Global Industrial Robotics Market - Segmented by Type (Articulated Robots, Linear Robots, Cylindrical Robots, Parallel Robots, Scara Robots), End-User, and Region - Growth, Trends and Forecast (2018 - 2023)
The global industrial robots market was valued at USD 41.86 billion in 2017, and is expected to reach USD 73.51 billion by 2023, registering a CAGR of 9.84%, over the forecast period (2018 - 2023).Industrial robots play a crucial role in industry automation, with many core operations in industries being managed by robots. The market has been witnessing huge demand over the past decade, owing to the rising consumption advantages of smart factory systems. Growing penetration of the IoT and investments in robotics have been major contributors to the growth of the market. Innovations in technology have enabled industries to use robots to streamline many processes, increase efficiency, and eliminate errors. Increased workplace safety and improved production capabilities have further driven industries to invest in robotic systems. Some of the major factors driving the market include rising demand for high-quality products (which need proper end-to-end visibility in the manufacturing process), need for energy conservation, and growing focus on workplace safety. Incremental advancements in technology, coupled with sustained increase in the development of manufacturing facilities, are also expected to drive this market. On the other hand, the dynamic nature of end users and perceived lack of awareness about various upcoming technologies may restrain growth of the market to some extent. Other restraints include the huge investments required for the adoption and transformation of these systems, and the cyber risks that accompany integration of technology, thus making it vulnerable.
In terms of end-user demand, the automotive industry emerged as the largest segment, followed by the electronics, metal and chemical segments.
Increasing Emphasis on Workplace Safety is Driving the Market
The workforce is one of the greatest assets of a company, as productivity depends entirely on the well-being of the workforce. Hence, the safety of the workplace, which deals with the prevention of any sort of injury or incident, becomes critical. The percentage of employees taking time off from work due to workplace injuries is also one of the factors concerning companies. Labor time off and medical expenses add to costs, thus effecting the expenditure. According to OSHA, it has been estimated that companies around the world spend around USD 1 billion per week as compensation for workplace injuries. Thus, the need for providing safer workplaces is becoming the primary focus.
The Occupational Safety and Health Act of 1970 (OSHA) of the United States government has been promoting the use of automation and robotics in the factory to make work safer, thus protecting the physical well-being of the employee. Moreover, several regulatory standards have been prescribing threshold conditions in terms of temperature and environmental conditions, under which workers are supposed to perform their duties. Robotic systems can be widely used in testing conditions where manual labor is advised not to function, since the conditions may affect health. Hence, increased emphasis on workplace safety has bolstered the demand for robotic systems in medium/large-scale organizations, where efficiency and throughput need to be maintained at optimal levels. In such cases, robotic systems are not merely replacing human labor, but also ensuring that the production efficiency is maintained without compromising on the workers’ safety. Thus, increasing emphasis on workplace safety around the globe is driving the market.
Articulated Robots Segment is the Fastest Growing Sector
An articulated robot is a robotic arm that uses rotary joints to execute accurate movements constantly and steadily. Articulated robots are being used in the manufacturing sector for different applications, such as assembling, spraying, cutting, welding, dispensing, painting, material handling, and sealing. Articulated robots give more freedom than other robots. They give the manufacturer additional versatility, thereby making them more attractive. An articulated robot can enhance the company’s productivity through improved accuracy and speed, indirectly enhancing quality of the product being produced. With the ability to perform a multitude of tasks in industrial operations, articulated robots have witnessed widespread adoption over the years, with the robots dominating the current landscape. Many industries are further deploying these robots to automate processes, adding to the demand for these systems.
As the consumption of end-user products is increasing, the necessity to cater to the increased demand has also escalated. Articulated robots are widely used in the automotive industry, as they are more reliable and cost-effective as compared to others. With new products with additional capabilities available in the market, the demand for replacement is also on the rise. As articulated robots are one of the primary robotic types deployed, the segment is expected to maintain its lead over the forecast period.
North America to Have the Largest Market Share
North America is the largest market for ‘smart solutions’, with a major share held by the United States. The industrial sector in this region has recovered considerably after the recent recession, to regain its earlier growth levels. Moreover, increased focus on workplace safety has also been a major factor driving adoption of industrial robots.
The United States is on the verge of the fourth industrial revolution. Data is being used on a large scale for production and is being integrated with a wide variety of manufacturing systems throughout the supply chain. The United States is also one of the largest automotive markets in the world, and is home to over 13 major auto manufacturers. Automotive manufacturing has been one of the largest revenue generators for the country in the manufacturing sector. The improving economy (the United States is expected to hold its strong position as an exporter) and a rebounding manufacturing sector are further contributing to the market. Companies are increasingly investing in technology, rather than people, to keep up with the global competitive scenario. Thus, investments in robotics are witnessing healthy growth in the United States.
Key Developments in the Market
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