Robotics as a Service: Navigating the Future of Automation

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The Robotics as a Service (RaaS) Revolution

In recent years, Robotics as a Service (RaaS) has emerged as a transformative force, reshaping how businesses deploy cutting-edge automation solutions. This subscription-based model goes beyond traditional transactional approaches and enables strategic partnerships that have redefined the way organizations meet their automation needs.

At the core of RaaS is the ability to avoid the upfront investment associated with acquiring robotic technologies. This model, which is similar to the widely used SaaS (Software as a Service) paradigm, allows companies to explore automation solutions in a much more flexible way.

RaaS on the rise

According to a report by MarketsandMarkets, the global Robot as a Service (RaaS) market had a market size value of $1.8 billion in 2023 and is poised to reach $4 billion by 2028, reflecting a remarkable CAGR of 17.4%. While logistics and handling applications are having a lead role in driving the market growth. These numbers underscore the widespread adoption of RaaS across diverse industries, highlighting its pivotal role in the future of automation.

Robotics as a Service forecast for 2028

Robotics as a Service Market Forecast to 2028 (Source: MarketsAndMarkets)

In the healthcare sector, Xenex Disinfection Services utilizes RaaS for germ-zapping robots, leading to a 50% reduction in healthcare-associated infections. This success story illustrates the vital role of RaaS in ensuring safety and hygiene in critical environments.

Boston Dynamics, a renowned robotics company, offers RaaS for its versatile robotic dog, Spot, which has found applications in the construction and oil & gas industries. Spot’s deployment underscores the adaptability of subscription-based robotics in challenging and dynamic work environments.

Nomagic justPick robot at AutoStore System

Nomagic justPick robot with toolChanger at the AutoStore System

Robotics as a Service in warehousing

It is obvious that RaaS is making an impact in many areas worldwide, proving just how useful and adaptable subscription-based robotic solutions can be. Especially in Intralogistics it is becoming a driving force for automation, really breaking free from traditional warehouse routines.

For instance, Amazon Robotics, a trailblazer in the field, has embraced RaaS for its robotic fulfillment centers. This strategic shift has led to a 20% increase in order fulfillment efficiency, showcasing the tangible impact of RaaS on operational speed and accuracy.

Nomagic is taking a lead role in the European market on driving RaaS solutions for AutoStore, with a strong commitment to an comprehensive end-to-end service model. This enables companies wanting to automate their warehouse operations, a seamless integration of automated robotic solutions, for different use cases like pick and pack or pocket sorter, and further.

Navigating the Future Landscape

Having a closer focus on the world of warehousing, one major problem is the shortage of labor, an issue that is growing larger and larger with each passing year. It became increasingly challenging to find and retain skilled workers willing to take on the monotonous pick and place duties over a long period.

And here the concept of Robotics as a Service (RaaS) comes into play. 

Instead of shelling out hefty sums for capital expenditures (Capex) to purchase and maintain robotic systems, businesses can now opt for a subscription-based model. Think of it as leasing robots on demand, paying only for what you use.

Perhaps the most significant advantage of RaaS is the empowerment it gives to operational managers. By removing the complex financial decision-making process from the equation, managers can focus on the operational benefits of automation. It’s no longer about convincing the higher-ups to sign off on a significant investment. Ultimately, it’s about making the right choice for the efficiency and longevity of the warehouse.

With RaaS, the path to automation is smoother, with fewer roadblocks and more direct operational decisions. It’s a win-win scenario: less friction, more efficiency, and a workforce that can focus on tasks that truly require the human touch.

Summary and Conclusions

Global rise of RaaS:

Robotics as a Service (RaaS) is experiencing global growth, with the market expected to expand significantly by 2028.

Intralogistics Adaptation: 

RaaS is particularly well-suited for intralogistics, revolutionizing how companies manage internal logistics and handling processes.

Frictionless Automation:

By offering a subscription-based model, RaaS removes financial barriers, making automation decisions more operational than financial for customers. This shift reduces friction in adopting automation solutions, enabling smoother integration and operational efficiency gains.

RaaS offers immense potential, it also comes with its unique set of challenges. In the area of expanding warehouse automation into seamless warehouse operations with robotics, Nomagic is experienced in developing solutions. Contact us today to explore the possibilities – We are here to help.

Author: Maik Bodden

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