April 21, 2021

IndustrialRobotsFrostSullivan400x275A new analysis by Frost & Sullivan says the global industrial robotics market will reach revenues of $38.3 billion in 2024, up from $22.2 billion in 2020 (a 12.2% compound annual growth rate). Despite uncertainty in the automotive space and the COVID-19 pandemic, rising demand from industries such as pharmaceuticals, food & beverage, and electrical and electronics are expected to propel growth over the next five years.

Regionally, Asia-Pacific continues to dominate the global industrial robotics market, with revenues estimated to top $25.08 billion by 2024, led by China, Japan, and South Korea, Frost & Sullivan said. The European region is next, propelled by the automotive industry and Germany (#5 in the largest countries for industrial robotics). The research firm said North America’s ongoing trend of production automation and keeping manufacturing operations in-house puts it in the third position, with forecasted revenues of $6.19 billion by 2024.

“The global battle against the COVID-19 pandemic has proven to be a strong use case for industrial robots, which helped assure business continuity,” said Nandini Natarajan, an industry analyst at Frost & Sullivan. “While 2020 witnessed reduced investments in robotics, the demand for industrial robots will rise sharply from 2021 on. The introduction of low-cost robots and innovative business models such as robots-as-a-service (RaaS) are expected to drive demand from small and medium enterprises.”

In addition, cobots are expected to see rapid growth during the next five years. “Collaborative robots are experiencing rapid market growth thanks to their utility, ease of installation, and consistently decreasing price, making them an affordable and viable solution for a wide range of applications,” said Natarajan. Cobots will be the fastest-growing segment by 2024, recording a CAGR of 32.8% over the five years, and reaching $1.78 billion in global revenues. Advances in 5G and edge computing will be key to equip cobots with improved flexibility and easier implementation, the firm said.

Frost & Sullivan made three strategic recommendations for participants in the robotics market:

  1. Embedded vision and Machine Learning: Embedded systems need to be lightweight, consume less energy, and be adaptable to be retrofitted or integrated with any robotic system. Manufacturers need to integrate advanced support technologies, such as 3D perception and deep learning, to enable new machine vision applications.
  2. Smart robot grippers for safer collaboration with humans: There is a need to design robot grippers that are more collaborative and safer. End-of-arm tooling providers will need to develop robot prototypes with advanced sensors that can detect human workers’ presence and movements.
  3. 5G and edge AI for robotic independence and flexibility of real-time applications: While 5G provides benefits such as low latency and on-the-go decision-making, edge-based AI will enable robots to carry out data processing on the machine, without data traveling to and from the cloud. Expect to see huge demand for secure local data processing closer to the robot, the firm said.

Further details are available through a Frost & Sullivan report, “Cobots Transforming the Global Industrial Robotics Market – Opportunities Forecast.” Click here for further information.