Robotic companies have found a new revenue stream and a promising business model with Robots-as-a-service (RaaS). The idea of Robots-as-a-service is to provide robots and their accompanying software as a service to customers, rather than selling them outright.
IDTechEx stated that RaaS is becoming an increasingly popular option, especially for mobile robotics in logistics. In the research for "Mobile Robotics in Logistics, Warehousing and Delivery 2022-2042", IDTechEx discovers 6-8% of the current market revenue for mobile robotics in logistics comes from RaaS model, according to the information and sources IDTechEx learned from industrial interviews. IDTechEx was also informed by some companies that they expected RaaS sales to grow in the future, as they had received increased requests for RaaS. The company then reveals that intralogistics material transporting robots, like AGVs and AMRs, dominate the biggest share of the logistic mobile robotics market.
Here are the reasons why RaaS has become an ‘it’ business model for robotics companies
Low-cost investment
Robots-as-a-Service (RaaS) offers a flexible and cost-effective solution for companies seeking to leverage the benefits of robotics technology without making a significant financial commitment upfront. With RaaS, businesses can take advantage of the latest robotics technology without the financial risks and commitment of a traditional purchase with a large upfront investment. Suppose a business purchases RaaS from a robotics manufacturer to scale up, if it doesn't meet their needs, they can always stop and minimise their risks.
Flexibility to scale up / down
One of the most significant advantages of RaaS is that it allows companies to quickly scale up or down their use of robotics technology to meet changing business needs. This is especially useful for companies that have fluctuating demand, as they can add or remove robots as needed without having to worry about the cost of purchasing or disposing of hardware.
Labour cost savings & efficiency
Moreover, RaaS can help businesses save on labour costs. Robots can perform repetitive tasks more efficiently than humans, and they don't need breaks or time off. By using robots, companies can free up their human workforce to focus on more complex tasks, while also reducing the number of employees required for certain tasks.
A low-cost solution for exploring new robotics applications
Another advantage of RaaS is that it allows businesses to try out new use cases and applications for robotics technology without making a significant financial commitment. This can be especially beneficial for smaller companies that may not have the resources to invest in expensive hardware and software.
Ongoing relationships with customers
RaaS allows robotics companies to build long-term relationships with customers and build customer retention. By providing ongoing services, such as maintenance and upgrades, robotics companies can establish themselves as trusted partners and advisors to their clients. This can also lead to new opportunities for growth and expansion.
As the technology and capabilities of robots continue to improve, companies need to keep up with the latest developments. By offering RaaS, robotics companies can keep their customers up to date with the latest and most advanced robotics technology without requiring them to invest in new hardware or software. We can expect RaaS to become an even more popular and essential part of the market.
As part of its commitment to support the robotics industry, Movel AI offers monthly subscription plans that enable robotics companies to experience Seirios and adopt the RaaS business model. Seirios, the robotics navigation solutions, will make the development of mobile robots faster and more efficient. Keeping up with the ever-changing robotics trends, Movel AI's robotics navigation solutions will enable robotics companies to meet market demands.
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