Worldwide spending on robotics systems and drones will be $128.7 billion in 2020, an increase of 17.1% over 2019, according to a new update to the International Data Corporation (IDC) Worldwide Robotics and Drones Spending Guide. By 2023, IDC expects this spending will reach $241.4 billion with a compound annual growth rate (CAGR) of 19.8%.
Robotics systems will be the larger of the two categories throughout the five-year forecast period with worldwide robotics spending forecast to be $112.4 billion in 2020. Spending on drones will total $16.3 billion in 2020 but is forecast to grow at a faster rate (33.3% CAGR) than robotics systems (17.8% CAGR).
Hardware purchases will dominate the robotics market with 60% of all spending going toward robotic systems, after-market robotics hardware, and system hardware. Purchases of industrial robots and service robots will total more than $30 billion in 2020.
Meanwhile, robotics-related software spending will mostly go toward purchases of command and control applications and robotics-specific applications. Services spending will be spread across several segments, including systems integration, application management, and hardware deployment and support.
Services spending is forecast to grow at a slightly faster rate (21.3% CAGR) than software or hardware spending (21.2% CAGR and 15.5% CAGR, respectively).
“Software developments are among the most important trends currently shaping the robotics industry. Solution providers are progressively integrating additional software-based, often cloud-based, functionalities into robotics systems. An operational-centric example is an asset management application to monitor the robotic equipment performance in real-time. It aligns solutions with current expectations for modern operational technology (OT) at large and plays in facilitated adoption by operations leaders. Equally important is the early trend driven by burgeoning ‘software-defined’ capabilities for robotics and drone solutions. The purpose is to enable systems beyond some of the limitations imposed by hardware and to open up entirely new sets of commercially viable use-cases,” Research Director, Worldwide Robotics: Commercial Service Robots. Remy Glaisner, said.
Discrete manufacturing will be responsible for nearly half of all robotics systems spending worldwide in 2020 with purchases totaling $53.8 billion. The next largest industries for robotics systems will be process manufacturing, resource industries, healthcare, and retail. The industries that will see the fastest growth in robotics spending over the 2019-2023 forecast are wholesale (30.5% CAGR), retail (29.3% CAGR), and construction (25.2% CAGR).