Industrial Robots in Automotive Market Analysis 2026

Market Dynamics

Key Drivers 

• Investments on Artificial Intelligence and Robotic Process Automation is Fueling the Rise of Industrial Robots

A growing number of structures are using industrial robots, and these machines are frequently utilized in automation systems that are made up of several industrial robots. The working environment of robotics process automation has transformed over the last several years, and it has progressed from an emerging component in the industrial robotics business. Robotic automation provides rapid and significant innovation, resulting in tangible advantages for the industrial automation business. Automation firms throughout the world are investing heavily in R&D to create and improve new technologies. In 2019, ABB pledged to invest more than $150 million in the building of a new robotics production and research center in China by 2021. Some of the primary factors influencing robotic process automation are processes with higher automation potential and larger headcount reductions, which provide significant cost savings to manufacturers. The ongoing cost of Robotic Process Automation (RPA), which includes licensing, hosting, and monitoring, varies greatly depending on the vendor and kind of solution; the lower the recurring cost for RPA, the greater the cost savings. Various service providers are deploying RPA technologies in a variety of end-user processes to improve consistency, reduce risk, and lowering costs.

• The need for industrial robots will increase due to rising labor costs and an aging workforce.

Labor costs account for 62% to 65% of overall industrial operating costs. In most situations, labor-intensive jobs are divided into two kinds of employees: direct and indirect, especially in enterprises that occupy more than 200,000 square feet. Direct personnel are in charge of carrying out the procedure, whilst indirect staff provide back-end assistance to direct staff. The presence of both direct and indirect personnel, as well as department supervisors, adds significant expense to warehouse operations. Hourly salaries increased from $19.6 in 2017 to $22.7 in 2020. Furthermore, the average weekly hours grew from 42.11 in 2017 to 39.2 in 2020, resulting in essentially unchanged warehouse productivity. As standard hourly salaries rise in tandem with growing global inflation, while weekly hours remain constant or fall in the future years, operational costs will undoubtedly rise. Aside from that, emerging countries have experienced a steady increase in the aging workforce, resulting in concerns with safety, quality control, and productivity. As a result, industrial automation has emerged as a significant tool of addressing growing salaries and worker aging. As a result, industrial operators have come to rely on robots to provide a simple and effective means of lowering operational expenses while maintaining peak output.

Restraints

• High initial investment in industrial robots may hamper the growth of the market 

The worldwide industrial robotics industry's growth may be hampered by the high initial costs of product deployment and rising maintenance expenses. A second barrier to the expansion of the worldwide sector may be low product penetration in small and medium-sized businesses due to lower returns on investments. A significant amount of capital is required for several reasons, including maintenance, accessories, programming, integration, and procurement. This might prevent the market from growing. 

Impact of Covid-19 

Since COVID-19, the need for industrial robots is risen as manual tasks continue to be replaced by automated ones. For an industry's workflow to run smoothly, management, production, and control must all be coordinated. However, interruptions and inefficiencies in any of these jobs might potentially hinder operations and product quality throughout the production process of robots. Because it increases workflow efficiency and simplifies processes, robotic technology is becoming more and more popular in this kind of environment. Robotics is becoming more and more necessary as small and medium-sized enterprises expand, automation costs rise across industries, and hazardous material and product handling is subject to stringent regulations. These robots also assist with high-payload lifting during the manufacturing of vehicles and the customization of machinery. There will be more market potential as smart factories grow. Moreover, the market is growing as a result of elements such as consumer demand for consumer products, worker safety, and public awareness of industrial accidents. To include cutting-edge sensors in these systems and introduce new technical innovations like artificial intelligence, several firms are focusing their R&D investments in this area. This will help the industrial robots market expand. Venture capitalists are keen to invest in businesses that create, test, and manufacture robots as they are aware of shifts in the market. In addition, manufacturers are employing various business tactics including collaboration, mergers, and acquisitions to increase their market capitalization and worldwide reach. For instance, in June 2022, ABB launched a new next-generation robot namely as OmniVance Flex Arc, and OmniVance machining cell. It offers a high durable solution and is capable of operating up to 20,000 hours in extremely harsh conditions. It has features such as being small in space, easy to use, robust, and flexible.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Industrial Robots in Automotive Market is witnessing significant growth in the near future.

In 2023, the Articulated robot segment accounted for noticeable share of global Industrial Robots in Automotive Market and is projected to experience significant growth in the near future.

The Material handling segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies ABB, KUKA and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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