North America Industrial Robotics Market Outlook to 2028

North America Industrial Robotics Market Overview

The North America Industrial Robotics Market was valued at USD 2.6 billion in 2023, driven by increased automation across various industries such as automotive, electronics, and food & beverages. The adoption of collaborative robots (cobots) and advancements in AI and machine learning are also expected to contribute substantially to market growth.

Major players in the North America Industrial Robotics market include ABB Ltd., FANUC Corporation, Yaskawa Electric Corporation, KUKA AG, and Mitsubishi Electric Corporation. These companies dominate the market due to their extensive product portfolios, technological innovations, and strong presence in key end-user industries. ABB Ltd., has made important strides in developing AI-enabled robots that enhance operational efficiency and precision.

States like California, Texas, and Michigan dominate the market. These states host a large number of manufacturing plants and are hubs for automotive and electronics industries, driving the demand for industrial robots. The strong presence of technology companies and a robust R&D ecosystem in these regions further bolster market growth.

In 2023, FANUC Corporation continued to innovate in the industrial robotics space with the introduction of its new series of collaborative robots for the electronics industry. These robots are equipped with advanced sensors and AI capabilities, enabling them to work alongside humans more efficiently.

North America Industrial Robotics Market Segmentation

The North America Industrial Robotics Market is segmented by product type, application, and region.

By Product: The market is segmented by product type into Articulated robot, Collaborative Robots (Cobots), and SCARA Robots. Articulated robots held the largest market share in 2023 due to their extensive use in the automotive and electronics industries. These robots offer high flexibility and precision, making them ideal for tasks such as welding, assembly, and material handling. Major players like FANUC Corporation and KUKA AG dominate this segment with their advanced product offerings.

By Application: The market is segmented by application into automotive, electronics, and food & beverages. The automotive industry remains the largest application segment for industrial robots in North America. The demand for automation in manufacturing processes, such as welding, painting, and assembly, is driving the adoption of industrial robots. The trend towards electric vehicles (EVs) is also expected to increase the demand for robotics in battery assembly and other related processes.

By Region: The market is segmented by region into USA, Canada, and Mexico. The United States dominated the market in 2023, accounting for the largest market share. The presence of major automotive and electronics manufacturing hubs, coupled with a strong focus on automation and technological advancements, is driving the growth of the market in this region.

North America Industrial Robotics Market Competitive Landscape

Company

Establishment Year

Headquarters

ABB Ltd.

1883

Zurich, Switzerland

FANUC Corporation

1956

Yamanashi, Japan

Yaskawa Electric Corporation

1915

Kitakyushu, Japan

KUKA AG

1898

Augsburg, Germany

Mitsubishi Electric Corporation

1921

Tokyo, Japan

ABB Ltd.: In 2023, ABB introduced its next-generation robotics control platform, Omni Core, which enhances the capabilities of its industrial robots. This platform is designed to improve operational efficiency and precision, making it particularly beneficial for various applications, including those in the automotive and electronics sectors.

Mitsubishi Electric Corporation: Mitsubishi Electric launched the ARIA (Automated Robotic Industrial Assistant), a pre-engineered robot work cell that is compact, cost-effective, and intuitive. This solution addresses productivity challenges by providing an easily portable option for various automation needs. Additionally, the company showcased a 3D Bin-Picking robot demo at the PACK EXPO 2023, which is designed to automate packaging processes effectively.

North America Industrial Robotics Market Analysis

Growth Drivers

Increased Automation in Manufacturing: The North American market is witnessing a surge in automation across various industries, driven by the need for increased efficiency, precision, and cost-effectiveness in manufacturing processes. Total installations of industrial robots in North American manufacturing rose by 12% in 2022, reaching 41,624 units. The adoption of industrial robots is expected to grow, particularly in the automotive and electronics sectors, where automation is essential for maintaining competitiveness.

Increased Demand for Electronics and Semiconductor Manufacturing: The electronics and semiconductor manufacturing sectors in North America have witnessed robust growth, with the U.S. Department of Commerce reporting substantial increase in semiconductor output in 2024. This growth has fueled the demand for industrial robots, particularly in precision-driven applications like chip assembly, inspection, and packaging. The U.S. CHIPS Act, which allocated USD 52 billion in federal subsidies to bolster domestic semiconductor production.

Rising Labor Costs and Shortage of Skilled Workforce: The increasing labor costs and shortage of skilled workforce across North America, especially in key manufacturing regions like the U.S. and Canada, are compelling companies to adopt industrial robots to sustain their operations. As of July 2024, the average hourly wage for manufacturing workers in the U.S. was reported at USD 27.92. This reflects the ongoing increase in wages, making manual labour more expensive and prompting companies to seek automation solutions.

Challenges

High Initial Investment: The high cost of industrial robots and the associated infrastructure can be a barrier to adoption, particularly for small and medium-sized enterprises (SMEs). The need for substantial capital investment in robotics technology can limit market growth, especially in regions with less developed manufacturing sectors. This substantial investment, coupled with additional costs for programming, maintenance, and operator training, can be prohibitive for smaller firms, limiting the widespread adoption of robotics in the North American market.

Technical Complexity: The implementation and integration of industrial robots into existing manufacturing processes can be technically challenging. Companies may face difficulties in ensuring the compatibility of new robotic systems with their existing infrastructure, leading to potential delays and increased costs. These challenges not only increase the time and cost associated with deploying industrial robots but also heighten the risk of operational disruptions during the integration phase.

Government Initiatives

U.S. Advanced Manufacturing Partnership: The U.S. government has launched several initiatives to promote advanced manufacturing and automation, including the Advanced Manufacturing Partnership (AMP). The AMP was initiated with a commitment of more than USD 500 million in 2011, to jumpstart efforts in advanced manufacturing, which includes building domestic manufacturing capabilities in critical industries and establishing U.S. leadership in next-generation robotics.

Canadas Innovation and Skills Plan: The Canadian governments Innovation and Skills Plan focuses on supporting the adoption of advanced manufacturing technologies, including industrial robotics. The plan includes funding for research and development, as well as incentives for companies to invest in automation and digitalization. It allocated USD 2 billion to strengthen research and science, which encompasses various sectors, including advanced manufacturing and technology.

North America Industrial Robotics Future Market Outlook

The North America Industrial Robotics market is poised for remarkable growth, driven by advancements in robotics technology, increasing automation across various industries, and supportive government initiatives.

Future Market Trends

Advancements in Robotics Technology: By 2028, the North America Industrial Robotics market is expected to witness substantial advancements in robotics technology, particularly in AI and machine learning. These advancements will enable the development of smarter, more efficient robots capable of performing complex tasks with greater precision and collaboration with human workers.

Increased Adoption of Collaborative Robots (Cobots): The adoption of collaborative robots is expected to increase exceptionally, particularly in the SME sector. Cobots are designed to work safely alongside human workers, offering flexibility and ease of use, which makes them an attractive option for companies looking to enhance productivity and efficiency.
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