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08
Apr-2020
Impact of Corona Virus on Automation Market
After the outbreak of the Coronavirus worldwide, we are in the course of public health emergencies, and our lives came to an abrupt stop. Everything like the places we usually go, the events we were looking forward to having closed and cancelled, and many have lost their jobs or in fear of losing them soon. After all of these depressing situations globally, it may not seem very disastrous, as there are some silver linings too. This pandemic situation is bringing out the worst in some and the best in many. These circumstances are forcing us to utilize more automated systems and robots sooner than we’d planned estimated to end up saving us money by creating more opportunities than before.
In the service sectors like deliveries, service robots have steadily increased as compared to late 2019. The major e-commerce company, Amazon, has employed around 650,000 humans and 200,000 robots which have led to the reduction of costs as robots have gone up. Moreover, tools like DataRobot and H2O.ai are allowing almost anyone, not just data scientists or computer engineers, to run machine learning algorithms by democratizing artificial intelligence. People can codify the steps on their repetitive work processes and can have their computers take over the tasks for them.
The trend of Automation in the Food Industry
Currently, people all around the world are spending much more to eat at home than to eat in fast-casual restaurants. If we take into the account, cost of the food that we are preparing and the value of time that we spend on cooking, grocery shopping, and cleaning up after meals, costs make for about $12 per meal for food cooked at home, which is almost the same or even higher in price when compared to a meal in any typical restaurant. As most of the repetitive or low-skill tasks that are involved in the preparation of casual meals at home or restaurants can get automated, their cost is going to decrease even more which gives us more incentive to give up home cooking.
In the situation that we are in that are not supposed to touch each other or to touch anything anyone else has touched, but still, need to eat is sounding that the automating food preparation more appealing (and maybe necessary). Moreover, most of the primary food delivery services have already implemented the contactless delivery option, in which customers can choose to have their food left on their doorstep by the delivery agent so that there will be no transmission of any viruses through contact. Along with the opportunities for the automation of restaurants, this is going to be an opportunity for the automation to happen at the last mile.
More benefits of Automation
Also, delivery drones, autonomous trucks & vans, and robots could play a significant role altogether. As a matter of fact, usage of drone delivery systems has ramped up in most of the countries like China, the US, and among others, since the outbreak. And, 3D printing is estimated to get inexpensive and more approachable, which is also being more widely adopted, and are finding multiple applications in various sectors.
Impact in the US market
The US is the country that is increasing the scope for the growth of the automation market due to the presence of the largest food chains and the rising awareness regarding the time that was spent on cooking and its cost. At present, the value of the food that was prepared at home is about $12 per meal, which is much higher than grabbing lunch at the near corner restaurant. This requirement of automation could add $800 billion to US GDP during the next five years and $12 trillion over the next 15 years. In this trajectory situation, GDP os the US would end up being 40 percent higher with the automation when compared to without it.
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