Home Robots Are Hard, Just Ask iRobot
From cheaper competitors to regulatory concerns to consumers not buying, the tale of iRobot is one that any robot firm pitching Home Robots should be one that is studied
Aaron’s Thoughts On The Week
“The technology you use impresses no one. The experience you create with it is everything.” - Sean Gerety
In 2002, iRobot revolutionized the home cleaning industry with the launch of the Roomba, a small, disc-shaped robot vacuum cleaner that would become a household name. Founded in 1990 by MIT roboticists Colin Angle, Helen Greiner, and Rodney Brooks, iRobot initially focused on developing military robots and space exploration technology. However, the company soon saw an opportunity to bring robotics into everyday life, sparking the idea for a consumer-friendly cleaning robot.
The Roomba was a game-changer, offering a glimpse into a future where robots could handle mundane household chores. Unlike traditional vacuums, the Roomba used a combination of sensors and simple algorithms to navigate around furniture, detect dirt, and avoid obstacles, all while operating autonomously. This was a groundbreaking leap at a time when most people had only seen robots in science fiction movies. The Roomba quickly captured the public’s imagination, becoming a symbol of the potential for robots to simplify our lives.
Despite its early challenges, including skeptics doubting the need for a robot vacuum, the Roomba's ease of use and “set it and forget it” appeal helped it gain traction in the market. It wasn’t just a gadget; it was a practical tool that freed up time and effort for busy households. Over time, iRobot continued to refine and improve the Roomba, adding features like advanced mapping, Wi-Fi connectivity, and app controls, turning it from a novelty into an everyday home appliance.
The introduction of the Roomba marked the beginning of a new era in consumer robotics, inspiring other companies to explore the possibilities of home automation and setting the stage for the development of more sophisticated and intelligent robots.
More Enter The Market, Troubles Start for iRobot
As the Roomba gained popularity and established itself as the leading robot vacuum cleaner, it wasn't long before other companies began to take notice and enter the market. By the late 2010s, the once-unique Roomba faced growing competition, particularly from Chinese manufacturers like Ecovacs, Roborock, and Xiaomi. These new entrants offered similar features at a fraction of the price, quickly eroding iRobot's market share. The rapid influx of lower-cost alternatives made it increasingly difficult for iRobot to maintain its dominance.
Chinese companies not only matched the Roomba’s basic functionality but also began integrating advanced technologies like laser navigation, mapping capabilities, and voice control, often at lower price points. This aggressive competition squeezed iRobot’s margins and forced the company to rethink its strategies. Consumers, drawn by the promise of high-tech features at lower costs, started to explore these alternatives, challenging Roomba’s long-held position as the go-to brand for robot vacuums.
In response, iRobot pushed to innovate, investing heavily in R&D to enhance the Roomba’s intelligence and functionality. The company introduced models with advanced AI, self-emptying capabilities, and compatibility with smart home ecosystems. However, the relentless competition, combined with supply chain disruptions and economic pressures, kept the pressure on iRobot, impacting its profitability and market position.
These challenges set the stage for a potential acquisition by Amazon, which saw iRobot as a valuable addition to its growing portfolio of smart home products. The proposed deal, announced in 2022, was seen as a lifeline for iRobot, offering the resources needed to fend off competitors and continue innovating. However, the acquisition faced regulatory scrutiny and ultimately fell apart, leaving iRobot to continue battling an increasingly crowded and competitive market on its own. Amazon paid iRobot a $94 million reverse breakup fee. The fallout highlighted the vulnerability of iRobot's once-unassailable position and underscored the rapid evolution of the home robotics industry.
The Regulatory Concerns Around An iRobot-Amazon Merger
The proposed acquisition of iRobot by Amazon faced significant scrutiny from regulatory agencies, ultimately leading to the deal’s collapse. Announced in 2022, the $1.7 billion deal aimed to integrate iRobot’s market-leading robotic vacuum technology into Amazon’s expanding smart home ecosystem. However, regulators raised several concerns that quickly put the deal under intense examination.
One of the primary issues was data privacy. Regulatory agencies worried that Amazon’s access to iRobot’s vast data troves, including detailed maps of users’ homes collected by Roomba vacuums, would give Amazon an unfair advantage in the smart home market. Critics argued that this information could be used to gain deeper insights into consumer behavior, raising alarms about potential misuse of personal data.
Additionally, antitrust concerns played a significant role. Regulators feared that Amazon’s acquisition of iRobot could further solidify its dominance in the tech industry, stifling competition and innovation. The deal was seen as a potential threat to other companies in the burgeoning smart home sector, as Amazon’s vast resources could enable it to monopolize the market, limiting choices for consumers.
The Federal Trade Commission (FTC) and European Union regulators launched in-depth investigations into the deal, examining the potential impacts on competition and consumer privacy. These investigations created prolonged uncertainty and mounting legal hurdles. As regulatory pressure increased, both Amazon and iRobot faced growing doubts about the feasibility of completing the acquisition.
“We are pleased that Amazon and iRobot have abandoned their proposed transaction. The Commission’s probe focused on Amazon’s ability and incentive to favor its own products and disfavor rivals’, and associated effects on innovation, entry barriers, and consumer privacy. The Commission’s investigation revealed significant concerns about the transaction’s potential competitive effects. The FTC will not hesitate to take action in enforcing the antitrust laws to ensure that competition remains robust. I would like to thank the Northeast Regional Office, which handled the investigation, and the entire FTC team, for their work on this matter.”
Federal Trade Commission Associate Director for Merger Analysis Nathan Soderstrom
Ultimately, the combination of privacy concerns and antitrust scrutiny proved too challenging to overcome, and the deal fell apart. This outcome underscored the challenges tech giants face when trying to expand through acquisitions, particularly when the deals involve significant data implications and potential market consolidation.
The failed merger lead to iRobot CEO Colin Angle resigning, the company laying off 31% of its staff, and a major hit to its stock price. The company also announced a pivot in its focus away from “non-floorcare” products like air purifiers and lawn mowers.
Robot Vacuum Market Moved To China
The robot vacuum market has seen dramatic shifts over the past decade, with the U.S. losing its position as the dominant market. China has emerged as the largest and fastest-growing market for robot vacuums, driven by a combination of rising disposable incomes, rapid urbanization, and a tech-savvy consumer base eager for smart home products. This flip in top market for robot vacuum favors the local Chinese companies like Ecovacs, putting even more pressure on iRobot.
This shift has significantly contributed to iRobot’s struggles. In 2022, Chinese brands Ecovacs, Roborock, and Narwal held the top three spots in China’s online sweeping robot market, while US-based iRobot ranked 11th, according to data from the industry analysis website AVC. Ecovacs held nearly 40 percent of the market share. The changing market landscape made it increasingly challenging for iRobot to compete with Chinese manufacturers, who could produce similar or superior products at lower prices. The cost advantage and quick innovation of these companies allowed them to gain market share in China and globally. Furthermore, Chinese brands aggressively expanded into Europe and North America, further eroding iRobot’s once-secure position. They have met the demand by producing a wide range of affordable, feature-rich robot vacuums tailored to local consumers' needs.
For iRobot, navigating these challenges has been tough. The company’s reliance on the U.S. market, combined with its higher production costs and premium pricing, has made it difficult to compete on a global scale. Efforts to expand into China have faced barriers, including stiff competition and less brand recognition compared to local players. Moreover, economic factors such as trade tensions and supply chain disruptions have added additional pressure on iRobot’s international strategy.
Consumers Still Not Fully Sold On Home Robots
One of the concerns raised in China of why iRobot struggles is that flooring is different in China versus the US.
“The common problem of foreign brands in China’s cleaning electrical appliance market is that they cannot adapt to the conditions here,” said Tian Yali, general manager of the cleaning electrical division of AVC. They bring foreign products to China, Tian noted, but there is then “a lack of localized marketing.”
In China, standard home flooring differs from that of the United States. While carpets are common in the US, Chinese homes typically have hard floors such as tiles. This is why the integrated sweeping and mopping function of Chinese robots is appreciated. However, iRobot only offers separate sweeping robots and floor wiping robots, as they believe this makes the products more effective.
This product “mismatch” to what consumers need/want is the final issue that holds back home robot deployments and has hurt companies like iRobot the most. Our homes can be very unique and while they may look the same on the outside, can be completely different inside as we customize our homes to our own preferences. Robots are only now starting to get involved in unstructured work environments like warehouses where stuff can be everywhere and anywhere. As of recent estimates, only about 20-30% of warehouses in the U.S. are automated to some degree. This level of automation can range from basic systems like conveyor belts and barcode scanners to more advanced setups with autonomous robots and AI-driven inventory management systems. After 20 years on the market, based on recent estimates from several market research firms, around 14-17% of U.S. households own a robot vacuum cleaner. This translates to roughly 18-22 million households, based on the total number of U.S. households. It should be noted that this is also based on sales data, not actually asking people if they are USING their robot vacuums.
Warehouses, although still chaotic in layout compared to well-organized facilities like manufacturing facilities, are becoming automated faster than homes. This is because there are enough commonalities to build around in warehouses. Homes, on the other hand, are pure chaos, even in some of the cleanest ones, with a constant level of layout change. Add children and pets to this environment, and it becomes very confusing for us, yet we still believe robots will master it in no time, to the extent that we will invest in the technology. However, after 20 years, home robotics still only has a market penetration of less than 20% for a single task, showing just how challenging home robotics is.
Two personal examples
I own two robot vacuums. One of them vacuums my living room and a hall, while the other is a mopping robot that cleans my kitchen and the connecting laundry room. This still leaves over 50% of my home where I need to vacuum or mop on my own. So even with two robots, I still have home cleaning to do. More than likely I will only replace the mopping robot when the time comes, because I can knock out the living room and hall on my own when that robot comes to the end of its life.
My parents own one robot vacuum, but have stated that it is mostly used to keep the dog hair down in-between weekly vacuuming with the standard vacuum. They have told me that when their dog crosses the rainbow bridge, more than likely the Roomba will be joining her, because there will no longer be a need for it.
These show that robot vacuums may never take over the market place for vacuuming, because even though they only do one task, they can’t even do that task well enough after 20 years to justify on-going purchases or actual use.
The Lessons In All Of This
One of the promises that many humanoid companies are making is that their robots will finally give us the promise of a Rosie the Robot. My concern is that they are just setting themselves up for a bigger fall, because they are promising something that we still haven’t been able to fully get out on the single task of vacuuming/mopping. This is probably also why Pool Vacuuming Robots is becoming a bigger part of the overarching Vacuuming Robot market according to many market researchers.
Robotic Vacuum Cleaner Market size was valued at USD 4.5 billion in 2023 and is anticipated to register a CAGR of 6.5% between 2024 and 2032. Pool vacuum cleaners dominated the market with a share of 56% in 2023 and is expected to reach around $2.5 billion by 2032. Consumers are more likely to purchase pool vacuum cleaners because of their brushing system which helps to eliminate particles. These products help remove algae and bacteria from pool walls and floors and are typically equipped with powerful computer technology to map the pool's surface.
Pool Vacuum Cleaners have the advantage that most pools are designed in similar ways and don’t require a lot of tech to work. Pool Vaccums don’t have to worry about running into things, people, or pets. Also, people that have a home pool are more than likely to have the money to buy a robot to clean it. This doesn’t mean that they don’t have any regulatory issues. The US Consumer Product Safety Commission recently recalled over 22,000 pool cleaning robots for (checks notes) being a fire hazard.
So it appears that the home robot market is now focusing more on doing individual tasks really well and hoping that gets them more buyers who don’t want to do those specific tasks. Having a pool is fun. Maintaining a pool sucks.
So while having a robot that can do it all is a great pitch to investors for your “general humanoid robot,” one only has to look at the robots that appear to be having success, but in reality are struggling even after getting into millions of homes.
There is still a long way before the humanoid tech is to a place where it will make sense to sell them to individual homes. However, even after the first one goes in, the chance of long term success is still very murky, just like iRobot’s is and they have been doing this from over 20 years.
Robot News Of The Week
Real Life Robotics debuts delivery robot at Toronto Zoo
Real Life Robotics Inc. has launched its flagship delivery robot, BUBS, at the Toronto Zoo for the "Zoober" initiative to deliver food to animal habitats, reducing environmental impact. The project aims to align with the zoo’s goal of becoming a technologically advanced conservation campus and moving closer to a net-zero emissions target by 2030. BUBS operates within the zoo’s boundaries, wrapped in a zebra theme, showcasing the zoo’s commitment to sustainable technology. Real Life Robotics’ CEO, Cameron Waite, emphasized the technology's role in addressing real-world problems and positioning Ontario as a global leader in robotics. Bell is a key partner, providing 5G connectivity for real-time data analysis. According to The Robot Report, Real Life Robotics would like to deploy BUBS on public streets in Toronto; however, sidewalk robots are banned in the city due to safety concerns for pedestrians with mobility challenges.
Kubota buys Pittsburgh’s Bloomfield Robotics to put AI cameras on tractors
Bloomfield Robotics, a Pittsburgh-based agricultural tech startup, has been acquired by Kubota Corp., a Japanese tractor maker, in order to improve farming insights through advanced technology. Bloomfield specializes in developing AI-powered camera systems that monitor the health of specialty crops such as wine grapes and blueberries, with plans to expand to other fruits like blackberries, raspberries, and possibly oranges. This acquisition builds on a successful investment relationship between Bloomfield and Kubota.
CEO Mark DeSantis commended the team's efforts, highlighting the combined work of engineers, plant scientists, software developers, and AI experts. Bloomfield's technology assists farmers in making accurate predictions about crop health, optimizing harvest timing and labor needs. Brett McMickell, Kubota's Chief Technology Officer, views the acquisition as a significant step in Kubota's goal of providing smart agriculture solutions by combining AI with traditional farming equipment.
Established in 2019, Bloomfield has raised $16 million and will continue operating under Kubota's North American subsidiary. Following the acquisition, Bloomfield plans to double its current workforce of 36 employees within the next year, aiming to further expand in Pittsburgh's Robotics Row. Bloomfield's technology, developed from early research at Carnegie Mellon University, serves customers across seven countries, including Mexico, Chile, Peru, and France. The acquisition will enable Bloomfield to expand globally, providing farmers with precise insights into their crops.
PickNik Robotics releases MoveIt Pro 6 to cut developer costs, time to market
PickNik Inc. has launched MoveIt Pro Release 6, the latest version of its platform designed to develop advanced robotic arm applications that were previously not feasible or cost-effective. According to Dave Coleman, founder and chief product officer of PickNik Robotics, the platform’s intelligent features—such as real-time object identification, force control, motion planning, and multi-step processing—unlock new possibilities for robotic applications. MoveIt Pro also offers a rapid development platform that can cut development costs by up to 75%, even for complex robotics projects.
Founded in 2015 for the Amazon Picking Challenge, PickNik Robotics creates software that enhances precision and efficiency across various industries, including aerospace, construction, and logistics. The Boulder, Colorado-based company is also a key contributor to the open-source Robot Operating System (ROS) community.
Robot Research In The News
Algorithm takes robots a step closer to being able to 'act on intuition'
Researchers at the University of Hertfordshire have developed an innovative algorithm that allows robots to set their own goals based on their environment, inspired by chaos theory. This approach, called "empowerment maximization," enables robots to make better decisions long-term by increasing the range of possible future outcomes. The algorithm's potential applications include improving robots' interaction with humans and other robots and enhancing their survivability in isolated or extreme environments. This breakthrough promises a future with more sophisticated, human-like robots capable of intuitive decision-making.
Prosthetics can be challenging because of the need to restore precise motor control after an amputation. Italian researchers developed a myokinetic interface using implanted magnets in the muscle groups of a trans-radial amputee's residual limb. These magnets help control a wireless prosthesis device, enabling the user to perform tasks like picking up objects and tying shoelaces.
To help support the rapid development of humanoid robotics across numerous industries, the IEEE Robotics and Automation Society’s Standing Committee for Standards Activities has approved a new study group to explore what standards should be developed going forward. This article describes this new study group and solicits participation from others in the community who are interested.
Google DeepMind teaches a robot to autonomously tie its shoes and fix fellow robots
Google DeepMind researchers have found a way to teach robots to perform complex tasks, like tying a shoe or fixing other robots, by watching humans. They used a new learning platform called ALOHA Unleashed and a simulation program called DemoStart. This could be helpful for people with accessibility issues.
Robot Workforce Story Of The Week
Two Texas Youth Robotics Programs receive grant money from the Texas Workforce Commission
The Texas Workforce Commission has awarded $1.4 million in grants to support youth robotics programs, with $700,000 each going to the Robotics Education and Competition Foundation and the Foundation for Inspiration and Recognition of Science and Technology in Texas. These funds aim to expand student participation in robotics competitions, particularly in underserved communities, by helping cover costs like registration fees and robotic kits.
The program encourages interest in STEM skills and helps prepare students for a growing workforce that demands technological expertise. Dan Mantz, CEO of the Robotics Education and Competition Foundation, emphasized the importance of developing a skilled workforce for Texas's booming economy, where many companies are relocating. This year, the grants will enable over 8,000 Texas students to participate in robotics competitions, helping them develop essential skills like problem-solving, teamwork, and communication, while opening doors to STEM careers.
Robot Video Of The Week
The Valkyrie robot, standing at 1.8 meters tall and weighing 120 kilograms, is a combination of Transformer and Star Wars stormtrooper, with hands that look capable of crushing beer cans. It is currently undergoing testing at the Karda laboratory in Australia, where researchers are determining the requirements for deploying humanoid robots to offshore energy facilities or space. New Scientist's James Woodford recently operated the controls to explore the capabilities of this $2 million-plus device.
Upcoming Robot Events
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Oct. 28-Nov. 1 ASTM Intl. Conference on Advanced Manufacturing (Atlanta, GA)
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May 12-15 Automate (Detroit, MI)
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May 18-21 Intl. Electric Machines and Drives Conference (Houston, TX)
May 20-21 Robotics & Automation Conference (Tel Aviv)
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Aaron,
Your statistic, "As of recent estimates, only about 20-30% of warehouses in the U.S. are automated to some degree," seems to be based on the number of warehouse buildings or companies, and might include any type of robot.
Considering that dominant players such as Amazon or Walmart automate far more than others, if this statistic were about square footage, cubic footage, package count, product value, etc., do you know what that percentage would be?