ROBOTS ON THE MOVE

THE MARKET FOR PROFESSIONAL SERVICE ROBOTS IS POISED TO TAKE OFF WITH A VENGEANCE, FUELED BY NEW DEVELOPMENTS IN 5G TELECOM SERVICES AND AI CHIPS

The idea of robots picking items from warehouse shelves may still seem futuristic today. But the future may be closer than many people think. Of the almost 1 million robots we expect to be sold for enterprise use in 2020, we predict that just over half of them will be professional service robots, generating more than $16 billion in revenue — 30 per cent more than in 2019. What’s more, with regard to enterprise spending, the market for professional service robots is growing much faster than that for industrial robots. If recent trends are any sign, professional service robots may pass industrial robots in terms of units in 2020 and revenue — in 2021.

That’s not to say that the industrial robotics market is hurting. We expect revenues from industrial robot sales in 2020 to reach nearly $18 billion, a 9 per cent increase over 2019. But although industrial robots will remain important in the years to come, the professional service robot market is poised to take off with a vengeance, fueled by new developments in 5G telecom services and artificial intelligence (AI) chips.

INDUSTRIAL ROBOTS: A WELCOME RETURN TO GROWTH

The 10 per cent growth in unit sales we predict for industrial robots in 2020 is much better than the sector fared in 2018 and 2019. In 2018, unit sales went up 5 per cent, and actually declined slightly in 2019. The forecast return to higher growth in 2020 is very good news for the industrial robot industry after two years (and counting) of disruption by trade wars, tariffs, and the associated slowdown in the automotive and technology sectors, and in China.