April 17, 2024

The Industrial Robotics Market is Primed for Growth Through Adoption of Collaborative Robots

The industrial robotics market has experienced rapid growth in recent years due to increasing labor costs and demand for automation across manufacturing industries. Industrial robots help improve productivity by performing repetitive and dangerous tasks with precision and consistency. They are capable of working in hazardous environments and can lift heavy objects effortlessly. Deploying industrial robots enhances quality control and reduces manufacturing defects and scrap.

The Global Industrial Robotics Market is estimated to be valued at US$ 69.33 Mn in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the industrial robotics market are Daihen Corporation, Yaskawa Motoman Robotics, Denso Corporation, Universal Robots, Epson America, Inc., Panasonic Corporation, Epson America, Inc., Nachi Robotic Systems, Inc., FANUC Ltd., Mitsubishi Electric Corporation, Kawasaki Heavy Industries Ltd., and KUKA Robotics Corporation. These players are focusing on developing articulated, selective compliance assembly robot arm, cartesian and other types of industrial robots for various industrial applications such as material handling, assembly line, packaging, welding, and painting.

The growing demand for automation across industries such as automotive, electronics, metal and machinery, plastics and polymer, food and beverages is a major factor driving the growth of industrial robotics market. Industrial robots help improve productivity and efficiency of production processes. They ensure product quality and accuracy in performing repetitive tasks.

The industrial robotics market is expanding globally due to increasing exports of industrial robots from China, Japan, Republic of Korea and Germany to other countries. Countries in Asia Pacific and Latin America are adopting industrial robots due to increasing labor costs and demand for mass production. Government initiatives are encouraging manufacturers to automate their production facilities.

Market Key Trends

Collaborative robots or cobots are a key trend gaining popularity in the industrial robotics market. Cobots are designed to work safely alongside human workers without the need for protective fencing. They have integrated sensors, slower speeds and directions that can easily detect nearby humans. Cobots help smaller manufacturers benefit from robotics technology and gain productivity without replacing human workers. Their adoption is growing across SMEs for tasks like assembly, quality testing, packaging and material handling. The collaborative robotic segment is expected to witness highest growth over the forecast period due to their flexibility, safety and affordability.

Porter’s Analysis
Threat of new entrants: Low capital requirements and economies of scale in production pose a low threat of new entrants in the industrial robotics market.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and price comparison options. However, switching costs incurred on retraining employees on new systems limits their power.
Bargaining power of suppliers: With large manufacturers such as ABB, Kawasaki Heavy Industries and Nachi-Fujikoshi, suppliers of industrial robot components have moderate-to-high bargaining power. However, with rise in robot makers this power is expected to reduce over the long term.
Threat of new substitutes: While machine vision systems and other automated technologies provide substitute options, robots are still preferred due to benefits of speed, safety and precision they offer. The threat from substitutes is therefore low.
Competitive rivalry: The industrial robotics market sees high competition owing to presence of global and regional players. Price wars and new product launches within specific product/application segments have increased competitive pressures.

Geographical regions: North America and Europe currently hold around two-thirds of the global Industrial Robotics Market value. This is attributed to automation needs of various industries including automotive, food and beverages and electrical/electronics. Growth within developing countries of Asia Pacific including China, India and South Korea is expected to substantially increase the regional market share over the forecast period.

Fastest growing region: The Asia Pacific region is anticipated to witness the highest CAGR of around 8% during the forecast period. This growth can be attributed to rising industrial activities, expanding manufacturing sector and government initiatives to encourage automation adoption. Growing demand from industries such as automotive, electronics and food processing will majorly support the industrial robotics market expansion through 2031 across Asia Pacific countries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it