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What is Cloud Robotics?
Coined by Jeff Kufner in 2010 while at Google, Cloud Robotics represents the innovative integration of robotics with cloud technology, creating a 'remote brain' that significantly enhances the capabilities of robots. This integration allows robots to access increased memory, superior computational power, and opportunities for collective learning and interconnectivity, all through the cloud. As a result, robots are evolving to be more intelligent, compact, and cost-effective, shifting away from dependence on onboard computational systems. The synergy between cloud computing and robotics holds immense economic potential and is poised to revolutionize the field. The advantages of cloud robotics include improved efficiency, scalability, and the ability to leverage vast data resources for advanced robotics applications. In the coming years, robots connected to the cloud are expected to be a major driving force behind the expansion of Internet of Things (IoT) technology.
Cloud Robotics Market Size
Most businesses today are leveraging cloud services to enhance their operations, with a significant majority of larger organizations and a substantial portion of smaller businesses adopting these technologies. Specifically, over 94% of organizations with more than 1,000 employees are integrating cloud services into their workloads, while 44% of traditional small businesses, 66% of small tech companies, and 74% of larger enterprises are also making use of cloud infrastructure or hosting services. This trend is also followed by increased usage of smart devices, a rising number of cloud streaming services, and the evolution of bandwidth that contributes to the expansion of the cloud robotics market.
The global cloud robotics market was valued at USD 3.8 billion in 2022 based on data from Apollo Research Reports. The market is expected to reach USD 74.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 34.7% from 2023 to 2032. Cost-effectiveness, low infrastructure requirements, and enhanced process efficiency using cloud robotics are other key factors that encourage businesses to embrace this emerging technology rapidly. Innovations and solutions in the cloud robotics sphere are also expected to rise as companies are willing to invest in the robotics market.
Source: Statzon/ Apollo Research Reports
Global Cloud Robotics Market by Region
The global cloud robotics market is primarily concentrated in three major regions: North America, Europe, and the Asia Pacific. Among these, North America has established itself as the dominant player, with the United States accounting for nearly 30% of the global market share. This region not only leads in market size but also in growth rate compared to other regions.
In 2022, the North American cloud robotics market was valued at 1.5 billion USD. Looking ahead, this market is projected to experience substantial growth, reaching an estimated value of 28.9 billion USD by 2032. This represents a robust compound annual growth rate (CAGR) of 34.5%, indicating a strong and rapidly expanding market.
Continuing this trend, Europe and the Asia Pacific regions are also showing significant growth in the cloud robotics market. In 2022, Europe's market was valued at USD 1 billion and is projected to reach USD 19.9 billion by 2032. Similarly, the Asia Pacific region, starting from a market value of USD 741.7 million in 2022, is on a trajectory to achieve a substantial rise to USD 15.4 billion by 2032.
In the global cloud robotics market, the automotive sector stands out as the largest and fastest-growing segment. In 2022, it held a commanding 45% market share, and by 2032, its value is projected to reach USD 31.76 billion, showcasing a significant growth trajectory.
Other sectors also contribute to the market's diversity, with electrical/electronics holding approximately 21% of the market share, heavy machinery around 10%, chemical, rubber, & plastics about 8%, food roughly 4%, and other applications collectively making up 12%.
Based on solution types, the cloud robotics market is categorized into three distinct groups: hardware, software, and services. In this segmentation, hardware commands a dominant 61% market share, while software and services hold 27.9% and 10.89% respectively.
Based on the business model or type of service, the market is segmented into three distinct sub-segments in which Infrastructure-as-a-Service (IaaS) is not only the largest segment but also shows the highest growth rate. In 2022, its market value stood at USD 1.31 billion, accounting for 34.47% of the cloud robotics market. This segment is projected to see a significant surge, reaching an estimated USD 27.38 billion by 2032.
The RaaS & PaaS segment in the robotics market, encompassing both Robotics-as-a-Service and Platform-as-a-Service offerings, started at a combined market value of USD 1.27 billion in 2022. This represents a 33.42% share of the total market. This segment is forecasted to experience substantial growth, reaching USD 24.17 billion by 2032, and currently ranks second in terms of market growth.
The market value of robotics application software, integral to cloud robotics, was USD 1.28 billion in 2022, accounting for a significant 33.68% of the total cloud robotics market share. This segment is expected to expand to USD 23.17 billion by 2032.
Top Cloud Robotics Companies
The large market share in North America can be attributed to the fact that many of the major players in the cloud robotics market are based in the region. Amazon Robotics, Google, IBM, Microsoft, and C2RO are some of the biggest cloud robotics companies in North America and globally. Alibaba is the leading cloud computing service in China. With China’s thriving e-commerce environment, the growth of Alibaba’s cloud business outpaced Amazon and Microsoft in 2020. Huawei and Tencent are Alibaba’s two biggest rivals in China.
Other big names in the market include the major players in the general robotics industry, such as “The Big 4” companies: ABB, KUKA, Fanuc, and Yaskawa. Rising numbers of start-ups are also seen to specialize in cloud robotics offering new and innovative technology. Some start-ups to watch for are Graphcore, INVOLI, Aitomation, Salty Cloud, and Soar Robotics among many others.
Sources: Statzon, cloudzero