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While Work Together’s mid-term assessment of the AMR market is more pessimistic, their long-term outlook remains encouraging. | Supply: Adobe Inventory
The global cellular robotic market evaluation has been revised downward by 18% for 2027, largely due to a combination of macroeconomic factors that have dampened demand. The challenging local climate conditions have prompted producers and retailers to reassess their investments in automation, leading the analysis agency to forecast a delayed recovery, with a potential uptick not anticipated until at least 2027.
According to a recent report from Work Together Evaluation,
- Governments worldwide have faced unprecedented challenges in responding to the COVID-19 pandemic, with many struggling to balance public health measures against economic and social considerations?
- As the pandemic’s grip on economies begins to ease, the retail landscape is undergoing a critical recalibration.
- Despite rapid economic growth, China’s financial system remains beset by weaknesses that threaten its stability and resilience.
- The automotive industry has been significantly impacted by the slow but steady adoption of electric vehicles.
The confluence of exterior factors – encompassing the concurrent holding of elections by 60 nations in 2024, as well as ongoing conflicts in Ukraine and the Middle East – has significantly curtailed demand for cellular robots. Worth declines are proving even more sluggish than initially anticipated, a development that has subsequently hindered adoption rates, according to the latest analysis from Work Together Evaluation.
While its conservative forecast warns against complacency, a robust outlook for 2030 still foresees double-digit growth, yielding three distinct scenarios: optimist, realist, and pessimist.
According to Work Together’s most optimistic forecast, the shipment of cellular robots is projected to reach nearly two million units by 2030. | Supply: Work together Evaluation
What’s holding again cellular robots?
According to the “Work Together Evaluation” survey, which polled 300 consumers of cellular robots, the industry is anticipating a significant boost in automation spending in 2024, with a projected mean increase of 18% compared to 2023.
The forecast suggests that buyer adoption will continue to grow at a steady, linear rate rather than accelerating exponentially, while potential declines in value may occur more gradually than previously predicted due to rising labour costs, which could temper the downward pressure on demand.
The trade has prolonged its adjustment following the pandemic, with customers reverting to pre-2020 purchasing patterns at a faster rate than initially anticipated? Together, evaluation indicates that shopper spending has been significantly impacted by elevated inflation and rising interest rates. Despite the challenges, companies remain committed to implementing automation initiatives to mitigate risks stemming from labour shortages, increasing wages, and economic volatility, thereby ensuring business sustainability and robustness.
Investments in cell robotics are rapidly increasing in scale, resulting in extended due diligence processes and internal reviews that ultimately lengthen sales cycles. The evaluation noted that the double-edged sword causing turbulence for robotic distributors, while simultaneously presenting a plethora of upside potential.
According to recent forecasts, cellular robotics revenue is expected to reach $5.5 billion by 2024, with an annual growth rate of over 20% up to 2030, as predicted by Work together Evaluation.
China sees gradual development domestically
Chinese distributors continue to assert their dominance in the global mobile robotics market, according to joint evaluation findings on distributors’ income development by location. | Supply: Work together Evaluation
In 2023, China dominated the global market for cellular robots, accounting for more than 70% of the surge in unit sales and solidifying its reputation as a manufacturing behemoth. Despite declining relative costs within the region, this factor contributed to less than one-third of the overall income growth, according to the Collaborative Assessment report.
The slowdown of domestic demand in China has prompted distributors to accelerate their expansion plans into global markets, according to a recent analysis. Growing dissatisfaction across Europe and the United States. The threat of tariffs on Chinese language distributors underpricing domestic suppliers outside the cellular automation industry potentially extends to mobile robots. Notwithstanding this, China’s recent stimulus measures are expected to boost domestic demand over the next few years, according to Work Together Evaluation.
Chinese language distributors continue to assert their dominance in the global cellular robotics market, accounting for almost half of total international revenue and nearly two-thirds of shipments in 2023. Leading companies such as Geek+, Hikrobot, and Quicktron have established themselves at the forefront of the industry, driving innovation through robust domestic and international growth strategies.
Despite numerous acquisitions, a recent report from Work Together Evaluation suggests that the cellular robotics market is not experiencing consolidation, with most deals being made by non-mobile robotic companies rather than industry players themselves. That’s a start towards building a comprehensive fleet management system capable of handling complex logistics operations. Each year, a new wave of distributors enters the market, while industrial companies continue to introduce autonomous mobile robots (AMRs). Consequently, the proportion of the top 10 and top 20 leading distributors has remained remarkably consistent since 2018.
Rising labor costs and escalating prices fuel surging demand for cellular robots.
By 2030, evaluation initiatives for cellular robots aim to reach a milestone of exceeding 4.2 million units, with an impressive addition of nearly 1 million new units expected in 2030 alone, excluding those already utilized by various entities. The labour shortage remains the primary catalyst driving demand for cellular robots, further fueled by increasing labour costs and the trend towards near-shoring and re-shoring manufacturing processes.
Despite these challenges, nonetheless, barriers such as excessive upfront prices, limited interoperability, competition from fixed automation, and escalating inflation and interest rates remain significant hurdles to the widespread adoption of mobile robots. The adoption of cost-saving measures and innovative business models such as Robotics-as-a-Service (RaaS) and leasing strategies is helping to overcome these obstacles.
Despite a more pessimistic midterm forecast, Work Together Evaluation still expects double-digit annual income growth of 20-30% through 2030, with the overall long-term outlook remaining optimistic? Shipments expanded by a significant 23% in 2023, exceeding 150,000 units over the 12-month period?
