Global Industrial Robotics: Growing and Emerging Markets
NRTC Automation reports on the current state of automation around the world.
The International Foundation of Robots (IFR) predicts there will be nearly 4 million robots worldwide by 2022. Despite short-term declines in industrial robot adoption as a result of COVID-19, the global average robot density achieved a new record of 113 robots per 10,000 employees.
While the global outlook is promising, automation maturity is very variable from country to country.
Global Industrial Robot Market
INDIA: 4 ROBOTS PER 10,000 EMPLOYEES
Although India severely lags behind global robot density, the country is one of the fastest-growing among emerging Asian markets.
Traditionally, the strongest driver of robot installation is the automotive industry, which accounted for 44% of installations in 2018. However, the general industry, which consists of the rubber and plastics, metal, and electrical / electronics industry, has recently overtaken automotive.
The gap in robotics automation in India is commonly attributed to:
Absence of adequate hardware ecosystems: Robots require high-end components, the majority of which need to be imported into India.
Robot expense: On top of the high cost of industrial robots, import tariffs and taxes are 28.85% in India. In comparison to the low average annual wages for workers, robotics can be prohibitively expensive.
Deficit of expertise: Robotics requires specialized skills and education, which is lacking in the country.
Late to market: India entered the robotics race late, compared to other nations. Therefore, India’s robotics industry is still catching up.
MEXICO: 33 ROBOTS PER 10,000 EMPLOYEES
While Mexico lags behind the global average at 33 industrial robots per 10,000 workers, it displays modest growth. The country is expected to hit nine thousand industrial robotics sales in 2021.
Automation is most prevalent in Mexico’s automotive and auto parts sectors, trailed by semiconductors and electronics.
Mexico is one of the world’s largest economies and includes a variety of manufacturers. Since many U.S. manufacturers have moved their operations to Mexico, the country has even more motivation to further automate.
UK: 85 ROBOTS PER 10,000 EMPLOYEES
The UK lags behind major global and European competitors in its industrial robotics usage. Industrial robots in the UK are most heavily embedded in the food and beverage and automotive industry while demand is trending in manual industries such as construction.
Many experts attribute some of the UK’s stagnation in productivity (measured by GDP per hours worked) since 2008 to its slow industrial robotics adoption. When compared to nations with similar manufacturing output, the UK utilizes fewer industrial robots, and productivity suffers.
Despite lagging in adoption, industrial robotics has experienced a rise in demand. After a short decline following the COVID-19 outbreak, sales of industrial robotics in the UK increased by 52% in Q4 of 2020.
The government recognizes the importance of automation and intends to invest more of its GDP into R&D to catch up to other superpowers.
CANADA: 165 ROBOTS PER 10,000 EMPLOYEES
Canada ranks 18th in the world for robot density and is significantly above the global average in robot density (165).
Robots are primarily used in the automotive industry, where density is high. However, when the automotive sector is removed, Canada’s robot density is merely 71 and lags considerably behind other superpowers such as the U.S. The UK’s robot density is well below the global average, with only 85 robots per 10,000 employees. At that density, you’d only expect to see robots in plants employing more than 140 people.
Canada’s adoption rate is another cause for concern. Average robot density increased by just 20 units (compared to 39 in the U.S.). Although the cost of integration and lack of flexibility are significant barriers to adoption, the country is hopeful that advances in innovation will reduce blockers.
CHINA: 187 ROBOTS PER 10,000 EMPLOYEES
China is still developing robot density and currently ranks 15th in manufacturing robot density worldwide. However, China outpaces the global marketplace in its continued adoption of automation.
Industrial robotics is most prevalent in the Chinese car industry (which has been the largest in the world since 2013). It’s estimated that the industry uses a whopping 500 robots per 10,000 workers. Robotics use is also scaling in electronics and logistics, which average around 50 robots per 10,000 workers.
China’s robotics industry experience rapid growth throughout 2020 and 2021. According to the IFR “It is the fastest-growing market worldwide. There has never been such a dynamic rise in such a short period of time in any other market.” The country now accounts for 45% of all global industrial robot shipments.
While the country boasts a large workforce, the cost of labor continues to increase at a higher rate than other manufacturing countries like Vietnam. Therefore, China is incentivized to automate manufacturing to improve output and quality.
China’s long-term strategy is to support robotics startups in key industries and expand industrial robot use from traditional caged robots to robots that work collaboratively with humans.
JAPAN: 364 ROBOTS PER 10,000 EMPLOYEES
Within the last few years, Japan outpaced Germany in robot density. Despite ranking in third place in robot density, Japan undoubtedly leads the world in robot manufacturing. In fact, Seven of the 10 world’s principal industrial robotics companies are headquartered in Japan.
In Japan, even robots are assembled by robots. According to the IFR, the country’s output represents 47 percent of total global robot production.
Industrial robots are most prevalent in the electrical and electronics industry (34% share of operational stock), the automotive industry (32% share of operational stock), and the metal and machinery industry (13% share of operational stock).
Japan is also known for spearheading innovation in robotics technology. The country drives development and testing in emerging technology, such as machine vision, machine learning, and artificial intelligence.
Due to this reputation, the country is considered ground zero for new robotics applications. Enterprise companies like Mitsubishi, Kawasaki, and Denso along with the government drive the continued development of industrial robotics in the country.
According to the International Trade Administration, Japan’s industrial machinery market is expected to continue to experience a growth phase. By 2065, the government is planning for a 40 percent reduction in its total workforce because of its aging population. Industrial robotics is expected to help alleviate the gap.
Start automating today
Advancements in robotics technology, emerging demand for high-quality and sophisticated products, and increasing remote and dangerous working environments will drive automation. Countries with mature or rapidly growing automation strategies will continue to thrive, while many other may be left behind.
WORK WITH NRTC AUTOMATION
NRTC Automation is dedicated to providing high-value industrial automation and manufacturing equipment solutions to all our customers.
From decommissioning and tear out to industrial robotic training services to custom flexible work cells, NRTC is the key to integrate your workplace. With personalized training and custom-built designs, NRTC Automation is the destination for all your industrial automation and manufacturing equipment services.
Contact us today to learn more about how we can help you meet your production goals.