by Brianna Crandall — February 17, 2017 — Driven by the Industrial Internet of Things (IIoT), the global market for robotics in manufacturing is steadily gathering pace, finds a new analysis by global growth partnership company Frost & Sullivan. Since the industrial cloud is in a nascent stage, manufacturing companies are unclear about its benefits. Nevertheless, digitization and human-robot collaboration are set to transform manufacturing business models. In pursuit of this vision, major contenders of the industry are investing in intuitive large robots for factory operations. As a result, adoption of industrial robotics in factories is expected to witness a compound annual growth rate (CAGR) of 14.4 percent during 2016-2023.
Industrial Automation and Process Control Research Analyst Sharmila Annaswamy stated:
Cloud, a major enabler of IoT and data analytics, will disrupt industrial manufacturing as manufacturers turn to software/data-driven services apart from legacy automation systems. The convergence of information technology (IT) and operations technology (OT) will drive collaborations between robot manufacturers and communication and software providers. By 2023, the global industrial robotics market is expected to reach USD 70.26 billion.
Benefits such as better utilization of factory floor space and 25 percent reduction in installation cost are expected to draw customers to collaborative robots over their traditional counterparts. However, market participants must strictly consider existing risk assessment methodologies and implement improvised safety regulations to ensure customers the best value, advises Frost & Sullivan. This will encourage deployment of collaborative robots for niche applications such as assembling electrical or automotive parts.
Key challenges that leading industrial robotics companies will face include industrial cloud security concerns, low awareness, making cloud implementation seamless and cost effective, and boosting the skillset of resources to keep pace with the evolving manufacturing technologies.
Emphasis is also required on making industrial robots futuristic and economical through new business models, such as collaboration-as-a-service, plug-and-play, and robotics-as-a-service, which focus on quick returns on investment and lasting customer satisfaction. Companies such as GE, Siemens and Bosch are now catering to the specific needs of the industrial cloud market, leveraging their traditional industrial expertise to foray into the data-driven services on their own or through partnerships with IT cloud vendors.
Industrial Robotics — Decoding the Robotics Impact on Manufacturing: Collaborative Robots and Enriched Connectivity Technologies are Expected to Propel Growth in Factories, available for purchase from the Frost & Sullivan Web site, is part of the firm’s Industrial Automation & Process Control Growth Partnership Service program that includes insights on Big Data for manufacturing, digital factories, supply chain evolution, Services 2.0, safety-security for connected enterprises, Industry 4.0, contract manufacturing, and emerging economies of scale.
An Executive Summary and infographic of the report are available on the firm’s Web site, and interested readers may register for more information on this analysis and for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan’s thought leaders.