An industrial robot is a system used for manufacturing. These robots are automated, programmable, and can move on three or more axes. They can assist in material handling, product inspection & packaging, labeling, and testing. The demand for industrial robots across major application segments such as automotive and electrical and consumer electronics combined with its increasing usage across other sectors.
The global industrial robotics market is estimated to account for US$ 69.1 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
Emerging economies such as India and China are highly labor incentive and has witnessed a rise in labor costs. As a result of this, it is becoming more economically viable to opt for automation. According to Coherent Market Insights’ analysis, the average wage per hour in countries such as India has increased significantly from US$ 3.5 in 2007 to US$ 5.1 in 2014. Increasing conversion rate and currency fluctuations have also impacted the overall market, resulting in increased labor costs as labor cost is directly linked with inflation. Hence there is a huge demand for industrial automation so that these industries can maintain productivity and cost-efficiency. Therefore, these factors are expected to drive growth of the global industrial robotics market during the forecast period.
Previously, robotics was mainly related to heavy manufacturing such as the automotive and energy industries. However, over the years, the advent of precision robotics along with miniaturization of robots has found new markets such as electronics and instrumentation. Besides the introduction of nanorobotics has allowed industrial robotics to enter industries such as healthcare, which was previously untapped. Moreover, industries such as testing and packaging have continually shown great promise and have been key industries for the industrial robotics market. Industries such as auto components, which are SME based industries, are now adopting industrial robotics. Therefore, these factors are expected to propel the global industrial robotics market growth over the forecast period.
Statistics:
APAC held dominant position in the global industrial robotics market in 2019, accounting for 54.1% share in terms of value, followed by North America and Europe respectively.
Figure 1: Global Industrial Robotics Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
The automation requires significant investment at the beginning. According to Coherent Market Insights’ analysis, deploying industrial robotics would cost around 25% of the overall cost for the company. However, investors are uncertain of such high expenditure due to economic instability. Furthermore, disinvestment in many industries means there is the availability of refurbished robots, without creating substitute demand. The high cost of investment and uncertainty translates to lackluster demand for fresh robots. Therefore, these factors are expected to restrain growth of the global industrial robotics market during the forecast period.
Manufacturing is slowly becoming fractured and often being offshored to reduce cost and carbon footprints. Manufacturing of robots was earlier prevalent in highly industrialized countries like Japan and Germany to cater to regional demands. However, as manufacturing shifts to newer hubs, there are huge transportation costs impacting the end price. Furthermore, industrial production globally is witnessing a slowdown, and this has directly impacted the automotive industry, which is historically the largest application for industrial automation. Thus, these factors are expected to hamper the global industrial robotics market growth over the forecast period.
| Report Coverage | Details | ||
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| Base Year: | 2019 | Market Size in 2019: | US$ 49.0 Mn |
| Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 6.4% | 2027 Value Projection: | US$ 69.1 Mn |
| Geographies covered: |
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| Companies covered: |
Daihen Corporation, Yaskawa Motoman Robotics, Denso Corporation, Universal Robots, Epson America, Inc., Panasonic Corporation, Epson America, Inc., Nachi Robotic Systems, Inc., FANUC Ltd., Mitsubishi Electric Corporation, Kawasaki Heavy Industries Ltd., and KUKA Robotics Corporation. |
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| Restraints & Challenges: |
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Market Opportunities
Industrial robots are optimizing production processes and making them more flexible not only in the automotive sector but also in other application segments such as electrical and electronics, machinery, and food & beverages. Deployment of robots has helped industry players to design the overall process in a smooth and development-oriented manner. Flexibility is one of the prominent factors in the industrial sector as segments such as food and beverages, packaging, etc. and this is also well served with the usage of industrial robotics. The work occurs in more than two shifts in these sectors to meet the demand-supply gap of the product. Thus, the robots have helped the industry players to achieve the demand-supply gap with the help of high speed, accuracy, and precision offered over humans.
Manufacturers are focusing on both developed and developing regions to cater to the demand of industrial robotics across different application sectors. For example, Denso Corporation received iF Design Award in September 2011 for the new series of 6 axis compact robots. These robots are the world’s fastest robots with the slimmest arms and the company plans to market them in North America, Europe, and Asia through its existing sales offices and through Denso FA distributors in Japan. Moreover, KUKA Robotics is opening a new production facility in China to cater to the growing demand. The new production facility will help in the production of 5000 robots.
Figure 2: Global Industrial Robotics Market Value (US$ Mn), 2017 - 2027
The global industrial robotics market was valued at US$ 49.0 Mn in 2019 and is forecast to reach a value of US$ 69.1 Mn by 2027 at a CAGR of 6.4% between 2020 and 2027.
Market Trends
Major companies in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in February 2014, Daihen Corporation acquired VARSTROJ d.d. VARSTROJ d.d. was primarily engaged in the production, sale, and development of robot systems and welding equipment in Slovenia. The acquisition helped the company to further strengthen its product portfolio as well as geographic reach.
Major companies are focused on research and development activities in order to expand the product portfolio. For instance, in May 2012, Denso Corporation introduced a series of six-axis articulated robots. The new series of VS robots offer the highest speed and precision. In August 2013, Epson introduced the Epson C4 and Epson C4L 6 Axis robots. These robots operate with faster speed and have more payload capability.
Value Chain Analysis
The value chain for industrial robotics covers all the stages of manufacturing, setting up these systems and its end-use applications. The manufacturing of Industrial robotics requires primary raw materials such as iron, aluminum, silica, steel, and the overall electrical and electronic hardware. All these sub-products are manufactured from procured raw materials such as steel, iron, oil, silica and aluminum. The EPA (Environmental Protection Agency) continuously supervises the basic raw materials utilized in robotics production. All the procured sub-products are assembled to form a complete entity. The products are designed and optimized according to requirement.
Global Industrial Robotics Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. The ongoing COVID-19 pandemic has adversely affected many industries in the countries. This is due to lockdown imposed by several countries to stop the spread of coronavirus. Increased demand for medical equipment’s is expected to drive the growth of industrial robotics in the equipment manufacturing industry. Increasing demand for ventilators and respirators have increased the demand of industrial robots. For instance, in April 2020, Vecna Robotics, U.S. based robotics and Technology Company and sister companies VecnaCares and Vecna Healthcare have launched Ventiv, automated manual resuscitator used for combating the shortage of ventilators caused by coronavirus pandemic.
Competitive Section
Major companies operating in the global industrial robotics market are Daihen Corporation, Yaskawa Motoman Robotics, Denso Corporation, Universal Robots, Epson America, Inc., Panasonic Corporation, Epson America, Inc., Nachi Robotic Systems, Inc., FANUC Ltd., Mitsubishi Electric Corporation, Kawasaki Heavy Industries Ltd., and KUKA Robotics Corporation.
Key Developments
An industrial robot is an automatically controlled, mechanical device used in place of an individual to perform dangerous, error-free or high accuracy operations. The industrial robots offer many benefits such as cost reduction, size reduction, improved manufacturing quality and flexibility. Industrial robotics are high on demand and used in various industries such as automotive, electronics, food & beverages and many others. According to the International Federation of Robotics (IFR), in 2020, around 1.64 million industrial robots were in operation globally.
Market Dynamics
Rapid industrialization and automation is expected to drive industrial robot market growth during forecast period. The increased adoption of industrial robots in many industries such as automotive, manufacturing, food & beverages, machinery industries for automated processes can lead to the increased efficiency, improve safety and minimize human errors. The surveillance and security systems has been improved with the implementation of drones. The industrial robots can deliver high quality product and services and provide better efficiency in the industry. Moreover, several industries are implementing industrial robots solutions in order to reduce labor cost and improve efficiency. These factors are expected to drive the demand for industrial robotics market.
Reduction of duties and increased investments on R&D is expected to boost the global industrial robotics market growth over the forecast period. The global economies especially the neo developed economies are opening up their markets to import capital goods. The custom duties have gone down to zero percent in many economies such as India and China for used capital goods. However, as old robots are refurbished and exported to neo developed countries such as India, the demand for refurbished robots is expected to hold a dominant position in terms of demands for newer industrial robots. Moreover, many key players are focused on new product development according to customer requirements. For instance, in 2013, Yaskawa Electric Corporation invested 10% of their overall income in the R&D process for developing new products. Therefore, these factors are expected to propel the global industrial robotics market growth over the forecast period.
Market Taxonomy
This report segments the global industrial robotics market on the basis of type, industry, function and region. On the basis of type, the global industrial robotics market is segmented into cartesian, articulated, cylindrical, scara and others. On the basis of industry, the global industrial robotics market is segmented into electrical & electronics, automotive, machinery, chemical, rubber & plastics, food & beverages, metals, precision & optics and others. On the basis of function, the global industrial robotics market is segmented into materials handling, milling, cutting and processing, soldering and welding, painting and dispensing, assembling & disassembling and others. On the basis of region, the global industrial robotics market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa.
Key features of the study:
Detailed Segmentation:
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