China wants to play a much bigger role in the industrial robot market. It is setting up a fund to raise 1 trillion yuan over the next 20 years from both local Chinese governments and the private sector. Converted, this amounts to around 127.4 billion euros.
This was announced by the Chinese government's National Development and Reform Commission. This is a venture capital fund supported by the Chinese government. The fund focuses specifically on robotics, artificial intelligence (AI) and innovations.
China accounts for increasing share of installations
The number of installations of industrial robots in China has been growing rapidly for some time. Whereas it stood at around 21% in 2013, it is now more than half. Figures from the International Federation of Robotics (IFR) show that China accounted for 37% of all installed industrial robots in 2019, while in 2020 and 2021 the figure was 45% and 52% respectively. Growth stabilised in 2022, after which the number of installations fell slightly to 51% in 2023.
The figures show how China has made large-scale efforts to modernise its production facilities in recent decades. The country now wants to strengthen and support this development with the help of the new investment fund.
Role of local manufacturers grows
Figures from the IFR also show that local manufacturers are playing an increasing role in China's industrial robot market. In 2013, Chinese manufacturers accounted for a quarter of all robots installed in the Asian country. However, this percentage declined from 2015, to 22% in 2017.
However, its share has been growing steadily in recent years; by 2023, Chinese manufacturers accounted for 47% of installations in the country. In some markets, the parties even control almost the entire market; for instance, the IFR reports that Chinese manufacturers in the metal and machinery industries account for 85% of installations.
The investment round focuses not only on the development of industrial robots, but also on artificial intelligence and other emerging technologies such as smart manufacturing. The Asian country wants to combine these technologies in, strengthening its position in the market.
'Europe cannot be left behind'
Dietmar Ley, president of VDMA Robotics + Automation, stresses that Europe may be left behind. "China has shown how to exploit huge economies of scale," says Dr Ley. "Massive investments are being made in humanoid robots. Not only in China where there is a national humanoid strategy, but also in the US where significant venture capital is driving innovation."
Ley: "Europe cannot be left behind in this critical area. It is essential that European humanoid technology leaves laboratories and moves to scalable, competitively priced production. This requires a concerted effort to ensure that Europe remains at the forefront of humanoid robotics."
Author: Wouter Hoeffnagel
