More than 500,000 industrial robots shipped globally in 2023. The number is about the same as 2022. However, the average selling price of industrial robots did fall in the past year.
This is according to figures from market researcher Interact Analysis. The lower average selling price of industrial robots is also reflected in manufacturers' sales figures. They still achieved record sales in 2021 and saw their sales figures rise by as much as 34.9% year-on-year. Since then, however, growth has softened. In 2022, for instance, sales figures still rose by 14.9% year-on-year, while the market actually shrank by 2.6% in 2023.
'Low point reached'
Interact Analysis expects that the low point has now been reached and the market will grow again in the coming years. For instance, the company forecasts growth of 3.4% in 2024. Manufacturers of industrial robots can expect annualised sales growth of 3.1% in 2025. Interact Analysis is also positive for the following years; the market researcher forecasts an average growth rate of 3.7% for the market from 2024 to 2028.
Several factors are putting pressure on the market. For instance, the demand for industrial robots to the US automotive industry is down sharply in 2023. Total sales of industrial robots in the Americas fell 17.3% in 2023. From Asia-Pacific, demand actually increased slightly, while demand from the EMEA region was stable.
EMEA accounts for 22% of sales
This is also reflected in manufacturers' sales figures. For instance, the EMEA region accounted for 22% of sales in the market, while the Americas accounted for 17%. However, the lion's share of sales came from Asia-Pacific, which accounted for 62% of all sales worldwide.
One explanation could be the rapid growth of the US market following the COVID-19 pandemic. The market researcher points out that demand from both the automotive industry and other sectors exploded then.
Material handling, welding and assembly
Zooming in on applications for which industrial robots are purchased, the main applications are material handling, welding and assembly. Together, these applications accounted for 70% of all sales in 2023.
Material handling is the most important application in this regard, accounting for 30% of all industry sales. Demand for industrial robots for material handling is particularly high in the EMEA region and the Americas.
'Average price is on downward trajectory'
"The average unit price of an industrial robot is on a downward trajectory, after rising for two consecutive years, and we expect a price decline of about 3% per year between 2024 and 2028. The COVID-19 pandemic combined with high energy prices and inflation caused an increase in the average price in 2022," said Maya Xiao, Research Manager at Interact Analysis.
"Originally, we expected robot prices to fall again in 2023, but persistent supply chain issues and inflation caused prices to rise to levels close to 2022 levels. This increased 'price effect' can also be partly attributed to the market trend towards high payload robots, which are significantly more expensive."
Xiao added: "It is important to note that our robotics forecasts are supported by the Interact Analysis Manufacturing Industry Output (MIO) Tracker. From our data, we can see that the growth profile for industrial robots reflects the production slowdown during the pandemic era and subsequent recession in 2023. If we look at the industrial production figures for China, Europe and the Americas, the historical manufacturing sector contractions are synonymous with the softening of the growth of the industrial robot market that we have observed in recent years."
Author: Wouter Hoeffnagel
Source photo: Pixabay / Antonio Hernández
