May 18, 2024

Industrial Robotics is Estimated to Witness High Growth Owing to Enhanced Collaboration Capabilities

The industrial robotics market has witnessed significant growth over the past few years owing to enhanced flexibility and collaboration capabilities of robots. Industrial robots help complete a wide variety of automated tasks with high precision and speed, reducing production costs for manufacturers. Integrating collaborative robots or cobots with traditional industrial robots allows humans and robots to work in close proximity, increasing productivity.

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 of 2024 to 2031.

Key Takeaways

Key players: Key players operating in the industrial robotics market include 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.

Key opportunities: Growing demand from logistics and warehousing industries for material handling robots present significant opportunities for robotics companies. Collaborative robots are also witnessing rising uptake in small and medium enterprise as they help automate simple tasks at affordable costs.

Technological advancements: Development of modular robots with plug-and-play components, human-robot deep learning interfaces, and force torque sensors allowing safer human-robot collaboration are some key technological advancements enhancing industrial robot capabilities. 5G connectivity enables cloud-based remote monitoring and maintenance of robots.

Market drivers: Rising labor costs and shortage of labor are major factors drivingadoption of industrial robots across industries. Industrial automation helps improve production efficiency, reduce errors and scrap while maintaining product quality. Robots help complete repetitive, hazardous and ergonomically challenging tasks that are difficult for humans. This boosts their demand globally.

Current challenges in Industrial Robotics Market

The industrial robotics market is still in a nascent stage in many regions. Increased adoption of robots requires significant capital investments and changes in the traditional manufacturing processes which poses major challenges for many industries. Lack of standardization and interoperability between different robots and automation solutions limits flexibility and increases integration complexity. Shortage of skilled workforce who can handle robotic systems is also a hurdle for broader deployment of industrial robots across factories. High initial costs make robotics unviable for small and medium enterprises. Safety issues while working in close proximity with human operators is being addressed but is still a concern limiting wider applications.

SWOT Analysis
Strength: Robots offer 24/7 operation with high accuracy, speed and payload capacity. They improve productivity, quality and help reduce dependence on manual labor.

Weakness: Heavy capital investments and long payback periods. Requires reengineering of processes. Interoperability issues.

Opportunity: Rapid expansion of e-commerce is driving automated warehousing and logistics robots. Industry 4.0 trends present opportunities in AI, machine learning, predictive analytics etc.

Threats: Economic slowdowns impact manufacturing volumes affecting ROI calculations. Trade conflicts impact export-oriented economies. Job losses can cause social tensions if not smoothly managed.

Geographical regions
By value, the Industrial Robotics Market is currently concentrated in Asia Pacific, led by countries like China, Japan and South Korea. This is due to availability of cheap labor and presence of large automotive and electronics manufacturing industries in the region. Germany is the largest market in Europe owing to strong machine tools and automotive verticals. U.S holds significant share due to food & beverage and life sciences sector demand.

The fastest growing regional market for industrial robotics is expected to be Asia Pacific during the forecast period driven by rising labor costs, government support for industrial automation and growing complex manufacturing activities in industries like semiconductors. China in particular is likely to see huge volumes due to its giant manufacturing industry and government’s ‘Made in China 2025’ policy focusing on advanced technologies.

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