The global industrial robots market size was USD 14.61 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with industrial robots witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 5.5% in 2020. The market is projected to grow from USD 15.60 billion in 2021 to USD 31.13 billion in 2028 at a CAGR of 10.4% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Positive Growth in the Demand of Industrial Robots is expected in the COVID-19 Period
During the Covid-19 pandemic, many organizations faced a decline in their market growth, however, this market was slowly rising in manufacturing industries, especially in pharmaceuticals & medical device manufacturing sectors.
Major players such as ABB, Fanuc, Omron, and others faced production and sales challenges in the first quarter of 2020, however over the upcoming quarters, the manufacturers regain their production and sales activities and also bought the best performance in these aspects. As there is a shift to digital connectivity and automation, industries sought ways to maintain operations with fewer people on site, players are focusing on increasing the production of robots. Furthermore, currently, there has been a surge in the healthcare industry across the pharmaceutical, biotechnology, medical device manufacturing. The demand for medicines, ventilators, and sample testing has been growing tremendously and is observed to boast in the forecast period. Therefore, in order to overcome the demand industrial robots, play a vital role as they consist of precision & accuracy in their inspection as well as production and testing activities of medicines. For instance, in December 2020, ABB deployed 50 SCARA robots in Singapore for automating several laboratories tests and increasing the sample testing capacity to 50,000 tests per day of COVID 19 virus across the country. However, owing to the rising demand for industrial type of robots is expected to drive the market and boost the product over the forecast period as market players developing many business strategies for increasing market growth.
Rise in the Logistics Sector is Expected to Aid the Market
The growing trend of consumers towards online shopping is boosting the e-commerce industry. The distribution centers, retailers, warehouses, and facilities owners, are now emphasizing integrated automated robotic solutions. The interest is to achieve on-time delivery, reduce labor costs, and enhance efficiency and productivity at every process. This is one of the major factors for industrial robot deployments. Furthermore, many companies are developing promising products across all logistics value chains, including self-driving trucks, intelligent warehouses, and service robots.
Increase in the Investments across the Industries is Driving the Growth of the Market
Generally, the major demand of industrial robotics is being observed across the sectors such as automotive, pharmaceuticals, consumer electronics, packaging and machinery. However, this demand is based on their requirement of the robot type which they install across their sites, in order to harness the production activity and reduce the cost. For example, players across consumer electronics ought to install collaborative robots at a higher rate for increasing flexibility in production. Therefore, there are heavy investments taking place in the market that are driving the market growth. For example, one of the well-established motor brands Nissan Motor Company acquired two lines of UR10, collaborative robot arms from Universal Robots, at their Yokohama plant, in order to reduce their spending on workers without compromising the efficiency of the production processes such as Takt Time. Likewise, the consumer electronics, pharma and machinery players also equally hold an investment share in the market.
High Costs of Investments at Initial Stage and Maintenance can Hinder the Market Growth
The pouring of investments required at the initial stage can act as a serious challenge for companies with no relevant experience. The heavy capital expenditure is needed for procurement, integration, programming, accessories, maintenance, etc. This could limit the market growth. Several small & medium enterprises also find it tough to park high funds due to low-volume production as well as sluggish return on investments. Furthermore, currently, the breakdown of the COVID-19 pandemic is creating a considerable impact on the market. The immediate locking down of various manufacturing plants and industries has tremendously hampered the overall production processes and supply chains. However, industrial robot manufacturers are expected to alleviate their sales and overcome the challenges after the pandemic.
By Robot Type Analysis
Articulated Robots Segment is Anticipated to Show a Higher Growth Rate Backed by Increasing Penetration of these Robots Across Healthcare and Food & Beverage Sectors
Based on the robot type, this market is segmented into articulated, SCARA, cylindrical, cartesian/linear, parallel, and others.
The articulated robot held the highest industrial robots market share due to its characteristic to repeatedly perform precise movements, which mainly includes applications such as material handling, assembling, and others. The adoption of articulated robots is majorly used in food & beverages, pharmaceuticals, automobiles further fueling the market growth.
SCARA and cylindrical robots are expected to grow considerably during the forecast period due to their structure designed to perform the tasks in a harsh environment. Moreover, they perform selective and repetitive activity mainly including pick & place, sorting, prescription drug dispensing, small part assembly at a rapid cycle time. Such robots are widely installed in the food & beverages, automotive, and manufacturing industries.
Cartesian/linear and parallel robots are anticipated to show considerable growth in the coming years owing to rising automation across warehouses, distribution centers, manufacturing plants, etc.
By Application Analysis
Material Handling Segment to Grow Rapidly during the Forecast Period
Based on application, the market is segmented into pick and place, welding & soldering, material handling, assembling, cutting & processing, and others
Material handling is expected to book the highest growth owing to demand from food & beverages, pharmaceutical, electrical & electronics industry. In addition to this, material handling is considered a highly precarious task in the chemical and pharmaceutical sectors as some chemicals are concentrated and carry hazardous substances. In such a scenario, the aide application of robots is rapidly adopted to decrease the number of accidents, thereby ensuring employee safety.
Assembling, welding & soldering, and pick and place application is expected to rise considerably during the forecast period. This is attributable to a rise in the automotive industry, metal machinery, electrical and electronic industry. In these industries, customized spare parts are assembled and installed in the end product.
The cutting and processing segment is expected to show considerable growth in the coming years with the increasing trend of customization of cars, rising focus of precision cutting across various applications, etc.
By Industry Analysis
Healthcare & Pharmaceutical Segment to Grow Rapidly in the Forecast Period Owing to Increasing Usage of Robots for Performing Medical Operations.
Based on industry, the market is segregated into automotive, electrical & electronics, healthcare & pharmaceutical, food & beverages, rubber & plastic, metals & machinery, and others
The healthcare & pharmaceutical segment is expected to grow at a significant rate. The growth is likely to be driven by the rising trend of synergizing robotics and humans to perform various medical activities. This includes assisting surgeons with performing operations, typically minimally invasive procedures. These robots are integrated with advanced 3DHD technology, enabling the operator spatial references required for highly complex surgery. Moreover, the characteristics of speed and accuracy are major factors for increasing industrial robots’ deployment. These robots can handle powder, liquids, and highly viscous materials at testing centers and manufacturing plants.
The automotive segment is anticipated to have the highest share due to the increasing shift from manual to electric cars. Moreover, governmental bodies' rising concerns to reduce emissions further enforce manufacturers to reduce the weight of the vehicles to maintain emission standards. Furthermore, the major countries, including Germany, the UK, United States, and China, focus on expanding their production plants across countries to meet the rising demand.
Electrical & electronics, metals & machinery, rubber & plastic, and food & beverages segment is anticipated to show considerable growth in the future with the rising integration of robotics for handling delicate semiconductors, hazardous chemicals in research & development centers, etc. Also, industrialization is getting a pace in recent times with the growing customer needs for specific and customized machinery. These types of machinery require précised welding and soldering to resist the heavy load in the operational processes.
Asia Pacific is anticipated to emerge dominant in the global market in the foreseeable years. This is ascribable to the rising automation, mainly in Japan, China, and India. Furthermore, the rising population and disposable income of people increase the consumption of consumer goods and other products, owing to which the production capacity is expanding, further supplementing the market size. Similarly, demand for customized automobiles and machinery is widening which, in turn, requires high precision and production capacity. The adoption of robotics in industrial applications is enhancing to map up with the demand.
Europe is expected to show exponential growth due to the rapid emergence of industry 4.0 and smart factories. increasing demand for customized & compact robotic systems. In addition, manufacturers yield an early return on investments (ROI) as the manufacturing process is accelerated and production capacity is enhanced.
North America is also expected to show considerable growth, owing to its demand across the manufacturing sights majorly in the United States. Many suppliers are also planning to expand their business in the coming years across the region.
The Middle East and Africa, and Latin America are expected to show considerable growth in the coming years as the up-gradation of manufacturing operations is at the peak in this region, manufacturers are focusing on developing and implementing collaborative robots. These robots are specifically designed to work with humans and are integrated with advanced sensors to recognize humans while working with them. The application of this type of robot is used to conduct heavy-duty jobs.
KEY INDUSTRY PLAYERS
Mitsubishi Electric Corp. to Invest in Robotics and Gain Competitive Edge in the Global Market
Mitsubishi Electric Corp. focuses on investing in the companies that offer innovative technologies in the robotics industry to upgrade its existing technology. For instance, In May 2019, Mitsubishi Electric Corp. announced to invest in Realtime Robotics Inc., which is developing motion-planning technologies. Mitsubishi is planning to launch new industrial robots integrated with Realtime Robotics’ motion-planning technologies in the near future.
Key players are Focusing on Upgrading the Existing Technology and Geographical Expansion Strategies
Key suppliers are concentrating on introducing its product streamlined with innovative technologies to gain recognition in the global market. For instance, in February 2021, ABB is planning to expand its existing cobot portfolio by introducing the new GoFa and SWIFT cobot families, in order to offer higher payloads and speeds. Also, owing to the growing needs of robotics technology, the players are emphasizing reaching out to the various industries across the potential geographies to uplift its customer base and presence. Apparently, Fanuc Corporation invested USD 240 million to expand its business presence in Shanghai (China) with the expectation to maintain its high edge competition in the China market.
LIST OF KEY COMPANIES PROFILED:
- ABB (Switzerland)
- YASKAWA ELECTRIC CORPORATION (Japan)
- Mitsubishi Electric Corporation (Japan)
- NACHI-FUJIKOSHI CORP.(Japan)
- ComauSpA (Italy)
- KUKA AG (Germany)
- FANUC CORPORATION (Japan)
- DENSO CORPORATION. (Japan)
- Kawasaki Heavy Industries, Ltd.(Japan)
- Omron Corporation(Japan)
KEY INDUSTRY DEVELOPMENTS:
- April 2021: ABB’s new ‘cobot GoFa ‘was awarded the prestigious – “Best of the Best Red Dot” award for its unique design concept, thereby making to new robots appealing to the users along with being efficient.
- April 2021: Kuka AG, presented the first look of its new operating system, iiQKA.OS, that will significantly simplify robot use. This new operating system provides base of an entire ecosystem & provides a powerful selection of programs, components, apps, equipment and services.
- February 2021: Kawasaki Heavy Industries, Ltd. stated that the company completed the installation of Japan's indigenous automated PCR testing (Polymerase Chain Reaction) system, operating robots manufactured by Kawasaki, at Fujita Health University, in Aichi.
- January 2021: OMRON Corporation announced the launch of its new industrial robot, ‘i4 series SCARA robot’. The robot has automatic high-precision, high-speed assembly with easy installation and transportation. This i4 series robots are compact in design and are suitable for lightweight application.
The global industrial robots market report provides detailed information regarding various insights into the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2021 to 2028 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.
Report Scope and Segmentation
Value (USD Billion)
Type, Application, Industry, Region
By Robot Type
Frequently Asked Questions
How much was the global Industrial Robots market worth in 2020?
As per Fortune Business Insights, the market was worth USD 14.61 billion in 2020.
How much will the global market be worth in the future?
By 2028, the market size is expected to reach USD 31.13 billion.
At what compound annual growth rate (CAGR) will the global market grow during the forecast period (2021-2028)?
The market is projected to grow at a CAGR of 10.4% during the forecast period (2021-2028).
Which segment is expected to lead the market during the forecast period?
Within the robot type, the articulated segment is expected to lead the market share during the forecast period.
What is the key factor driving the market?
Technological advancement in robots including AI, and Big Data, is a crucial factor driving the market
Which are the top companies in the global market?
ABB, FANUC CORPORATION, and KUKA AG are the top companies in the global market.
Which region is expected to hold the highest CAGR in the market?
Asia Pacific is expected to hold the highest CAGR in the market
What are the key trends prevailing in the market?
The rising E-commerce sector is one of the emerging trends in the market.