Robotics - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Robotics – Procurement Best Practices & Sourcing Strategies

Robotics Market – Executive Summary, Market Analysis, Supplier Analysis, COVID Impact, Innovation & Sustainability, Market Monitoring Insights, Procurement Best Practices, RFP Builder & Sustainability

1. Executive Summary
1.1. Category Snapshot
1.2. Global Industry Robotics Industry Outlook
1.3. Demand Market Outlook
1.4. ELINT’s Recommendations for an Ideal Category Strategy
1.5. Category Opportunities & Risks –Industrial Robots
1.6. Talking Points to Business – Robotics
1.7. Negotiation Leverage
1.8. Impact of COVID-19 on Industrial Robots
2. Market Analysis
2.1. Global Robotics Market Maturity
2.2. Global Robotics Outlook – Market Overview
2.3. Global Industrial Robotics Outlook – Market Overview
2.4. Industry Drivers and Constraints
2.5. Industry Opportunities and Challenges
2.6. Industry Dynamics: Porter’s Analysis
2.7. Regional Market Outlook
2.8. Major Types of Industrial Robots
2.9. Adoption Rates Across Various Industries
2.10. Major Technical Breakthroughs in the Robotics Industry
2.11. 2020 Robotics Trends across End-User Industries
3. Supplier Analysis
3.1. Supply Market Outlook
3.2. Robotics M&A Deals of 2021
3.3. Key Global Robotics Suppliers Key
3.4. Regional Suppliers: Product Portfolio
3.5. Supplier Profile and SWOT Analysis: Fanuc Corporation, Yaskawa Electric Corporation, ABB Ltd., Kawasaki Heavy Industries, Ltd., Nachi-Fujikoshi Group
4. COVID Impact
4.1. Category Summary – Covid-19 Impact
4.2. Covid-19 Impact – Sourcing Location Watch
4.3. Covid-19 Impact – Supplier Watch
4.4. Covid-19 Impact – Industry Watch
5. Innovation & Sustainability
5.1. Industry Sustainability Initiatives in Robotics
5.2. Upcoming Innovations in Robotics
6. Market Monitoring Insights
6.1. Cost Structure – Industrial Robot System
6.2. Cost of Industrial Robot Operating
6.3. Cost: Human Labor versus Robotic System
6.4. Cash Flow Analysis of a Mid-sized Robotic System
6.5. Cash Flow Analysis of a Large Robotic System
6.6. Pricing Model – Industrial Robots
7. Procurement Best Practices

  1. What is the future prediction for the worldwide robotics market?

The robotics industry is anticipated to grow at a CAGR of 14.7% from 2023 to 2032, exceeding the approximate $283.19 billion valuation.


  1. What are the driving factors for the global robotics sector?

– Continuously rising demand for service robots, technologically advanced robots like cobots, and industrial robots to do heavy lifting jobs, are significant drivers of the robotics market.


  1. Which are the leading countries in the robotics market?

– China, South Korea, Japan, the US, and Germany are some of the leading countries in the robotics market, that are contributing substantial market share to global industrial robot sales.


Global Robotics Market Size:

According to ELINT Market Research’s latest study, the global robotics market size was estimated at $28.20 billion in 2022. Further, it also includes bright future forecasts, which state that this industry will increase to $37.80 billion by 2025 at a CAGR of 10.26% during the same forecast duration.


Moreover, as per the report from the ‘’Association for Advancing Automation’’, a 19.6% rise has been seen in robot orders in the first quarterly period of the year 2021, which is higher than the previous year 2020’s calculation. This was a critical time for the robotics industry since the COVID-19 epidemic conditions were affecting its growing numbers but still, this sector performed well in the year 2020.


Certainly, these promising statistics show that the industrial robot market is expanding quickly and building the foundation for larger development in the years forthcoming.


Furthermore, the newest trend occurring in this market is collaborative robots or cobots. Earlier, these robots were associated with their small payloads and lighter applications, which were less suitable for performing heavy lifting tasks.


In contrast, today’s unique cobots are experiencing substantial transformations like heavy-duty material handling, part-handling, machine tending, etc., which showcase their increased capabilities.

Market Definition:

The constant growth of industrial robots is helping a lot in the wider domain of automation and technology; since various industries use them to design, manufacture, and deploy their robotic systems.


In this context, the term “robotics” describes the development and use of intelligent devices that can carry out tasks either fully or partially on their own. These clever machines can perform a variety of duties and often come with cutting-edge sensors, actuators, and complex programming.


One of the major methods by which robotics helps businesses is ‘automation’. Robots consist of some key components such as a controller, robotic arm, end effectors, drive, and sensors which assist in performing time-consuming and repetitive jobs with great accuracy and consistency. This way manufacturers can lower the possibility of errors and boost overall production.

Fundamental Drivers of Robotics Market:

  1. Robotics Sector Encounter Growth Due to Continuous Progress in Technology –

The foremost driver that propels the robotics market is the new developments, for example, the integration of AI, machine learning, and sensor-based technologies into robotic systems. With the help of such advances, robots are now capable of executing complicated jobs with independence and greater accuracy.


  1. Security of the Workplace Insists on the Utilization of Robotic Systems –

The increasing focus on security for employees in organizations is another main reason to drive demand for robotics use. Instead of humans, robots can work adequately in dangerous environments like manufacturing plants and waste disposal sites; hence, there is less risk of accidents and injuries for human workers.


  1. Rising Labor Shortages Causing Need for Robots –

Presently, multiple industries are facing a shortage of workers which is contributing to the embracement of robotics. Some specific sectors like manufacturing and logistics can take advantage of robot service to perform their labor-intensive operations at affordable costs.

Global Robotics Market Challenges:

  1. Heightened Initial Expenses –

Undoubtedly, industrial robots help industry players massively, but one major challenge that they all face is the high initial costs linked with obtaining and executing robotic systems. The initial expense for robotics technology can be high and includes spending on the required infrastructure, software, and equipment. In this context, smaller businesses or organizations with restricted money can face hindrances in the adoption of robotics.


  1. Human Workforce Replacement by Robots –

Growing automation and robotics techniques could become a matter of worry for human workers. Robots provide accurate results for tasks and also take less time so they might replace manual labor.


  1. Data Privacy Risks –

Robotic systems are becoming more and more networked and dependent on data interchange, which raises serious security and privacy concerns. Thus, the cybersecurity of robotic systems is very important to avert illegal access and data breaches.

Global Robotics Market Opportunities:

  1. Robotics in Healthcare and Medical Field –

The expansion of robotic techniques within the healthcare and medicinal industry is a great opportunity for the global robotics market. Such advanced methods can help in surgical scenarios, diagnosing processes, and supervision of patients.


  1. Advancement of Collaborative Robotics (Cobots) –

Cobots are proving as a noteworthy opportunity, particularly in industries where human and robot cooperation is demanded. Due to their adaptability, cobots have the potential to assist in a variety of work, including analysis, manufacturing, and transportation.


  1. Utilization of Robotic Process Automation (RPA) in Business Tasks –

The adoption of Robotic Process Automation (RPA) in business operations is a notable opportunity in the Robotics market. RPA uses software robots to automate monotonous and rule-driven operations in company workflows.

Global Robotics Market Segmentation:

  1. Mechanical Structure Classification –

Mechanical structure classification is an important way to segment the global robotics industry.

The different structures that robots can hold include articulated robots, cylindrical robots, linear robots (Cartesian and Gantry robots), parallel robots, and SCARA robots. Each of these kinds has its unique capabilities and multiple industries employ them as per their business requirements.


  1. Application-Based Categorization –

Numerous industries use robots and their applications for their specific purposes. For example, the manufacturing sector uses robotics techniques for labrous tasks or material handling.


The healthcare sector employs them during surgeries and the care of patients. The logistics sector utilizes them to automate transportation activities. Therefore, it is a primary segmentation of the global robotics market.


  1. Product Type-Based Assortment –

Another important market segmentation factor is the classification of robotics based on product types which comprises collaborative robots (cobots), industrial robots, and service robots. Industrial robots help in manufacturing processes, service robots assist in non-industrial works like cleaning and supervision, and lastly, cobots help in managing collaboration with human workers.

Cost Components in the Global Robotics Market:

Multiple cost components contribute majorly to the overall cost structure of the rapidly evolving global robotics market. The first component is electrical and mechanical parts like motors, sensors, and actuators, which hold a substantial portion of the total cost.


Another factor that contributes to the total robotic system price is labor costs, which comprise the cost of hiring skilled workers required for design and maintenance processes. In this list, the next cost element is software on which businesses spend to develop algorithms and programming that define the robot’s behavior.


Additionally, the last two components include peripheral costs and systems engineering costs. Where containing additional tools for the correct functioning of robotic methods comes under peripherals cost. On the other hand, system engineering cost factors include the integration of different subsystems, improving efficiency, and guaranteeing smooth functionality.

Regional Outlook of the Global Robotics Market:

The global geographical forecast presents a complex picture of robotics industry dynamics. The first player is China which had the major demand market for robotics, with an estimated share of 37% in 2020.


Moreover, in the same year China, South Korea, Japan, the US, and Germany also contributed to about 80% of the total amount of industrial robot sales worldwide. The intense need for robotics in these five main regions highlights the strategic importance of these countries in influencing the global robotics technology ecosystem.


In addition, the average robot density (no. of robots per 10,000 employees) offers information about how robotics have been used and integrated in various geographic areas. On this basis, Europe emerges with high robot density; encompassing an average of 92 robots per 10,000 employees.


On the flip side, the Americas holds an average robot density of 86, while Asia holds 57. Hence, this territorial analysis illustrates how different countries of the world have mixed levels of robotic involvement.

Major Trends in the Global Robotics Market:

Numerous major trends are causing revolutionary developments in the global robotics market; the first one is the increasing use of collaborative robots or cobots. These robots are meant to operate alongside human employees, encouraging a collaborative workplace. Also, cobots automate laborious or repetitive operations that increase productivity.


The next innovation is the arrival of Robots-as-a-Service (RaaS) which offers a subscription-based approach. Thus, organizations can access robotic services and applications without worrying about making any significant initial investments.


Moreover, the last famous trend is that distinct big sectors like healthcare, logistics, manufacturing, etc., are employing robotics and automation solutions at a vast level. The reason behind this is that such automation-based technologies improve the productivity, quality, and cost-effectiveness of products.

Leading Suppliers of the Global Robotics Market:

Several prominent industry players in the global robotics market are well-known for their expertise in creating excellent robotics machines and influencing the dynamics of this market. Some of them include Intrinsic​,Fortna​, Walmart​, Amazon​, American Robotics​, Sarcos Technology​, Bosch Rexroth​, Zebra Technologies​, and Aptiv​.

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