Servo motors and drives are extensively used in every machinery which requires precise position control and helps in running systems ranging from robotics, automation, to camera, and other conveyor belt system. Growing adoption of automation in various end-user industries such as automotive, food processing, and semiconductor industry among others is expected to be one of the prime drivers that are driving the growth of the servo motor and drives market over the forecast period.
In addition, favourable government initiatives coupled with rapid industrialization the process automation and instrumentation market are expected to witness substantial growth over the forecast period. For instance, the Government of China has doubled the value of large-scale infrastructure projects in 2019 than the previous year and recently NDRC (National Development and Reform Commission) has approved 21 projects worth at least US$100 billion.
Robotics Is Expected to Witness Substantial Growth During the Forecast Period
The growing preference for leisure hour and the simultaneous increase in the disposable income on account of the improvement in the economic condition of the various developed economies is significantly driving the demand for a personal service robot. In fact, the annual growth rate of household disposable income increased from -0.08% in 2009 to 1.48% in 2016 for the United States, while Canada witnessed an increase from 2.05% to 3.44% over the same period (source: OECD). Simultaneously, the funding for research and development of the humanoid robot has been increasing in the United States steadily over the years. For instance, in September 2012, the National Aeronautics and Space Administration (NASA) granted more than US$2.5 million funds for eight advanced robotic projects to support its space exploration activities by the government.
Additionally, in the healthcare industry, the use of robot-assisted surgery is increasing on account of its ability to reduce infection risk, increase efficiency, shorter hospitalization, and relatively less pain is further expected to supplement the growth of the market over the forecast period. Furthermore, in the first quarter of 2017, the U.S Department of Defense granted nearly US$80 million to American Robotics aiming to accelerate the development of robots in the country. As such in 2016, Boston Dynamic launched an upgraded version of humanoid robot ‘Atlas’ that can work both outside and inside buildings. Moreover, the government of the United States under the Trump administration recently announced a number of plans of reducing the immigration, which is expected to impact the workforce demand-supply ratio in the country, thus providing an immense opportunity for the service robot to bridge the anticipated workforce demand-supply gap, thus generating significant revenues for the manufacturers.
Annual Shippments of Industrial Robots in China, in Thousands of Units, 2007 to 2017
Source: IFR World Robotics 2018
Besides, the IFR World Robotics 2018 report shows that developing countries such as China, India, Japan, and South Korea, among others are some of the largest markets for industrial robots. This rise in the number of industrial robots opens an additional opportunity for the development of the servo motor and drives market. Servo motors and drives form an important component in the operation and maintenance of industrial automation robotics and thus will show a fast adoption rate in these regions over the forecast period.
Technological Advancement in Food and Beverage Processing Industry Is Widening up the Growth Opportunities
Technological advancements in the food processing industry are estimated to increase the demand for servo motors and drives. The revolutionizing technology used for food processing such as the use of Ozone purification systems which is exponentially powerful than chlorine water purifier systems is projected to increase the demand for ozone water purifiers. Furthermore, the cost-efficiency of employing the latest technology for processing is anticipated to amplify its demand in small and medium level industries. The advancing membrane technologies such as reverse osmosis, ultrafiltration are microfiltration techniques used for the purification of beverages that are expected to increase the demand for the advanced motors and drivers which are used in automated plants. The advancement of cost-efficient packaging is estimated to improve the demand for food processing owing to its economic feasibility, consequently, the advancement of environmentally friendly packaging materials is expected to favor the servo motors and drives market trend in the coming years.
The Automotive Industry Is Holding a Significant Share in the Market
The automotive industry is growing at a staggering pace, with the global automotive production reaching 97,302,534 units in 2017 (Source: International Organization of Motor Vehicle Manufacturers). Furthermore, the automotive market is striving to make vehicles more comfortable and efficient for consumers and thus has led to increased adoption of advanced systems in automobiles.
Servo motors and drives are being used in the manufacturing stage of the industry, but their main adoption has been seen as infotainment devices in vehicles. Initially, this adoption was only limited to higher-end vehicle models, but with the decrease in the costs of LCDs have led to a further extension of its adoption to mid-tier vehicles. Many automotive manufacturers are also bringing integration in the automotive market by introducing gesture and voice recognition for enhanced human car interactions. Voice and gesture activated controls are utilizing technologies such as voice recognition, text-to-speech, and speech-to-text to make the entertainment and navigation control effortless. Furthermore, they are also being adopted to provide detailed component information, such as detailed battery information, to the driver for easier repairability and maintenance.
In addition to this, the growing technological advancements in the automation industry will also escalate the demand for servo motors and drives in the future. Furthermore, the introduction of advanced components in other vehicles such as two-wheelers and increasing investment in the development of more such vehicles will further escalate the demand for servo motors and drives in the near future. For example, Arc Electric Motorcycles introduced the world’s first Electric Motorbike the Arc Vector at EICMA 2018, in Milan. The bike is the world’s first fully-electric motorcycle with HMI and has received investment from In Motion Ventures, the venture capital fund behind Jaguar Land Rover.