Mobile robot components market projecting strong growth
Mobile robot insights
- Mobile robot component market growth fueled by demand for order fulfillment robots.
- US currently dominates the mobile robot component market, but China is set to become a strong rival.
- Navigation systems will contribute significantly to revenue growth over the next 5 years.
New research by Interact Analysis shows the market for mobile robot components is expected to enjoy rapid growth out to 2027, reaching a value of $7.4 billion with a CAGR of 44.8% over the next 5 years. Regionally, the US currently dominates the market, but China will become a strong rival and is expected to overtake the US in terms of unit sales by 2025, while the US will continue to lead in terms of revenue.
Reason for exponential mobile robot growth
The exponential growth that the market for mobile robots will enjoy is primarily due to demand for order fulfillment robots. Shelf-to-person (S2P) robots currently dominate revenues due to Amazon’s strong influence on the market. Going forward, the dominance of S2P will continue as other logistics firms, such as Alibaba, mimic Amazon’s strategy. Looking at the market by component type, most types will experience high growth over the forecast period. In particular, that of drivetrain components, which are experiencing an additional boost in revenues due to the impact of supply chain constraints.
By 2027, the market for drivetrain components will reach $4.5 billion, partly due to the rapid adoption of mobile robots and partly because of the increase in average selling prices. Light detection and ranging (LiDAR) sensors will also dominate the market as navigation sensors become an industry norm.
While China will become a strong growth contender for mobile robot componentry, the US currently dominates the market because of a huge captive market created by the in-house production of Amazon’s autonomous mobile robot/automated guided vehicle (AMR/AGV) fleet.
By 2027, China will account for over 40% of the components market in terms of units, but the US will still dominate revenues. The shift towards Chinese robots and components is a driving factor in global price erosion for the market, particularly for navigation systems. The components market for the rest of Asia-Pacific (APAC) is not as large as Interact Analysis initially thought, as the majority of mobile robots used in manufacturing and logistics facilities are sourced from China.
China will become a strong growth contender in the market for mobile robot components. Courtesy: Interact Analysis
Brianna Jackson, research analyst at Interact Analysis, said, “The growth that we expect to see for navigation componentry is overwhelming. Revenues for this area of the market currently sit at $253m and this will grow at a CAGR of 33.1% to over $1.4 billion by 2027. Much of this revenue growth will be generated by sales of LiDAR sensors due to their higher unit cost compared with other types. In 2021, LiDAR sensors accounted for 65% of revenues for the navigation component market.”
– Edited from an Interact Analysis press release by CFE Media and Technology. Interact Analysis is a CFE Media and Technology content partner.
The post Mobile robot components market projecting strong growth appeared first on Control Engineering.
