• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Home
  • Subscribe
  • Your Membership
    • Edit Your Profile
  • Services
    • Advertising
    • Case studies
    • Design
    • Email marketing
    • Lead generation
    • Magazine
    • Press releases
    • Publishing
    • Sponsored posts
    • Webcasting
    • Webinars
    • White papers
    • Writing
  • Shop
    • My Account
    • Cart
  • About
    • Contact
    • Privacy
    • Terms of use
  • Events

Robotics & Automation News

Market trends and business perspectives

  • News
  • Features
  • Video
  • Webinars
  • White papers
  • Press releases
  • Featured companies
    • AMD Xilinx
    • BlueBotics
    • Elite Robot
    • RGo Robotics
    • SICK Sensor Intelligence
    • Vicor Power
vorwerk drawing board

Vorwerk’s acquisition of Neato Robotics adds spark to exponentially growing robotic appliance market, says IHS Markit

October 6, 2017 by David Edwards

 

Germany-based home appliances manufacturer Vorwerk recently acquired Neato Robotics, a Silicon Valley maker of domestic robots.

Vorwerk is known for its premium products in the household appliances market and Neato Robotics is known for its innovation and technological know-how, mainly in robotic vacuum cleaners.

Vorwerk first invested in Neato Robotics in 2010. Both companies are eager to maximize the exponential growth of the robotic appliance market, individually and collectively, with ‘cross-over’ benefits. 

With this acquisition, Vorwerk Group confirms its focus on the domestic robotic appliance market, also referred to as the domestic service robot market.

With Neato Robotics being more of a global player, this acquisition allows Vorwerk to instantly gain share of the robotic vacuum market across regions, according to IHS Markit.

Combining forces to grow market share

IHS analysts say this acquisition seems to be constructed such that these two companies can continue to work independently, running their individual distribution channels in parallel while taking maximum advantage of each other’s strengths in order to gain more share of this growing market.

Overall, the acquisition appears to be a collaborative, non-cannibalizing acquisition.

On one hand, Vorwerk is expected to benefit by gaining access to Neato Robotics’ technological know-how, now as its parent company.

On the other hand, Neato Robotics receives financial backing from Vorwerk, which is much needed to expand its reach and enhance its product portfolio – possibly beyond robotic vacuum cleaners to other related categories.

The acquisition timing could prove beneficial for Neato Robotics in the fiercely crowded US market, where it is up against iRobot, a dominant player currently facing financial challenges, and SharkNinja, which recently entered the US market with aggressive plans and a partnership with leading China-based robotic appliance maker EcoVacs.

The two companies’ product offerings appear to be of non-conflicting nature as their respective products are priced differently. Vorwerk is currently a single model company, having only one premium robotic vacuum offering.

Meanwhile, Neato Robotics has several robotic vacuum models. Taken together, this suggests a lower possibility of cannibalization between their brands and businesses.

New synergies open door to more aggressive global marketing

With the expected synergies, the two companies might become more aggressive in their marketing efforts, expanding into new territories and market segments independently as well as collectively.

Vorwerk indirectly could indirectly increase its distribution channel footprint in the important US market, where Neato Robotics has a strong presence.

Furthermore, Vorwerk could spread it wings in European markets outside Germany where Neato Robotics has an established presence – such as in the UK, France, Italy, Spain and few Nordic markets.

The companies could strengthen their distribution networks in important Japanese and Chinese markets, where Vorwerk has a presence in other consumer segments, but it will require better collaboration and coordination in order to churn out innovations that drive business growth.

It will be interesting to see how the companies – both individually and collectively – work to capture large, fast-growing and highly competitive markets in China and Japan, where competitors have fiercely loyal customer bases.

dinesh kithany ihs markit
Dinesh Kithany,
principal analyst, home appliances, IHS Markit

Dinesh Kithany, senior principal analyst, smart home appliances at IHS Markit: “IHS Markit expects both Vorwerk Group and Neato Robotics are, independently and collectively, to gain from this acquisition.

“However, they will require better collaboration and coordination in order to churn out innovations that drive business growth.

“For its part, Neato Robotics stands to gain much needed additional financial muscle for technological enhancements, to expand its expertise, and to showcase its capabilities in the robotic technology market.”

The robots have arrived

Robotic appliances are increasingly popular with consumers, who have become less skeptical about the overall capabilities and cleaning performance of robotic appliances.

There are many drivers of the growth recently seen in the robotic appliance market, including:

  • Changes in household and consumer profile
  • Changes in consumer lifestyle and needs
  • Tech-savviness of consumers
  • Introduction of connectivity technology
  • Better suction power
  • More efficient battery life
  • Adoption of latest navigation technologies
  • Added features such as cameras (for mapping as well as security purposes)
  • Improved design and the use of premium materials and finish

IHS says aggressive advertising and promotions and consumer education have also helped revitalize this market.

The presence of robot and drone companies at key consumer events and trade shows like CES and IFA is becoming commonplace.

Moreover, the introduction of the latest voice-assistant technologies into robotic appliances is adding incentive for tech-savvy consumers and early adopters of robotic vacuums and other home products.

“However, the market is young, and IHS Markit expects to see more consolidation in the coming years, especially among Asian companies,” says Kithany. “The robots have arrived, and they are here to stay.”

According to the IHS Markit Home Appliance Intelligence Service, the global domestic service robot market is expected to grow from 7 million units in 2016 to more than 15 million units in 2021.

Print Friendly, PDF & Email

Share this:

  • Print
  • Facebook
  • LinkedIn
  • Reddit
  • Twitter
  • Tumblr
  • Pinterest
  • Skype
  • WhatsApp
  • Telegram
  • Pocket

You might also like…

Filed Under: Infrastructure, News Tagged With: dinesh kithany, home appliances, home automation products, ihs markit, neato robotics, robotic vacuum cleaners, smart home, vorwerk

Join the Robotics & Automation News community

Primary Sidebar

Latest articles

  • Robotize to launch new robot and mobile lift staton at LogiMAT
  • The Impact of Automation on Digital Marketing: 5 Key Areas
  • Big Joe Forklifts launches autonomous pallet mover in partnership with Thoro.ai
  • Wingtra lands $22 million funding round for its commercial drones
  • DeepRoute.ai launches $1,000 ‘map-free’ self-driving solution
  • MobileDrive builds next generation ADAS with Siemens’ digital twin technology
  • Seegrid releases software to enable its warehouse robots to work together
  • Ambi Robotics unveils fleet management and business intelligence platform
  • Geodis almost doubles case picking throughput with Vecna Robotics solution
  • How to Automate the Mechanical Tasks in Your Company Better

Most Read

  • Stiga launches ‘world’s smartest’ autonomous lawn mower
    Stiga launches ‘world’s smartest’ autonomous lawn mower
  • Top 20 electric vehicle charging station companies
    Top 20 electric vehicle charging station companies
  • Difference Between Three-Phase and Single-Phase Power
    Difference Between Three-Phase and Single-Phase Power
  • Indian startup Unbox Robotics launches sortation robots in the US
    Indian startup Unbox Robotics launches sortation robots in the US
  • Top 20 programmable logic controller manufacturers
    Top 20 programmable logic controller manufacturers
  • Scientists have found more water in space than they ever knew possible
    Scientists have found more water in space than they ever knew possible
  • MobileDrive builds next generation ADAS with Siemens’ digital twin technology
    MobileDrive builds next generation ADAS with Siemens’ digital twin technology
  • DeepRoute.ai launches $1,000 ‘map-free’ self-driving solution
    DeepRoute.ai launches $1,000 ‘map-free’ self-driving solution
  • What You Need to Know About Fixing an Engine Misfire
    What You Need to Know About Fixing an Engine Misfire
  • The Best Mechanical Engineering Design Software in 2022
    The Best Mechanical Engineering Design Software in 2022

Overused words

ai applications automated automation automotive autonomous business companies company control customers data design development digital electric global industrial industry logistics machine manufacturing market mobile operations platform process production robot robotic robotics robots safety software solution solutions system systems technologies technology time vehicle vehicles warehouse work

Secondary Sidebar

Latest news

  • Robotize to launch new robot and mobile lift staton at LogiMAT
  • The Impact of Automation on Digital Marketing: 5 Key Areas
  • Big Joe Forklifts launches autonomous pallet mover in partnership with Thoro.ai
  • Wingtra lands $22 million funding round for its commercial drones
  • DeepRoute.ai launches $1,000 ‘map-free’ self-driving solution
  • MobileDrive builds next generation ADAS with Siemens’ digital twin technology
  • Seegrid releases software to enable its warehouse robots to work together
  • Ambi Robotics unveils fleet management and business intelligence platform
  • Geodis almost doubles case picking throughput with Vecna Robotics solution
  • How to Automate the Mechanical Tasks in Your Company Better

Footer

We are…

Robotics and Automation News was established in May, 2015, and is now one of the most widely-read websites in its category.

Please consider supporting us by becoming a paying subscriber, or through advertising and sponsorships, or by purchasing products and services through our shop – or a combination of all of the above.

Thank you.

Independent

Archivists

October 2017
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Sep   Nov »

Complex

Old-skool

This website and its associated magazine, and weekly newsletter, are all produced by a small team of experienced journalists and media professionals.

If you have any suggestions or comments, feel free to contact us at any of the email addresses on our contact page.

We’d be happy to hear from you, and will always reply as soon as possible.

Future-facing

Free, fair and legal

We support the principles of net neutrality and equal opportunities.

Member of The Internet Defense League

Copyright © 2023 · News Pro on Genesis Framework · WordPress · Log in

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT