April 20, 2021
Talk about Robotics-as-a-Service (RaaS) pricing models emerged in the early 2010’s. By 2018, the industry began to understand the benefits of RaaS more deeply. That year, Rian Whitton at ABI Research estimated that the installed base for RaaS will grow from 4,442 units in 2016 to 1.3 million in 2026, while annual revenues for RaaS providers are expected to increase from $217 million in 2016 to nearly $34 billion in 2026.
Now, with 2020 in the rearview mirror, the benefits of RaaS has become amplified. RaaS will likely see a greater surge in popularity and acceleration to the predicted timeline.
As proved in 2020, manufacturing, distribution, and warehousing organizations that adapt quickly to evolving conditions survive and thrive. Now, planning for Black Swan events has become a top consideration for global supply chain companies, as David Clear, Vecna Robotics CRO, and friends from Highjump Körber Logistics, GEODIS, and Interact Analysis discussed in October. A RaaS financing model is one way to preserve capital, adapt quickly, and remain operationally efficient for whatever comes next.
In addition, with the IT network already in place, AMR vendors can upgrade or scale down the system quickly, based on changing business needs. For example, it is easy to:
This keeps floor space clear and preserves people hours. In addition, Robotics-as-a-Service makes it easy to adapt to changing workflows. In other words, a facility can deploy a new robot to do a new job while returning the old robot to the vendor.21_Vecna_RaaSvsCapex_v02
In conclusion, a cloud-based RaaS model can provide the backbone for greater operational resilience – a necessity in today’s unpredictable industrial landscape. In addition to scaling easily, getting started quickly, and extending your workforce, RaaS is a way to create financial resilience. Use the capital saved plus the returns from up to 30% increase in operational efficiencies to invest in future automation. RaaS is an enabler for greater gains downstream.
Curious to know more? Get our 1-page summary of RaaS here.