LONDON--(BUSINESS WIRE)--Technavio analysts forecast the industrial robotics market in the US to grow at a CAGR of over 12% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global industrial robotics market in the US for 2016-2020. The innovations in technologies such as robotic grippers and vision sensors have improved the functionality of industrial robots, enabling them to operate in non-traditional industries. Moreover, the substantial decrease in robot prices and the introduction of safe collaborative robots will lead to the increased adoption of robots in all industries.
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Technavio industrial automation analysts highlight the following three factors that are contributing to the growth of the industrial robotics market in the US:
- Reduction in company expenditure
- Increased adoption of robots in medical device manufacturing
- Entry of US-based software companies in industrial robotics industry
Reduction in company expenditure
Industrial robots are flexible, and can be easily programmed to adapt to new production lines without any training. The margin of error is less, and the functioning of these robots can be extended for a longer duration with minimal supervision. The robots produce defect-free products, and reduce product failure and wastage. They do not require additional expenditures on healthcare, insurance, and income. These robots require minimum heating and lighting, which reduces energy consumption considerably. The adoption of these robots allows companies to minimize direct and overhead costs.
“In the US, manufacturers with the current wage scenarios can save up to 15.8% costs by deploying industrial robots. This is predicted to reach 22% by 2025, due to continuous automation of the process lines and the reduction in the cost of the robots,” says Bharath Kanniappan, a lead analyst at Technavio for robotics research.
The Baxter collaborative robot from Rethink Robotics, which works along with human workforce on the factory floor, costs USD 22,000. These factors are attracting end-users to adopt industrial robots in the US.
Increased adoption of robots in medical device manufacturing
The US is the largest manufacturing device market worldwide with an expected market size of USD 412 billion by 2020. The medical equipment market is growing rapidly due to changes in population demographics and advances in medical technology. The US companies operating in this segment are highly dependent on their ability to develop superior medical devices that are functional, precise, and safe. Also, the market is highly regulated by the US government agencies to ensure high quality.
Hence, companies are increasingly adopting industrial robots to meet the growing demand and to adhere to federal guidelines and certifications. These robots are used to assemble products such as pacemakers, surgical instruments, electro-medical equipment, and dental and ophthalmic goods. “Tegra Medical, a medical device manufacturer in Massachusetts, doubled its manufacturing throughput by implementing manufacturing robots in its facilities,” says Bharath.
Entry of US-based software companies in industrial robotics industry
The entry of the US-based software companies is significantly boosting the US industrial robotics market. In 2012, Amazon acquired Kiva Systems, a warehouse automation provider, for USD 775 million. Amazon rolled out 9,000 Kiva robots into its warehouses at the end of 2015. Amazon’s robots save more than USD 900 million each year to fulfill efficiencies or up to 36% savings on cost per order on picking, packing, and shipping.
Google has set up a robotics division, and acquired eight robotic companies in 2013 and 2014. Redwood Robotics, acquired by Google in December 2013, specializes in collaborative robots, and competes with other robotic firms such as Rethink Robots. Foxconn, a multinational electronics manufacturing company, has partnered with Google’s robotic division to automate its assembly lines and accelerate automation efforts at its factories to beat the rising labor costs and workplace disputes. Facebook, the global social network company, is also planning to venture into the field of industrial automation and robotics during the forecast period.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
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