The global industrial robot market in 2021 was valued at US$33.90 billion, and is likely to reach US$61.09 billion by 2026. In recent years, manufacturing has been one of the first industries to deploy robots on a large scale, since industrial robotics serve to increase productivity and efficiency by lowering manufacturing costs, hence lowering the overall purchase price of products.
Industrial robots are mechanical machines that can mimic human movements. These robots can do a variety of activities more efficiently than humans, and they can also withstand environmental conditions that humans cannot. The newest industrial revolution, Industry 4.0, has spurred the development of new technologies such as collaborative robots, AI-enabled robots, and so on, allowing industries to employ robots to streamline various processes, boost productivity, and reduce mistakes. Increased worker safety and greater manufacturing capabilities have prompted sectors to invest in robotic systems. Moreover, as the next generation of industrial robots become cheaper, autonomous, more mobile, cooperative, and adaptable, demand for robots across many industries is expected to rise. The industrial robot market is projected to grow at a CAGR of 12.50% during the forecast period of 2022-2026.
Over the past five years, there has been a very visible acceleration in demand for industrial robots globally compared to long-term trends. The global industrial robot market volume was 496.87 thousand units in 2021.
Market Segmentation Analysis:
By Industry: The report splits the global industrial robot market into five different segments based on the type of industry they are deployed in: Automotive, Electrical/ Electronics, Chemical, Rubber & Plastics, Food and Beverages and Other Applications. Automotive segment held more than 39% of the share in industrial robot market in 2021, owing to growing adoption of automation in the automotive manufacturing process and the involvement of AI and digitalization.
By Type: The market report has segmented the global industrial robot market into five segments on the basis of type: Articulated, Cartesian, SCARA, Cylindrical and Other Types. The cylindrical segment is the fastest growing segment of the market, growing at a CAGR of 13.3%, during 2022-2026, due to the several incentives are being offered by governments in key nations such as India, China, Japan, France, Indonesia, and Singapore to help their industrial sectors to cope up the pandemic crisis which will help industries to setup and integrate robotics in their industries during the forecasted years.
By Region: According to this report, the global market can be divided into four major regions, on the basis of geographical areas: Asia-Pacific (China, Japan, Republic of Korea and Rest of Asia-Pacific), North America (The US, Canada, & Mexico), Europe (Germany, Italy, Spain, UK and Rest of Europe), and Rest of World. The Asia Pacific industrial robot market enjoyed the major share of around 39% the total of the global market share in 2021, primarily owing to the growing use of cylindrical and other robots such as customized and refurbished robots in the industrial sector. Further in the report, the global market by volume can be divided into six major regions, on the basis of geographical areas: China, Japan, The US, Republic of Korea, Germany and Rest of World. The China industrial robot market by volume has the highest share of almost 43% of the global market volume and is the fastest growing market, owing to rising government initiatives in the country such as the Made in China 2026 initiative.
Global Industrial Robot Market Dynamics:
Growth Drivers: Automation helps in increasing productivity, improving quality and reducing errors. Rising demand for automation has rapidly increased the adoption of robots in various industries. The growing demand for automation is a major driver of the market. Further, the industrial robot market is expected to increase due to growing electronics industry, rapid installations of industrial robots, high wages in manufacturing, growing role of artificial intelligence in robotics, etc. in recent years.
Challenges: Huge capital investment is required in the purchase and installation of robots and the benefits provided by industrial robots might take many years to exceed the initial cost. Thus, the high initial investment needed for the automation of production using industrial robots could act as an obstacle to the growth of the industrial robots market. Additionally, other factors like, safety issues, privacy concerns, etc. are some challenges to the market.
Trends: A major trend gaining pace in robotics is the development of collaborative robots or co-bots. Co-bots are designed to work along with humans and are being increasingly used in industrial manufacturing applications. Collaborative robots use safety-rated sensors, which allows the laborers to work in the same area as the robot without harming them. Also, market players have been introducing high-quality, innovative robotic technologies in the industrial sector, where these are used for warehousing, manufacturing, and assembling applications. Some of these innovations include underwater robotics, human-robot interaction, legged mobility, machine learning (ML), and self-driving vehicles. More trends in the market are believed to grow the industrial robot market during the forecasted period, which may include use of micro-electromechanical systems (MEMS), rise of the cloud robotics market, next-generation tech accessories, and employment opportunities in industrial robotics, robotic advancements, etc.
Impact Analysis of COVID-19 and Way Forward:
The COVID-19 pandemic had a negative impact on the global industrial robot market. The financial burden visible during the pandemic, made hard for industrial robotics industry to run, owing to industries being shut down and orders getting cancelled manufactures of industrial robotics causing difficulties in generating revenue. Further, the global shipment of industrial robots experienced a negative growth attributed to disruption in supply chain. Although, the pandemic became a huge boon for digital manufacturing systems. The post COVID scenario of industrial robotics is filled with numerous possibilities, the demand for industrial robotics is likely to expand in sectors like automotive and electric industry, food & beverage sector, hospital & many others.
Competitive Landscape and Recent Developments:
The global market for industrial robot is a consolidated market with many smaller players. With global digitization initiatives, Industry 4.0 offers significant potential in the industrial robotics market. Given the amount of robotic trade exhibitions that occur throughout different regions on a regular basis, the degree of transparency is significant. Overall, competition among established players is high. Large companies are expected to make acquisitions and collaborate with startups focused on innovation.
Further, key players of the industrial robot market are:
Yaskawa Electric Corporation
Kawasaki Heavy Industries
Mitsubishi Electric Corporation
Seiko Epson Corporation (EPSON Robots)
Denso Corporation (DENSO Robotics)
Hon Hai Precision Industry Co. Ltd.
Despite the impacts and uncertainties of COVID-19, merger and acquisition (M&A) activity in the robotic sector continued in the first seven months of 2021. Several deals occurred throughout the time as a result of the fierce rivalry and corporations’ ambitions to extend their portfolios. In the robotics industry, the usage of Special Purpose Acquisition Companies (SPAC) has become a popular M&A strategy. According to The Robot Report, over 400 transactions worth a total of about US$26 billion in 2020, as of 21st December 2020, compared to 384 worth about US$45.8 billion in 2019. Conversely, around 60 robotics mergers and acquisitions took place in 2020, compared to 86 in 2019. In 2021, over 50 merger & acquisitions were observed. In the industrial robotics market, for example, in 2021, Accenture, consulting business, has agreed to acquire Pollux, a developer of industrial robotics and automation systems. Accenture made the acquisition as part of the company’s strategy to strengthen its digital manufacturing, operations, and supply chain capabilities.
Scope of the Report
The report titled “Global Industrial Robot Market: Analysis By Industry, By Type, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2026”, includes:
-- An in-depth analysis of the global industrial robot market by value, by volume, by industry, by type, by region, etc.
-- The regional analysis of the industrial robot market, including the following regions:
Asia-Pacific (China, Japan, Republic of Korea and Rest of Asia-Pacific)
North America (The US, Canada, & Mexico)
Europe (Germany, Italy, Spain, UK and Rest of Europe)
Rest of World
-- Comprehensive information about emerging markets. This report analyses the market for various segments across geographies.
-- Brief analysis of the China, Japan, the US, Republic of Korea, Germany and Rest of World industrial robot market volume.
-- Provides an analysis of the COVID-19 impact on the global industrial robot market, with post COVID impact analysis.
-- Assesses the key opportunities in the market and outlines the factors that are and will be driving the growth of the industry. Growth of the overall industrial robot market has also been forecasted for the period 2022-2026, taking into consideration the previous growth patterns, the growth drivers, and the current and future trends.
-- Evaluation of the potential role of industrial robot to improve the market status.
-- Identification of new technological developments, R&D activities, and collaborations occurring in the industrial robot market.
-- In-depth profiling of the key players, including the assessment of the business overview, market strategies, regional and business segments of the leading players in the market.
-- The recent developments, mergers and acquisitions related to mentioned key players are provided in the market report.
-- The in-depth analysis provides an insight into the market, underlining the growth rate and opportunities offered in the business.