Industrial Robot Market Size (2023-2033): 15.2% CAGR Growth Analysis & Key Players

According to five different researchers, the global industrial robot market was estimated on average to be USD 41.9 billion in 2023. and it is expected to grow at a CAGR of 15.2% to USD 192 billion by 2033. 

Robots have revolutionized manufacturing in many ways. Automated manufacturing is essential for operations seeking optimal efficiency, safety, and market competitiveness. By replacing manual labor, human workers can focus on higher-level tasks, such as providing valuable knowledge and ideas to higher organizational positions. Deployed correctly, robotics drives improved business operations.  

Industrial Robot Vs. Collaborative Robot (Cobot)  

Collaborative robots, or cobots for short, are a new generation of robots that have made their way into the manufacturing industry. In a sense, cobots can also be considered part of the industrial robot fleet since they are used in production lines. However, compared to traditional industrial robots, cobots are cheaper, smaller, lightweight, more flexible, and they perform tasks in collaboration with human workers. Cobots can be safely operated in proximity to humans, allowing for tasks such as hand-guiding and working in tandem. Cobots are equipped with advanced sensors that can anticipate human movements and complete them.  

Collaborative robots are easy to operate and do not require extensive training, making them suitable for companies with short or changing production runs. These robots can be easily reassigned to different tasks, making them a good starting point for small and medium-sized manufacturers who have not yet adopted automation.  

Both industrial and collaborative robots are crucial parts of factory automation components. In 2021, industrial robots accounted for 24% of the total factory automation market, and around 5% of factory automation components are collaborative robots, the other components being machine vision, control valves, field instruments, human-machine interface, industrial PC, 3D printing, and sensors. 

Key Market Segments

In this chapter, we explore different industrial robot market segmentations based on insights from tanalyze industrial robots market 2024 report.

Product Types

The industrial robotics market encompasses several distinct robot categories, each serving specific industrial needs and applications. 

Articulated Robots

Articulated robots led the market with a 34.3% share in 2023 and generated USD 10.3 million in revenue. Their dominance is expected to continue, with projections indicating growth to USD 21.8 million by 2029. Their versatility and adaptability make them ideal for complex manufacturing processes across various industries.

SCARA Robots

Representing the second-largest segment with 25.6% market share in 2023, SCARA robots have established a strong presence due to their compact workspace requirements and lightweight design. Their high speed and precise motion capabilities make them particularly valuable in electronics and semiconductor applications.

Collaborative Robots (Cobots)

While currently representing 3.0% of the market in 2023, collaborative robots have emerged as the fastest-growing segment with a projected CAGR of 24.6% through 2029. The segment generated USD 889 million in 2023 and is particularly strong in electronics, automotive, and logistics applications.

Applications

Automotive Sector

The automotive sector led the application segments with a 27.1% market share in 2023. The segment generated USD 8.2 million in revenue. It is projected to reach USD 18.2 million by 2029, growing at a CAGR of 13.6%. Automotive applications span welding, painting, assembly, and material transport.

Electronics Industry

Representing 23.3% of revenue in 2023, the electronics sector has become a crucial market for industrial robots. With increasing demand for chip and semiconductor manufacturing, the segment is expected to grow at a CAGR of 9.7% through 2029.

Metals Sector

The metals sector, accounting for 15.2% of revenue in 2023, continues to adopt robots for picking, placing, and material handling applications. This addresses labor shortages and ensures production continuity.

Regional Analysis

Asia-Pacific Leadership

The Asia-Pacific region maintains its position as the undisputed leader in the industrial robotics market, commanding 62.9% of the global market share. In 2023, the region generated revenue of USD 18.9 million, which is projected to reach USD 39.1 million by 2029, growing at a CAGR of 12.4%.

China continues to drive regional growth through its aggressive automation initiatives, supported by its Five-Year Plan, which specifically focuses on robotics advancement. Japan follows as a significant contributor, making substantial R&D investments to increase robot usage, drive innovation, and promote sustainable manufacturing environments.

The electronics and automotive sectors remain primary drivers in the region. A notable surge in chip and semiconductor-related product manufacturing offers significant growth potential for industrial robot deployment. The increased adoption of lithium batteries and neighborhood electric vehicles is creating additional demand across various sectors.

European Market

Europe is the second-largest market, with a 17.1% share and revenue of USD 5.1 million in 2023. The market is projected to reach USD 8.3 million by 2029, growing at a CAGR of 8.2%. Germany leads the European market and ranks fifth globally in robot installations, driven by Industry 4.0 initiatives and digital transformation programs.

However, the region faces near-term challenges due to the ongoing Russo-Ukrainian War and resulting sanctions. The potential increase in natural gas prices could impact investment decisions in the region. Despite these challenges, the automotive sector remains a primary growth driver for industrial robots in Europe, with increasing investments also observed in the food and beverage industry.

North American Market

North America accounts for 15.8% of global market share, with revenue reaching USD 4.7 million in 2023. The market is expected to grow to USD 8.8 million by 2029, driven by three key factors:

• Focus on plant modernization initiatives
• Establishment of smart factories
• Re-shoring projects aimed at reducing supply chain complexity

The United States leads regional adoption, while both Canada and Mexico are experiencing recovery. Increased demand is particularly from Mexico's automotive sector. Robot vendors in the region are actively focusing on educating system integrators and providing necessary deployment expertise to ensure safety and smooth operation on factory floors.

Emerging Markets

Latin America and the Middle East & Africa (MEA) regions, while currently holding smaller market shares of 2.2% and 2.0% respectively, show potential for growth:

Latin America

• Market projected to reach USD 942 million by 2029
• Growth rate of 5.8% CAGR from 2024 to 2029
• Brazil emerges as a significant market contributor
• North American manufacturers considering factory establishments in Brazil, Mexico, Chile, Argentina, and Colombia

Middle East and Africa

• Early stages of robot penetration
• Growing adoption of collaborative robots with vision systems
• Increasing automation in food and beverage and healthcare sectors
• Cost sensitivity remains a key factor in adoption decisions

Competitive Landscape

The global industrial robotics market exhibits a concentrated competitive structure, with five major players accounting for approximately 30% of the total market share. The competitive dynamics are shaped by continuous innovation, strategic partnerships, and geographic expansion initiatives, creating a robust environment for technological advancement and market growth.

Market Leaders and Strategies

FANUC Corporation

As the market leader commanding 10.0% of global market share, FANUC Corporation has established its dominance through a comprehensive approach to industrial automation. The company's success stems from its integrated offering of robotics, CNC systems, and factory automation solutions. FANUC's revenue distribution reflects its balanced portfolio, with robotics contributing 47.4% of total revenue, while FA and Robomachine segments account for 33.2% and 17.6% respectively. The company's global footprint is particularly strong in strategic markets, with China representing 28.8% of revenue, the Americas 23.4%, and Japan 14.7%. FANUC's milestone achievement of producing its one millionth industrial robot in September 2023 demonstrates its manufacturing prowess, while strategic partnerships with technology giants Fujitsu and NTT for cloud services integration showcase its commitment to digital transformation.

ABB Ltd.

Holding 8.3% of the market share, ABB Ltd. has built its position through a comprehensive approach to electrification, motion, and automation solutions. The company maintains a well-balanced global presence with revenue distribution approximately equal across Europe (34.9%), the Americas (32.5%), and Asia/Middle East/Africa (32.6%). ABB's recent acquisition of Sevensense demonstrates its commitment to advancing robotics capabilities through AI and 3D vision technology integration. The company's strategic focus on end-to-end robotic solutions has strengthened its market position and enhanced its ability to serve diverse industrial needs.

Yaskawa Electric Corporation

With 6.3% market share, Yaskawa Electric Corporation has established itself as a pivotal player in the industrial robotics landscape. The company's success is built on its strong presence in motion control and robotics, with its robotics segment contributing 40.3% of total revenue. Yaskawa's geographic diversification is evident in its revenue distribution across Japan (29.2%), the Americas (21.0%), and China (24.4%). The company's recent introduction of the MOTOMAN NEXT series demonstrates its ongoing commitment to innovation in the robotics sector.

KUKA AG

Commanding 3.4% of the market share, KUKA AG has distinguished itself through its strong focus on automotive sector solutions and comprehensive robotics offerings. The company maintains a balanced global presence with revenue distribution across EMEA (40.0%), Americas (33.5%), and APAC (26.5%). KUKA's robotics division has demonstrated particular success in developing cost-effective solutions for specific applications while maintaining high quality standards in manufacturing automation.

Kawasaki Heavy Industries Ltd.

With 2.1% market share, Kawasaki Heavy Industries Ltd. leverages its diverse engineering and manufacturing capabilities to maintain a significant presence in the industrial robotics market. The company's geographic distribution shows strong presence across Japan (39.6%), the Americas (28.9%), and Asia/Oceania (22.5%), reflecting its global market approach and diverse customer base.

Market Dynamics and Competition

The competitive landscape of the industrial robotics market is characterized by intense technological rivalry and strategic positioning. Major players are actively engaged in research and development initiatives, focusing on expanding their product portfolios through both organic growth and strategic acquisitions. The industry has witnessed significant recent developments, including ABB's acquisition of Sevensense and strategic partnerships aimed at advancing industrial automation capabilities.

Future Competitive Outlook

The competitive environment is expected to evolve as manufacturers respond to changing market demands and technological capabilities. The increased focus on collaborative robots, digital solutions, and cloud integration reshapes competitive strategies. Major players are investing in developing more cost-effective solutions to expand market access while maintaining technological leadership. The industry's future competitive dynamics will likely be influenced by the ability to integrate advanced technologies, such as AI and machine learning while meeting the growing demand for flexible and efficient automation solutions.

Market Dynamics and Competition

The competitive landscape is characterized by:

• Strong focus on research and development
• Emphasis on expanding product portfolios through organic and inorganic growth
• Strategic partnerships for technological advancement
• Growing importance of digital solutions and cloud integration
• Increasing focus on collaborative robot development
• Geographic expansion strategies, particularly in emerging markets

The industry has seen significant recent developments, including:

• Strategic acquisitions focusing on AI and vision technology
• New product launches emphasizing automation and collaboration
• Partnerships aimed at advancing industrial automation capabilities
• Focus on developing cost-effective solutions for broader market access

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Sources: Industrial Robots Market 2024 - Statzon / tanalyze., Robotics Market Research Report - Industry Forecast to 2032 - Statzon / Market Research Future, Europe - Industrial Robotics Market Report With Global Overview - Statzon / Apollo Research Report, Industrial Robotics Outlook 2023 to 2033 - Future Market Insights, Industrial Robotics Market - Market.us