IDC forecasts global robotics market size to reach $135 billion in 2019

According to a recent study by IDC, an IT market analysis and consulting firm, the global robotics and related services market (based on spending) is expected to grow at a compound annual growth rate (CAGR) of 17%, expanding from $71 billion in 2015 to $135.4 billion in 2019.

This study (Worldwide Commercial Robotics Spending Guide) covers robotics systems, system hardware, software, robotics-related services, and after-market robotics hardware by sector, and covers an analysis of key industries and various use cases by region.

Robotics is one of the six innovation accelerators defined by IDC (IoT, next-generation data security, 3D printers, cognitive technology, robotics, and augmented/virtual reality), and is attracting attention as a key technology leading digital transformation by generating new revenue and changing the way work is done.

“Robotics is one of the key technologies that will bring significant changes to the factories of the future in the manufacturing industry,” said Dr. Jing Bing Zhang, Research Director and Head of Robotics Research at IDC Manufacturing Insights Group. “Traditionally, they have been primarily used in the automotive industry, but now the adoption of robots is increasing in sectors such as electronics, retail, healthcare, logistics, agriculture, services, education, and government,” he said. He added, “The adoption of robotics is spreading widely due to rising labor costs, a shortage of skilled labor, falling prices and quality issues regarding robot systems, and national strategic projects.”

In terms of industry, global spending on robotics is dominated by the discrete manufacturing and process manufacturing sectors, accounting for 33.2% and 30.2% of the total market in 2015, respectively. These are followed by the resource, healthcare, and transportation industries. Among these, the process manufacturing and healthcare sectors are showing the fastest growth, with market sizes projected to nearly double by 2019.

By technology sector, the robotics systems market (including consumer, industrial, and service robots) is expected to grow to $3.2 billion in 2019. However, the market for robotics-related services (application management, education and training, hardware deployment, system integration, and consulting) is expected to surpass the size of robotics systems by exceeding $3.2 billion in 2019, and these two sectors are projected to be the largest and fastest-growing by 2019.


▲ Robotics 3rd Platform (Source: IDC)

Meanwhile, the system hardware (servers, storage) and software (command/control, network infrastructure, specific robot applications) markets are also expected to experience rapid growth similar to the service sector.

By region, the Asia-Pacific region, including Japan, accounted for over 65% of the total robotics market size in 2015. The Europe, Middle East, and Africa (EMEA) region ranked second, recording $14.6 billion in 2015, followed by North and South America with $9.7 billion. The Asia-Pacific robotics market is expected to nearly double from 2015 to 2019, with North and South America projected to be the next fastest-growing region.

John Santagate, a research manager in charge of supply chain research at IDC Manufacturing Insights Group, stated, "From a technological perspective, robotics has reached a tipping point." He explained that while robotic capabilities continue to expand, competition is intensifying and robot-related costs are declining as investment in robot development increases.