As manufacturing and industrial firms search for ways to improve efficiency, automating business processes through the use of robots has been the overwhelmingly popular choice. This increased reliance on robots will propel the global robotics market to $147.26 billion USD, with North American firms accounting for a large percentage of that revenue, according to a research study by Transparency Market Research. The report predicts a 17.4% revenue increase in the compound annual growth rate from 2017 to 2025.
The report cites the necessity of integrating robots into the production workflows in the aerospace, automotive, and healthcare sectors due to shortages of skilled workforce for those sectors. Likewise, robotics is being increasingly leveraged in industries known for hazardous working conditions, particularly mining, as well as the oil and gas energy sector. The adoption of robots in those industries reduces the likelihood of accidents such as mine collapses resulting in the death of coal miners.
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Companies based in North America are likely to benefit substantially from the growth in the robotics sector, as IT leaders Alphabet (Google's parent company) and Amazon have robotics divisions, while more traditional defense contractors like Boeing and Northrop Grumman, as well as robotics-first companies like iRobot and Clearpath Robotics, are also showing promise.
The report noted that the Asia Pacific robotics market will also benefit from this growth, as the report explained that "the introduction of collaborative robots that have substantially upped productivity in manufacturing, material handling, medical, and automotive sectors with less human labor will benefit the growth of this regional market over the forthcoming years," adding that the Asia Pacific market is also primed to benefit from nanotechnology robots in the future.
Of note, while Japanese electronics and manufacturing companies are also known for their research and investments into robotics, many of these companies have an extensive presence in North America. Honda, Fanuc, and Omron Adept Technologies are three examples of these.
The big takeaways for tech leaders:
- The report predicts a 17.4% revenue increase in the compound annual growth rate from 2017 to 2025.
- Companies based in North America are likely to benefit substantially from the growth in the robotics sector.
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James Sanders is a Writer for TechRepublic. Since 2013, he has been a regular contributor to TechRepublic and Tech Pro Research.