World Robot 2021 Industrial Robot Shows That Robot Sales Are On The Rise Again!

Recently, the International Federation of Robotics (IFR) released the World Robot 2021 Industrial Robot, which shows that there are now 3 million industrial robots in operation in factories worldwide, an increase of 10 percent.Despite the global COVID-19 outbreak, sales of new robots edged up 0.5 percent to 384,000 units shipped globally in 2020, a trend mainly driven by positive developments in the Chinese market, offsetting the contraction in other markets.

MiltonGuerry, president of the international federation of robotics, said: "the economies of North America, Asia and Europe are not simultaneously experiencing novel coronavirus lows.Order intake and production in China's manufacturing sector began to surge in the second quarter of 2020, and the North American economy began to recover in the second half of 2020, followed by Europe."

Overview of Asia, Europe and America

Asia remains the world's largest market for industrial robots.71% of industrial robots were deployed in Asia in 2020, up from 67% in 2019.Installs in China rose 20 percent to 168,400 units shipped, the highest number for a single country on record.Operating inventory reached 943,223 sets, an increase of 21%, and will break the mark of 1 million units in 2021. Such a high growth rate indicates that the speed of Robotization in China is very fast.

Annual shipments by country/region

Japan remains the second largest market for industrial robots after China, despite its economy being hit hard by the COVID-19 pandemic, with sales falling 23 percent to 38,653 units installed in 2020, the second year of decline after peaking at 55,240 units in 2018. In contrast to China, Japan's electronics and automotive industries are seeing weak demand.In 2020, Japan's operating inventory was 374,000 vehicles, up 5%.

The forecast for fiscal year 2021 is optimistic, with a projected GDP growth rate of 3.7 percent, and the Japanese robotics market is expected to grow by 7 percent in 2021 and a further 5 percent in 2022.Leaving the domestic market aside, major export regions will ensure demand for Japanese robots, as 36% of Japan's robot and automation technology exports go to China and another 22% go to the United States, even though most production takes place in China today.

South Korea is the world's fourth-largest robot market by annual installed units, behind Japan, China and the US, with the number of robots installed falling 7 per cent to 30,506 in 2020, while the operating inventory of robots rose 6 per cent to 342,983.

So far, export-oriented economies have coped remarkably well.In 2020, GDP contracted by only 1%, and strong growth of 4% and 3% is expected in 2021 and 2022, especially as electronics and semiconductor sectors are investing heavily.Investment support programs launched in May 2021 will further boost investment in machinery and equipment, with the electronics industry and automotive suppliers' demand for robots expected to grow significantly by 11% in 2021 and an average of 8% annually in the next few years.

The European

Installations of industrial robots in Europe fell 8 percent to 67,700 units in 2020, the second year of decline after peaking at 75,560 units in 2018, as demand in the automotive sector fell another 20 percent, while demand in the general sector rose 14 percent.

Germany is among the top five robot markets in the world (China, Japan, USA, South Korea, Germany), accounting for 33% of total installations in Europe, followed by Italy (13%) and France (8%).

In 2020, the number of industrial robots installed in Germany remained at around 22,300, the third highest number ever, which is a great result considering the epidemic in 2020.Germany's robotics industry is recovering, driven by strong overseas business, and robot demand in Germany is expected to grow slowly, mainly supported by demand for low-cost robots outside general industry and manufacturing.

In the UK, industrial robot installations rose 8 per cent to 2,205 units.The automotive sector grew 16 per cent to 875 units - accounting for 40 per cent of UK installations.Installations in the food and beverage sector almost doubled from 155 units in 2019 to 304 units in 2020, a 96% increase.

The food and beverage sector, which has a high proportion of foreign workers, often from Eastern Europe, is facing massive Labour shortages.Demand for robots in the UK is expected to grow strongly by double-digit percentages in 2021 and 2022 as COVID-19-related travel restrictions persist and Brexit also plays a role.The modernisation of British manufacturing will be fuelled by massive tax incentives, with 2,205 new units installed in the UK around ten times fewer than Germany (22,302), four times fewer than Italy (8,525) and half as many as France (5,368).

In North America

The United States was the largest user of industrial robots in the Americas, accounting for 79 percent of all installations in the region, followed by Mexico at 9 percent and Canada at 7 percent.

New installations in the United States fell 8 percent in 2020, the second year of decline after eight years of growth. While the automotive industry saw a significant decline in robot demand in 2020 (10,494 units, down 19 percent), installations in the electrical and electronics industry rose 7 percent to 3,710 units.Operating inventories in the US have grown at a compound annual growth rate of 6 per cent since 2015.

Overall expectations for the North American market are very positive and are currently recovering strongly, with industrial robot installations expected to return to pre-crisis levels and grow by 17% in 2021.The post-crisis boom will create additional growth at sub-double-digit rates in 2022 and beyond.

Shipments by industry

Looking forward to

Globally, the "post-crisis boom" is expected to fade slightly in 2022.From 2021 to 2024, the average annual growth rate is expected to be in the mid-single digit range, with a slight contraction possible as a statistical effect, with the "catch-up" occurring in 2022 or 2023.

If this anomaly occurs, it will not break the overall growth trend, which is expected to see global installations reach a significant level of 500,000 units per year by 2024.