Market Trends of Mobile Robots Industry
Autonomous Mobile Robot (AMR) to Witness the Market Growth
- Until recently, traditional automated guided vehicles (AGVs) were the only option for automating internal transportation tasks. However, in the present day, autonomous mobile robots (AMRs) threaten AGVs with their more advanced, adaptable, and affordable technology.
- Due to their unique operational characteristics and patterns, the demand for autonomous robots has recently increased significantly. Growth in the application of autonomous robots in different industrial sectors such as automotive and healthcare and raising awareness about the benefits of autonomous mobile robots fuel the demand for autonomous mobile robots. However, high costs associated with the setup and insufficient internet connectivity coverage might limit the adoption of autonomous mobile robots.
- E-commerce has now emerged as the preferred mode of shopping for customers. The choices it offers, the user-friendly experience it provides, and the convenience of shopping and paying for it from anywhere at any time are some of the factors driving the growth of the e-commerce industry. According to the International Trade Administration, global retail e-commerce sales are expected to reach USD 6,388 billion by 2024.
- Driven by the need to ensure timely delivery to their customers, who often expect instant gratification, and the resulting need to continually track and restock inventory of the goods, e-commerce companies are now using AMRs to improve the operational efficiencies of the big warehouses and distribution centers they operate. Thus, the rapid growth of the e-commerce business is contributing in a significant way to the growth of the AMR market.
- Further, AMRs can adapt to different workflows, accommodate factory process changes, and allow integration with several top modules to meet payload requirements. This enables smart, reliable deliveries and optimizes overall processes. Consequently, AMRs are superior to AGVs regarding return on investment and productivity optimization.
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China to Witness Rapid Growth
- China has the world's largest manufacturing industry, generating a significant share of market demand. Moreover, the country's industrial output grew by 3.6% in 2022 from the previous year, as per the Ministry of Industry and Information Technology (MIIT), despite production and logistics disruptions from COVID-19 curbs. The manufacturing sector's output was estimated to have risen by 3.1% in 2022, accounting for 28% of China's gross domestic product (GDP), according to the MIIT.
- Moreover, the Chinese government's Made in China 2025 initiative, a state-led industrial policy that seeks to make China dominant in global high-tech manufacturing, provides significant growth momentum to the market. Made in China 2025 is a ten-year plan to update the country's manufacturing base by rapidly developing ten high-tech industries. Chief among these are electric cars and other new energy vehicles, next-generation information technology (IT) and telecommunications, and advanced robotics and artificial intelligence. These sectors are also central to the fourth industrial revolution.
- Increasing investments by many players in expanding their production capacities in the country is another important trend for the market. For instance, in December 2022, ABB officially opened its state-of-the-art, fully automated, and flexible robotics factory in Shanghai, China. The 67,000 m2 production and research facility represents a USD 150 million investment by the company and is likely to deploy the company's digital and automation technologies to manufacture next-generation robots, enhancing ABB's robotics and automation leadership in China. Moreover, there are no traditional, fixed assembly lines in the facility; instead, intelligent, autonomous mobile robots connect to, network, and service flexible, modular production cells digitally.
- As mobile robots continue to make their way into various commercial and industrial settings and new players enter the sector, the market has been drawing increasing investments from many Chinese investors. Domestic robotics companies have been benefiting from a significant increase in funds in recent years.
- Moreover, the aging population and increasing labor costs are also influencing the demand for mobile robots in China. For instance, according to the National Bureau of Statistics of China, about 14 regions in China currently have a minimum monthly wage of over RMB 2,000 (USD 308), including Beijing, Jiangsu, Hebei, Zhejiang, Guangdong, and Sichuan.
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