Industrial Robotics Market

Industrial Robotics: Revolutionizing Manufacturing Efficiency

Industrial robotics has emerged as a transformative technology in the manufacturing sector, revolutionizing production processes and significantly enhancing efficiency. With the integration of advanced automation and artificial intelligence (AI), industrial robots have become indispensable assets for businesses seeking to optimize productivity, reduce costs, and improve overall product quality. This essay explores the impact of industrial robotics on the manufacturing industry and examines the key factors contributing to its success. Additionally, it highlights the role of government policies in fostering the growth of this sector.

I. Increased Efficiency and Productivity

Industrial robotics has dramatically improved manufacturing efficiency through various mechanisms. One significant factor is the ability of robots to perform repetitive and labor-intensive tasks with precision and consistency. Unlike human workers, robots can operate continuously without breaks, thereby ensuring uninterrupted production. They can also execute tasks at higher speeds, leading to increased output and shorter production cycles. By automating these routine tasks, companies can redirect human resources to more complex and creative endeavors, resulting in enhanced productivity and innovation.

II. Improved Quality and Precision

Industrial robots are designed to execute tasks with unparalleled precision and accuracy. Through advanced sensors and machine vision systems, robots can detect and adjust for even the slightest variations in manufacturing processes, leading to improved product quality. By minimizing human error and variations, robots ensure consistent output, reducing defects and waste. Furthermore, robots equipped with AI algorithms can continuously learn and adapt, optimizing their performance over time and further enhancing product quality.

III. Workplace Safety and Ergonomics

Robots have significantly improved workplace safety by taking over hazardous and physically demanding tasks. They are adept at operating in challenging environments such as extreme temperatures, toxic atmospheres, or confined spaces, reducing the risks faced by human workers. By delegating these tasks to robots, companies can prioritize employee well-being and minimize workplace accidents and injuries. Moreover, robots are designed with ergonomics in mind, eliminating repetitive strain injuries associated with certain manufacturing tasks, thus enhancing the overall health and comfort of workers.

IV. Cost Reduction and Economic Impact

Industrial robotics has proven to be a cost-effective solution for manufacturers. While the initial investment in robotics technology may be substantial, the long-term benefits far outweigh the costs. By automating processes, companies can reduce labor costs, as robots eliminate the need for a large workforce to carry out repetitive tasks. Moreover, robots can operate 24/7 without additional labor costs, maximizing production output and increasing overall efficiency. This cost reduction contributes to improved competitiveness for businesses and has a positive economic impact by driving growth and attracting investments in the manufacturing sector.

V. Impactful Factors Driving Robotics Adoption

Several factors have contributed to the widespread adoption of industrial robotics. First and foremost is the rapid advancement in robotic technology itself, enabling robots to perform increasingly complex tasks with higher efficiency and flexibility. Additionally, the growing demand for customization and personalization in manufacturing, driven by consumer preferences, has necessitated the use of robotics for streamlined and agile production processes. Moreover, the need to cope with labor shortages and rising labor costs has prompted companies to invest in automation solutions, including industrial robotics, to maintain competitiveness in the market.

VI. Government Policies and Support

Government policies play a crucial role in promoting the adoption of industrial robotics. Recognizing the potential of robotics to drive economic growth, governments have implemented various initiatives to support businesses in adopting robotics technology. These initiatives include tax incentives, grants, and subsidies for robot acquisition, research and development funding for robotics innovation and the establishment of collaborative platforms between academia, industry, and government agencies. Additionally, governments are focusing on creating favorable regulatory frameworks that ensure the safe and ethical implementation of robotics technology while addressing concerns related to job displacement and social implications.

Dynamics of Industrial Robotics Market

Drivers in Industrial Robotics Market

Increasing demand for collaborative robots across various industries

The demand for collaborative robots, also known as cobots, is on the rise in multiple industries. These cobots are becoming more accessible and user-friendly, making them suitable for novice users. One notable example is Universal Robots (Denmark), which offers the UR+ platform. This platform allows users to program the robots and utilize a range of robot end effectors, vision systems, and add-on software from different manufacturers, including Robotiq (Canada), Schunk (Germany), PIAB (Germany), OnRobot (Denmark), Cognex (US), and Energid (US). The peripherals and software provided by these companies are UR+ certified, ensuring compatibility with the robots manufactured by Universal Robots. Companies of all sizes are adopting collaborative robots for both new and existing applications. For instance, BMW (Germany) has implemented a UR10 robot from Universal Robots for gluing and dispensing tasks. The increased strength, speed, and capabilities of these cobots are driving the expansion of companies operating in high-growth sectors like electronics, healthcare, consumer goods, logistics, and food and beverages. This growth is in response to the growing demand for automation in various industries. The UK is experiencing annual labor cost increases of more than 12%, leading to a shortage of workers. To address this issue, market players are investing in industrial robotics. The rising popularity of electric automobiles among new car owners presents promising opportunities, given the cost benefits. This trend is expected to have a significant impact on the industrial robotics industry, as car manufacturers are increasingly employing automated robotic systems for high-volume vehicle production. The incorporation of machine learning and artificial intelligence technologies into industrial robots is also having a positive influence on the business sector. Furthermore, the introduction of 5G technology is expected to further encourage the adoption of robotics in the manufacturing sector. The low latency provided by 5G networks enables instant communication between systems, leading to efficient coordination and connectivity. Notably, the release of industrial 5G wireless network technology by Nokia Corporation has played a significant role in driving the adoption of robotics.

Restraints in Industrial Robotics Market

High deployment costs for SMEs

Implementing a robotic automation project can be challenging, especially for companies without prior experience in this area. Additionally, replacing human workers may not always lead to a decrease in operational costs for organizations. The cost of a single collaborative robot system can range from USD 3,000 to USD 100,000, while industrial robotic systems can cost anywhere between USD 20,000 and USD 200,000. Alongside the costs of industrial robots, there are integration expenses and the additional costs of peripherals such as end effectors and vision systems, making automation a costly investment for SMEs, particularly those engaged in low-volume production. This cost issue becomes more pronounced for companies that operate on seasonal or unpredictable production schedules.

Opportunities in Industrial Robotics Market

Emergence of Industry 5.0

The concept of Industry 5.0 is relatively recent. According to the European Commission, Industry 5.0 envisions an industry that goes beyond mere efficiency and productivity, emphasizing the role of industry in society. It places the well-being of workers at the forefront of the production process and utilizes new technologies to foster prosperity beyond job creation and economic growth, all while considering the planet's production limitations. Industry 5.0 acts as a complement to the Industry 4.0 approach by placing research and innovation in the service of a sustainable, human-centric, and resilient European industry. In this fifth industrial revolution, industrial robots will play a crucial role, particularly in closing the design loop. By fully automating the entire production process with efficiency, humans can focus on creativity and innovation, unhindered by production constraints. Unlike Industry 4.0, Industry 5.0 strives to reintegrate the human touch in development and production, optimizing the creative intellectual capabilities of humans. Therefore, the emergence of Industry 5.0 presents a promising opportunity for collaborative robots.

Challenges in Industrial Robotics Market

The acquisition and deployment of industrial robots can pose a significant challenge, particularly for smaller businesses with limited budgets. The initial investment, as well as ongoing maintenance and training costs, can be substantial. Programming industrial robots requires specialized skills and expertise, and developing precise and efficient robot motions, especially for complex tasks, can be time-consuming and demanding. This creates a barrier for companies without access to skilled personnel. Integrating industrial robots into existing production lines and systems can be complex, as compatibility issues arise when connecting robots with different equipment and software. This can result in additional costs and time requirements. Industrial robots are powerful machines designed for heavy-duty operations, making safety a crucial concern when human workers are present. Implementing adequate safety measures, such as protective barriers, sensors, and collaborative robot designs, is necessary to prevent accidents and injuries. Industrial robots are often tailored to specific tasks or processes, making it challenging to adapt them to handle different products, processes, or production variations. Such adaptations may require reprogramming or reconfiguring the robots. Many industrial robots are optimized for high-volume, repetitive tasks. However, as product customization and market demands increase, there is a growing need for flexible robots capable of seamlessly transitioning between tasks and adapting to dynamic environments. The introduction of industrial robots can raise concerns about job displacement, particularly in industries where automation can replace human workers. Striking a balance between the benefits of automation and potential job losses poses significant societal and economic challenges.

According to the International Federation of Robotics (IFR), global sales of industrial robots experienced a 3% increase in 2020, reaching approximately 373,000 units. In terms of regional distribution, Asia accounted for approximately 63% of global industrial robot installations in 2020, followed by Europe (21%) and the Americas (16%). The automotive industry remains the largest customer of industrial robots, representing around 30% of the total supply in 2020. Other significant sectors include electronics, metal, and chemical industries. Collaborative robots, also known as cobots, are gaining popularity due to their ability to work alongside humans safely. The cobot market is experiencing rapid growth, with the IFR estimating a 63% increase in sales in 2020.

Ecosystem of Industrial Robotics Market

The electrical/electronic end-use segment held a significant market share of 29.6% in the year 2022. This segment's dominance stems from its ability to perform various tasks such as dispensing, insertion, labeling, and screw driving with high repeatability. The increased adoption of industrial robots in this segment will be driven by innovations and extensive research and development efforts by market players to enhance productivity, cost-efficiency, and reduce manufacturing overheads. The emergence of technology disruptors and intensified competition in the market is expected to further strengthen the outlook for this segment during the forecast period.

During the forecast period, the chemical, rubber, & plastics end-use segment is projected to grow at the highest compound annual growth rate (CAGR) of 17.9%. The growth of this segment can be attributed to the need for consistent performance in tasks such as measurement and testing. Moreover, robotics can handle toxic materials without posing any risk to human health.

In the year 2022, Hibot Corp. utilized its Float Arm robot to inspect pipelines at the Mitsui Chemical plant in Japan. This application highlights the growing demand for industrial robotics as companies seek to minimize risks to their workforce while maintaining manufacturing output.

Robot accessories present lucrative growth opportunities for the industrial robotics sector during the forecast period. These accessories are essential for enabling efficient long-term productivity in both collaborative and traditional industrial robots. They include the controller, various mechanical parts, attachments, and sensors. The controller serves as the robot's brain, while the mechanical parts execute pre-programmed movements, and the sensors assist in fine-tuning the robot's performance based on external stimuli.

The handling application segment dominated the market share in the past year, accounting for 44% of the revenue. This growth can be attributed to the increasing trend of e-commerce shopping and the need for quick deliveries. For example, in 2022, Amazon.com, Inc. introduced autonomous robots for handling and moving packages within their facilities. These robots can handle materials without human intervention, resulting in a significant reduction in error rates. Additionally, industries such as automotive and electronics employ handling robots to safely and efficiently move small or heavy materials on the factory floor.

The processing application segment is expected to experience the fastest CAGR of 26% during the forecast period. This growth can be attributed to the minimal errors associated with the use of robots in tasks such as painting, cutting, and other processes. These robots are gaining traction due to their ability to operate continuously based on pre-programmed instructions. Furthermore, robots can access small spaces and perform tasks in areas where human labor may not be feasible.

Regional Insights

The APAC region is expected to witness the highest demand for the Industrial Robotics market. As per the International Trade Centre, China, being the world's largest exporter and importer of manufactured goods, has experienced significant growth in labor-intensive industries such as clothing, textiles, footwear, furniture, plastic products, bags, and toys. However, the aging population and subsequent labor shortage have led to increased wages, prompting companies to turn to automation and industrial robots to reduce costs. China has shifted its focus from labor-intensive industries to high-tech manufacturing goods, including semiconductors, under its Made in China 2025 policy.

In response to the placement of Huawei, the Chinese telecommunication equipment giant, on the US blacklist, China has set ambitious targets to produce 40% of the semiconductors it uses by 2021 and 70% by 2025. Japan, renowned for its production of electric vehicles, is expected to witness a surge in the industrial robotics market due to the introduction of fully electric and hybrid vehicles, which will require new assembly line processes.

While consumer electronics products have faced intense competition from global manufacturers in China and South Korea, there is a projected high demand for electronic components like sensors and displays in the export market. Japan's industrial robotics market, with key players such as FANUC, Yaskawa, and Mitsubishi Electric, is anticipated to grow steadily in response to these demands.

The Middle East & Africa region is forecasted to experience the highest compound annual growth rate (CAGR) of over 20% during the forecast period. This growth can be attributed to the increasing industrial initiatives undertaken by government entities in the region. For instance, in 2022, the crown prince of Dubai launched The Dubai Robotics and Automation Program to enhance robotics adoption in the country. The program aims to provide around 200,000 robots to the industrial and logistics sectors, augmenting their production capabilities.

Dominating Companies in Industrial Robotics Market

• ABB LTD
• YASKAWA ELECTRIC CORPORATION
• FANUC
• KUKA
• MITSUBISHI ELECTRIC
• KAWASAKI HEAVY INDUSTRIES
• DENSO
• NACHI-FUJIKOSHI
• SEIKO EPSON
• DÜRR
• YAMAHA MOTORS CO.
• ESTUN CORPORATION
• SHIBAURA MACHINE CO LTD
• DOVER CORPORATION
• AUROTEK CORPORATION
• HIRATA CORPORATION
• RETHINK ROBOTICS
• FRANKA EMIKA
• TECHMAN ROBOT
• BOSCH REXROTH AG
• UNIVERSAL ROBOTS (TERADYNE)
• OMRON ADEPT
• STÄUBLI
• COMAU
• B+M SURFACE SYSTEMS
• ICR SERVICES
• IRS ROBOTICS
• HYUNDAI ROBOTICS
• SIASUN ROBOTICS
• ROBOTWORX
• DAIHEN CORPORATION
• PANASONIC CORPORATION

Recent Developments in Industrial Robotics Market

• ABB's Acquisition of B&R Industrial Automation (2017): In 2017, ABB, a leading provider of industrial automation solutions, acquired B&R Industrial Automation, an Austrian company specializing in innovative automation solutions. This acquisition strengthened ABB's position in the industrial robotics market by combining B&R's expertise in machine and factory automation with ABB's extensive portfolio of robotics and control technologies. The partnership aimed to provide customers with advanced automation solutions and accelerate the development of digital manufacturing technologies.
• Rockwell Automation and PTC's Strategic Partnership (2018): Rockwell Automation, a global leader in industrial automation, and PTC, a software and services company, announced a strategic partnership in 2018. The collaboration aimed to integrate PTC's ThingWorx platform, which enables industrial IoT (Internet of Things) applications, with Rockwell Automation's FactoryTalk Analytics. This partnership allowed customers to leverage data analytics and IoT technologies for improved productivity, efficiency, and maintenance in industrial robotics and automation.
• ABB's Collaboration with Kawasaki Heavy Industries (2019): In 2019, ABB and Kawasaki Heavy Industries, two major players in the industrial robotics industry, announced a collaboration to share knowledge and promote the adoption of collaborative robots (cobots). The partnership focused on developing common industry standards and practices for safe and efficient human-robot collaboration. By combining their expertise, ABB and Kawasaki aimed to drive the widespread use of cobots across various industries, fostering innovation and productivity.
• Fanuc's Strategic Alliance with NVIDIA and Rockwell Automation (2020): Fanuc, a leading manufacturer of industrial robots, formed a strategic alliance with NVIDIA, a technology company, and Rockwell Automation in 2020. The collaboration aimed to develop AI-enabled automation solutions for industrial applications. By integrating NVIDIA's AI computing platform with Fanuc's robots and Rockwell Automation's control systems, the partnership aimed to enhance robotics capabilities, enable intelligent automation, and drive advancements in areas such as visual perception, machine learning, and predictive maintenance.
• Siemens' Acquisition of Atlas Copco's Vacuum Business (2021): Siemens, a global technology company, completed the acquisition of Atlas Copco's Vacuum Solutions division in 2021. This acquisition expanded Siemens' portfolio of vacuum solutions, which are widely used in industrial automation and robotics. The integration of Atlas Copco's vacuum business into Siemens' offerings aimed to enhance their capabilities in providing comprehensive automation solutions to customers in various industries.
• KUKA's Acquisition by Midea Group (2021): In 2021, Midea Group, a leading Chinese home appliance manufacturer, completed its acquisition of KUKA AG, a German robotics company. The acquisition strengthened Midea's position in the industrial robotics market, allowing them to offer a broader range of automation solutions. It also facilitated the collaboration between Midea's expertise in household appliances and KUKA's industrial robotics capabilities.
• ABB and Dassault Systèmes' Partnership (2021): ABB and Dassault Systèmes, a French software company, announced a partnership in 2021 to offer a digital twin-based solution for industrial automation. The collaboration aimed to combine ABB's automation expertise with Dassault Systèmes' 3D modeling and simulation technologies. By leveraging digital twins, the partnership aimed to optimize production processes, improve efficiency, and enable predictive maintenance in industrial robotics.
• Teradyne's Acquisition of AutoGuide Mobile Robots (2021): Teradyne, a leading supplier of automated test equipment, acquired AutoGuide Mobile Robots in 2021. AutoGuide is a manufacturer of autonomous mobile robots used in industrial material handling applications. The acquisition expanded Teradyne's presence in the industrial automation market and allowed them to provide a comprehensive range of automation solutions, including both testing and material handling capabilities.
• FANUC's Collaboration with Soft Robotics (2022): FANUC announced a collaboration with Soft Robotics, a provider of gripping solutions for robots, in 2022. The partnership aimed to integrate Soft Robotics' unique gripping technology with FANUC's industrial robots. By combining Soft Robotics' adaptive gripping capabilities with FANUC's precise and reliable robots, the collaboration sought to enhance the flexibility and versatility of industrial automation systems.
• Yaskawa's Acquisition of Agile Planet (2022): Yaskawa Electric Corporation, a major player in industrial robotics, acquired Agile Planet in 2022. Agile Planet is a software development company specializing in advanced control systems for robots. The acquisition enabled Yaskawa to strengthen its software capabilities and enhance the performance and functionality of its robotic systems.

Industrial robotics has emerged as a transformative force in the manufacturing sector, revolutionizing productivity, quality, and workplace safety. Through increased efficiency, improved precision, and cost reduction, robotics technology has become an integral part of modern manufacturing processes. The convergence of advanced automation, AI, and government support has fueled the growth of the robotics industry, paving the way for a more efficient and competitive future in manufacturing. As businesses continue to embrace and harness the power of industrial robotics, the sector is poised for further advancements and innovation, ultimately shaping the future of manufacturing on a global scale.