Robotics Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Robotics

• The global market for industrial robotics was valued at $35 billion in 2015 and is expected to grow at a CAGR of 14 percent, to reach about $68 billion by 2020
• Increased momentum in the global industrial robotics market has been visible since 2015, with major markets characterized by high level of automation
• In 2015, around 254,000 units of industrial robots were sold, which is the largest number ever recorded per year
• China, South Korea, Japan, US and Germany are the five major markets and they contribute to about 75 percent of the global sales volume

Industrial Robotics-Market Overview

• There is an increase in demand for industrial robots in the recent years as companies are striving to improve the productivity of their complex production lines along with cost savings, improving quality and increasing manufacturing flexibility by means of automation
• Recent trends in robotics has led to introduction of innovative technical improvements with robots possessing human traits such as intelligence, object recognition, flexibility and learning ability which are fast adopted by manufacturing companies
• In 2015, 2.50 Lakh units of industrial robots were sold and the market is set to grow at a CAGR of 14 percent to reach 4.30 Lakh units by 2019
• China leads the position as the biggest market with a share of 27 percent followed by markets of Korea and Japan

Industrial Robotics End-user Market(2015)

• Automotive industry has witnessed increased investments in automation and continues to be a major end user of industrial robots industry. In 2015, about 97500 units of robots were sold with an increased sales of 4 percent from 2014.
• Due to modernization and recent investments in new production lines by major automotive markets, there has been a rise in robot installations and robot sales in automotive industry increased at CAGR of 20 percent between 2010 to 2015.
• As manufacturers are trying to use new materials and develop energy efficient drive systems combined with high competition across major car markets, the automotive industry is poised for investments and is set to drive the growth of robotics in the near future
• In 2015, Robot sales to the electronics industry rose by about 41 percent from 2014 to gain a market share of about 25 percent.
• Increasing demand for electronic products and increasing automation of production lines contributed to the sale of about 64600 robot units in electronics industry

Global Drivers and Constraints

Drivers

Demand from the Manufacturing Sector:

• The perpetual need to modernize manufacturing facilities to tackle the increasing labor costs, an aging workforce and increasing focus on productivity and quality will drive the demand for robots in the manufacturing sector
• Further, the industry's shift toward automation, to aid in mass customization and shorter product life cycles, is set to drive the growth for the robotics market globally

Internet of Robotic Things (IoRT):

Recent technological advancements in robotics and AI have led to the introduction of IoRT, which makes use of devices to fuse sensor data from multiple sources and use intelligence to determine the course of action. As Industry 4.0 is expected to play a pivotal role in global manufacturing, IoRT will help in more efficient and easier methods for robotic manipulation and grasping in manufacturing functionalities leading to increased use of robotics 

Collaborative Robots:

Collaborative robots are light, cost effective and adaptive, work along with human workers and assisting them with a variety of tasks without the need for safety barriers; this is set to drive the robotic market in the coming years as most manufacturers are eager to adopt this technology as it is projected to have a quick return on investment of over five month

Constraints

Stagnation of Industrial Manufacturing:

The global slowdown in investments and stagnating manufacturing activity has led to stagnation of industrial production which will lead to lesser investments in automation and hamper the growth of robotics

High Cost of Robotics:

High initial costs involved in the set up of robots' hampers the growth of the market as it takes a longer period to recover the ROI 

Availability of Low Cost Labor across Developing Economies:

The availability of low cost labor across developing countries has hindered the growth of the robotics market