Report: Automakers to Drive Growth of Industrial Exoskeletons Market
March 15, 2021
Driven by high injury costs and an aging and shrinking skilled workforce across sectors, the global industrial exoskeletons market is expanding rapidly, a new analysis by Frost & Sullivan says. The company is estimating a nearly seven-fold growth for the market, with an expected value of $426.6 million by 2025, and an annual compound annual growth rate of 46.7%
Manufacturing, especially the automotive sector, held the highest revenue share in 2020, and will top $271.4 million in 2025, Frost & Sullivan said. Other manual, labor-intensive industries, such as construction and transport, will make extensive deployments of industrial exoskeletons over the next four to five years as companies focus on reducing the cost of on-the-job injuries.
“Manufacturers are investing in research and development (R&D) to develop technologically advanced exoskeletons, which improve performance and productivity,” said Anjan Roy, an analyst at Frost & Sullivan. “To deploy the latest innovations, manufacturers will focus on the robot-as-a-service (RaaS) model to improve affordability for end users and test products for large-scale deployment.”
Roy said powered industrial exoskeletons, which are advanced PPE powered by batteries or electricity, are expected to have the highest revenue share, at 69.9%, over the forecast period. From a regional point of view, Asia-Pacific, the Middle East and Africa, and South America accounted for almost 49.1% in terms of global revenue share in 2020. Japan will continue to lead the way, due to a key aging population as its main growth driver, said Roy.
The analyst firm said companies need to focus on several areas to tap into the growth prospects exposed by industrial exoskeletons, including:
- Manufacturers should delve into research/test activities for evidence to validate claims of reduced musculoskeletal disorders (MSDs) and improved productivity to increase product acceptance.
- Market participants should partner with regulatory bodies, agencies that develop standards, and labs that conduct collaborative tests to understand the requirements and shortcomings of products.
- For industrial exoskeleton manufacturers, the firm said the time is ideal for mergers and acquisitions, as most competitors still hold a low market valuation.
- Intensifying regional competition will push large manufacturers to establish distribution networks across geographies.
More details on the firm’s report, “The Global Industrial Exoskeletons Market is Driven by the Aging and Shrinking Skilled Labor Force,” is available here.
