Industrial Robotics: Revolutionizing Manufacturing
Efficiency
Industrial robotics has emerged as a transformative
technology in the manufacturing sector, revolutionizing production processes
and significantly enhancing efficiency. With the integration of advanced
automation and artificial intelligence (AI), industrial robots have become
indispensable assets for businesses seeking to optimize productivity, reduce
costs, and improve overall product quality. This essay explores the impact of
industrial robotics on the manufacturing industry and examines the key factors
contributing to its success. Additionally, it highlights the role of government
policies in fostering the growth of this sector.
I. Increased
Efficiency and Productivity
Industrial robotics has dramatically improved manufacturing
efficiency through various mechanisms. One significant factor is the ability of
robots to perform repetitive and labor-intensive tasks with precision and
consistency. Unlike human workers, robots can operate continuously without
breaks, thereby ensuring uninterrupted production. They can also execute tasks
at higher speeds, leading to increased output and shorter production cycles. By
automating these routine tasks, companies can redirect human resources to more
complex and creative endeavors, resulting in enhanced productivity and
innovation.
II. Improved Quality
and Precision
Industrial robots are designed to execute tasks with
unparalleled precision and accuracy. Through advanced sensors and machine
vision systems, robots can detect and adjust for even the slightest variations
in manufacturing processes, leading to improved product quality. By minimizing
human error and variations, robots ensure consistent output, reducing defects
and waste. Furthermore, robots equipped with AI algorithms can continuously
learn and adapt, optimizing their performance over time and further enhancing
product quality.
III. Workplace Safety
and Ergonomics
Robots have significantly improved workplace safety by
taking over hazardous and physically demanding tasks. They are adept at
operating in challenging environments such as extreme temperatures, toxic
atmospheres, or confined spaces, reducing the risks faced by human workers. By
delegating these tasks to robots, companies can prioritize employee well-being
and minimize workplace accidents and injuries. Moreover, robots are designed
with ergonomics in mind, eliminating repetitive strain injuries associated with
certain manufacturing tasks, thus enhancing the overall health and comfort of
workers.
IV. Cost Reduction
and Economic Impact
Industrial robotics has proven to be a cost-effective
solution for manufacturers. While the initial investment in robotics technology
may be substantial, the long-term benefits far outweigh the costs. By
automating processes, companies can reduce labor costs, as robots eliminate the
need for a large workforce to carry out repetitive tasks. Moreover, robots can
operate 24/7 without additional labor costs, maximizing production output and
increasing overall efficiency. This cost reduction contributes to improved
competitiveness for businesses and has a positive economic impact by driving
growth and attracting investments in the manufacturing sector.
V. Impactful Factors
Driving Robotics Adoption
Several factors have contributed to the widespread adoption
of industrial robotics. First and foremost is the rapid advancement in robotic
technology itself, enabling robots to perform increasingly complex tasks with
higher efficiency and flexibility. Additionally, the growing demand for
customization and personalization in manufacturing, driven by consumer
preferences, has necessitated the use of robotics for streamlined and agile
production processes. Moreover, the need to cope with labor shortages and
rising labor costs has prompted companies to invest in automation solutions,
including industrial robotics, to maintain competitiveness in the market.
VI. Government
Policies and Support
Government policies play a crucial role in promoting the
adoption of industrial robotics. Recognizing the potential of robotics to drive
economic growth, governments have implemented various initiatives to support
businesses in adopting robotics technology. These initiatives include tax
incentives, grants, and subsidies for robot acquisition, research and
development funding for robotics innovation
and the establishment of collaborative platforms between academia,
industry, and government agencies. Additionally, governments are focusing on
creating favorable regulatory frameworks that ensure the safe and ethical
implementation of robotics technology while addressing concerns related to job
displacement and social implications.
Dynamics of Industrial Robotics Market
Drivers in Industrial
Robotics Market
Increasing demand for collaborative robots across various
industries
The demand for collaborative robots, also known as cobots,
is on the rise in multiple industries. These cobots are becoming more
accessible and user-friendly, making them suitable for novice users. One
notable example is Universal Robots (Denmark), which offers the UR+ platform.
This platform allows users to program the robots and utilize a range of robot end
effectors, vision systems, and add-on software from different manufacturers,
including Robotiq (Canada), Schunk (Germany), PIAB (Germany), OnRobot
(Denmark), Cognex (US), and Energid (US). The peripherals and software provided
by these companies are UR+ certified, ensuring compatibility with the robots
manufactured by Universal Robots. Companies of all sizes are adopting
collaborative robots for both new and existing applications. For instance, BMW
(Germany) has implemented a UR10 robot from Universal Robots for gluing and
dispensing tasks. The increased strength, speed, and capabilities of these
cobots are driving the expansion of companies operating in high-growth sectors
like electronics, healthcare, consumer goods, logistics, and food and
beverages. This growth is in response to the growing demand for automation in
various industries. The UK is experiencing annual labor cost increases of more
than 12%, leading to a shortage of workers. To address this issue, market
players are investing in industrial robotics. The rising popularity of electric
automobiles among new car owners presents promising opportunities, given the
cost benefits. This trend is expected to have a significant impact on the
industrial robotics industry, as car manufacturers are increasingly employing
automated robotic systems for high-volume vehicle production. The incorporation
of machine learning and artificial intelligence technologies into industrial
robots is also having a positive influence on the business sector. Furthermore,
the introduction of 5G technology is expected to further encourage the adoption
of robotics in the manufacturing sector. The low latency provided by 5G
networks enables instant communication between systems, leading to efficient
coordination and connectivity. Notably, the release of industrial 5G wireless
network technology by Nokia Corporation has played a significant role in
driving the adoption of robotics.
Restraints in
Industrial Robotics Market
High deployment costs for SMEs
Implementing a robotic automation project can be
challenging, especially for companies without prior experience in this area.
Additionally, replacing human workers may not always lead to a decrease in
operational costs for organizations. The cost of a single collaborative robot
system can range from USD 3,000 to USD 100,000, while industrial robotic
systems can cost anywhere between USD 20,000 and USD 200,000. Alongside the
costs of industrial robots, there are integration expenses and the additional
costs of peripherals such as end effectors and vision systems, making
automation a costly investment for SMEs, particularly those engaged in
low-volume production. This cost issue becomes more pronounced for companies
that operate on seasonal or unpredictable production schedules.
Opportunities in
Industrial Robotics Market
Emergence of Industry 5.0
The concept of Industry 5.0 is relatively recent. According
to the European Commission, Industry 5.0 envisions an industry that goes beyond
mere efficiency and productivity, emphasizing the role of industry in society.
It places the well-being of workers at the forefront of the production process
and utilizes new technologies to foster prosperity beyond job creation and
economic growth, all while considering the planet's production limitations. Industry
5.0 acts as a complement to the Industry 4.0 approach by placing research and
innovation in the service of a sustainable, human-centric, and resilient
European industry. In this fifth industrial revolution, industrial robots will
play a crucial role, particularly in closing the design loop. By fully
automating the entire production process with efficiency, humans can focus on
creativity and innovation, unhindered by production constraints. Unlike
Industry 4.0, Industry 5.0 strives to reintegrate the human touch in
development and production, optimizing the creative intellectual capabilities
of humans. Therefore, the emergence of Industry 5.0 presents a promising
opportunity for collaborative robots.
Challenges in
Industrial Robotics Market
The acquisition and deployment of industrial robots can pose
a significant challenge, particularly for smaller businesses with limited
budgets. The initial investment, as well as ongoing maintenance and training
costs, can be substantial. Programming industrial robots requires specialized
skills and expertise, and developing precise and efficient robot motions,
especially for complex tasks, can be time-consuming and demanding. This creates
a barrier for companies without access to skilled personnel. Integrating
industrial robots into existing production lines and systems can be complex, as
compatibility issues arise when connecting robots with different equipment and
software. This can result in additional costs and time requirements. Industrial
robots are powerful machines designed for heavy-duty operations, making safety
a crucial concern when human workers are present. Implementing adequate safety
measures, such as protective barriers, sensors, and collaborative robot
designs, is necessary to prevent accidents and injuries. Industrial robots are
often tailored to specific tasks or processes, making it challenging to adapt
them to handle different products, processes, or production variations. Such
adaptations may require reprogramming or reconfiguring the robots. Many
industrial robots are optimized for high-volume, repetitive tasks. However, as
product customization and market demands increase, there is a growing need for
flexible robots capable of seamlessly transitioning between tasks and adapting
to dynamic environments. The introduction of industrial robots can raise
concerns about job displacement, particularly in industries where automation
can replace human workers. Striking a balance between the benefits of
automation and potential job losses poses significant societal and economic
challenges.
According to the International Federation of Robotics (IFR),
global sales of industrial robots experienced a 3% increase in 2020, reaching
approximately 373,000 units. In terms of regional distribution, Asia accounted
for approximately 63% of global industrial robot installations in 2020,
followed by Europe (21%) and the Americas (16%). The automotive industry
remains the largest customer of industrial robots, representing around 30% of
the total supply in 2020. Other significant sectors include electronics, metal,
and chemical industries. Collaborative robots, also known as cobots, are
gaining popularity due to their ability to work alongside humans safely. The
cobot market is experiencing rapid growth, with the IFR estimating a 63%
increase in sales in 2020.
Ecosystem of Industrial Robotics Market
The electrical/electronic end-use segment held a significant
market share of 29.6% in the year 2022. This segment's dominance stems from its
ability to perform various tasks such as dispensing, insertion, labeling, and
screw driving with high repeatability. The increased adoption of industrial
robots in this segment will be driven by innovations and extensive research and
development efforts by market players to enhance productivity, cost-efficiency,
and reduce manufacturing overheads. The emergence of technology disruptors and
intensified competition in the market is expected to further strengthen the
outlook for this segment during the forecast period.
During the forecast period, the chemical, rubber, &
plastics end-use segment is projected to grow at the highest compound annual
growth rate (CAGR) of 17.9%. The growth of this segment can be attributed to
the need for consistent performance in tasks such as measurement and testing.
Moreover, robotics can handle toxic materials without posing any risk to human
health.
In the year 2022, Hibot Corp. utilized its Float Arm robot
to inspect pipelines at the Mitsui Chemical plant in Japan. This application
highlights the growing demand for industrial robotics as companies seek to
minimize risks to their workforce while maintaining manufacturing output.
Robot accessories present lucrative growth opportunities for
the industrial robotics sector during the forecast period. These accessories
are essential for enabling efficient long-term productivity in both
collaborative and traditional industrial robots. They include the controller,
various mechanical parts, attachments, and sensors. The controller serves as
the robot's brain, while the mechanical parts execute pre-programmed movements,
and the sensors assist in fine-tuning the robot's performance based on external
stimuli.
The handling application segment dominated the market share
in the past year, accounting for 44% of the revenue. This growth can be
attributed to the increasing trend of e-commerce shopping and the need for
quick deliveries. For example, in 2022, Amazon.com, Inc. introduced autonomous
robots for handling and moving packages within their facilities. These robots
can handle materials without human intervention, resulting in a significant
reduction in error rates. Additionally, industries such as automotive and
electronics employ handling robots to safely and efficiently move small or
heavy materials on the factory floor.
The processing application segment is expected to experience
the fastest CAGR of 26% during the forecast period. This growth can be
attributed to the minimal errors associated with the use of robots in tasks
such as painting, cutting, and other processes. These robots are gaining
traction due to their ability to operate continuously based on pre-programmed
instructions. Furthermore, robots can access small spaces and perform tasks in
areas where human labor may not be feasible.
Regional Insights
The APAC region is expected to witness the highest demand
for the Industrial Robotics market. As per the International Trade Centre,
China, being the world's largest exporter and importer of manufactured goods,
has experienced significant growth in labor-intensive industries such as
clothing, textiles, footwear, furniture, plastic products, bags, and toys.
However, the aging population and subsequent labor shortage have led to
increased wages, prompting companies to turn to automation and industrial
robots to reduce costs. China has shifted its focus from labor-intensive
industries to high-tech manufacturing goods, including semiconductors, under
its Made in China 2025 policy.
In response to the placement of Huawei, the Chinese
telecommunication equipment giant, on the US blacklist, China has set ambitious
targets to produce 40% of the semiconductors it uses by 2021 and 70% by 2025.
Japan, renowned for its production of electric vehicles, is expected to witness
a surge in the industrial robotics market due to the introduction of fully
electric and hybrid vehicles, which will require new assembly line processes.
While consumer electronics products have faced intense
competition from global manufacturers in China and South Korea, there is a
projected high demand for electronic components like sensors and displays in
the export market. Japan's industrial robotics market, with key players such as
FANUC, Yaskawa, and Mitsubishi Electric, is anticipated to grow steadily in
response to these demands.
The Middle East & Africa region is forecasted to
experience the highest compound annual growth rate (CAGR) of over 20% during
the forecast period. This growth can be attributed to the increasing industrial
initiatives undertaken by government entities in the region. For instance, in 2022,
the crown prince of Dubai launched The Dubai Robotics and Automation Program to
enhance robotics adoption in the country. The program aims to provide around
200,000 robots to the industrial and logistics sectors, augmenting their
production capabilities.
Dominating Companies in Industrial Robotics Market
- ABB LTD
- YASKAWA ELECTRIC CORPORATION
- FANUC
- KUKA
- MITSUBISHI ELECTRIC
- KAWASAKI HEAVY INDUSTRIES
- DENSO
- NACHI-FUJIKOSHI
- SEIKO EPSON
- DÜRR
- YAMAHA MOTORS CO.
- ESTUN CORPORATION
- SHIBAURA MACHINE CO LTD
- DOVER CORPORATION
- AUROTEK CORPORATION
- HIRATA CORPORATION
- RETHINK ROBOTICS
- FRANKA EMIKA
- TECHMAN ROBOT
- BOSCH REXROTH AG
- UNIVERSAL ROBOTS (TERADYNE)
- OMRON ADEPT
- STÄUBLI
- COMAU
- B+M SURFACE SYSTEMS
- ICR SERVICES
- IRS ROBOTICS
- HYUNDAI ROBOTICS
- SIASUN ROBOTICS
- ROBOTWORX
- DAIHEN CORPORATION
- PANASONIC CORPORATION
Recent Developments in Industrial Robotics Market
- ABB's Acquisition of B&R Industrial Automation (2017):
In 2017, ABB, a leading provider of industrial automation solutions, acquired
B&R Industrial Automation, an Austrian company specializing in innovative
automation solutions. This acquisition strengthened ABB's position in the
industrial robotics market by combining B&R's expertise in machine and
factory automation with ABB's extensive portfolio of robotics and control
technologies. The partnership aimed to provide customers with advanced
automation solutions and accelerate the development of digital manufacturing
technologies.
- Rockwell Automation and PTC's Strategic Partnership (2018):
Rockwell Automation, a global leader in industrial automation, and PTC, a
software and services company, announced a strategic partnership in 2018. The
collaboration aimed to integrate PTC's ThingWorx platform, which enables
industrial IoT (Internet of Things) applications, with Rockwell Automation's
FactoryTalk Analytics. This partnership allowed customers to leverage data
analytics and IoT technologies for improved productivity, efficiency, and maintenance
in industrial robotics and automation.
- ABB's Collaboration with Kawasaki Heavy Industries (2019):
In 2019, ABB and Kawasaki Heavy Industries, two major players in the industrial
robotics industry, announced a collaboration to share knowledge and promote the
adoption of collaborative robots (cobots). The partnership focused on
developing common industry standards and practices for safe and efficient
human-robot collaboration. By combining their expertise, ABB and Kawasaki aimed
to drive the widespread use of cobots across various industries, fostering
innovation and productivity.
- Fanuc's Strategic Alliance with NVIDIA and Rockwell
Automation (2020): Fanuc, a leading manufacturer of industrial robots, formed a
strategic alliance with NVIDIA, a technology company, and Rockwell Automation
in 2020. The collaboration aimed to develop AI-enabled automation solutions for
industrial applications. By integrating NVIDIA's AI computing platform with
Fanuc's robots and Rockwell Automation's control systems, the partnership aimed
to enhance robotics capabilities, enable intelligent automation, and drive
advancements in areas such as visual perception, machine learning, and
predictive maintenance.
- Siemens' Acquisition of Atlas Copco's Vacuum Business
(2021): Siemens, a global technology company, completed the acquisition of
Atlas Copco's Vacuum Solutions division in 2021. This acquisition expanded
Siemens' portfolio of vacuum solutions, which are widely used in industrial
automation and robotics. The integration of Atlas Copco's vacuum business into
Siemens' offerings aimed to enhance their capabilities in providing
comprehensive automation solutions to customers in various industries.
- KUKA's Acquisition by Midea Group (2021): In 2021, Midea
Group, a leading Chinese home appliance manufacturer, completed its acquisition
of KUKA AG, a German robotics company. The acquisition strengthened Midea's
position in the industrial robotics market, allowing them to offer a broader
range of automation solutions. It also facilitated the collaboration between
Midea's expertise in household appliances and KUKA's industrial robotics
capabilities.
- ABB and Dassault Systèmes' Partnership (2021): ABB and
Dassault Systèmes, a French software company, announced a partnership in 2021
to offer a digital twin-based solution for industrial automation. The
collaboration aimed to combine ABB's automation expertise with Dassault
Systèmes' 3D modeling and simulation technologies. By leveraging digital twins,
the partnership aimed to optimize production processes, improve efficiency, and
enable predictive maintenance in industrial robotics.
- Teradyne's Acquisition of AutoGuide Mobile Robots (2021):
Teradyne, a leading supplier of automated test equipment, acquired AutoGuide
Mobile Robots in 2021. AutoGuide is a manufacturer of autonomous mobile robots
used in industrial material handling applications. The acquisition expanded
Teradyne's presence in the industrial automation market and allowed them to
provide a comprehensive range of automation solutions, including both testing
and material handling capabilities.
- FANUC's Collaboration with Soft Robotics (2022): FANUC
announced a collaboration with Soft Robotics, a provider of gripping solutions
for robots, in 2022. The partnership aimed to integrate Soft Robotics' unique
gripping technology with FANUC's industrial robots. By combining Soft Robotics'
adaptive gripping capabilities with FANUC's precise and reliable robots, the
collaboration sought to enhance the flexibility and versatility of industrial
automation systems.
- Yaskawa's Acquisition of Agile Planet (2022): Yaskawa
Electric Corporation, a major player in industrial robotics, acquired Agile
Planet in 2022. Agile Planet is a software development company specializing in
advanced control systems for robots. The acquisition enabled Yaskawa to
strengthen its software capabilities and enhance the performance and
functionality of its robotic systems.
Industrial robotics has emerged as a transformative force in
the manufacturing sector, revolutionizing productivity, quality, and workplace
safety. Through increased efficiency, improved precision, and cost reduction,
robotics technology has become an integral part of modern manufacturing
processes. The convergence of advanced automation, AI, and government support
has fueled the growth of the robotics industry, paving the way for a more
efficient and competitive future in manufacturing. As businesses continue to
embrace and harness the power of industrial robotics, the sector is poised for
further advancements and innovation, ultimately shaping the future of
manufacturing on a global scale.