The robotics market is undergoing a major transformation, in which robots are growing beyond being the workhorses of industrial shop floors. They are beginning to assume the roles of personal assistants, delivery vehicles, surgical assistants, exoskeletons, autonomous vehicles, and unmanned aerial vehicles (UAVs), among many others.
Until now, industrial robots have made up more than 50% of overall robotics market revenue. However 2016 marks one of the critical turning points of this shift in the robotics market. It is estimated that industrial robots will drop to 41% of total robotics revenue, with the remaining 59% coming from non-industrial robots. The non-industrial sector largely consists of consumer robots, enterprise robots, military robots, and UAVs
The global industrial robotics market is expected to grow at a CAGR of 5.4% from 2013 to 2020, reaching a market size of $41.17 billion in 2020, according to new research published by Allied Market Research. The market was valued at $26.78 billion in 2012.
According to the report, rapid growth in automation demands, coupled with reduction of duties on refurbished goods in Asia Pacific region has fuelled the growth of this market. Industrial robotics are expected to be used in alternative application areas in growing markets.
Key markets include electronics, which is still growing at an increasing rate and has witnessed significant penetration of industrial robotics. The report indicated another key application in the healthcare industry.
Among major robot types—articulated robots, cylindrical robots, SCARA robots, and cartesian robots—articulated robots are the largest segment, owing to increasing usage of these robots currently in emerging industries such as packaging and healthcare sectors.
However, cylindrical robots and other types of robots such as customized and refurbished robots are expected to grow at significant pace in the coming years due to their increasing demand in industrial sectors in Asia Pacific region.
Cylindrical and other types of robots are estimated to grow at a CAGR of 6.5% and 7.5%, respectively till 2020.
The global industrial robotics Industry was estimated at USD 25.68 billion in 2013 and is expected to reach USD 40.00 billion by 2020 owing to increased number of deployments in the manufacturing sector to simplify complexities and enhance productivity. Industrial robots are being increasingly used to simplify business activities including marketing, designing, selling, building, installing, maintaining and operating.
The market is segmented into automotive industry, electrical and electronics, chemical, rubber and plastics, machinery, metals industry, food and beverages, precision and optics. Among these, the automotive industry segment dominated the market till 2012 at $7.37 billion.
However, the segment is expected to witness low growth owing to slow down in the automotive industry. The food and beverages segment is expected to witness highest growth rate of 6.9% owing to rising food and beverages industry.
Moreover, the rising need and customized solutions to make the process faster especially in unexplored regions such as Brazil, Argentina, and South Africa is expected to drive the growth in food and beverages industry.
On the basis of functions performed by such robots, the market is segmented into soldering and welding, materials handling, assembling and disassembling, painting and dispensing, cutting and processing, milling, and others. Materials handling is the largest segment by function in the industrial robotics market.
Rapid growth in automation demands coupled with reduction of duties on refurbished goods has also fuelled growth in the industrial robotics market. Similarly, North America and Europe collectively accounted for over one-third of the market share, as these regions have been continually focusing on research and development and have been using industrial robotics for the same.
According to the report published by Grand View Research, global industrial robotics market will reach $40.00 billion by 2020. The upsurge in demand for industrial robots is due to need to improve the productivity of high volume production lines, especially in manufacturing of electronic devices and vehicles which perform complex tasks.
The global robotics market reached nearly $24.9 billion in 2015. The market should reach over $25.9 billion and $31.5 billion in 2016 and 2021 respectively, increasing at a compound annual growth rate (CAGR) of 4.0% from 2016 to 2021.
An increased emphasis has been laid on productivity index to sustain in the competitive environment of the manufacturing sector and achieve quality results. The trend is expected to drive the industrial robotics market. Increasing labour costs coupled with growing demand from automotive industry is anticipated to be a key driving factor in the industry.
Manual labour has eventually replaced with self-programming robots owing to the job efficiency and cost-effectiveness on account of their ability to sense environmental changes through integration of sophisticated sensors. Growing measures concerning safety rights of labourers are also expected to augment growth in the market.
Application of robots in non-automotive industries namely chemicals, food & beverages, electronics, and electricals have resulted in the development of new opportunities and prospects over the past few years. Increasing installation costs and lack of skilled labour are expected to pose a challenge for the companies.
In 2013, automotive robots contributed to the highest market share by volume. The market is projected to gain prominence on account of technological advancements and integration of artificial intelligence. Increasing demand from heavy machinery and food processing industries are also expected to have a positive impact on growth over the coming years.
Asia Pacific accounted for the largest market in 2013 on account of substantial investments by organizations to expand globally. Countries including Korea, Japan, and China have experienced significant growth owing to supportive government programs involving tax incentivisation, investments in skill management, and R&D funding. Singapore, Taiwan, and India are also anticipated to have a high potential for growth.
Rising production capacities in North America coupled with the modernization of factories are expected to result in an increasing number of robotic installations. Significant investment in robotics by automotive industry players in Europe is projected to augment demand over the forecast period.
The industrial robotics market encompasses numerous Japanese suppliers namely Denso, Motoman and Fanuc. Europe comprises of specialized industrial robotics establishments including Kuka and Comau along with prominent corporations including BAE and ABB Systems.
New entrants are expected to emphasize on a particular application and find ways to diversify to cope with high capital cost.
Industrial robots have vast potentials to grow, especially given China’s aggressive push toward factory automation. A much larger growth opportunity over the next several years for non-industrial robots is also being forecast. The enterprise robotics sector includes robots for agriculture, construction, logistics, telepresence, and customer service, all of which are dynamic application markets where significant growth is expected.
Another key growth area is the consumer robotics sector, which includes toy and educational robots, personal assistant robots, and household cleaning robots. However, the largest robotics category is autonomous vehicles, which in the long run is anticipated to overshadow all other sectors in terms of scale and impact. Autonomous vehicles are likely to take multiple routes to market, including autopilot features in luxury cars, autonomous car sharing fleets, autonomous retrofit kits, and autonomous trucks and shuttles. Other application markets such as healthcare robotics, military robotics, and UAVs will also contribute significantly to the growth in non-industrial robots.
The competitive landscape of the global industrial controls and robotics market consists of players such as Schneider Electric SA, Kawasaki Robotics, Omron Corporation, Rockwell Automation Inc., Siemens AG, Mitsubishi Electric Corporation, and Invensys plc. The key players have significant scope of growth across the emerging economies such as India and Brazil, says Transparency Market Research (TMR) in a new report.
Governments in these countries are taking various initiatives to strengthen the manufacturing sector by improvising productivity. These countries usually import machines, technology, and components from developed countries such as France, Japan, and Germany. As a result, the emerging economies pose as an open market for the key players to increase their viability on a large scale.
Presently, the Americas is the target region for the market players to maximize their profits. In 2012, the region accounted for the highest share in the market, followed by Asia Pacific and Europe. “The rapid adoption of new technologies and the growing demand for large-scale production and re-engineering in the industrial sector are the primary factors backing up the growth of the market across North America,” a TMR analyst cites.
Among the major end-user industries, the automotive industry contributes the highest towards the growth of the global industrial controls and robotics market. However, the market players are shifting their focus on the semiconductors industry as it is projected to register the fastest growth during the forecast period. “The requirement of high degree precision with rapid production in the semiconductor industry can be addressed by industrial controls and robotics solutions,” TMR report mentions.
The growing demand for minimum turnaround time across the manufacturing sector has aided the extensive usage of industrial controls and robotics. The implementation of industrial controls and robotics solutions enhances productivity and decreases variable costs. Hence, these solutions are being highly preferred by manufacturers across various sectors. Furthermore, keeping in view the introduction of minimum wage policies, manufacturers prefer using industrial controls and robotics solutions to enhance the performance of hazardous tasks while involving lesser manpower.
However, the high initial investment regarding the setup of industrial controls and robotics plays spoilsport in the growth of the market. The availability of low cost labour across developing countries has also restricted the expansion of the global industrial controls and robotics market. The market holds a significant growth opportunity with the rising demand for customized products. “The empowerment of small and medium enterprises in emerging economies will offer ample opportunities for the market’s growth,” TMR report states.