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Robots as a Service (RaaS) applies the “rent-don’t-buy” logic of Software-as-a-Service to physical automation. Instead of paying six-figure capex for a robot (plus integration, maintenance, and the risk of obsolescence) a customer signs a subscription or usage-based contract. The provider owns the hardware, pushes over-the-air updates, swaps units when they fail, and bills monthly—often per pick, per delivery, or per hour (Built In)
The idea traces back to the 1960s, when General Motors standardised on swappable industrial arms so plants could scale robots up or down like equipment on lease - an early, unnamed form of RaaS. Fast-forward to the 2010s: cloud connectivity, cheaper sensors, and the SaaS mindset converged, letting start-ups such as Formic and Locus Robotics market robot fleets on demand to companies with seasonal peaks or labour gaps (SME).
As a result, the business model is exploding. Market Research Future puts RaaS revenue at US $12.9 billion in 2024 and projects US $125 billion by 2034 (25 % CAGR). Grand View Research forecasts US $4.12 billion by 2030 at 17.5 % CAGR - smaller absolute numbers but the same hockey-stick curve. Whatever projection you trust, the growth story is undeniable.
Buying a robot outright has always been a capital-intensive gamble: six-figure hardware, custom integration, unpredictable maintenance, and the uneasy feeling that the tech will be obsolete in two years. Robots as a Service (RaaS) flips that script by packaging hardware, software, support, and continuous upgrades into a subscription you can scale up or down—much like SaaS did for enterprise software.
Several forces have converged to make RaaS irresistibly attractive: