Service robotics are categorized into domestic robots and service robotics according to IFR standards. Service robots have a wide range of applications, and are used in maintenance, repair,logistics, cleaning, security, rescue and surveillance. AI has entered into a third period of rapid development after the proposal of the deep learning model proposed in 2006. The service robot market has been developing alongside an increase in applications.

The Chinese government has been placing great emphasis on the development of AI technology and industry. AI development has been elevated to national levels, and as such the Chinese AI market is full of development potential. Chinese tech and manufacturing giants have been very interested in investing into AI technology. The Chinese AI market was at CNY23.82 billion in size in 2018 at a year-on-year growth rate 56.6%. The market is projected to reach a size of CNY 50 billion by the year 2020. AI has also served as an important windfall for robotics, with AI + Robotics development expected to become the next source of major growth.

Chinese AI market size and projections for 2015-2020

1. The Chinese Robotics Market

The Chinese robotics market has entered into a period of high-speed growth, with the industrial robotics market in particular having held the record for the world’s largest application market for several years. There is a great deal of potential for service robotics in China, with specialized robots expected to become a major source of growth in the near future. The trend of ‘robots replacing humans’ is expected to become the single largest growth driver for the market and guide the development of the robotics consumption market. The Chinese robot market surpassed a total of USD 7 billion in 2018. As technology continues to improve and the number of applications continue to expand, the Chinese robot market isprojected to reach a size of USD 8.68 billion by the end of 2019.

Chinese robot market size and projections for 2014-2019

The Chinese robot market supply chain has been maturing alongside the development of the robot market itself. The Chinese industrial robot market has held the position of the world’s largest application market for several years. Demand is expected to grow alongside the market as is the case for applications for specialized robots. Industrial robots account for the largest share of the Chinese robot market at 65%, while service robots account for a total of 25%. Specialized robots account for a total of about 8.6%.

Chinese service robot market share

2. The Chinese service robot market

The Chinese service robot market has entered into an extended period of development due to policy support, technological upgrades and the aging population. The Chinese market for service robots was notably developing faster than the global service robot market in 2018. The market is expected to grow even larger as applied fields for robots expand, with the market projected to reach a total size of USD 2.2 billion by the end of 2019.

Chinese service robot market size and projectionsbetween 2014 and 2019

The Chinese service robot industry began relatively later than most and many products are still in the R&D stage of development. As technology continues to improve and purchasing power continues to improve alongside rising number of options for consumers, the Chinese consumer service robot market is growing larger by the day. The Chinese market saw sales revenues of CNY 20 billion in 2017 alone, with 2018 seeing sales revenues of CNY 24.1 billion. The market is projected to reach a total size of CNY 27 billion by the end of 2019.

Service robot sales revenues and projections between2014 and 2020

Domestic robots, medical robots and public service robots are the top 3 categories amongst service robots in China, and are commonly seen in households, stores, banks and hospitals. As technology continues to improve, medical robots are expected to cover even more applied fields.Robot prices are also expected to fall and eventually make them more affordable and expand the market even further. Domestic robots are projected to be most popular category of robots in the Chinese service robot market, followed by entertainment robots and medical robots.

Projected service robot categories by popularity