Industrial robotics refers to robot systems used within industrial automation processes. Industrial robots are robotic arms, autonomous manipulators or mobile robots designed for performing manufacturing, material handling and assembly line jobs faster and consistently than humans. They are able to move material, parts or tools through variable programmed motions for welding, painting, assembly, pick and place for products like electronic goods, automobiles, food industry and more. The demand for industrial robots has increased substantially due to growing emphasis on automation in various industries to reduce production costs and increase efficiency. Industrial robots have advantages like increased precision and productivity and their ability to work in hazardous manufacturing environments without safety concerns for human workers.

The global industrial robotics market is estimated to be valued at US$ 69.33 Mn in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the industrial robotics are Daihen Corporation, Yaskawa Motoman Robotics, Denso Corporation, Universal Robots, Epson America, Inc., Panasonic Corporation, Epson America, Inc., Nachi Robotic Systems, Inc., FANUC Ltd., Mitsubishi Electric Corporation, Kawasaki Heavy Industries Ltd., and KUKA Robotics Corporation. These players are focussing on new product development and expansion plans to strengthen their global presence. The demand for industrial robotics is growing in industries like automotive, electrical & electronics and pharmaceutical owing to need for mass production and lower costs. Players are expanding to countries across North America, Europe, Asia Pacific and other global markets to tap the potential opportunities.

The growing demand for industrial robots from small and medium enterprises is also driving the market growth. While adoption of industrial robots was limited to large enterprises earlier, automation with collaborative robots is enabling increased deployment in SMEs across industries. This is expected to fuel the demand during the forecast period.

With rising globalization, companies are expanding their manufacturing facilities to other countries and regions for cost competitiveness. This has led to increased adoption of industrial robots especially in emerging countries across Asia Pacific, Middle East & Africa and Latin America to support their global expansion. Countries like China, India, South Korea, Mexico and Brazil offer attractive opportunities for players in the industrial robotics market.

Market Drivers

The demand for industrial robotics is primarily driven by the growing emphasis on automation and need for mass production across industries globally. Industrial robots help improve productivity and quality significantly while reducing production costs for manufacturers. They eliminate risks of workplace hazards for human workers and ensure consistent product quality. Strict labor laws and rising labor costs especially in developed countries have further propelled the use of industrial robotics. Ongoing technological advancements enabling enhanced functional capabilities, accuracy and efficiency of robots is another key factor fueling their adoption. Collaboration of robots with humans in shared workspaces through technologies like cobots is further expanding robots deployment scope in SMEs and non-traditional industries as well.

Current Geopolitical Impact on Industrial Robotics Market Growth

The global industrial robotics market is facing challenges due to geopolitical uncertainties across several regions. The ongoing Russia-Ukraine conflict and tensions between China and other Western nations are impacting supply chains and demand patterns. Manufacturers are facing disruptions in the procurement of important components due to sanctions and trade restrictions. The conflict has also led to a sharp rise in energy and raw material costs globally. This is negatively impacting the profit margins of end-use industrial sectors where robotics see significant deployment.

To deal with ongoing geopolitical risks, industrial robotics companies will need to diversify their supply networks and develop alternative sourcing strategies. Localizing production and establishing facilities in strategically important markets can help boost resilience. Collaboration with local partners can also reduce dependencies on high-risk regions. Adapting product offerings to cater to changing demand trends will be another key strategy. Lightweight and collaborative robots seeing rising uptake in SMEs indicate future growth areas. Strong focus on cost leadership through modular designs, refurbishment services and pay-per-use models can further help mitigate external shocks to the market.

Regions with Concentrated Industrial Robotics Market Value

The industrial robotics market sees its highest value concentration in East Asia, driven primarily by China. China accounts for over 35% of the global industrial robotics stock due to its massive manufacturing industry. Robotic automation is widespread across key Chinese sectors including automotive, electrical/electronics and appliances. Other East Asian countries such as Japan, South Korea and Taiwan also deploy robots extensively due to their advanced manufacturing base, with Japan being a global leader in industrial robotics innovation and technology. Western Europe is another major manufacturing hub deploying a significant robotics workforce to gain efficiency and competitiveness. Germany leads robot adoption within Europe. The United States is steadily raising its robot density levels, led by sectors like automotive, food processing and semiconductors.

Fastest Growing Regional Market for Industrial Robotics

While established markets in East Asia and Europe currently account for most of the global demand, the fastest regional growth for industrial robotics is expected from Southeast Asia over the coming years. Several Southeast Asian countries are rapidly industrializing to become important manufacturing destinations. Investments are flowing into setting up electronics, automotive and other export-oriented facilities. The low-cost skilled workforce and strategic locations enabling access to larger Asian and Western markets are driving this shift. Robotics adoption is surging to supplement this growing labor demand. Countries like Vietnam, Indonesia, Thailand and Malaysia are expected to see over 15% annual growth in robot installations during the forecast period. This makes Southeast Asia an attractive market for industrial robotics suppliers to tap rising opportunities.