
• Other Key Players

Recent Developments

• Boston Dynamics and Hyundai Motor Group:
  • In August 2022, Boston Dynamics and Hyundai Motor Group announced a commitment of ~USD 424 million to establish an artificial intelligence research facility in the United States.
  • The Boston Dynamics AI Institute, situated in Cambridge, Massachusetts, aims to advance robotics and AI, focusing on growth-oriented fields.
• Guardforce AI Co., Limited:
  • In July 2022, Guardforce AI Co., Limited, a provider of integrated security solutions, entered into a collaboration agreement with the Hong Kong Industrial Artificial Intelligence and Robotics Centre Limited (FLAIR).
  • This collaboration aims to develop robotics-as-a-service (RaaS) solutions and artificial intelligence (AI) cloud platforms globally.
• Brain Corp:
  • In November 2022, Brain Corp, an AI startup, announced the development of a next-generation autonomy platform for commercial robots.
  • The third-generation AI autonomy platform from Brain Corp, known as BrainOS, powers autonomous commercial robots, facilitating various applications in commercial fields.

Report Scope