PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1064167
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1064167
According to Stratistics MRC, the Global Industrial Robotics Market is accounted for $30.22 billion in 2022 and is expected to reach $69.89 billion by 2028 growing at a CAGR of 15.0% during the forecast period. An industrial robot is a robot system used in manufacturing industries. These are automated, programmable and capable of movement on three or more axis. In simple terms, it is described as a programmable, mechanical device used in place of a person to perform dangerous or repetitive tasks with a high degree of accuracy. They are designed specifically for different applications such as welding, painting, assembly, pick and place for printed circuit boards, packaging and labeling, palletizing, product inspection, and testing in manufacturing industries.
The Japanese government has USD 221 million subsidy as a part of its China exit policy for Japanese companies to shift their base to India and other regions. Under its State Guarantee scheme, the government of France has extended financial help to help companies overcome their liquidity issues by guaranteeing the reimbursement of certain eligible loans up to an aggregate amount of USD 358 billion. Indonesia released two stimulus packages to counter the impact of the COVID-19 pandemic. The first package was introduced in February 2020 totalling US$725 million, and the second package was issued in March 2020 totalling US$8 billion. The second stimulus package was launched to protect the economy and small- and medium-sized enterprises (SMEs), particularly in the manufacturing sector.
Rising adoption of robots
Increased demand across economies, product manufacturers is adopting robots to automate some of the repetitive processes. According to the Robotic Industries Association, more than 250,000 industrial robots had been installed in the United States alone, which gives an estimate of the penetration of industrial robots. The industrial robots market has been witnessing a huge demand over the past decade, owing to the rising adoption of smart factory systems, of which these robots play a vital part. Industry 4.0, the newest industrial revolution, has fueled the development of new technologies, like collaborative robots, AI-enabled robots, etc., and has enabled industries to use robots to streamline many processes, increase efficiency, and eliminate errors. Increased workplace safety and improved production capabilities have further driven industries to invest in robotic systems.
High costs of deployment
The cost of industrial robots, coupled with integration costs and cost of peripherals, such as end effectors and vision systems, makes automation a costly investment for SMEs, especially when they are engaged in low-volume production. A robotic automation project can be challenging, especially for companies with no prior experience. High capital expenditure is required not only for the purchase of the robot, but also for integration, programming, and maintenance. In some cases, a custom integration may be required, which can further drive up the overall costs. Companies may not always have the necessary space and infrastructure for the deployment of robots. As SMEs are generally engaged in low-volume production, return on investment (ROI) can be challenging. The existence of companies involved in seasonal or inconstant production schedules further exemplifies the issue. Fast-changing consumer preferences will require frequent reprogramming of robots, as products have to be updated yearly on average. Over-automation can also be problematic. For instance, the US automotive industry initially employed a higher degree of automation compared with Japanese counterparts. This led to cost overruns, as product lines and consumer demand changed over time, and many robots became unnecessary or obsolete.
Growing automation in electronics industry
Investing in robotics will change the demands placed on workers, as they can focus on high-criticality tasks, such as final inspection and quality control. Collaborative robots can be integrated into existing production lines, as they can work alongside humans. The increase in automation will enable electronics companies to innovate further, as they will be able to build prototypes with less time and capital. Robots can be used across the entire production cycle in processes such as assembly, dispensing, milling, inspection, packaging, and palletizing. For example, random bin picking enables robots to pick unsorted components from bins and mount them as per the required orientation. Currently, factory workers in the electronics industry are still primarily engaged in repetitive and redundant tasks such as hand assembly and tooling. As these robots are easier to program, they can be reprogrammed for other activities once their use in a specific application is over. Thus, robots provide flexibility and reusability since the product cycles for electronics often last only for a few months.
Integration and interoperability issues
Interoperability issues present a big challenge, especially to SMEs, due to their unique requirements and lack of personnel to set up a complex automation setup. A modular framework must exist for both hardware and software to connect and coordinate various automation systems. Interoperability is an important function in any factory or manufacturing unit. The focus here is on the software used for programming, diagnosing, and monitoring. It is not uncommon for industries to use robot arms from different manufacturers. Companies may also need to reprogram robots due to a change in production and demand or accommodate different parts, such as vision systems and end effectors. It is the responsibility of the integrator, rather than the manufacturer or end user, to decide on the implementation and set up or programming of the robot.
As China has been the largest market (40-50% share) for industrial robots at least for past 5 years, the COVID-19 pandemic impacted the industrial robotics market negative in 2019 as well. The top players in the industrial robotics market are headquartered in Japan and witnessed a major decline in their 2019 revenue. The COVID-19 pandemic led to global supply chain disruption and sluggish installation of industrial robots in various key industries, such as automotive; electrical and electronics; and metals and machinery. However, the situation in Q1 2021 would witness a growth over 2020 and is expected to reach normalcy by end of 2022.
The traditional industrial robots segment is expected to be the largest during the forecast period
The traditional industrial robots segment is estimated to have a lucrative growth. Traditional industrial robots have been around for a much longer time than collaborative robots, which have only gained traction in the last decade. They are well suited for high-volume production and have been fundamental in scaling up productivity in major industries such as automotive. Various types of traditional industrial robots are designed for different applications specific to the industry. Industries such as automotive, electronics, and metal account for the major use of these robots as their production process imperatively needs to be heavily automated. SCARA robots have a better operational speed and hence are preferred more in manufacturing processes in electrical and electronics industry worldwide. The parallel robots are more suitable for high-precision assembly applications. Owing to their versatility in adaption, varying types with a considerable variation in the payload capacity, the traditional industrial robots are expected to maintain the largest market share during the forecast period.
The automotive segment is expected to have the highest CAGR during the forecast period
The automotive segment is anticipated to witness the fastest CAGR growth during the forecast period. Articulated robots are generally used for most of the tasks; however, parallel robots are used for assembling smaller components, such as pumps and motors. Welding has been one of the first and most popular applications of industrial robots in the automotive industry. In automotive manufacturing, spot welding and painting robots are used extensively. Spray painting automation is another popular application in assembly lines, mainly to protect workers from toxic fumes. As majority of the processes involved in automotive manufacturing and assembly are automated, the automotive industry has to employ industrial robots on a large scale, which makes it the largest demand generator for the industrial robots adoption.
Region with highest share:
North America is projected to hold the largest market share during the forecast period. North America, which is among the leading innovators and pioneers in terms of adoption of robotics, is one of the largest markets. Robot use in the region continues to grow, which is helping make US companies more competitive and leading to new job growth. Further, according to Robotic Industries Association (RIA), the most significant driver of the year-to-date growth of industrial robots was an 83% increase in units purchased by automotive OEMs for process automation. The United States is likewise one of the largest automotive markets in the world and is home to over 13 major auto manufacturers. Automotive manufacturing has been one of the comprehensive revenue generators for the country in the manufacturing sector.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period owing to the increasing demand of automation given the fact that there is a significant growth in its geriatric population in recent years. As far as collaborative robots are concerned, the rising costs of labor in the APAC region have caused the SME industries, in particular, to incline towards industrial adoption by integrating collaborative robots in their manufacturing processes to make the operations more efficient and cost-effective. Other APAC countries such as Taiwan and Thailand are also not far behind in terms of adopting automation to seek a cost advantage through automation in the wake of rising labour costs.
Key players in the market
Some of the key players profiled in the Industrial Robotics Market include ABB Group, B+M Surface Systems, Bosch Group, Cyberdyne, Denso Corporation, Doosan Robotics, Durr AG, FANUC, General Electric, Kawasaki Heavy Industries Ltd, KUKA, Mitsubishi Electric Corporation, Nachi-Fujikoshi Corp, Northrop Grumman, Omron Adept, Panasonic Corporation, Seiko, Epson Corporation, Stryker, Yamaha Motor Co., Ltd, and Yaskawa Electric Corporation.
In August 2020, ABB has announced the launch of the IRB 1300 articulated industrial robot, which will help customers meet the demand for a faster and more compact robot that is able to rapidly lift heavy objects or loads with complex or irregular shapes.
In October 2020, ABB announced the acquisition of Codian Robotics, a leading provider of delta robots used primarily for high-precision pick and place applications. Codian Robotics offering includes a hygienic design line, ideal for hygiene-sensitive industries including food and beverage and pharmaceuticals. With the acquisition, ABB is expected to increase its delta robot offerings.
In September 2020, KUKA announced its new SCARA robots under the KR SCARA line-up that excel in applications like in small parts assembly, materials handling and inspection tasks with a payload of 6 kg. The robots will be mainly offered to cost sensitive markets.
In December 2019 Fanuc launched CRX-10iA and CRX-10iA/L (long arm version) collaborative robots that set new standards in terms of ease of use, reliability and safety. FANUC debuted the new collaborative robots at the 2019 INTERNATIONAL ROBOT EXHIBITION, Dec. 18-21 in Tokyo.
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Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.