Automotive Robotics Market Size, Share & Trends Analysis Report By Component (Controller, Robotic Arm, End Effector, Sensors, Drive, Others), By Type (Articulated, Cylindrical, SCARA, Cartesian, Others), By Application (Welding, Painting, Cutting, Material Handling, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global automotive robotics market size was valued at USD 6,404 million in 2021, expected to reach USD 17,207 million growing at a CAGR of 13.15% during the forecast period.

Automation is delegating work previously performed by humans to machines to improve efficiency, lower human error rates, and simplify organizing repetitive work. Automobile industries are adopting robotics in their manufacturing processes because robots offer a variety of benefits, including increased accuracy, efficiency, flexibility, and reliability on the production line. This deployment of automotive robotics has enabled the automotive industry to become the most automated industry worldwide and one of the world's most significant industrial robot users. Also, automotive manufacturing robots give automotive companies a competitive advantage by improving quality, increasing capacity, reducing warranty costs, and protecting workers from dangerous and complex tasks. Moreover, car assembly plants use automotive robotics primarily for applications such as spot welding, painting, and others; however, there are countless opportunities to use automotive robotics throughout the supply chain.

The advancement of the global automotive robotics market share is expected to be driven by factors such as the increasing rate of automation in the automotive industry and increases in accuracy, safety, and productivity. In addition, organizations' labor cost reductions are driving market expansion. However, the high price of industrial robots impedes the automotive robotics market. In addition, factors such as the incorporation of industry 4.0 are anticipated to present tremendous growth opportunities for the automotive robotics market growth over the forecast period.

Market Dynamics

Market Drivers

• The Growing Automation in the Automotive Sector and Increased Need for Accuracy, Safety, and Productivity

Many businesses are concentrating on automating their operational processes to cut expenses, save time, provide products of higher quality, and increase their overall productivity to keep up with the intense competition. Industrial robots in the production facility automate the internal processes and reduce the workload of workers by collaborating with them to improve productivity. The automotive industry has utilized automation technologies for several years, and market participants are advancing the automation technologies used by the industry. In addition, automotive manufacturers and suppliers collaborate with automation technology firms to implement these technologies in manufacturing facilities. 

In addition, businesses are employing amplified and virtual reality technologies to address manufacturing issues. In addition, the automotive industry is working hard to achieve remarkable output from industry 4.0. This is a concept where connected machines communicate with each other and human operators to run efficiently and smoothly. As a result, the growth of the automotive robotics market is driven by the increasing prevalence of automation within the industry.

Automobile manufacturers' production facility's deployment of industrial robots confers a competitive advantage. The use of automotive robotics in manufacturing provides numerous benefits, including improved quality, increased capacity, decreased warranty costs, elimination of bottlenecks, and protect workers from hazardous and challenging tasks. In addition, when personnel is replaced with automotive robotics, the potential for erroneous workflow is reduced, increasing accurate, productive output. In addition, automobile assembly plants use robots primarily for tasks such as painting and spot welding, and there are opportunities to increase productivity by employing robots throughout the supply chain. Moreover, robots do not experience end-of-shift fatigue; production cycles are consistent throughout the day, as are peak production rates. Thus, improvements in precision, safety, and productivity are driving the expansion of the market for automotive robotics.

Market Restraints

• High Expenses of Industrial Robots

The company's adoption of industrial robots affects the profitability of an operation by lowering labor costs and boosting productivity. Buying a robot in a short amount of time is projected to be more expensive than hiring laborers or using other equipment operated by humans. The company can realize long-term profitability due to the implementation of industrial robots. In addition, it is anticipated that the industrial robots installed in the facility will require routine maintenance and repair, resulting in some operational downtime. Therefore, it can be restrictive for smaller businesses that lack ready access to capital. Consequently, it is anticipated that high initial investment and maintenance costs will hinder the automotive robotics market growth.

Key Market Opportunities

• The Incorporation of Industry 4.0 Version

Industry 4.0 is the new phase of industrialization that emphasizes automation, interconnection, real-time data, and machine learning. Industry 4.0 is also referred to as smart manufacturing and operations utilizing smart digital technology to create a more connected ecosystem for companies specializing in manufacturing and supply chain administration. Industry 4.0 includes robotics as a core component. It is anticipated that factories and manufacturing plants will rely on new types of machinery, like mobile and collaborative robots that are interconnected. In the coming years, artificial intelligence (AI), data analytics, and cloud computing will also increase the dependability of industrial robots. In addition, the primary objective of industry 4.0 is to maximize productivity while eliminating downtime. Thus, incorporating industry 4.0 is expected to boost the automotive robotics market share and create wider opportunities.

Regional Analysis

The region-wise segmentation of the global automotive robotics market includes North America, Europe, Asia-Pacific, and LAMEA. 

The Asia-Pacific and Europe Will Dominate the Regional Market

The Asia-Pacific region is envisioned to have the largest share growing at a CAGR of 11.6% during the forecast period. The overall demand for automobiles in this region is the primary factor driving the growth of the automotive robotics market. Robots can assist businesses in increasing their production rate, which is necessary to meet the rising demand. Incorporating new manufacturing facilities with industrial robots is another factor expected to drive market growth. China is one of the leaders in the robot market and is home to approximately 25% of all industrial robots installed worldwide. In addition, the uptake of industrial robots is directly proportional to the number of vehicles sold using the automotive application. Since China is one of the world's leaders in automotive applications, analysts anticipate that the global market for automotive robotics will experience a remarkable growth rate in the region over the forecast period.

Europe will hold a share of USD 3,515 million, growing at a CAGR of 14.5%. The automotive robotics market share is anticipated to be boosted by the adoption of automotive robotics technology by automobile makers for the production of new vehicle models. France and Germany are expected to contribute significantly to market growth. Leading German automakers are ordering industrial robotics structures to produce a new range of vehicles. Volkswagen, a German automobile manufacturer, has announced that it will acquire digitally controlled industrial robots from KUKA, a German industrial robots manufacturer, in 2020. Furthermore, the industrial robots installed at Volkswagen's commercial vehicle factory in Hannover, Germany, are said to be responsible for the planning, assembly, delivery, and commissioning of a fully automated body shop system for the new all-electric ID.

Segmental Analysis

The global automotive robotics market is classified based on component, type, application, and region.

By Components Analysis

Segmentation based on components includes controllers, robotic arms, end effectors, sensors, and drives.

The robotic arm segment is likely to grow at a CAGR of 10.7% and hold the largest market share. A robotic arm is a mechanical arm that is highly similar to a human arm and has different portions that closely resemble the human shoulder, elbow, and wrist. The robotic arms can be programmed to move repeatedly in an exact manner with a high degree of dependability and precision. In addition, motion sensors are installed on the robotic arms to manage the controlled movement of the robotic arm, making it the preferred option for manufacturing plants.

The end-effector segment will hold the second-largest share. The end effector is the equipment at the end of a robotic arm designed to interact with the surrounding environment in which the robotic arm is installed. The end effectors are designed based on the application for which the robotic arm will be utilized. Thus, an end effector and robotic arm can perform dangerous and potentially harmful jobs with high accuracy and reliability, driving the end effector segment market.

By Type Analysis

Segmentation based on type includes Articulated, cylindrical, SCARA, Cartesian, and others.

The articulated segment is expected to hold the largest market share during the forecast period and grow at a CAGR of 10.42%. Articulated robots are made up of three rotary joints, emulating the movements of the human hand, and can be fixed or mobile depending on the situation. A robot with articulated joints can be used for various tasks, including spray paint, gas welding, arc welding, die casting, and material handling. Popular due to their durability, these robots can improve warehouse operations through increased speed and accuracy, driving the market for articulated automotive robotics. 

The cartesian segment will hold the second-largest share. Cartesian robots are a subset of industrial robots that can move along three orthogonal (perpendicular) axes: X, Y, and Z. The high accuracy of a Cartesian robot's movement and function, as well as its fast movement speed and acceleration, reduces cycle times, thereby boosting the market for the Cartesian segment.

By Application Analysis

Segmentation based on application includes welding, painting, cutting, material handling, and others.

The material handling segment is expected to hold the largest market share and grow at a CAGR of 9.75%. Material handling includes machine maintenance, order picking, palletizing, dispensing, machine loading, packaging, and part transfer. Different types of robots are utilized in various material-handling operations. Cartesian robots, for instance, operate from an overhead grid and are a rapid and precise solution for material handling applications. The adoption of material-handling robots in the automotive industry is driven by industrial robotics's remarkable precision and highly accurate link-and-gear combinations.

The welding segment will hold the second-largest share. In high-production industries such as manufacturing and automotive, robotic welding typically comprises arc welding, resistance welding, MIG welding, plasma welding, and others. The precision with which robotic devices can complete the welding process is one of the most important factors driving market expansion. In addition, an increase in labor cost is anticipated to create significant growth opportunities for the market, as robots perform the welding process more efficiently and effectively, making them the preferred option for manufacturing.

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments

• In 2022, ABB announced a collaboration with Microsoft on reducing carbon emission of operations and empowering industrial decarbonization.
• In 2022, Denso Wave Incorporated developed the "rMQR Code" that can be printed in long, narrow spaces while retaining the scan speed and data capacity characteristics of QR codes.