Industrial Robotics Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2031

Market Scenario

Global industrial robotics market generated revenue of US$ 18.2 billion in 2022 and is anticipated to reach the valuation of US$ 151.4 billion by 2031 at a CAGR of 27.2% over the course of forecast period, 2023–2031.

The market for industrial robotics has been advancing with the integration of artificial intelligence (AI) into these robots which has resulted in more advanced, autonomous machines that are able to make decisions and learn from their surroundings. The versatility of robots as automation tools has significantly increased as a result of rapid advancements in artificial intelligence and microprocessor capabilities. The AI/machine learning algorithms have become more effective as the robot performs its tasks and acquires more knowledge. In factories, AI-equipped robots already manage inventory, clean machinery, and transport materials. Additionally, the incorporation of cutting-edge sensors like LIDAR and cameras has enhanced the precision and dependability of industrial robots, allowing them to carry out intricate tasks with precision.

Moreover, according to a new report from the Center for Economic and Business Research (CEBR), investments in robotics will have a greater positive impact on the economy than those in information technology, real estate, and construction. By connecting workers and devices and making automating processes simpler, industrial robotics reduces response times and boosts productivity and efficiency in the manufacturing industry. For instance, the automotive industry relies on robots for heavy lifting and repetitive tasks because they increase productivity and product consistency. 

They have an impact on the economy as a whole and boost manufacturers' competitiveness. In addition, industrial robots have the potential to provide businesses with new growth opportunities while also displacing workers. The utilization of industrial robots is increasing labour productivity. The value and output of human workers are maximized when robots are used in various industries. Human workers can concentrate on intangibles, innovation, and strategy while robots take care of the most monotonous tasks. Industrial robots can also help cut manufacturing costs by 20% to 60% by reducing production lead times and increasing productivity overall.

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Key Dynamics of Industrial Robotics Market

Drivers

Growing adoption of industrial robotics across end-use industries

Industrial robots are in high demand across a wide range of sectors, including manufacturing, automotive, electronics, food and beverage, and other sectors. Since it provides numerous benefits such as increased productivity and efficiency, improved safety in hazardous environments, consistency and precision in repetitive tasks, the capacity to handle heavy loads and work in challenging conditions, 24/7 operation, and customization and versatility for specific tasks, which in turn driving the rise in their installation. Industrial robot installations have also increased as a result of the adoption of smart factories and the Industry 4.0 trend.

For instance, industrial robots are frequently utilized in manufacturing for a variety of tasks, including welding, painting, and assembly across the global industrial robotics market. In auto industry they are utilized for undertakings like get together, painting, and welding of vehicle parts. In addition, the electronics industry employs industrial robots for tasks like the assembly and packaging of electronic devices and components. Industrial robots are also used for tasks like packaging, palletizing, and sorting in the food and beverage industry. In addition, the pharmaceutical industry employs robots for tasks such as drug and medical device packaging, labelling, and inspection. Industries that make use of industrial robots include just a few of these. In an effort to cut costs and improve productivity, businesses are increasingly turning to industrial robots.

Restraint

High cost and competition from low-cost labor markets

The industrial robotics market is significantly hindered by the high cost of industrial robots. Small and medium-sized businesses may find it challenging to adopt industrial robot technology due to the high costs associated with their acquisition and upkeep. In addition, companies may find it difficult to justify the expense of incorporating industrial robots into their existing production procedures due to the high cost and slow return on investment. The market for industrial robotics may experience growth limitations as a result of these factors, particularly in regions with limited budgets for industrial automation.

Additionally, the competition from low-cost labour markets is another factor stifling the expansion of the industrial robotics market. Purchasing and maintaining industrial robots is still more expensive than manual labour in many areas. In industries where labour costs account for a significant portion of overall production costs, this can make it challenging for businesses to justify the purchase of industrial robots. Additionally, companies may choose to outsource production to nations with lower labour costs rather than invest in industrial robots in some regions due to the availability of low-cost labour, particularly in China, India, and some African nations. Due to their large pool of workers and lower labour costs, these nations are appealing to businesses. The industrial robotics market's expansion may be hampered by this competition from low-cost labour markets as well.

Market Segmentation

Type Analysis:

The industrial robotics market is segmented into Articulated, Cartesian, SCARA, Cylindrical, and Others in terms of type. The articulated segment held the highest market share in 2022 and is expected to continue growing with the fastest CAGR over the forecast period of 2023-2031. The transition from manual to automated production has been a major force driving the robotics market. Articulated robots help with heavy payload lifting during automobile production and customization of machinery. Their adoption also helps reduce operational costs, manufacturing and production costs, and waste of raw materials. However, cartesian type still held a commanding majority in 2022, while the trend is towards the use of collaborative robots equipped with cutting-edge smart sensors to enhance coordination and detect their surroundings.

Industry Analysis:

The industrial robotics market is segmented into Automotive, Electrical & Electronics, Chemical Rubber & Plastics, Machinery, Food & Beverages, and Others in terms of industry. The automotive industry held the major share in 2022 and is expected to continue growing with the fastest CAGR over the forecast period of 2023-2031. The demand for industrial robots to streamline complex production processes has significantly increased due to the automotive industry's rapid expansion, which is one of the key factors fueling the market's expansion. Automotive robots increase productivity and efficiency while lowering costs, which further supports the market's growth. Another factor influencing development is the growing concern for employee safety due to an increase in incidents of injury, human error, and accidents caused by hazardous working conditions in the auto manufacturing industry. Recent technological advancements, such as the adoption of the Internet of Things (IoT), cloud services, and autonomous intelligent vehicles (AIVs) for the secure transportation of goods and parts from one location to another, are also driving the market's expansion.

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Top Players in Industrial Robotics Market 

ABB Limited, Fanuc Corporation, Mitsubishi Electric Corporation, Yaskawa Electric Corporation, Epson America Incorporated, Kawasaki Heavy Industries Limited, Kuka AG, and Denso Corporation are some of the major market players worldwide.

These leading companies held the majority of the market share in 2022 for global Industrial Robotics market. The market situation is anticipated to change significantly more in the coming years due to some new competitors and growing market share of current small and medium players.

Furthermore, the leading players also employ a variety of strategies for expansion to maintain their market dominance. Many businesses are using advanced technologies and modern features to develop robots due to the expansion of industrial sector and its complex processes as part of their strategic decision-making. For instance, in March 2022, ABB Ltd. announced new robots that they say are faster and more flexible than their older models. These robots are used in a variety of industries, including the production of electric vehicles (EVs). ABB has two new robot groups, the IRB 5710 and 5720. The IRB 5710 robots are faster and more accurate, while the IRB 5720 robots are more flexible and have integrated process cabling. These robots come in eight variations and range in weight from 70kg to 180kg and reach from 2.3m to 3m. The two robot families may work together to perform a variety of production activities.

Recent Developments:

• Yaskawa, one of the key players in the industrial robotics market, opened a new robotics technology center in Istanbul, Turkey in October 2022, located in a sizable industrial park. The center is designed to allow Turkish customers to conduct sample testing using workpieces and display demonstration machines. The official opening ceremony was attended by about 200 guests from all over Europe, and Yaskawa plans to continue investing in Turkey to ensure that customers can take advantage of the technologies, products, and services they are developing in Europe.
• In February 2022, Mitsubishi Electric developed a teaching-less robot system technology, which allows robots to quickly sort and arrange things without needing any special training. The system uses Maisart AI technologies from Mitsubishi Electric, including high-precision speech recognition, enabling users to give voice commands to start work activities. The robot will then fine-tune its motions as necessary. This technology is expected to be used in places where things change quickly, such as food production companies. Mitsubishi Electric hopes to commercialize the technology in 2023 or later, following more performance improvements and thorough verifications.
• In February 2018, FANUC Corporation announced the purchase of the shares of Life Robotics Inc. This purchase will allow the company to focus on using extendable and retractable joints instead of elbow rotary joints in their "CORO" robots, making them more versatile and less disruptive to their surroundings. This shift in focus will help the company develop more advanced robots and meet the needs of a wide range of customers.

List of Key Companies Profiled:

• ABB Limited
• DAIHEN Corporation
• Denso Corporation
• Epson America Incorporated
• Fanuc Corporation
• Kawasaki Heavy Industries Limited
• Kobe Steel, Limited
• Kuka AG
• Mitsubishi Electric Corporation
• Yaskawa Electric Corporation
• Other Prominent Players

Regional Analysis:

The Asia Pacific region dominated the global industrial robotics market in terms of revenue in 2022, with China being the largest contributor to the region's market share. The region's expansion is driven by various factors such as rising costs of research and development, the presence of major industry players, and the growing public awareness of material handling robotics. Furthermore, the region's increasing adoption of automated industrial services and the expanding number of end-user industries are also contributing to its growth.

On the other hand, Europe held the second-largest market share in 2022, primarily due to the growing demand for industrial robotics. This is fueled by the increasing need for automation in non-traditional fields such as microelectronics, as well as strong support from various sectors including automotive, consumer electronics, aerospace and military, and others. Countries such as the UK and Germany are among the major contributors to the region's growth.

Segmental Overview

By Type

• Articulated
• Cartesian
• SCARA
• Cylindrical
• Others

By Industry

• Automotive
• Electrical & Electronics
• Chemical Rubber & Plastics
• Machinery
• Food & Beverages
• Others

By Function

• Soldering & Welding
• Materials Handling
• Assembling & Disassembling
• Painting & Dispensing
• Milling, Cutting, & Processing
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Belgium
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America