Automotive Robotics Market Size, Share & Industry Analysis, By Type (Articulated, Cartesian, Cylindrical, SCARA, Others), By Application (Welding, Painting, Material Handling, Assembly/Disassembly, Others), and Regional Forecast, 2024-2032

The global automotive robotics market size was valued at USD 8.82 billion in 2023. The market is projected to grow from USD 9.92 billion in 2024 to USD 26.76 billion by 2032, exhibiting a CAGR of 13.2% during the forecast period.

The automotive robotics market refers to the sector of the robotics industry that focuses on providing robotic systems, solutions, and services for automating various manufacturing processes within the automotive industry. These robotics systems are designed to enhance efficiency, productivity, quality, and safety in automotive manufacturing plants by automating repetitive, labor-intensive tasks traditionally performed by human workers. The automotive robotics market encompasses a wide range of robotic applications and technologies tailored to meet the specific needs and requirements of automotive manufacturers.

Globally, COVID-19 has caused a significant loss of revenue to automakers as production was entirely halted during the first two months of the pandemic-induced lockdown. Even though restrictions were lifted in several countries during the third quarter in 2020, capacity constraints caused a significant decline in production. These factors have caused a temporary decline in expenditure towards high-level automation of manufacturing plants. However, robotics in automotive provide manufacturers a strong incentive for modernization and digitalization of production.

Automotive Robotics Market Trends

Significant Jump in Robot Implementation by Manufacturing SMEs Will Positively Influence Growth

According to Minkyo Kim, CEO of Bigwave Robotics, robots were used mostly by medium-sized and large enterprises in the manufacturing space. However, as robotic solutions have become more cost-competitive and user-friendly, adoption is increasing among small-to-medium-sized companies (SMEs).

For instance, according to the International Federation of Robotics, 77 domestic collaborative robots were installed by a semiconductor equipment supplier in Korea. This resulted in an increase in productivity by 50%. Previously, robot implementation at this scale was affordable to only large enterprises. Hence, the increase in accessibility can result in more widespread adoption of robotics in automotive. These factors will positively influence the growth of the market.

Automotive Robotics Market Growth Factors

Automotive Manufacturing Quality Gains Will Drive Growth of Market

Part-to-Part variability is reduced with the help of car factory robots. As they never get distracted or tired, every cycle is highly repeatable and performed the same way. They don’t handle parts in a way or drop them that can cause damage. Hence, waste caused by human error is eliminated, which also results in car assembly with less variability. As they are equipped with vision systems, automotive robots can even adapt programmed paths to suit variations in incoming materials. This leads to fewer mistakes, higher customer satisfaction, and lower warranty costs. Hence, automotive manufacturing quality gains will drive the growth of the market.

Protecting Workers Will Augment Market Growth

In automotive manufacturing, several jobs are hazardous in nature. For instance, in a foundry, there is an obvious danger when pouring molten metal. Some jobs can also result in musculoskeletal disorders caused by twisting, lifting, and repetitive motions. These risks can be reduced with the help of robots. During vehicle assembly, robots safeguard workers from exposure to fumes from painting and welding and stamping presses, noise and weld flash. Automotive robotics substantially cut injury claims and accidents by reducing worker exposure to such dangerous environments and dirty tasks. Hence, these factors will drive the automotive robotics market growth.

RESTRAINING FACTORS

High Cost of Integration to Restrain Growth

the Massachusetts Institute of Technology published a study titled The State of Industrial Robotics. According to the report, although the cost of robot hardware has decreased over the last few years, it only accounts for a small part of the overall integration cost in a manufacturing line. According to a well-known robotics integrator participating in the study, robots are now cheaper; however, integration is not. Moreover, if the manufacturing line undergoes even small changes, robot work cells need to be redesigned and repurposed by integrators.

Several companies attributed the high integration cost as a barrier to increased implementation. High integration costs are prohibitive to SMEs with smaller production lots, and attempting to integrate new robotic technologies with 15 to 20-year-old infrastructure can weigh down large companies. Hence, these factors will restrain the growth of the market.

Automotive Robotics Market Segmentation Analysis

By Type Analysis

Articulated Segment to Hold Largest Share Owing to Ease of Operation

By type, the market is segmented into articulated, cartesian, cylindrical, SCARA, and others.

The articulated segment held the largest share of the market. Articulated robots are highly versatile and can be used across various applications such as dispensing, loading & unloading, packaging, and welding. Hence, these factors will fuel the growth of the segment during the forecast period.

The SCARA segment is expected to show substantial growth in the market. Factors such as high flexibility due to a broad movement range, more accurate control, and smaller footprint are attributed to the increasing adoption of SCARA robots.

The Cartesian segment is expected to show steady growth in the market owing to its capacity to operate heavy payloads and reduce cycle times with highly repeatable and fast movements.

The Cylindrical segment is also expected to show good growth in the market due to their ease of use, low space requirements compared to Cartesian robots, and high usage in assembly operations.

By Application Analysis

Welding Segment Dominated in 2023 Propelled by Substantial Efficiency Gains in Production

By application, the market is segmented into welding, painting, material handling, assembly/disassembly, and others.

The welding segment held the largest share of the market in 2020. Factors such as enhancing safety and efficiency on the production line and improving the speed of multi-material vehicle production are attributed to the increasing adoption of welding robots.

The material handling segment is expected to show significant growth in the market. Material handling includes several functions such as loading and unloading, packing, and palletizing. Using robots in material handling eliminates several errors involved in manual operation, such as order packing errors, conveyor stoppage due to slower pick speeds, and longer idle time. Hence, these factors will fuel the growth of this segment.

Further, the painting segment is also expected to show steady growth in the market due to continuous technological advancement that has made them faster in operation, lighter, and easy to integrate.

REGIONAL INSIGHTS

Asia Pacific held the largest automotive robotics market share and stood at USD 3.93 billion in 2023. Factors such as the aging worker population in China and rising labor costs are attributed to the increased adoption of robotics in automotive.

North America is anticipated to exhibit significant growth during the forecast period. According to the US Department of Labor Job Openings and Labor Turnover, as of January 2023, around 80% of manufacturers were struggling to fill over 400,000 open positions. However, manufacturers can now slowly address the shortage due to the advancement in automotive robotics solutions.

Major automakers in the U.S., such as Ford, Tesla, and General Motors, have invested extensively in automotive robotics. It not only increases worker productivity; it also offers better-paid and higher-skilled work to employees. For instance, according to the International Federation of Robotics, in the U.S., robots installed per 10,000 employees hit a new record of 1,287 units in 2023. Hence, these factors will propel the growth of the market in the region.

Europe is also expected to show considerable growth in the market. Significant post-pandemic supply chain realignment focusing on boosting domestic production across the auto manufacturing value chain will drive the demand for automotive robotics in this region.

List of Key Companies in Automotive Robotics Market

Strategic Partnerships with Leading Automakers to Strengthen the Leading Position of KUKA AG in the Market

Extensive product portfolio and long-standing partnerships with leading OEMs have enabled KUKA AG to capture a larger share of the market. For instance, In August 2023, KUKA AG announced that the company plans to introduce two systems for robotics education. The industrial automation provider also plans to show metalworking technologies with partners, as well as additive manufacturing offerings. FABTECH is North America's largest metal forming, fabrication, welding, and finishing event, according to organizer SME.

LIST OF KEY COMPANIES PROFILED:

• ABB Ltd. (Zurich, Switzerland)


• KUKA AG (Augsburg, Germany)


• FANUC Corporation (Yamanashi, Japan)


• Yaskawa Electric Corporation (Fukuoka, Japan)


• Kawasaki Heavy Industries (Tokyo, Japan)


• Denso Wave Incorporated (Aichi, Japan)


• Comau SPA (Grugliasco, Italy)


• Nachi-Fujikoshi Corp. (Tokyo, Japan)


• Rockwell Automation, Inc. (Wisconsin, U.S.)


• Seiko Epson Corporation (Nagano, Japan)

KEY INDUSTRY DEVELOPMENTS:

• In August 2023, KUKA AG announced that the company plans to introduce two systems for robotics education. The industrial automation provider also plans to show metalworking technologies with partners, as well as additive manufacturing offerings. FABTECH is North America's largest metal forming, fabrication, welding, and finishing event, according to organizer SME. KUKA will feature product demonstrations at Booth B27051 at McCormick Place in Chicago from Sept. 11 to 14.


• In December 2023, ABB signed a contract with Volvo Cars to supply 1,300 industrial robots to help build its next generation of electric vehicles. Volvo will use ABB’s new IRB 6710, 6720, and 6730 industrial robots for a variety of tasks, including spot welding, riveting, dispensing flow drilling, and more.


• In September 2023, ABB announced that the company will feature next-generation robotic technologies that enable businesses to adapt production to variable market efficiency demands at Automate 2023, May 22-25, at the Huntington Place Convention Center in Detroit, Michigan (Booth #5623).  The company is to deliver the benefits of the automation industry’s most exhaustive and integrated portfolio of industrial and cooperative robots, Autonomous Mobile Robots (AMRs), and machine automation solutions to companies of all levels of technical complexity.


• In May 2023, ABB Robotics announced that it would display next-generation robotics intended to enable manufacturers to adapt production to variable market demands at Automate 2023 efficiently. The company will display at Booth 5623 in the Huntington Place Convention Center in Detroit from May 22 to 25.


• In March 2023, ABB announced that the company would expand its Robotics factory in the US. An investment of USD 20 million will increase production at its existing Auburn Hills facility and strengthen ABB’s US leadership. A newly expanded, highly automated facility will create new jobs in the state of Michigan. Expansion featuring the latest in automated and advanced manufacturing processes to open November 2023.

REPORT COVERAGE

The market research report covers a detailed analysis of the industry and focuses on key aspects, such as leading companies, product types, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth over recent years.

Report Scope & Segmentation