China Dominates the Global Industrial Robot Market: 51% of Installations in 2023, Leaving Other Countries Far Behind

Jakarta, INTI - China continues to strengthen its dominance in the global industrial robot market. According to the latest 2023 data from the International Federation of Robotics, 51% of industrial robot installations worldwide took place in China. This means that for every two industrial robots installed globally, one is in China. This report highlights how other developed and developing nations are trying to compete with China in the industrial robotics revolution, which has become key to increasing manufacturing efficiency and reducing labor costs.

The Largest Industrial Robot Markets in the World

China recorded 276,300 units of industrial robots installed in 2023, although this represents a 5% decrease from the previous year. However, this figure is still very high compared to other countries. In comparison, Japan, ranked second, installed only 46,100 industrial robots, or about 17% of China’s total. The United States ranks third with 37,600 units, followed by South Korea with 31,400 units and Germany with 28,400 units.

Combined, these top five countries account for about 79% of global industrial robot installations, showing how centralized the robot market is in a few key nations. This indicates a high reliance on robotics technology in countries with strong manufacturing sectors.

Factors Supporting China's Dominance

Several factors play a significant role in China’s dominance in the industrial robot market. First, China’s manufacturing industry is vast, covering various sectors such as electronics, automotive, and high-tech. Many major Chinese companies invest in robotics technology to boost productivity and reduce reliance on human labor. With rising labor costs and the need for greater efficiency, industrial robots are the ideal solution for the country's industries.

In addition, government support in the form of incentives and policies that promote technological innovation has further encouraged the adoption of robots in key sectors. China is committed to becoming a global leader in advanced technology, including robotics and artificial intelligence, prompting companies to continue investing in this sector.

Japan and South Korea: Technological Giants Still in the Game

Although far behind China, Japan and South Korea remain major players in the industrial robot market. Japan is known for its high level of innovation in robotics technology, applied across various sectors, including automotive and electronics. Leading robot manufacturers such as Fanuc, Yaskawa, and Kawasaki are Japanese companies and supply industrial robots to various countries.

South Korea, with major companies like Samsung and Hyundai, also utilizes robotics technology to increase production efficiency. The South Korean government continues to promote research and development in robotics as part of its industry 4.0 transformation plan.

The United States and Germany: Technology Leaders with a Specific Focus

The United States and Germany also play significant roles in the industrial robot market. In the United States, robotics technology is widely used in the automotive and logistics sectors, especially by companies like Tesla, which heavily relies on automation in its production process. Pro-robotic industry policies and government support for research and development also drive robot adoption in American industries.

Germany, as Europe’s largest manufacturing power, also extensively utilizes industrial robots, especially in the automotive sector with companies like BMW, Volkswagen, and Daimler using robots to achieve high and consistent production levels. Germany's industrial policy, which focuses on automation and technological innovation, keeps the country relevant in the global competition.

Other Countries Following the Robotics Trend

Besides the top five countries, other nations are also showing growth in industrial robot installations. India, for example, recorded a remarkable 59% growth in industrial robot installations, reaching 8,500 units. This growth reflects India’s efforts to increase its industrial competitiveness globally, particularly in the automotive and electronics sectors.

Spain and Turkey also recorded significant growth in robot installations, with increases of 31% and 15%, respectively. Both countries seem to see great potential in automation to boost competitiveness in their manufacturing sectors.

The Impact of Industrial Robots on Human Employment

One significant impact of the increasing use of industrial robots is the reduced need for human labor in repetitive and high-risk jobs. On the one hand, this allows human workers to focus on more creative and strategic tasks. However, on the other hand, automation raises concerns about job reductions for low-skilled workers.

In some countries, particularly in Europe, there is a push to ensure that the transition to automation is conducted fairly, including through retraining programs for affected workers. These programs aim to ensure that the workforce has skills relevant to the new industry era that increasingly relies on technology.

The Future of Industrial Robots

Going forward, the adoption of industrial robots is expected to continue increasing worldwide. With advancements in artificial intelligence technology, robots’ ability to perform complex tasks will improve, allowing them to be used in more industrial sectors. Countries with industrial policies supporting technological innovation and automation will have a significant competitive advantage in the future.

China is expected to continue leading in the number of robot installations, but other countries like India and Mexico, which are now experiencing rapid growth in robot installations, have the potential to become major players in this market. This transformation will have a significant impact on the global economy and the way work is done in various sectors.

Data from the International Federation of Robotics in 2023 shows that China is the dominant leader in industrial robot installations, with 51% of global installations. Japan, the United States, South Korea, and Germany are also leading but with significantly smaller numbers compared to China. With the increasing trend of automation, these countries will continue competing to stay at the forefront of the global industrial robot revolution.