Global Industrial Robot Market (by Industry, Type, & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)

Global Industrial Robot Market (by Industry, Type, & Region): Insights & Forecast with Potential Impact of COVID-19 (2022-2026)

Market Insight:

Mechanical devices that can mimic human movements are known as industrial robots. These robots can do a wide range of tasks more effectively than human beings and can tolerate environmental conditions that humans cannot. Industry 4.0 has accelerated the development of new technologies such as collaborative robots, AI-enabled robots, and so on, allowing industries to use robots to expedite numerous processes, enhance productivity, and minimize errors. Sectors are investing in robotic systems to improve worker safety and manufacturing capabilities. Furthermore, as the next generation of industrial robots grow more affordable, autonomous, mobile, cooperative, and adaptive, demand for robots across numerous industries is likely to surge. The global industrial robot market is expected to rise to US$42.90 billion in 2023, growing at a CAGR of 12.50% during the forecast period.

When compared to long-term trends, there has been a very evident acceleration in demand for industrial robots during the last five years. The global industrial robot market volume is anticipated to reach 636.71 thousand units in 2023.

Segment Covered:

• By Industry: The report provides the bifurcation of the global industrial robot market into five different segments based on the type of industry they are deployed in: Automotive, Electrical/ Electronics, Chemical, Rubber & Plastics, Food and Beverages and Other Applications. Automotive segment held the highest share in industrial robot market, owing to growing adoption of automation in the automotive manufacturing process and the involvement of AI and digitalization.
• By Type: On the basis of type, the global industrial robot market has been split into five segments: Articulated, Cartesian, SCARA, Cylindrical and Other Types. The cylindrical segment is the fastest growing segment of the market, due to the several incentives are being offered by governments in key nations such as India, China, Japan, France, Indonesia, and Singapore to help their industrial sectors to cope up the pandemic crisis which will help industries to setup and integrate robotics in their industries during the forecasted years.

Geographic Coverage:

• According to this report, the global market can be divided into four major regions, on the basis of geographical areas: Asia-Pacific (China, Japan, Republic of Korea and Rest of Asia-Pacific), North America (The US, Canada, & Mexico), Europe (Germany, Italy, Spain, UK and Rest of Europe), and Rest of World.

Asia Pacific industrial robot market enjoyed the major share of the global market share, primarily owing to the growing use of cylindrical and other robots such as customized and refurbished robots in the industrial sector. Further in the report, the global market by volume can be divided into six major regions, on the basis of geographical areas: China, Japan, The US, Republic of Korea, Germany and Rest of World. The China industrial robot market by volume has the highest share and is the fastest growing market, owing to rising government initiatives in the country such as the Made in China 2026 initiative.

Top Impacting Factors:

Growth Drivers

• Growing Electronics Industry
• Rapid Installations of Industrial Robots
• Growing Role of Artificial Intelligence in Robotics
• High Wages in Manufacturing

Challenges

• Large Upfront Investment
• Safety Issues

Trends

• Use of Microelectromechanical Systems (MEMS)
• Rising Use of Collaborative Robots (Cobot)
• Cloud Robotics
• Robotic Advancements
• Driver: Rapid Installations of Industrial Robots

Robots are proving to be more accessible in increasing overall efficiency of a factory or warehouse. By having robots by their side, corporations are being able to prevent health hazard accidents at the workplace. The robots have also provided increased flexibility and agility in manufacturing, which allow line manager to adapt quickly to changes happening in production schedules. One more reason that annual installation of industrial robots is increasing as some robots are compact, portable, which allows them to be designated to tasks where human workers are required to work in confined spaces. Hence, it can be said that with new designs being introduced and robots offering plenty of opportunities to explore, it would not be long when many factories would start look like a Tesla factory.

• Challenge: Large Upfront Investment

Although the prices of industrial robots are declining steadily, yet the initial investment involved in incorporating industrial robots into the production process is huge, which may deter many small manufacturers from automating their production. Small and medium enterprises, in developing nations, especially, find it cheaper to employ human labor than investing in robots. Huge capital investment is required in the purchase and installation of robots and the benefits provided by industrial robots might take many years to exceed the initial cost. Thus, the high initial investment needed for the automation of production using industrial robots could act as an obstacle to the growth of the industrial robots market.

• Trend: Cloud Robotics

Cloud robotics is an emerging trend in the industrial robot market and is becoming an integral part of industrial automation. Connecting robots to the cloud provides numerous benefits such as increased computational power, storage and communications. Robots as a Service (RaaS) is increasingly being used in many tasks associated with manufacturing. RaaS model provides two options for businesses-robotics as a cloud service and robots on rental. Robotics as a cloud service enables businesses to store data that is collected by the robots in the cloud. Also, RaaS provides the option of renting the robots to manufacturers which cannot afford to invest in purchasing and installing robots. Thus, the rise of the cloud robotics market indicates the growing use of the cloud computing technology in the industrial robot market.

The COVID-19 Analysis:

The COVID-19 pandemic had a negative impact on the global industrial robot market. The financial burden visible during the pandemic, made hard for industrial robotics industry to run, owing to industries being shut down and orders getting cancelled manufactures of industrial robotics causing difficulties in generating revenue. Further, the global shipment of industrial robots experienced a negative growth attributed to disruption in supply chain. Although, the pandemic became a huge boon for digital manufacturing systems. The post COVID scenario of industrial robotics is filled with numerous possibilities, the demand for industrial robotics is likely to expand in sectors like automotive and electric industry, food & beverage sector, hospital & many others.

Analysis of Key Players:

The global market for industrial robot is a consolidated market with many smaller players. With global digitization initiatives, Industry 4.0 offers significant potential in the industrial robotics market. Given the amount of robotic trade exhibitions that occur throughout different regions on a regular basis, the degree of transparency is significant. Overall, competition among established players is high. Large companies are expected to make acquisitions and collaborate with startups focused on innovation. Further, key players of the industrial robot market are:

• Mitsubishi Electric Corporation
• ABB Group
• Yaskawa Electric Corporation
• Fanuc Corporation
• KUKA Group
• Nachi-Fujikoshi Corporation
• Kawasaki Heavy Industries
• Denso Corporation (DENSO Robotics)
• Seiko Epson Corporation (EPSON Robots)
• Hon Hai Precision Industry Co. Ltd.

Despite the impacts and uncertainties of COVID-19, merger and acquisition (M&A) activity in the robotic sector continued in the first seven months of 2021. Several deals occurred throughout the time as a result of the fierce rivalry and corporations' ambitions to extend their portfolios. In the robotics industry, the usage of Special Purpose Acquisition Companies (SPAC) has become a popular M&A strategy. In 2021, over 50 merger & acquisitions were observed. In the industrial robotics market, for example, in 2021, Accenture, consulting business, has agreed to acquire Pollux, a developer of industrial robotics and automation systems. Accenture made the acquisition as part of the company's strategy to strengthen its digital manufacturing, operations, and supply chain capabilities.