The Growth of China’s Industrial Robot Production

There were an estimated 200,000 industrial robots produced worldwide in 2012. The majority of the manufacturing of these industrial robotstook place in Europe and Japan, where there is already a base of established industry robots producers. Between 2011 and 2016, the production of industrial robots in Asia Pacific (excluding Japan) is forecast to grow at a CAGR (compound average growth rate) of 9.6%, more than any other region in the world, with China set to contribute significantly to this growth. There are numerous influencing factors which may cause this CAGR to further increase by a large factor.

The decision to buy an industrial robot from one vendor over another is dependent on many things such as cost, application, location and range of expertise. In certain circumstances, political alignment may also play a part. For example, Chinese end-users may be reluctant to do business with Japanese vendors due to the dispute between their respective governments over the Senkakus-Diaoyus islands - a significant amount of investment into manufacturing infrastructure relies on Chinese Government funding.

Chinese industrial production has increased at a CAGR of approximately 14.5% over the past decade, and the country’s demand for automation has followed suit. In its recently announced 12th five-year plan, it was clear that the country will seek to source goods from domestic suppliers rather than rely heavily on foreign imports.

Arguably the biggest news concerning the industry robots market in China has been the announcement of Foxconn’s intention to deploy one million robots in its factories in the next 2-3 years, with intentions to sell onto the open market as well. This news has generally been met with scepticism. However, there is a definite need for the business to invest in automation, with growing concerns regarding the treatment and working conditions of its employees.

Whether or not Foxconn meet their ambitious production target, there is little doubt that the interest in industry robots is growing in China. As the social demographic changes in China, businesses are finding it more and more difficult to find low-cost labourers as more young people are furthering their education rather than taking vocational apprenticeships. As more local robot manufacturers appear in China, alongside some of the more established names, it is clear that industrial robot production is set to increase more than in any other country in the world over the next decade.