Benefiting from the strong support of national policies, the market size of service robots as a branch of the robotics industry is also expanding. China's service robot sales from 2015 to 2018 have been growing year by year. The market size of China's service robots in 2018 has reached $2.94 billion. According to the China Electronics Society, the Chinese service robot market size is estimated to reach $2.2 billion in 2019.
Service Robots Stand out - during the Setback of Smart Industry
In the first quarter of 2020, global multi-regional smart product sales declined sharply, with global smartphone companies shipping approximately 61.8 million units in February 2020, 38% down to February 2019. It is the largest decline in the history of the global smartphone market. Meanwhile, shipments of smart speakers are estimated to face a 25.8% year-over-year decline.
The main reason is because the global spreading COVID-19 in 2020, people are foced to stay home, which directly leads to the reduce to their shopping desire. In addition, the shutdown of some large enterprises has led to a temporary decline in people's sources of income and a significant reduction in the share of expenditure on non-living necessities. But in contrast to the smart industry's sluggishness, the first quarter of 2020 saw a bright performance in the service robotics market.
Data shows that the service robot industry has 15 investment events since by April 2, 2020, which is basically the same as the performance of the same period in 2019, without a significant decline;
The amount of investment is in the tens of millions of RMB or more, with seven cases amounting to more than RMB 100 million (not counted for undisclosed amount). The service robot industry has obviously received larger amounts of investment.
China's Population and Industrial Structure Changes Creating a Good Environment
--Rising labor costs leading to the increase usage of service robots
The total population of China continues to grow in 2015-2019, but the number of working-age people aged 16-59 is in a downward trend. In 2019, the number of working-age people in China will be reduced to 896 million.
The continuing decline in the total workforce has caused the rising cost of labor in China. In order to reduce labor costs, the application of service robots in multiple fields to replace human labor is becoming a relatively new trend in China.
--Increasing share of tertiary industry expand potential market for service robots
China's tertiary industry is a service intensive industry. The development of the tertiary industry helps to increase the demand for labor in China and thus expand the market size of service robots.
In 2015-2019, the share of China's tertiary sector added value in GDP has been maintained at more than 50% and growing year by year. In 2019, the share of China's tertiary sector added value in GDP reached 53.9%.
The steady development of service intensive industry will stimulate the technological innovation and application of China's service robot industry to a large extent.