Market Size and Overview:

As per the findings presented in the research report, the international market for industrial robots attained a valuation of USD 15.91 billion, with a forecasted expansion to reach a market size of USD 35.4 billion by the conclusion of 2030. Throughout the anticipated timeframe spanning from 2024 to 2030, a Compound Annual Growth Rate (CAGR) of 12.1% is expected to drive the market's growth.

Overview of the Industry

The industrial robot serves as a mechanical device designed to perform automated tasks related to industrial production. Its programs can be modified based on usage and industrial requirements as needed. Industrial robots play a pivotal role in enhancing productivity, reducing costs, and ensuring the production of high-quality goods for various automation applications. Components such as drives, end-effectors, robotic manipulators, sensors, and controls constitute the essential elements of industrial robots. The robotic controller, functioning as the robot's brain, issues commands, while microphones and cameras serve as sensors to maintain awareness of the robot's surroundings.

End effectors engage the robot with workpieces, and the robotic manipulator, often referred to as the robot's arm, facilitates movement and placement. The industrial sector commonly employs five categories of robots: collaborative, Cartesian, SCARA, cylindrical, and articulated, each chosen based on mobility requirements, desired size, and payload capacity. The utilization of industrial robots contributes to improved production processes, ensuring efficiency and quality.

The UK faces a shortage of workers due to an annual increase in labor costs exceeding 12%. To address these challenges, market participants are investing in industrial robots. Notably, Chancellor Rishi Sunak invested in robots in January 2022 to alleviate the impact of labor shortages and inflation on the UK economy. Similarly, as labor costs in the US are anticipated to rise by over 20%, businesses are increasingly turning to robots to offset costs and address shortages, driving the industrial robotics market. In 2021, manufacturers and industrial users in North America ordered over 25,000 robots, a significant increase compared to 2019, with the microelectronics sector being a major contributor. The global expansion of the microelectronics industry, which has grown by over 10% since 2010, is expected to fuel the demand for industrial robots.

Impact of COVID-19 on the Industry

The COVID-19 pandemic, originating in China and subsequently spreading globally, has had adverse effects on the industrial robotics sector. China, holding a 40–50 percent market share for industrial robots for the past five years, faced a decline in the installation of industrial robots. Major Japanese companies in the industrial robots sector, including FANUC, reported a significant drop in revenue in 2019. The pandemic led to a gradual installation of industrial robots in key industries such as automotive, electrical and electronics, metals, and metallurgy, affecting the overall growth of the industrial robotics market.

Market Drivers

Government and Public-Private Initiatives to Mitigate COVID-19 Impact

The Advanced Robotics for Manufacturing (ARM) Institute, funded by the US Department of Defense, endeavors to enhance the competitiveness of US firms through innovative robotics solutions. In response to the COVID-19 pandemic, the institute seeks rapid and impactful robotics projects, with funding provided through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Indian government has expanded the production-linked incentive (PLI) plan to eleven sectors, emphasizing automotive industries. Japan's China Exit Policy includes USD 221 million in subsidies for Japanese businesses relocating to countries such as India. The French government, through its State Guarantee program, guarantees loan repayments up to USD 358 billion to alleviate liquidity issues. Indonesia launched stimulus packages totaling USD 8.725 billion to support the economy and SMEs, particularly in manufacturing.

Increasing Automation in the Electronics Industry

Automation in the electronics sector facilitates prototype development, making tasks such as assembling, milling, inspecting, packing, and palletizing more efficient. Robotics, equipped with advanced end effectors and vision systems, can handle unsorted components, improving productivity. Collaborative robots, capable of working alongside humans, bring flexibility to manufacturing lines, offering reprogramming for diverse tasks. Investments in specialized robots, exemplified by KUKA's KR 3 AGILUS, enhance cycle times in tasks like handling displays, circuit boards, screw assembly, and smartphone case polishing.

Market Restraints

High Deployment Costs, Especially for SMEs

Robotic automation projects pose challenges for businesses, demanding significant investments not only for robot acquisition but also for integration, programming, and maintenance. SMEs may face difficulties due to irregular production schedules, limited space, and the need for bespoke integration. Return on investment (ROI) becomes intricate for SMEs engaged in low-volume manufacturing. Over-automation, as witnessed in the US car sector, may render robots redundant, leading to cost overruns. Costs ranging from USD 3,000 to USD 100,000 for collaborative robot systems and USD 15,000 to USD 150,000 for industrial robotic systems make automation financially burdensome for SMEs.

Interoperability and Integration Challenges with Industrial Robots

Ensuring interoperability in factories requires a modular architecture for hardware and software, addressing programming, diagnosing, and monitoring software. Integration issues arise when combining robot arms from different manufacturers, requiring reprogramming due to shifting demands or the introduction of new components. SMEs, grappling with staffing shortages and specific requirements, face significant challenges in interoperability, with integrators playing a crucial role in addressing these issues.

Global Industrial Robots Market - By Type

• Traditional Industrial Robots
• Collaborative Robots

The market categorizes industrial robots into Traditional Industrial Robots and Collaborative Robots. The Articulated Robots sub-segment under Traditional Industrial Robots holds a substantial market share due to its adaptability in various processes such as assembly, palletizing, welding, and painting. These robots, particularly Articulated Robots, excel in tasks not confined to movement along specific axes. Equipped with sensors and cameras, they collaborate with human workers, enhancing efficiency, reducing idle time, and mitigating the risk of accidents.

Global Industrial Robots Market - By Industry

• Automotive
• Electrical And Electronics
• Plastics, Rubber, And Chemicals
• Metals And Machinery
• Food And Beverages
• Others

The industry segmentation comprises Automotive, Electrical and Electronics, Plastics, Rubber, and Chemicals, Metals and Machinery, Food and Beverages, and Others. The automotive sector commands a significant market share, driven by trends like the adoption of electric vehicles and energy-efficient drive systems. Intense competition prompts market players to focus on automation in industries beyond automotive, including pharmaceuticals and food, where precision and quality are critical for market growth.

Global Industrial Robots Market - By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

The market is geographically divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. The Asia-Pacific region dominates the market, primarily attributed to rising labor costs prompting automation for cost advantages. The region anticipates increased automation due to factors like cost-effective production, access to economical labor, environmental considerations, safety regulations, and government incentives for foreign direct investment (FDI), contributing to the global expansion of the industrial robotics industry.

Global Industrial Robots Market - By Companies

Major companies in the market include–

• ABB LTD. (ABB ROBOTICS)
• DAIHEN CORPORATION
• DENSO CORPORATION (DENSO ROBOTICS)
• FANUC CORPORATION
• KAWASAKI HEAVY INDUSTRIES LTD.
• KUKA ROBOTICS CORPORATION
• MITSUBISHI ELECTRIC CORPORATION
• NACHI-FUJIKOSHI CORPORATION (NACHI ROBOTIC SYSTEMS, INC.)
• PANASONIC CORPORATION
• SEIKO EPSON CORPORATION
• UNIVERSAL ROBOTS A/S
• YASKAWA ELECTRIC CORPORATION

Notable Happenings in the Global Industrial Robots Market in the Recent Past:

• Product Launch (2021): OMRON Corporation introduced the i4 series SCARA robot, a compact and lightweight robot designed for easy installation, high-speed automated high-precision assembly.
• Research & Development (2021): Kawasaki Heavy Industries installed a domestic automated polymerase chain reaction (PCR) test system utilizing Kawasaki robots at Fujita Medical University in Aichi Prefecture.

Product Launch (2021): Kuka AG unveiled the new operating system iiQKA.OS, streamlining robot usage. This operating system serves as the backbone of the ecosystem, offering a robust range of applications, components, devices, and services.