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Industry Focus: A Rising Revolution is Underway — Robots
Written by: Mr. Tom Huang and Mr. Max Chu– Business Advisory Consultant
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In 2018, the global demand of robotic process automation, often referred as ‘robots’ or ‘robotics’, shows a new peak for the fifth year in a row. Evolving with various cutting-edge technologies, robots are expanding the field of application worldwide.
Robots play a vital role in Industry 4.0
As manufacturers worldwide make great strides to build the digital factory, many embrace this advanced machine – robot. Robot, together with Artificial Intelligence, are becoming ‘smarter’ to perform tasks without constant human intervention. They are able to improve productivity, scale up production capacity and reduce costs in the operation. These widely recognized benefits have led to manufacturers’ aspirations for robots in their automation strategy.
In 2017, according to the International Federation of Robotics (IFR), the annual worldwide supply of industrial robots recorded at 381 thousand units, showing a drastic increase from 221 thousand units in 2014.
 Sources: Organization for Economic Co-operation and Development; ShineWing research and analysis
Many countries and regions are heavily investing in R&D
Robot is the emerging trend that will reshape the manufacturing process. Countries with high robot density often feature with big investment in R&D. According to the Organization for Economic Co-operation and Development (OECD), Korea was the top country in the world investing in R&D with the expenditure on R&D accounted for 4.6% of its GDP in 2017. Taiwan and Japan invested 3.3% and 3.2% respectively of their GDP in R&D. Germany, the USA and China are also active in R&D, whose expenditure accounted for 1.7%, 1.6% and 1.4% of their GDP respectively. Comparatively, Hong Kong lagged behind, and only 0.8% of GDP was invested in R&D.
Asia dominates market growth
Asia remains the strongest growth market for robots worldwide. According to the IFR, the top 5 countries (i.e. China, Japan, Korea, the USA and Germany) represented approximately 73% of the global robot sales in 2017, while China represented the biggest robot market with about 36% of the total global sales in 2017.
 Sources: International Federation of Robotics; ShineWing research and analysis
Korea and Singapore have the highest robot density
Korea and Singapore have the highest robot density in the world. According to the IFR, Korea had 710 installed industrial robots per 10,000 employees in the manufacturing industry in 2017, ranked first in the world. Singapore ranked second with 658 units per 10,000 employees in 2017. China had a relatively lower level, with 97 robots per 10,000 employees, but the growth of robot sales in China showed an impressive pace. China has the strongest demand. The robot sales volume in China is higher than that of Europe and the USA combined in 2017.
 Sources: International Federation of Robotics; ShineWing research and analysis
Robots are deployed in the automotive and E&E industries extensively
Automotive and E&E industries, featured with accurate and repetitive tasks, are the pioneers deploying robots in their operations as robots have proven to increase productivity, reduce cost, and enhance product quality and standardization.
 Sources: International Federation of Robotics; ShineWing research and analysis
The number of service robots is on the rise
Apart from industrial robots, service robots for professional applications will be the next segment which will be booming. Service robots are increasingly used in the logistic, healthcare, hospitality industries.
For instance, exoskeleton, classified by the IFR as a kind of service robots, provides essential support of body motion, with potential uses ranging from medical rehabilitation to military deployment. It is on the verge of substantial market growth and it receives considerable attention.
Definitions:
Industrial robot: an automated and programmable robot system used for manufacturing activities.
Service robot: a robot which operates semi-or fully autonomously to perform services useful to the well-being of humans and equipment.
If there are any aspects which we may assist, please do not hesitate to contact:
Partner - Mr. Kevin Lam
Kevin.lam@shinewing.hk (Tel. 3583 8000)
Assistant Manager - Mr. Tom Huang
Tom.Huang@shinewing.hk (Tel. 3748 8231) |
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© 2019 ShineWing Hong Kong. All rights reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
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