Manufacturing Automation and Robotics Industry in Germany was valued at USD 16.7 billion in 2018. It is expected to grow at the CAGR of 10% within the forecasted time period of 2019-2024. It will reach USD 29.58 billion by 2024.
- Definition / Scope
- Market Overview
- Market Risks
- Top Market Opportunities
- Market Drivers
- Industry Challenges
- Technology Trends
- Pricing Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Distribution Chain Analysis
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
- References
- Appendix
Definition / Scope
Automation is the use of software, machine or other technology to conduct any form of tasks, which can also be done by the human worker. It can be fully mechanical, partially mechanical, virtual and fully virtual.
Here manufacturing automation and robotics is the use of robots and other physical machines to automate the tasks in manufacturing or industrial sector.
Robots help to control the physical processes and system of the industries through sensors and actuators. It increases productivity and accuracy of the works and facilitates the automation of repetitive jobs. On the basis of application, its market is segmented into following types:
- Automotive Industry
- Machinery and metals
- Food and beverages
- Chemicals, rubber and plastics
- Electrical, and others
Market Overview
Germany is the leader in the industrial automation with its third-highest density of robots in the world. It constitutes the share of almost 14.2% of total global market share.
The market size of the automation and robotics industry in Germany was valued at USD 16.7 billion in 2018, increased from USD 12.69 billion in 2014. It is expected to grow at the CAGR of 10% within the forecasted time period of 2019-2024. It will reach USD 29.58 billion by 2024.
On the basis of application, the electronic and automotive industry is dominating the market with the share of more than 60% of total industrial robotics market.
This market is driven by the rising robots density, high labor cost and government initiatives in automation and robotics market. However, the high initial cost of installation might restrain the market growth for small and medium enterprises.
The key market players engaged in this market are Roboworker Automation GmbH, Staubli Robotics, IPR GmbH, and Kuka robotics.
Key Metrics
| Base Year | 2018 |
| Market Stage | Growth |
| Market Revenues (2018, USD) | Total revenue of manufacturing robotics and automation industry in Germany was 16.7 Billion in 2018 |
| Market Growth Rate (2019-2024, %) | It is expected to grow at the CAGR of 10% within the forecasted time period of 2019-2024. |
| Number of Companies in the market | There are almost 3,000 members in automation and robotics industry. |
| Market Concentration (% of market share help by top 3 market players) | The top market players engaged in this market are Roboworker Automation GmbH, Staubli Robotics, IPR GmbH, and Kuka robotics. |
Top Market Opportunities
Export of robotic products
Germany is one of the leading countries in the export of the robotic equipment, which accounts for the 57% of the total robotics and automation equipment production. Here, China accounts for almost 10% of the total sales of the exported equipment.
The export of the equipment is creating the significant opportunity for the growth of German robotics market globally. It will promote the rise in market size and revenue, finally the growth of its market.
Rising employee wage rate
In most of the European countries, the wages of the labour in manufacturing industry is in increasing trend. It is increasing at the average rate of 2.7%. Although Germany has one of the lowest labor cost growth rates, it is growing at the rate of 2.1% in the industrial sector.
Along with this, shift system and flexible working practices is providing the favorable environment for the use of robots in this sector.
Market Drivers
Rising use of the industrial robots
In the context of Germany, the supply number of the industrial robots is in increasing trend. Its annual supply has been increased from 21 thousand units from 2017 to 2018. Further it is expected to reach 25 thousand units by the year 2020. It is driving the growth of automation and robotics market.
Government incentives for research and development in robotics
The government of Germany has made the provision of the numerous incentives to promote the research activities in manufacturing automation and robotics industry.
It provides the grant of USD 90.89 million in non-refundable cash form to research institutes and support organizations annually within the time period of 2016 to 2020. About 2.9% of GDP is allocated for the research and development investment in terms of industrial robot plants, which is quite higher than share of the OECD.
The equipment also has invested USD 7.4 billion in research and development activities. It is driving the growth and development of robotic automation research activities to bring the innovation in this sector.
High robot density in manufacturing industry
In Germany, the number of installed robots is about 309 robots per 10,000 employees. It is high in comparison to other European countries.
For instance, the robot density in Sweden is 223, in Italy is 185 and in Belgium is 184 per 10,000 employees.
The increasing installation of the robots is driving the market for the automation and robotics industry in Germany.
Market Restraints
High initial cost of installation
Although the use of the robots in replace of the human labor facilitates to deal with the high labor cost, the amount required for the initial investment and installation is quite high for the small and medium industrial enterprises.
The initial cost for the installation of the robot in industrial sector is about USD 250,000. Along with this, it requires the annual operation and maintenance cost of USD 10,000. It might restrain the growth of the industrial automation market.
Technology Trends
Advancement in technology is driving the innovation and improvement in automation and robotics market. Some of the technological trends occurred in the market are as follows:
- Co-bots: They consist of sensors, deep learning capabilities to protect the human. They are very light, more mobile, and less costly in comparison to other robots. They constitute almost 11% of all industrial robots in 2018 and are expected to increase up to 35% by the year 2025.
- Artificial Intelligence: It has facilitated the development of robots by assisting them to learn, adapt and react to the sophisticated environment and conditions. It has increased the overall efficiency and accuracy of the robots.
- End of arm tooling devices: It facilitates to handle items in industries such as food industry. It allows the devices to manipulate the very small and delicate parts.
- Machine vision technology: It is used to provide the automatic inspection, process control and guidance on the basis of the processing of image. The sale of this technology is increased by 9% and is expected to rise to 10%.
Pricing Trends
The price of the robots depends upon the type of technology, application, production company, their work capabilities, and frequency of its use. Here once used robots cost less in comparison to the new one.
The cost of 6-axis industrial used robots with 10 kg load capacity is about USD 3.64 the cost of Kuka VK 360 industrial used robot with 250 kg welding unit costs USD 19.51.
On average, the initial cost of the installation of industrial robots is about USD 250,000.
Regulatory Trends
The Mechanical Engineering Industry Association (VDMA) is the German association of market players engaged in automation market. In addition the following institutes are actively engaged in the research and development activities
- Institute for manufacturing engineering and automation
- Institute for production system and design technology
- Institute for factory operation and automation
- Institute for intelligent analysis and information system
Industry 4.0 is the industrial revolution being introduced with an aim to develop the smart manufacturing platform through the use of robots, big data analytics, cloud, etc.
Some of the regulatory trends in the automation and robotics market are as follows:
- Self-driving car rules: According to this, the government of Germany has allowed the company engaged in manufacturing and production of the automated cars to begin the testing of autonomous car.
- Three laws of robotics: It has stated that acceptance of the accidents caused due to robots malfunctioning but the manufacturer must be liable towards it and rules should be built to handle these situations
Market Size and Forecast
The total market size of the automation and robotics industry in Germany was valued at USD 16.7 billion in 2018. It is expected to grow at the CAGR of 10% within the forecasted time period of 2019-2024.
It will reach USD 29.58 billion by 2024. Germany has the first largest robots density in Europe and third-highest density of robots in the world. It constitutes the share of almost 14.2 % of total global market share.
On the basis of application
- The electronic and automotive industry is dominating the market with the share of more than 60% of total industrial robotics market.
- Almost 673 units of new robots are used in the sector of arc welding.
Market Outlook
Globally, the manufacturing automation and robotics is expected to grow at the CAGR of 9.4% within the forecasted time period of 2019-2023 to reach USD 70,715 million by 2023.
In the context of Germany, its market value is expected to grow at the CAGR of 10% within the forecasted time period of 2019-2024. It will reach USD 29.58 billion by 2024.
Distribution Chain Analysis
In industrial automation market, the key stakeholders engaged are the research institutes, the government authorities, robotics equipment manufacturer, product assembling companies, software companies, robots suppliers and consumers as industries and factories.
At first, the research institutes plans and implement the research on the innovation ideas of robotics through the own investment and the grant received the federal government authorities. The robotics equipment are developed and assembled to make them functional.
The software companies install the automation system in the assembled robots. It is made available through suppliers and distributors to the industries in the sector of metals, food, electronics, auto motive industry, etc.
Key Market Players
Short summary of key market players engaged in automation and robotics market in Germany are as follows:
Kuka: It is the global leading company in the field of robotics providing the services and products related to the industrial robots such as KR Quantec, KR 3 Agilus, etc.
Siemens AG: It is also the global leader in terms of automation and digitalization providing software services in more than 200 countries.
Kawasaki Robotics: It is the leading integrated company engaged in the production and supply of robotic automation system worldwide.
Hoch Rainer GmbH: It is specialized integrated company working in the field of automation, electrical engineering, mechanical engineering, safety and medical technology.
IPR GmbH: It is Germany based robotics manufacturer, which basically provides the equipment for assembly and handling technology worldwide.
Muckenhaupt and Nusselt: It is engaged in the production of the robotic equipment for automation, agricultural, lifting , alpine technology, etc.
Staubli Robotics: It is a global company engaged in the field of industrial automation for the production and supply of the intelligent technologies with a view to meet the challenges of Industry 4.0.
Handling Tech Automation System GmbH: It provides the cost-efficient and quality assured technological system for fully automated industrial processes.
Roboworker Automation GmbH: It has the expertise in the production of sensors, linear robots, camera technology, etc for the field of manufacturing robotics and automation industry.
MHS Special Machines: It is company focused in the assembling of robotics parts, handling and automation technology with more than 20 years of experience in this field.
Strategic Conclusion
German Manufacturing automation and robotics is growing at the rate of 10% because of the increasing demand for robots, rising robots density, and favorable government research incentives.
However, the high initial cost of installation of automation might restrain the growth of its market. So, the market players must be focused on the reduction of the cost of installation and operation through the technology development and innovation.
References
- Hill, Alex Owen. Technical Assistance. [Online] https://blog.robotiq.com/whats-the-difference-between-automation-and-robotics.
- Markets Germany. [Online] https://www.marketsgermany.com/robot-revolution/.
- Vision Systems Design. [Online] https://www.vision-systems.com/factory/article/16748338/robotics-and-automation-market-in-germany-reaches-new-heights.
- [Online] Germany Trade and Invest. https://www.gtai.de/GTAI/Content/EN/Invest/_SharedDocs/Downloads/GTAI/Fact-sheets/MET/fact-sheet-robotics-automation-en.pdf?v=4.
- Statista. [Online] https://www.statista.com/statistics/1026213/industrial-robotics-sales-volume-germany/.
- [Online] Reuters. https://www.reuters.com/article/germany-robotics/german-robotics-and-automation-sales-growth-to-pick-up-idUSL8N1JG44C.
- ARK Invest. [Online] ark-invest.com/research/robots-will-save-manufacturing-billions.
- GLOBAL X. [Online] https://www.globalxetfs.com/drivers-of-four-key-segments-in-robotics-and-ai/.
- ROBOGIGS. [Online] https://www.roboticsbusinessreview.com/manufacturing/german-robotics-remains-policy-priority/.
- Allied Market Research. [Online] https://www.alliedmarketresearch.com/industrial-robotics-market.
Appendix
- OECD= Organization for Economic Co-operation and Development
- GDP= Gross Domestic Product
- USD= United States Dollar
- CAGR= Compound Annual Growth Rate
