Industrial Robotics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The industrial robotics market was valued at USD 24.35 billion in 2020 and is expected to reach USD 52.85 billion by 2026, at a CAGR of 14.11% over the forecast period (2021 - 2026). Industrial robots play a crucial role in manufacturing industrial automation, with many core operations in industries being managed by robots. With economic growth across regions, the growth of e-commerce, electronics, and the automotive industry, among others has been on the rise.

• Increased demand across economies, product manufacturers are adopting robots to automate some of the repetitive processes. According to the Robotic Industries Association, more than 250,000 industrial robots had been installed in the United States alone, which gives an estimate of the penetration of industrial robots.
• The industrial robots market has been witnessing a huge demand over the past decade, owing to the rising adoption of smart factory systems, of which these robots play a vital part. The global smart factory market is expected to reach USD 388.68 billion by 2024, which provides insights on the scope of the adoption of industrial robots for automation across end-user industries.
• Industry 4.0, the newest industrial revolution, has fueled the development of new technologies, like collaborative robots, AI-enabled robots, etc., and 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.
• Industrial robots (IR) becoming smaller and cheaper without compromising on the quality, the market is becoming more attractive for key players in the end-user industry. However, higher investments may hinder the growth of the market.
• According to CGTN, China's industrial robot production rose by 29.2% year on year in June to 20,761 units, reaching its highest growth rate in the first half of 2020.
• According to the data provided by the National Bureau of Statistics, with the growth accelerating from 16.9% in May, the country has produced 93,794 units of industrial robots over the past six months, up by 10.3% from the same period last year,.
• The rising demand for industrial robots was triggered by shortage of workers, who remained off duty due to COVID-19-related lockdowns, and an upgrade of traditional industries.

Scope of the Report

An industrial robot is a robot system used for manufacturing. Industrial robots are automated, programmable, and capable of movement on three or more axis. Typical applications of robots include welding, painting, assembly, pick and place for printed security boards, packing and labeling, palletizing, product inspection, and testing, all accomplished with high endurance, speed, and precision.

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Key Market Trends

Automotive Industry to Hold Major Share

• The growing adoption of automation in the automotive manufacturing process and involvement of digitization and AI are the primary factors driving the demand for industrial robots in the automotive sector.
• The increase in demand for automotive is necessitating the demand for increased production. According to the Mexican Automotive Association (AMIA), vehicle production increased by 3.9% in May 2018. Significant initiatives have been taken by the governments of various countries in Latin America, to increase the adoption of electric vehicles, such as building convenient charging stations. Such initiatives are expected to spur the demand for electric vehicle production thereby increasing the adoption of automation. Which is anticipated to spur the growth of industrial robots in the automotive industry.
•  In 2017, more than 170,000 robots took part in the production process in the European automotive industry. The growing presence of robots and automation in the European automotive industry is expected to fuel the market for industrial robots in the region.
• For instance, in July 2018, International Automotive Components (IAC), implemented manufacturing 4.0 and smart factory applications at its UK site, in Halewood, England. The new application is expected to deploy smart logistics, cross-company integration, and collaborative robots (cobots).
• Further, China has also become, both the world’s largest car market and the world’s largest production site for cars, including electric cars, with much growth potential. There are 27 automotive manufacturing and assembly plants in Malaysia. The growing automotive industry in Asia is also creating a massive opportunity for the global industrial robots market.
• The shifting of the automotive industry toward autonomous and electric vehicles is also creating a massive opportunity for industrial robots.
• For instance, Self-driving car spinoff Waymo may buy up to 20,000 electric vehicles from Jaguar Land Rover to help realize its vision for a robotic ride-hailing service. The industrial robots are expected to be used for upgrading and manufacturing purposes.

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