2019 data replication: industrial robot growth may slow as the market recovers

- Jan 16, 2020-

In 2019, driven by the trend of intelligent transformation, the scale of industrial robot market continues to maintain a rapid growth trend, and China has become a global large industrial robot market for the seventh consecutive year.

On the other hand, the global market for service robots and special robots has also accelerated.


At the same time, Chinese provinces and cities have also introduced more policies to increase support for domestic robots.

Overall, while the impact of trade frictions between China and the us remains, several data points to a gradual recovery in the Chinese and global robot markets.


1. China's robot market is worth $8.68 billion


China's robot market is expected to reach $8.68 billion in 2019, including $5.73 billion for industrial robots, $2.2 billion for service robots and $750 million for special robots, according to the report on China's robot industry development (2019) released by the China society of electronics.


At present, China's robot market has entered a period of rapid growth. Industrial robots have been one of the largest application markets in the world for seven consecutive years. The demand for service robots has great potential, and the application scenes of special robots have been significantly expanded.

At the same time, the process of localization of core components is accelerating. Domestic manufacturers have made great progress in the fields of key core components, such as reducer, servo control and servo motor. The localization of core components is gradually emerging and has obvious advantages in some fields.


2. The market size of machine vision in China is nearly 12.5 billion yuan


At present, machine vision has become one of the important development trends of artificial intelligence technology in the world.


According to the research report on the development prospect and investment of machine vision market in 2019, machine vision technology has accounted for 40% of foreign ai enterprises, and the global market size of machine vision exceeded 8.8 billion us dollars in 2018. It is estimated that the global market size of machine vision will be nearly 10 billion us dollars in 2019.


In terms of China, China is one of the regions with active machine vision development in the world. In 2018, the market size of China's machine vision exceeded 10 billion yuan for the first time. With favorable policies, technological improvement and expanding application fields, China's machine vision market is expected to further expand in the future.


3. A total of 135,000 industrial robots were sold in China's industrial robot market


China's industrial robot market has sold 135,000 units by December 2019, down 3.75 percent year-on-year, according to statistics from China report hall.

After the first decline in the market share of domestic brands in five years, the market sales of domestic industrial robots also fell.


On the whole, however, China's demand for intelligent manufacturing, transformation and upgrading is increasingly prominent. The demand for industrial robots is still strong, and the market has maintained good development, accounting for about one third of the global market share, making it the world's largest industrial robot application market.


In 2020, the report says, China's industrial robot industry development opportunities and challenges, manufacturing quality, and the efficiency, shift to upgrade the urgent demand for the industrial robot industry provides a new kinetic energy, and the economic downward pressure increasing, the core technology to improve, international instability increases, become the main resistance of the development of the industrial robot.


4. Zhejiang yuyao launched 10 billion yuan supporting policies for robot industry


Yuyao robot wisdom valley town industrial policy is launched in yuyao, east China's zhejiang province, June 20, 2019.

The policy mainly includes setting up industrial development funds, encouraging the introduction of high-quality projects and attracting high-level talent teams.


Among them, it is mentioned that zhejiang province, ningbo city and yuyao city, three levels of government and social capital will jointly invest to set up a special fund for the development of robot and intelligent equipment industry, with a total scale of 10 billion yuan and a scale of 1 billion yuan in the first phase, to support the agglomeration and development of robot and intelligent equipment industry.


At the same time, in order to encourage the introduction of high-quality projects, enterprises will be rewarded by 5 percent, 10 percent and 15 percent of the effective investment (only in equipment, technology and software), up to 10 million yuan.


For the entrepreneurial team of high-level talents who have passed the evaluation and meet the requirements of team settlement and construction, the support of up to 5 million yuan support fund, 5 million yuan seed fund, 5 million yuan bank loan limit, full discount interest of the corresponding loan benchmark interest rate and 5 million yuan development reward shall be given within 5 years.


5. About 20 million jobs worldwide will be replaced by robots


On June 26, Oxford Economics published a report saying that the use of robots continues to expand, with about 20 million manufacturing jobs expected to be replaced by robots by 2030.


According to the report, the cost of machines continues to fall, with the average unit price per robot falling by 11 percent between 2011 and 2016, as they are able to handle increasingly complex tasks, adapt to different working environments and meet the productivity needs of owners.

A 30 percent increase in the number of robots in the world could add as much as $5 trillion to global GDP due to increased productivity.


Therefore, for most enterprises, machines can save more costs and increase profits than human employees, which is a better choice.

But for workers, such a phenomenon is likely to worsen income inequality.


6. Harbin built a robot town with a total investment of 15 billion yuan


In July 2019, a working group formed by the Harbin municipal development and reform commission released the "plan for the establishment of Harbin robot characteristic town (2019-2021)", indicating that by the end of 2021 about 20 industrial characteristic towns above the municipal level will be cultivated in batches.


The planned industrial characteristic town focuses on strategic emerging industries or competitive industries such as general aviation, artificial intelligence, robotics, civil-military integration, green food, biology, new materials, new energy equipment and electronic information.

Among them, the robot town is located in the economic development zone, building a robot design innovation base, a robot enterprise incubator base, and a robot intelligent manufacturing base.


Robot town construction with robots to Harbin Institute of Technology group as the core, strive for to 2025 as one of the five big robot form a complete set of industry cluster, the national three internationally competitive intelligent robot is one of the leading enterprises, the production and living model demonstration benchmarking demonstration area and the headquarters of the national economy, the construction of industrial agglomeration, amorous feelings into a robot livable town, robot with the characteristic of the northern ecological characteristics.


It is estimated that by 2025, Harbin robot town will have a total investment of 15 billion yuan and an output value of 50 billion yuan.


7. The revenue of robot process automation software will reach $1.3 billion in 2019


Robot process automation (RPA) software revenue rose 63.1 percent to $846 million in 2018, making it a fast-growing segment of the global enterprise software market, according to a report by us research firm Gartner.

Gartner expects RPA software revenue to reach $1.3 billion in 2019.


Gartner reports that the majority of RPA software adopters today are Banks, insurance companies, telecommunications companies and utilities.

These enterprises have traditionally had many legacy systems, and the choice of an RPA solution ensures integrated functionality.

But Gartner thinks that will change in three years.


Large software companies, such as IBM, Microsoft and SAP, are partnering with or acquiring RPA software providers, which means they are increasing the recognition and appeal of RPA software among their large customer base.

At the same time, new vendors are seizing the opportunity to apply traditional RPA capabilities to digital businesses.


About 40% of China's manufacturing workforce has been affected by the use of robots


On December 18, 2019, a press conference on the results of the comprehensive survey report of Chinese enterprises was held in Beijing.

This comprehensive survey report on Chinese enterprises, chaired and executed by the institute of quality development strategy of wuhan university, analyzes the current problems in the transformation and upgrading of Chinese enterprises from the perspectives of enterprise innovation, quality development, external environment and changes in the labor market.


According to the report, among the surveyed companies, the proportion of workforce employed by companies using robots increased from 12% in 2008 to 37% in 2017, with a rapid increase of about 25 percentage points over 10 years, indicating that about 40% of China's manufacturing workforce has been potentially affected by the use of robots.


The data showed that the use of robots replaced 9.4% of employees in junior high schools and below, while the number of employees in universities and above increased by 3.6%.


Officials involved in the report say the use of robots is causing huge changes in the labor market.

On the one hand, robots will replace part of the labor force, creating a "substitution effect";

On the other hand, because of the use of robots, the efficiency of enterprises will increase, which will encourage enterprises to expand scale and hire more people. Generally speaking, these two effects will cancel each other out.


9. 14% of the world's households will have smart robots at home


In August 2019, huawei released the white paper huawei 2025, which mentioned the prospect for the future of robots.

Today's increasingly versatile and versatile robots are creating a multi-billion dollar blue ocean market for the ICT industry, generating dividends for operators, developers, robotics companies, artificial intelligence companies, individuals, families and vertical sectors such as health and education, the white paper said.


According to huawei's global industry outlook (GIV), 14 percent of the world's households will have their own robots by 2025.

In the g8 countries (Canada, France, Germany, Italy, Japan, Russia, the UK and the us), each home will have 10 care robots;

The number of smart home devices will rise to 20 billion.


According to the white paper, personal robots help expand social inclusion and facilitate potentially marginalized groups such as the elderly, disabled and mentally ill.

Robots will also provide children with an interesting education, freeing their hands to do more valuable things than housework.


10. The investment and financing amount of industrial robot enterprises will reach 5.972 billion yuan in 2019


According to the research report on the development prospect and investment of industrial robots in China from 2020 to 2025 released by the industrial research institute of China merchants, due to the impact of the industry and the macro environment, only 59 investment and financing events occurred in domestic industrial robot enterprises in 2019, a year-on-year decrease of 24.4%, and the investment and financing amount was 5.972 billion yuan, a year-on-year decrease of 22.4%.


Investment and financing in China's industrial robot industry has declined, with investment and financing events and the amount of investment and financing falling for two consecutive years.

At present, the investment and financing of industrial robot mainly focus on AGV, machine vision and industrial Internet.


After more than a year of adjustment, the robot industry is slowly emerging from its slump, the report said.

In the long run, the trend of machine replacement is irreversible. In the future, the robot industry will maintain a high prosperity, but the growth of industrial robots will slow down, and the future trend will be toward human-machine collaboration and artificial intelligence.


conclusion


Looking ahead, the demand for robots in the manufacturing sector will only continue to grow as a wave of intelligent manufacturing sweeps the globe.


At the same time, influenced by the rise of service robot and special robot market, catering robot, medical robot, underwater robot, aerial robot and other products targeted at more sectors are also further increased.

It is foreseeable that with the further expansion of the application field, more and more robot enterprises of different forms will appear, and the Chinese robot market will also usher in new development opportunities.