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Service Robots to Hit $30B in Sales by 2022, a 30% Increase in Two Years

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Unlike the industrial robotics sector, service robots have received a boost from the disruption caused by the COVID-19 pandemic.

According to data presented by BuyShares, the entire market is expected to continue growing strongly and hit over $30bn in sales by 2022, a 30% increase in two years.

Americas Lead in the Use of Service Robots, Entire Market to Hit $12B Value in 2022

Recent years have witnessed a surge in the use of service robots, as they offer increased productivity and convenience in both professional and private settings. The entire market is divided into two main segments. Commercial robots are used to perform tasks in a business environment, like medical robots and automated guided vehicles used in warehouses.

Personal service robots include convenience robots, which perform tasks like cleaning and vacuuming, and entertainment robots, such as toys and photography drones.

In 2018, the entire market generated $13.7bn in sales volume, revealed the Statista survey. This figure surged by almost 70% in the next two years, reaching $23.1bn in 2020. The growing demand for service robots is expected to continue this year, with the sales value rising by another 17% YoY to $27bn. By the end of 2022, this figure is forecast to jump by another $3bn.

Statistics show the service robotics market is led by the Americas, with an estimated sales value of $10.8bn in 2021, up from $7.4bn before the pandemic. This figure is forecast to jump to over $12bn in 2022.

As the second-largest region, the Asia Pacific is expected to hit almost $7.4bn in sales volume in 2021, a 20% jump in a year. The European market follows with a $7.3bn value.

Medical Robots to Generate One-Third of Total Sales Value

Statistics show that most service robots are used in the medical industry, expected to generate almost $9bn or 33% of total sales value this year. In the next twelve months, this figure is set to jump to $10bn. Technical innovations and demographic developments drive the market growth of these robots.

Robotic technologies can be more precise and flexible than human surgeons, making robot-assisted surgery a popular option. Since they are immune to infectious diseases, medical robots have also been implemented during the COVID-19 pandemic. They are also widely used in diagnostic, rehabilitation, and nursing care.

Statistics show the Americas dominate the medical robot’s market. However, due to aging populations, the Asia-Pacific region is expected to witness the most significant growth in the future.

Convenience robots for domestic tasks ranked as the second-largest segment, with $6.7bn in sales value in 2021. This figure is set to reach almost $7.5bn next year. These robots are increasingly finding their way into households worldwide. Packed with different capabilities, they can make everyday life more comfortable. Statistics show the Asia-Pacific region is the leading market for convenience robots. However, the largest producer, iRobot, is headquartered in the United States.

As the fastest-growing segment of the commercial service robotics market, logistics is forecast to hit over $3.9bn in sales volume this year, up from $3.1bn in 2020. The pandemic fuelled eCommerce surge continues driving demand for logistics robots, as they help automate and optimize operations, enabling higher precision, lower costs, and faster delivery times.

The Asia-Pacific region is forecast to witness the biggest increase in sales volume. However, Europe is expected to maintain its position as the region with the most sales of logistics service robots.

Statistics show the entire logistics robots industry is set to continue growing and reach $4.5bn in sales by 2022.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Starlink Pulls Plug on Ghana, South Africa, and Others

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Starlink, the satellite internet service operated by SpaceX, has announced the cessation of services in countries including Ghana and South Africa.

This decision comes as a significant blow to users who have come to rely on Starlink for their internet connectivity needs.

The decision, set to take effect by the end of April 2024, will disconnect all individuals and businesses in unauthorized locations across Africa, including Ghana, South Africa, Botswana, and Zimbabwe.

While subscribers in authorized countries such as Nigeria, Mozambique, Mauritius, and others can continue to use their kits without interruption, those in affected regions face imminent loss of access.

One of the reasons cited by Starlink for the discontinuation is the violation of its terms and conditions.

The company explained that its regional and global roaming plans were intended for temporary use by travelers and those in transit, not for permanent use in unauthorized areas. Users found in breach of these conditions face the termination of their service.

Furthermore, Starlink’s recent email to subscribers outlined stringent measures to enforce compliance.

Subscribers who use the roaming plan for more than two months outside authorized locations must either return home or update their account country to the current one. Failure to do so will result in limited service access.

The decision to discontinue services in certain countries raises questions about the future of internet connectivity in these regions.

Also, concerns have been raised about Starlink’s ability to enforce the new rules effectively. Reports indicate that the company has previously failed to enforce similar conditions for over a year, raising doubts about the efficacy of the current measures.

Starlink’s decision to pull the plug on Ghana, South Africa, and other nations underscores the complexities of providing satellite internet services in diverse regulatory environments.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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