Autonomous Mobile Robots Market - Global Outlook & Forecast 2023-2028

MARKET OUTLOOK

The global autonomous mobile robots market was valued at USD 8.65 billion in 2022 and is expected to reach USD 23.69 billion by 2028, growing at a CAGR of 18.29%. The market growth is primarily driven by automation in material handling and the rising adoption of industrial robots. Moreover, the increasing wastage due to product damage and delays caused by accidents due to human error were the major drivers leading to the adoption of autonomous mobile robots in material handling. The market growth is attributed to the constant innovation by autonomous mobile robot players and the development of upgraded products with better features and functions. Further, rapid industrialization and increasing applications in the aerospace and retail sectors are primarily driving the autonomous mobile robots market.

An autonomous mobile robot is a robotic system that can navigate its surroundings independently without requiring constant human supervision. These robots are equipped with sensors and advanced technologies to safely maneuver around obstacles in their environment while efficiently executing their designated tasks. The autonomous mobile robots market has the potential for extensive applications across every industry. They can automate various production processes, particularly those related to intralogistics. Employing suitable software solutions makes it feasible to automate the intralogistics operations within a factory fully. Furthermore, the growing investments and the rapid expansion of the warehousing & logistics sector across the North American region offer promising growth opportunities to the autonomous mobile robots market.

MARKET TRENDS & OPPORTUNITIES

High Adoption of Technology in Warehousing & Logistics
Cutting-edge robotics technology has emerged as a highly sought-after solution for effectively managing warehouses. Prominent manufacturers collaborate with warehouse management system providers to develop tailor-made software and intelligent robots to oversee warehouse stock organization, storage, and categorization. As the demand for timely order processing, the need to handle a multitude of products, and the requirements for personalized order fulfillment continue to grow; robotics solutions offer an efficient response by accommodating increased volume, performing a wider range of tasks with reduced labor dependency, and ultimately lowering operational costs.

Regarding warehousing & logistics, robotics signifies the emergence of autonomous machinery engineered to complement or replace human labor within manufacturing and logistics contexts. A robotic system essentially comprises two essential components: the physical machine, designed for a specific task, and the accompanying software that governs its actions.

Rising Adoption in the Healthcare Industry
Autonomous mobile robots are increasingly being adopted in the healthcare industry for various reasons, as they offer a wide range of benefits that can improve efficiency, safety, and patient care. In healthcare facilities like hospitals and clinics, there's a constant need to move materials, supplies, and medication throughout the facility.

Majorly autonomous mobile robots are adopted in the healthcare industry for the following reasons:

• To Improve Efficiency and Productivity: Autonomous mobile robots can help automate many repetitive and time-consuming tasks currently performed by human workers in hospitals and other healthcare settings. This can free up human workers to focus on more important tasks, such as providing care to patients.
• To Improve Accuracy and Safety: AMRs are equipped with sensors that allow them to navigate autonomously and avoid obstacles; this can help reduce the risk of human error and accidents.
• To Reduce Costs: AMRs can help healthcare organizations reduce labor costs and improve operational efficiency, leading to significant cost savings over time.

INDUSTRY RESTRAINTS

High Initial Costs
The substantial initial cost is a formidable entry barrier in the autonomous mobile robots market, particularly when considering their deployment in various industries, such as restaurants and food service establishments, for tasks like customer service and food delivery. This emerging industry has attracted attention due to its potential to streamline operations, reduce labor expenses, and elevate the overall customer experience. Nonetheless, the upfront investment needed to adopt and integrate the autonomous mobile robots market can be high, posing a considerable challenge for many businesses aiming to incorporate this technology.

SEGMENTATION INSIGHTS

INSIGHT BY COMPONENT
The hardware component segment dominated the global autonomous mobile robots market in 2022. The hardware segment of the AMR market encompasses the physical components that make up these robots. This includes sensors, actuators, mobility systems (like wheels or tracks), chassis, and power sources. This segment has grown substantially in recent years, primarily due to the increasing adoption of AMRs across various industries. Sensors are a vital component of AMRs, providing real-time data about the robot's surroundings. Furthermore, the software segment of the AMR market comprises algorithms, artificial intelligence (AI), and control systems that enable robots to perceive, plan, and navigate autonomously. This segment has experienced rapid growth, largely driven by AI and machine learning advancements. As industries seek to automate increasingly complex tasks, the demand for sophisticated software capable of handling intricate processes, such as advanced object recognition, navigation in dynamic environments, and adaptive decision-making, is rising.

INSIGHTS BY PRODUCT
The global autonomous mobile robots market by product has been broadly classified into goods-to-person picking robots, inventory robots, self-driving forklifts, and others. In 2022, the market has been dominated by the goods-to-person picking robots segment. Goods-to-person (G2P) picking robots are robotic systems designed to enhance order fulfillment and logistics operations by bringing items or products directly to human operators for picking and packing. These robots are typically used in warehouses, distribution centers, and e-commerce fulfillment centers where the efficient and accurate retrieval of items is crucial. Moreover, the exponential growth of e-commerce has transformed the retail landscape. Online shoppers expect fast, accurate, and on-time deliveries. G2P systems streamline order fulfillment processes, enabling businesses to keep up with the increasing demand. Consumers now anticipate quick and reliable order delivery, often with same-day or next-day shipping options. G2P systems expedite order processing, reducing delivery times and enhancing customer satisfaction.

INSIGHT BY END USER
The global autonomous mobile robots market by end users is segmented into warehousing & logistics, e-commerce & retail, manufacturing, healthcare, hospitality, and others. In 2022, warehousing & logistics accounts for the highest revenue share of the market. AMRs optimize and streamline various logistics and supply chain processes, including inventory management, order picking, packing, sorting, and material transportation. Their autonomy and adaptability make them valuable tools for improving efficiency, reducing labor costs, and enhancing overall warehouse and logistics operations. This has led to the demand for autonomous mobile robots in the warehouse & logistics segment. Moreover, e-commerce & retailers have also recognized the significance of autonomous mobile robots to enhance consumers' online shopping habits that are likely to persist due to the growing convenience of the experience.

GEOGRAPHICAL ANALYSIS

APAC accounted for the highest global autonomous mobile robots market share, accounting for over 34% in 2022. As one of the fastest-growing robotics markets in the world, APAC is characterized by its diverse range of countries, from established industrial countries like Japan and South Korea to emerging economies such as China. The introduction of AMR in the APAC region has profoundly impacted innovation, safety, connectivity, and sustainability. Further, Japan had a well-established robotics industry, and AMRs found manufacturing, healthcare, and agriculture applications. Japanese companies like Fanuc, Yaskawa, and SoftBank Robotics were actively involved in developing and deploying AMRs.

European industries are investing in automation and Industry 4.0 initiatives, including integrating AMRs into manufacturing processes. Factors such as the rising demand for high-end quality goods at competitive pricing and intense market competition are expected to propel the various industries towards the implementation of industrial robots as well as automation of the material handling processes via AMRs. Such factors further support the growth of the autonomous mobile robots market. Regions such as Latin America, the Middle East, and Africa are gradually embracing AMR technology, but adoption levels may vary widely. These regions increasingly recognize the potential benefits of AMRs in various industries, including logistics and agriculture, and support the growth of the autonomous mobile robots market.

COMPETITIVE LANDSCAPE

The global autonomous mobile robots market has witnessed a dynamic and competitive landscape shaped by a blend of established industry leaders, innovative startups, and technology providers. This sector has experienced significant growth, driven by the increasing adoption of automation across various industries. Boston Dynamics is a notable autonomous mobile robots market player renowned for its cutting-edge robotics and mobility solutions. The company has pioneered advanced quadruped and biped robots with unparalleled mobility and manipulation capabilities, positioning itself as a leader in developing highly agile and versatile robotic platforms.

Another significant contributor to the competitive landscape of the autonomous mobile robots market is KUKA, a German robotics powerhouse offering a diverse range of industrial robots and automation solutions. KUKA has ventured into the autonomous mobile robot (AMR) market with mobile platforms designed for efficient material handling, aligning with the industry's growing demand for autonomous solutions. Omron Corporation, a global automation and sensing technology provider, has also made a mark with its AMR offerings focused on material transport and logistics applications. The company's integration of advanced sensing technologies has enhanced the capabilities of its mobile robots, contributing to their effectiveness in dynamic environments.

Established players and emerging companies in the global autonomous mobile robots market are racing to provide sophisticated and adaptable autonomous mobile robots that cater to the diverse needs of industries ranging from manufacturing and logistics to healthcare and retail. The continued evolution of this market will likely be influenced by technological advancements, strategic partnerships, and the ability of companies to address the evolving demands of a rapidly changing industrial landscape.