Industrial Robotics Market Size and Share Analysis 2024-2031
The global industrial robotics market was valued at USD 15.8 billion in 2021 and is projected to grow at a CAGR of 13.8% during the forecast period. Industrial robots are becoming increasingly popular in various sectors, including food and beverage, electronics, metals and machinery, and semiconductors. This growth is driven by the benefits these robots offer, such as increased utilization, reduced costs, and improved quality. Applications of industrial robots include painting, assembly, welding, palletizing, packaging and labeling, and product inspection. A significant trend driving market growth is the increasing focus on boosting the productivity of high-volume production lines, particularly in the automotive and electronics manufacturing industries.
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Rising Labor Costs and Investments in Robotics
Wage costs in the UK are rising by more than 12% each year, leading to labor shortages. To address these challenges, market players are investing heavily in industrial robots. For instance, in January 2022, Chancellor Rishi Sunak invested in robotics to help the UK economy cope with an inflationary crisis caused by labor shortages. Increased investments by key market players in supply chains are also propelling market growth. In January 2022, DHL Supply Chain invested USD 15 million in robotic solutions for its warehouse supply chain network. Robots simplify supply chain networks by reducing long-term costs, increasing productivity, minimizing errors, and streamlining picking operations. The supply chain market is estimated to grow over 100% by 2026, creating new opportunities for the industrial robotics market.
Innovations and New Product Launches
Major market players are focusing on launching new robots to capitalize on existing opportunities. For instance, ABB Group, a pioneering technology leader based in Switzerland, announced the launch of its new ceiling-mounted industrial SCARA robot, IRB 910INV, in 2018. This robot can work simultaneously with other machines and robots, providing greater flexibility and increased productivity. Such innovations are expected to boost the market in the coming years.
Impact of COVID-19 on the Industrial Robotics Market
The COVID-19 pandemic has caused significant disruptions across many industries. Lockdowns imposed by various countries to prevent the spread of the virus have impacted many sectors, including the industrial robotics market. However, the pandemic has also increased the demand for medical devices, boosting the growth of industrial robots in the device manufacturing industry. For example, in April 2020, US-based robotics and technology company Vecna Robotics, along with its sister companies VecnaCares and Vecna Healthcare, launched Ventiv, an automated manual resuscitator, to meet the increased demand for ventilators.
Drivers of Market Growth
Access to New Industries and Adoption of Robotics in SMEs
Robotics was initially associated with heavy industries such as automobiles and energy. However, advancements in precision robotics and the miniaturization of robots have opened new markets, including electronics and instrumentation. The advent of nanorobotics has also enabled industrial robotics to enter previously untapped industries such as healthcare. Industries such as testing and packaging have become significant markets for industrial robots. The use of industrial robots in small and medium-sized enterprises (SMEs) in industries like automobile parts is also on the rise, driving market growth.
Growing Demand for Collaborative Robots
Collaborative robots, or cobots, are designed to work alongside humans in shared workspaces. Cobots can automate tasks and are used in various applications such as packaging, pick-and-place, screwing, assembly, laboratory testing, and quality inspection. Cobots perform repetitive tasks faster, enhancing worker safety and production efficiency. The demand for collaborative robots is growing in industries such as retail, healthcare, and automotive manufacturing due to their multiple benefits and applications. Manufacturers like Universal Robots, KUKA AG, and Franka Emika GmbH offer a wide range of collaborative robots for different industries.
Challenges Facing the Market
High Introduction Costs for SMEs
Robotic automation projects require significant investments in purchasing robots, integration, programming, and maintenance. Custom integration may be necessary in some cases, further increasing costs. SMEs often lack the facilities and infrastructure needed to use robots, making return on investment (ROI) challenging, especially for small-batch production. Seasonal or unstable production schedules can exacerbate this problem. Frequent reprogramming is necessary due to rapidly changing consumer tastes. Over-automation can also be an issue, as seen in the US auto industry, where excessive automation led to cost overruns and obsolete robots. The high costs of industrial robots, integration, and peripherals make automation a costly investment for small businesses.
Segment Overview
Articulated Robots Dominate the Market
Articulated robots are expected to hold the largest market share among traditional industrial robots during the forecast period. They are used in the automotive industry for various tasks, including handling, assembly and disassembly, welding, dispensing, machining, spot welding, and painting. The pharmaceutical and cosmetics industries are also seeing increased demand for articulated robots, particularly for testing and production processes.
Growth in Robot Accessory Components
Robot accessories such as end effectors and image processing systems are expected to witness the highest growth in the industrial robot market. Technological innovations have advanced end effectors, driven by the need for enhanced functionality in industrial robots. Future end effectors will combine machine learning software and safety features within the end-of-arm tool (EOAT), achieving higher technological sophistication.
Regional Landscape
Asia Pacific Leads the Market
Rising labor costs in Asia Pacific are driving manufacturers to automate their processes to maintain cost advantages. Countries like China are recovering from production slowdowns, while others like Taiwan and Thailand are pushing for further automation. The growing population and increasing disposable income in Asia Pacific drive demand for consumer goods, boosting production capacity and market size. Automation is expected to continue growing in the region due to low production costs, economical labor, lax emission and safety standards, and government initiatives for foreign direct investment (FDI).
North America Shows Strong Growth
North America, especially the United States, is expected to see substantial growth due to high industrial demand. Many suppliers plan to expand operations in the region. The rise of Industry 4.0 and smart factories increases the need for customized small robotic systems.
Competitive Landscape
Key players in the industrial robotics market include ABB, FANUC, YASKAWA, KUKA, Mitsubishi Electric, Kawasaki Heavy Industries, Denso Corporation, NACHI-FUJIKOSHI, Seiko Epson, DÜrr, Universal Robots, Stäubli, Comau, B+M SURFACE SYSTEMS, ICR Services, IRS Robotics, Hyundai Robotics, Siasun Robotics, RobotWorx, Techman Robot, Rethink Robotics, FrankaEmika, F&P Robotics, and Bosch Rexroth. In 2021, Kawasaki Heavy Industries announced the installation of its automated polymerase chain reaction (PCR) testing system at Fujita Health University in Japan. In October 2020, ABB acquired Codian Robotics, expanding its range of delta robots for high-precision pick-and-place applications in hygiene-sensitive industries.
Conclusion
The industrial robotics market is set for significant growth, driven by rising labor costs, increased investments, and technological advancements. While challenges remain, the
market's future looks promising with ongoing innovations and expanding applications in various industries.