China Has Become The World's Largest Robot Market. What Is The Future Of The Robot Industry?

In recent years, with the rapid development of science and technology, more and more advanced technologies have begun to be rapidly applied. The robot industry has undoubtedly gradually become known to everyone under such circumstances, from industrial robots that have been used in many factories to large-scale industrial robots. Some families have sweeping robots. Facing the development of the industry, people can't help but wonder what we think about the future of the robot industry.

China has become the world's largest industrial robot market for ten consecutive years

According to reports from China News Network, the 2023 China Robot Industry Development Conference was held in Wuhu City, Anhui Province on the 5th. The "2022 China Robot Industry Data" released by the conference showed that China has become the world's largest industrial robot market for ten consecutive years.

In 2022, China's industrial robot market will account for 52% of the global market, becoming the world's largest market for ten consecutive years. Among them, the growth of Chinese brand industrial robots has been the fastest year-on-year in the past ten years. Almost more than half of the national economy's secondary fields have applications of self-owned brand robots.

From January to October this year, the operating revenue of China's robot industry exceeded 130 billion yuan, a year-on-year increase of 9.3%. The total import and export of robot products reached US$2.66 billion, a year-on-year increase of 23%. The robot industry has strong development momentum and huge potential.

According to the Global Times, at the beginning of this year, 17 departments including the Ministry of Industry and Information Technology issued the "Implementation Plan for the "Robot+" Application Action", proposing that by 2025, the density of manufacturing robots should double compared with 2020, and the density of service robots and special robots should be doubled. The depth and breadth of industry applications have been significantly improved, and the ability of robots to promote high-quality economic and social development has been significantly enhanced. At present, there are more than 300 industrial robot R&D and manufacturing companies in China, including nearly 10 key companies.

What do you think of the development trend of robots?

The robotics industry, an industry that seems far away but has actually penetrated into all areas of our lives, is developing at an unprecedented speed. According to statistics, China has become the world's largest industrial robot market for ten consecutive years. So, where is the future of the robotics industry? We believe several trends have taken shape:

First, the robot industry has entered the fast lane of development. The robot industry is undoubtedly an important intersection between contemporary scientific and technological progress and economic structural transformation. Although the technical threshold of this industry is high, its rapid development momentum and broad market prospects make it a strategic high ground that countries are competing for. According to statistics, in the past five years, the average growth rate of the global robot industry has been 11.5%. Behind this figure is the continuous advancement of technology and the continuous expansion of application scenarios.

Technological progress is one of the key factors promoting the sustained and rapid development of the robot industry. Whether it is hardware materials, sensors, controllers, or software algorithms and artificial intelligence technology, significant breakthroughs have been made in the past few years. Advances in these technologies have brought higher precision, greater adaptability, and a wider range of applications to robots, making them an indispensable part of modern industry, medical care, services and other fields. In the future, with technological advancement and scenario expansion, growth is expected to remain at a higher level. It is expected that the global scale will exceed 300 billion yuan by 2023, and the market space is very broad.

Second, the application prospects of robots continue to grow. With the rapid advancement of science and technology, the robot industry is developing increasingly rapidly around the world. Especially in recent years, the application of robots has accelerated significantly. The rapid development of the robot industry is closely related to its application in various fields. As an important branch of the robot industry, industrial robots have been in a leading position in the past few years. Industrial robots are mainly used in production lines in the automotive, electronics, food, pharmaceutical and other industries to help companies reduce costs and enhance competitiveness by improving production efficiency and accuracy. With the continuous advancement of artificial intelligence technology, service robots have begun to rise rapidly, and their application scenarios are becoming more and more diverse, covering multiple fields such as home services, commercial services, and medical care.

Especially in the context of an aging population and rapid rise in labor costs, the popularization and application of robots is of more practical significance. In developed countries, due to the intensification of population aging, the labor market is facing a serious shortage of supply and demand, resulting in continued rise in labor costs. In developing countries, although labor resources are abundant, labor costs are gradually rising with economic development and changes in demographic structure. Therefore, robots have received more and more attention and recognition as a solution that can replace human labor and improve production efficiency.

Third, China is playing an increasingly important role in the robot industry. As the world's largest robot market, China's position in the robot industry has become increasingly prominent. This is not only reflected in market size, but also in technological innovation, industrial chain construction and market demand.

In terms of market size, China has become the world's largest consumer and producer of robots. With the transformation and upgrading of the manufacturing industry, especially the development of intelligent manufacturing, the demand for industrial robots continues to grow. At the same time, the field of service robots is also expanding. Especially in the context of an aging society, service robots in medical, housekeeping, education and other fields have broad application prospects.

In terms of technological innovation, Chinese companies have made significant progress in the R&D and manufacturing of core components. For example, the localization level of key components such as servo motors, reducers, and controllers continues to increase, reducing dependence on external technology. In addition, Chinese companies have also invested a lot of resources in research and development in areas such as artificial intelligence, the Internet of Things, and 5G communications to improve the intelligence level and network connection capabilities of robots.

In terms of industrial chain construction, the Chinese government actively promotes the cluster development of the robot industry and has formed a number of highly competitive robot industry bases. These bases bring together robotics companies, scientific research institutions and universities, forming an innovative ecosystem integrating industry, academia and research, providing a good environment for the development of the robotics industry.

Fourth, the application scope of robots is constantly expanding. With the rapid advancement of science and technology, the application scope of robots is constantly expanding and deepening. In the field of industrial production, robots have deeply penetrated into all aspects. They are no longer just robotic arms on automated assembly lines, but have become precise performers of logistics and distribution, key forces in emergency rescue, precision operators in medical surgeries, and deep-sea exploration. A brave explorer, a fearless pioneer in space exploration and an important guarantee for national defense security. The efficient, precise and tireless characteristics of robots enable them to show their talents in various complex and dangerous environments.

At the same time, we have also seen that in the field of home services, as the pace of life accelerates and the trend of social aging intensifies, the demand for robots in domestic services, logistics and distribution, elderly care, medical services and other fields is showing a rapid growth trend. The widespread application of robots in these fields can not only improve life efficiency and reduce people's burden, but also provide more personalized and humane services. For example, elderly care robots can provide customized care services based on the elderly's living habits and health conditions; medical service robots can conduct remote medical consultations and provide patients with timely and convenient medical assistance.

All these changes and developments have brought broader prospects for robots. Whether in the field of industrial production or home services, the potential and value of robots have been fully realized. We have reason to believe that with the continuous advancement of technology and the continued growth of demand, the application scope and influence of robots will be further expanded, bringing more convenience and possibilities to our lives.

Where are the investment opportunities in the robotics industry?

The robotics industry is a field full of innovation and change. With the development of technology and the growth of market demand, investment opportunities in this industry continue to emerge. However, like any emerging industry, investment in the robotics industry also comes with risks.

First of all, investment opportunities in the robotics industry lie in companies that truly have practical application value. When evaluating these companies, investors should focus on technological driving force and focus on their R&D strength, innovation capabilities and whether they can solve practical problems. For example, in industrial production, efficient automated robots and precise operation design are crucial to improving robot efficiency and reducing robot costs; in the medical and health field, intelligent nursing robots and surgical assistance robots can improve the quality and safety of medical services. . Therefore, choosing companies that possess core technologies and can realize commercial applications is the key to seizing investment opportunities in the robotics industry.

Secondly, although the robotics industry has broad prospects, as a part of advanced manufacturing, it is highly volatile. The price fluctuations of individual stocks can be very significant and prone to risk events. This requires investors to have a certain risk tolerance and a long-term investment perspective. In addition, since robotics technology involves the intersection of multiple disciplines, such as artificial intelligence, machine vision, sensor technology, etc., it is also particularly important to understand the company's technology and judge industry trends.

In view of the high volatility and complexity of the robotics industry, it is recommended that investors invest in index funds as much as possible. An index fund is a diversified investment vehicle that tracks a specific market index and contains stocks of a range of related companies. By investing in robot-related index funds, investors can reduce the risk of a single company to a certain extent while enjoying the growth benefits of the entire industry. For example, Celestica's recently launched Celestica CSI Robot ETF Link, the Celestica CSI Robot ETF on the exchange, and so on.

In the long term, the opportunities for the robotics track are diversified, including but not limited to industrial automation, home services, medical health, education and entertainment and other fields. However, corresponding risks also exist, such as uncertainty about technological breakthroughs, intensified market competition, changes in policies and regulations, etc. Therefore, in order to find and seize investment opportunities in the robotics industry, investors need to truly sink their minds and conduct in-depth research on industry dynamics, market demand and competitive landscape in order to make more informed investment decisions.