Global Industrial Robotics Market Insight Research Report with COVID 19 Impact

Published on : Monday 27-07-2020

Global Industrial Robotics Market size is around USD 18 billion in 2019 and expected to reach USD 40 billion by 2025, at a CAGR of almost 13% during the period 2020-2025. It is also expected that there are over 2 million industrial robots are installed in the global market across various sectors.

Key Robotic Industry Highlights 

•    Worldwide annual sales of industrial robots are 420,870 units in 2019
•   The average cost of industrial robots worldwide declined steadily over the past decade, from about USD 46,000 in 2010 to USD 27,000 in 2017. According to a recent forecast, related costs are expected to decrease to USD 10,856 by 2025.
•    Globally, the operational stock of multipurpose industrial robots is expected to be around 3.2 million units by 2020. 
•    400,000 robot installations per year, with an estimate of about 584,000 units in 2022
•    Almost 80% of industrial robot installations in the automotive industry took place in five key markets: China, Japan, Germany, the US, and the Republic of Korea 
•    Robot installations are over 110,000 units in electronics in 2019
•    Metal and machinery account for more than 45,000 units in 2019
•    The total number of professional service robots sold in 2019 rose over 50%, with more than 271,000 units shipped in 2018
•    Asia/Australia emerged as the top region for industrial robot shipments
•    Global automation market size is USD 185.9 billion in 2019, in which robotics accounted for over 10% revenue share

Growth Factors for the Industrial Robots Market

The higher costs of employing manual labor along with the inconveniences associated with providing benefits such as promotions, health and security compensation and exemptions, benefits packages, raising wages on a yearly basis, and reduced yields is a significant factor leading to the movement towards the adoption of automation technology, thereby forcing the industrial robotics market. Furthermore, the costs of training and employing workers and their replacements are very high. In the accounts of the benefits, workers possess lower satisfaction in carrying out tasks as opposed to robots that have limitations and cannot work in inhospitable or harsh environments. In countries of North America and Europe, the expenses of employing manual labor are currently undergoing considerable growth, which will be offering huge growth opportunities for the market. For instance, the labor prices in the European region comprising of the 28-member countries experienced a 2.2% increase.

As the technology is subject to changes and progress, the regulatory framework is intricate and constantly updated or altered to accommodate improvements. A significant area of concern in the robotics market is the operators' security, primarily in robots that work together with human personnel. Various countries including China and Japan are beginning to govern layout and the manufacturing of this gear, which is anticipated to fuel the industry size and have very lax robot laws.

These robots supply a high ROI to manufacturers and business owners which are dispersed over a lengthy duration escalating industrial robotics market demand. The initial costs of purchasing this equipment may be expensive to businesses that purchase this gear in bulk as opposed to a single-time or replacement purchase and are very high. Furthermore, personnel training and setup costs and recurring costs for maintenance and cleaning follow these rates. When looking at the costs of those systems, add-in peripherals such as end-of-arm tooling (EOAT), controllers, teach pendants, and programmed applications causing the entire system costs to grow drastically. Such rates are highly unfeasible to players having a budget that is very limited.

Industrial Robotics Market Transformation Due to COVID 19

Robots are assisting companies in the manufacturing sector to kick-start the production, that was stopped due to COVID 19. For this, the government is pulling initiatives for the use of industrial robots across various end-use applications to help the companies to regain their production capabilities and sustain in this tough marketplace amidst COVID 19 pandemic in the global market.

Challenge of Industrial Robotics Market Growth amidst COVID 19 Pandemic

Implementation of lockdown amidst COVID 19 pandemic in the global market has enforcement the possibility of disruption. The requirement of large investment costs for the installation of industrial robots is the main challenging factor in the current marketplace. Although, companies are investing in the development price reduction and increased quality of the product. This expected to lead the operation of production units resumes.

Post Pandemic Industrial Robotics Market Insights

Following the COVID 19 crisis, the government bodies are helping companies through implementing schemes that are substantial for boosting businesses. There is a growing demand for robotics to automate operations in the companies. Industrial robots are found to mainly be used in technology along with a focus to enhance production lines efficiency is expected to drive demand industrial robotics in the global market in the coming years. 

Industrial Robotics Market, By Application

In 2019, the automotive sector is expected to lead the industrial robotics market in terms of revenue share followed by the electronics/electrical industry. The increase in demand for production capacity and product quality in the next-generation vehicles such as connected vehicles, electric vehicles, and autonomous vehicles are raising the demand for the industrial robotics in the production of vehicles in the global market in the coming years. Moreover, there is a wide change in purchase trends owing to the availability of advanced featured vehicles with energy-efficient drive systems that are influencing consumers to focus on next-generation vehicles. 

In addition, the industrial robotics companies are also focusing to expand the capabilities and demand from different applications such as pharmaceuticals and food & beverages owing to meet the demand for automate repetitive tasks and enhance the precision of the work. For instance, KUKA AG’s palletizing robots are used by Corona Beer for stacking crates. Robotic applications in the pharmaceutical sector, for instance, has the added benefit of being able to work in sterile environments without the potential for contamination from human or the environment during component transfer.

Industrial Robotics Market, By Region

In 2019, the Asian marketplace is expected to lead the demand for industrial robotics in the global market owing to the presence of leading automotive manufacturing companies and the well-establish automotive sector as well as the pharmaceutical, metal processing, and electronics industry. The government in the Asian region are providing incentives to the companies for the adoption of industrial robotic technologies. For instance, the Japanese Government intends to invest in robotic technologies to supports SMEs, as the country facing a continuous decline in skilled workers. These issues are also benefitting the growth in the consumption of industrial robots to boost production and meeting global and regional demand.

Moreover, the steady growth in the labor wages in the developed economies such as the US, the UK, Germany, Canada, and France among others, along with the rise in growth of advanced robotic technologies such as collaborative, cloud-based robots, and AI integrated technologies are further driving its demand in the developing regions such as North America and Europe. In addition, the strict government norms and workers' safety policies are also creating the demand and consumption of industrial robotics in the global market and minimize the scope for humans to face dangerous tasks, as of now that is assigned to robotic systems.

Competitive Market Share

The global industrial robotics market is in the growth stage and expected to gain massive revenue in the coming years owing to increase in demand for industrial automation. Key companies involved in the manufacturing of industrial robotics market include ABB, KUKA AG, Yamaha Motor, Denso Corporation, Kawasaki Heavy Industries, Fanuc Corporation, Mitsubishi Electric Corporation, and others

Industrial Robotics Industry Background

The growth in the demand for Industrial 4.0 and the growing trend for evolving business models in the global market are continuously increasing the demand for industrial robotics. Moreover, the partnerships and collaborations between industrial robotic manufacturers and IoT companies such as Huawei Cisco and Microsoft will be expected to expand the capabilities and strengthen the operational power of robots. This also opens new growth opportunities in the marketplace for industrial robotics. 

Human labor is a prime replacement withinside the commercial robotics market. This is incredibly amplified in nations of South-East Asia wherein hard work is to be had at very low costs. The growing prominence of collaborative robots is predicted to address this trouble as these systems work in collaboration with humans, main to excessive productiveness, and decrease retaliation from a company’s guide workforce.

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