ARTIFICIAL INTELLIGENCE (AI) ROBOTS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Market Size and Trends

The Artificial Intelligence (AI) robots market is estimated to be valued at US$ 15.71 Bn in 2024 and is expected to reach US$ 111.65 Bn by 2031, growing at a compound annual growth rate (CAGR) of 32.3% from 2024 to 2031. The widespread industrial applications of AI robots in the automotive, manufacturing, healthcare, and other sectors are supporting the rapid market growth.

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The Artificial Intelligence (AI) Robots Market trend shows a growing demand for collaborative and service robots that can operate safely alongside human beings. Advanced technologies like machine learning, computer vision, and adaptive learning are enabling the development of more sophisticated AI robots that can perform complex tasks autonomously. Integration of 5G connectivity allows for cloud-based AI and over-the-air software upgrades. Increased focus on automation is expected to further propel the adoption of AI robots across various verticals.

Market Drivers: Increasing Demand for Automation

Manual and repetitive jobs that require high accuracy are now being taken over by AI robots. This is helping companies improve productivity and efficiency while reducing costs at the same time. Machines can work tirelessly for hours without tiring or needing breaks, allowing 24/7 operations in factories and warehouses. Furthermore, AI capabilities are making robots more intelligent where they can seamlessly collaborate and co-exist with human workers.

The manufacturing industry has widely adopted robots for tasks like welding, painting, assembling, and product inspection. AI robots integrated with computer vision can detect defects with far greater accuracy than humans. This ensures improved quality of products as well as increased safety levels on the production floor. Supply chains and logistics is another major area benefiting from automated robots for material handling, packaging, palletization, and shipment sorting. E-commerce companies in particular rely heavily on robots to efficiently process a massive volume of orders throughout the year without seasonal disruptions. The food and beverage industry too is deploying smart robots for picking and packing orders, mixing ingredients as well as inspecting items coming off the production line.

In the services domain, AI robots are automating clerical work such as data entry, document processing, and bookkeeping. This allows human employees to focus on more strategic tasks involving analysis, decision making, and problem solving. Industries like construction, agriculture, healthcare, and facilities management are also automating menial yet important functions using robots. For example, robots are used for tasks like mowing lawns, cleaning buildings, and handling patients are now being handled by robots, reducing manual labor. With rapid technological advancements, even more complex functions across multiple sectors will be computerized in the coming years, driving exponential growth of the artificial intelligence (AI) robots market.

Market Concentration and Competitive Landscape

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Another key factor spurring the adoption of AI robots is the steadily rising costs of human labor coupled with widespread shortages of workforce. With economic growth and improved standards of living, wages the world over have been increasing consistently in recent times. This is making labor intensive operations very expensive for companies. At the same, diminishing working population due to lower birth rates represents a significant challenge. Particularly in developed nations with aging demographics, recruiting and retaining employees is proving difficult. 

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Another key factor spurring the adoption of AI robots is the steadily rising costs of human labor coupled with widespread shortages of workforce. With economic growth and improved standards of living, wages the world over have been increasing consistently in recent times. This is making labor intensive operations very expensive for companies. At the same, diminishing working population due to lower birth rates represents a significant challenge. Particularly in developed nations with aging demographics, recruiting and retaining employees is proving difficult. 

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In terms of offering, software contributes the highest share of the market owning 43.2% in 2024 to its flexibility and customization capabilities. Software solutions allow AI systems to be tailored specifically to the unique needs and processes of each customer. Robotic software can be programmed and re-programmed to perform a wide variety of tasks simply by editing code, without the need to physically alter any hardware. This delivers significant cost savings compared to hardware-centric alternatives, as the same software can potentially be deployed across multiple robot models and use cases.

Software also enables continuous improvements and innovation over the lifespan of a robot. As new algorithms are developed, patches or upgrades can push changes to fleets of robots instantly through software updates. This helps businesses quickly take advantage of the latest AI innovations without replacing existing equipment. The modular nature of software also makes integration into existing IT systems straightforward. Robots running standardized operating systems can easily share data and coordinate tasks with other tools on the factory floor or in other operational settings.

Perhaps most importantly, software removes geographical limitations that are inherent to physical robots. AI algorithms developed by one company can potentially have a global impact if distributed through software to customers worldwide. This opens many new commercial opportunities, as software knows no borders. By allowing customization, integration, remote upgrades and a global reach, software has become the core component powering the growth of AI robotics.

Insights, By Robot Type- Industrial Robots Enable Increased Automation and Productivity Gains

In terms of robot type, industrial robots contribute the highest share owing 42.5% in 2024 due to their widespread use in automating manufacturing processes. Industrial robots are specially designed to perform repetitive, hazardous, or labor-intensive tasks with high precision and reliability in production environments. Their deployment leads to significant gains in productivity by reducing labor costs and allowing 24/7 operations.

One key factor driving increased industrial robot adoption is the ongoing labor shortage facing many industries. As population ages and birth rates decline in developed nations, there simply may not be enough people to fill all open manufacturing jobs in the future. AI robots can help alleviate this problem by taking over dull, dirty, and dangerous jobs that humans often do not want to perform.

In addition, faster robot implantation allows businesses to quickly scale production volumes without taking as long to train new human workers. This gives manufacturers a competitive edge in fulfilling large orders and responding to shifting market demands. Precision, speed, and the ability to perform the exact same tasks repeatedly also increases product quality and consistency compared to human labor alone.

These productivity benefits have triggered a wave of automation across sectors like automotive, electronics, pharmaceuticals and more. As operational costs fall and customer satisfaction rises with robot use, industrial robotics will likely become even more prevalent in manufacturing in the coming years. Their high reliability and precision make them especially suited for assembly line applications.

Insights, By Technology- Context Awareness Unlocks New Applications for AI Systems

In terms of technology, context awareness contributes the highest share owing 36.4% in 2024 due to its potential for allowing more human-like interaction. Context awareness refers to the ability of AI systems to understand and make decisions based on the situation or environment surrounding user interactions. This involves perceiving relevant sensory data to determine factors such as the physical location, identities of nearby people, the current task being performed, and others.

As context awareness capabilities advance, entirely new applications for AI become possible. Robots may one day navigate hospitals intuitively based on an understanding of rooms/equipment functions. Assistant bots could offer personalized help tailored to user profiles and present locations. Augmented reality programs could seamlessly overlay digital information onto the real world. Context is key to these applications requiring spatial or social cognition.

Context awareness also enhances traditional robotic uses. For industrial robots, understanding the factory context enables safer human-robot collaboration. In service robotics, context allows reading patient emotions or discerning household activity to offer assistance proactively. Even software could vary output based on devices used or time of day for maximum relevance. By incorporating unstructured contextual dimensions, AI may begin to solve problems as creatively as humans do in similar situations.

As context-understanding algorithms advance alongside rising processing power and data availability, this technology represents vast untapped possibilities. Many consider it the next frontier for general artificial intelligence. Its market share currently leads owing to potential for dramatic expansion into novel domains requiring human-level perception beyond isolated inputs. Continued context awareness gains will prove pivotal in realizing a future with more humanistic AI assistance.

Regional Insights

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North America has firmly established itself as the dominant region in the Artificial Intelligence (AI) Robots Market owing 39.4% in 2024. With a strong presence of major technology giants and robotics companies such as Google, Microsoft, Amazon, iRobot, and Boston Dynamics, the U.S. accounts for the largest share. Companies in the U.S. are at the forefront of developing innovative AI and robotics technologies for industrial as well as domestic applications. Heavy investments in R&D by both private players as well as defense organizations have created a conducive environment for advances. The presence of a large consumer market combined with high disposable incomes also make North America an attractive market for the deployment of domestic and consumer robots. Stringent quality and safety standards ensure reliability of robots developed for various applications.

The Asia Pacific region has emerged as the fastest growing market for AI robots globally in recent times. Countries like China, Japan, South Korea, and India have shown tremendous commitment towards development and adoption of robots. Rapid industrialization and rising labor costs have boosted the use of robots across Japanese and Korean factories for improved productivity and reduced labor requirements. In China, strong government support through Made in China 2025 initiative has enabled significant growth, especially in industrial robot shipments. AI startups in China are making large investments in autonomy technologies and applications customized for local needs such as elderly care, surveillance, and logistics. The massive consumer market also offers huge opportunities for deployment of service robots across sectors in the coming years.

While North America remains dominant due to extensive R&D capabilities and early adoption, Asia Pacific is likely to see faster gains due to targeted strategies, growing manufacturing activities and mass deployment across industries and services. Overall pricing is lowest in China and other Asian countries which could further spur uptake of AI technologies in coming times. With continued technological innovations and new use cases emerging, both these regions are well positioned to lead the Artificial Intelligence (AI) Robots Market in the future as well.

Market Report Scope

Key Developments

• In March 2023, researchers from Google is a technology company that offers a wide range of products and services, including internet search, online advertising technologies, cloud computing, software, and hardware. and the Technical University of Berlin have created PaLM-E, a new model with 562 million parameters called a multimodal embodied visual-language model (VLM). This model combines vision and language to control robots. They claim its the largest VLM ever made and can perform various tasks without needing retraining.
• In May 2023, NVIDIA Corp. is a technology company known for its graphics processing units (GPUs) and semiconductor products. introduced several new products to support the growing ecosystem for supercomputing hardware, simulation software, and artificial intelligence. They also discussed how the electronics industry is using their technology stack and revealed their Isaac AMR platform for autonomous mobile robots.
• In November 2022, Brain Corp, an AI startup focusing on robotics technology, unveiled a new autonomy platform for commercial robots. This third-generation AI autonomy platform, powered by BrainOS, will drive upcoming autonomous commercial robots. BrainOS currently operates over 20,000 autonomous robots in public spaces and is designed to support intelligent robotic solutions across various commercial sectors.

*Definition: The Artificial Intelligence (AI) robots market involves the production and sales of robots/automatons embedded with artificial intelligence capabilities. These robots make use of machine learning and computer vision to perform a variety of automated tasks such as logistics, warehouse operations, manufacturing processes, and personal assistance. The increasing demand for automation across sectors along with advancements in technologies like robotics and AI are fueling the growth of this market worldwide.

Market Segmentation

• Offering Insights (Revenue, US$ BN, 2019 - 2031)
  • Software
  • Hardware
  • Services
•  Robot Type Insights (Revenue, US$ BN, 2019 - 2031)
  • Service Robots
  • Industrial Robots
  • Others
•  Technology Insights (Revenue, US$ BN, 2019 - 2031)
  • Machine Learning
  • Computer Vision
  • Context Awareness
  • Natural Language Processing
•  Deployment Mode Insights (Revenue, US$ BN, 2019 - 2031)
  • Cloud
  • On-premises
• Regional Insights (Revenue, US$ BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players
  • ABB
  • AIBrain, Inc.
  • Alphabet
  • Argo AI, LLC
  • Blue Frog Robotics & Buddy - Emotional Robot
  • Brain Corporation
  • CloudMinds Technology Inc.
  • DataRobot, Inc.
  • Fanuc
  • Hanson Robotics Ltd.
  • Harman International Industries
  • IBM Corporation
  • Intel Corporation
  • International Business Machines Corporation
  • Kawasaki
  • Microsoft Corporation
  • Mitsubishi
  • Neurala, Inc.
  • NVIDIA Corporation
  • Omron
  • Promobot
  • SoftBank Corp.
  • UB Tech Robotics, Inc.
  • Veo Robotics, Inc.
  • Vicarious
  • Xilinx
  • Yaskawa