Industrial Cobot Market Size, Share & Trends Analysis Report By Applications (Material Handling, Machine Tending, Test/Inspection, Value Added Processing, Transport), By End-User (Automotive, Electronics, Food and Beverage, Manufacturing, Healthcare, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global industrial cobot market size was valued at USD 2.3 billion in 2022. It is estimated to reach USD 54.31 billion by 2031, growing at a CAGR of 42.1% during the forecast period (2023–2031).

The industrial cobot market refers to the market for collaborative robots, also known as cobots, in industrial applications. In a shared office, collaborative robots are made to operate alongside people., collaborating and interacting with them to perform various tasks. These robots have advanced sensors, vision systems, and safety features to ensure safe and efficient human-robot collaboration. The industrial cobot market has witnessed significant growth in recent years due to several factors. Firstly, there is a growing demand for automation in industrial settings to improve productivity, enhance operational efficiency, and reduce labor costs.

Cobots offer a flexible and cost-effective automation solution, as they can be easily programmed and deployed for different tasks without requiring extensive reconfiguration or dedicated safety measures. Secondly, advancements in robotics technology, including improvements in sensor technology, machine learning, and artificial intelligence, have expanded the capabilities of cobots. These robots can now precisely perform complex tasks, handle delicate objects, and adapt to changing environments, making them acceptable for various industrial applications.

Market Dynamics

Market Drivers

Rising Demand for Automation

Industrial robots are crucial in automating operational processes and improving efficiency in various industries. These robots are designed to work collaboratively with human workers, complementing their skills and capabilities to enhance productivity and streamline operations. In the manufacturing industry, industrial cobots are widely utilized for tasks such as raw material handling, assembly, and packaging. They can perform repetitive and physically demanding tasks with precision and consistency, reducing the workload of human workers and minimizing the risk of errors.

Cobots are also used for welding and assembling tasks, where their advanced sensors and programming enable them to work alongside human workers safely. In infrastructure and logistics projects, industrial cobots are employed for monitoring and reducing human labor. They may be programmed to carry out duties like managing inventory, picking and packing, and sorting in warehouses and distribution centers. By automating these processes, cobots can optimize efficiency, reduce costs, and improve overall logistics operations.

Availability of Affordable and Energy-Efficient Industrial Cobots

Technological advancements in industrial cobots have led to the development of affordable and energy-efficient solutions, making them more reachable to small and medium-sized businesses (SMEs). These advancements have played an important role in driving SMEs' increased adoption of industrial cobots, particularly cobot arms.Cobot arms are a type of collaborative robot specifically designed to work alongside human workers in various industrial applications. They are known for their versatility and energy efficiency in performing machine tending, material handling, and other operations.

The affordability of cobot arms makes them an attractive option for SMEs with budget constraints but still seeking to automate their operational processes. Affordable industrial cobots have opened up opportunities for SMEs to enhance their productivity and efficiency. By integrating cobot arms into their workflows, these businesses can reduce manual labor, increase output, and improve operational efficiency. The low cost of cobot arms allows SMEs to invest in automation technology without incurring significant upfront expenses, making it a viable option for businesses with limited financial resources.

Market Restraint

High Installation Cost

The high installation cost is a significant factor restraining the adoption of industrial cobots. When businesses consider implementing industrial cobots, they must invest in high-quality hardware and efficient software control systems. These components are crucial for proper functioning and integrating the cobots into existing production processes. However, the cost of acquiring and integrating these systems can be substantial. The initial investment required for industrial cobots includes the purchase of the cobots themselves and the necessary infrastructure and setup. This may involve modifying the existing workspace, such as installing safety measures and configuring the production line to accommodate the cobots. Further, businesses may need to invest in employee training programs to work effectively alongside the cobots.

Market Opportunities

Growing Robot Installation in Various Industry Verticals Across the Globe

The adoption of industrial cobots is not limited to a specific industry or region but is experiencing growth in various industry verticals globally. In particular, emerging economies in the Asia-Pacific and LAMEA regions have embraced industrial cobotics solutions for professional applications, contributing to increased efficiency and productivity. While industrial cobots were initially used primarily in the automotive and manufacturing industries, their utilization has grown to additional areas such as food and beverage, metals, chemicals and materials, aerospace, and electronics. For instance, there is a growing need for cobots in the food and beverage sector in raw material handling, packaging finished products, and logistics.

Additionally, cobots offer precise and efficient solutions for analyzing food products regarding quality, composition, and authenticity, particularly relevant in the precision and optics sectors. The global market for industrial cobots is witnessing a shift from traditional labor-intensive practices to automated solutions, driven by the need for enhanced productivity, cost reduction, and improved quality control. As more industries recognize the potential benefits of industrial cobotics, the demand for these solutions is expected to grow, fostering the expansion of the market on a global scale.

Regional Analysis

Based on region, the global industrial cobot market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant global market shareholder and is estimated to grow at a CAGR of 43.12% during the forecast period. North America occupies an important place in the global industrial cobot market and is anticipated to maintain its substantial expansion in the upcoming years. The region's strong market share can be attributed to several factors contributing to its dominance. Firstly, North America has a highly developed manufacturing sector, including the automotive, electronics, aerospace, and machinery industries. These industries are early adopters of advanced technologies, including industrial cobots, to improve their production processes, increase efficiency, and maintain a competitive edge. The widespread adoption of cobots in these industries drives the growth of the industrial cobot market in North America. Secondly, the region has a favorable ecosystem for developing and deploying cobots. North America is home to several prominent cobot manufacturers and technology and automation companies that specialize in providing solutions for the industrial sector. The presence of these companies fosters innovation, research, and development in the field of industrial cobots, resulting in the availability of advanced and reliable cobot systems in the market.

Europe is estimated to exhibit a CAGR of 41.1% over the forecast period. Various key factors indeed fuel the growth of the European industrial cobot market. Firstly, the region has witnessed increased economic activities, leading to the expansion and modernization of industries across different sectors. This growth necessitates adopting automation solutions, including industrial cobots, to improve production efficiency, reduce costs, and enhance competitiveness. The versatility and flexibility of cobots make them well-suited for addressing the evolving needs of European industries. Secondly, the surge in industrialization in Europe has created a strong demand for automation technologies. As industries embrace advanced manufacturing processes and technologies, there is an increased acceptance of the advantages of industrial cobots. Cobots enable the integration of humans and robots in collaborative work environments, facilitating efficient and seamless operations. They can perform various jobs, including assembly, pick and place, packaging, and quality control, contributing to increased productivity and overall operational efficiency.

Asia-Pacific is the most populous region, which includes countries such as China, India, Japan, Taiwan, and Australia, and it has invested heavily in R&D activities, thereby boosting market growth. Growth in demand for plastic products and materials in the end-user Asia-Pacific market and technological advances fuel the growth. Increased electronics, automobile, construction, and chemical demand further supplement the Asia-Pacific market. In addition, increased adoption of automated systems in the growing food and beverage, logistics, pharmaceutical, and other sectors; improved and safe working conditions; and technological advancements foster the demand for packaging robots in this region. The Indian government emphasizes safety and security on the production floor, which also accelerates the growth of the industrial cobot market.

In LAMEA, the adoption of robotics in small and medium enterprises (SMEs) in the region, coupled with increased investments in education and research infrastructure, boosts the growth of the industrial cobot market in countries such as South Africa, Brazil, and the Middle East. The increase in industrial and infrastructural activity in the region, especially in Brazil, augments the demand for industrial cobots. Moreover, the availability of affordable and energy-efficient industrial cobots is expected to supplement the growth. Technological developments in South America and the Middle East are expected to supplement the market growth in LAMEA. Moreover, rapid developments in the Middle East in terms of technological developments and medical facilities fuel the growth of the LAMEA market.

Segmental Analysis

The global industrial cobot market is bifurcated into applications and end-users.

Based on application, the global market is bifurcated into material handling, machine tending, test/inspection, value-added processing, and transport.

The material handling segment dominates the global market and is estimated to exhibit a CAGR of 42.9% over the forecast period. Material handling is the process of the movement of materials inside or outside the industrial premise. It ensures the storage of goods with high protection during manufacturing, warehousing, distribution, consumption, and disposal. The material handling process uses various equipment such as automated, semi-automated, and manual. By enhancing human capabilities, material handling cobots increase production efficiencies to deliver higher quality faster. Some industries are using collaborative robots for a variety of material handling needs. These industries include automotive, biotechnology, electronics, food and beverage, medicine, laboratories, pharmaceuticals, and semiconductors. In addition, material-handling cobots are designed to work alongside human operators, complementing their capabilities and enhancing overall efficiency. These cobots have advanced sensing technologies, safety features, and intelligent programming to perform various material handling tasks.

Based on end-users, the global industrial cobot industry is bifurcated into automotive, electronics, food and beverage, manufacturing, healthcare, and others. 

The automotive segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 42.7% over the forecast period. The automotive industry is a primary user of industrial cobots and plays a crucial role in driving the adoption and advancement of cobot technology. This sector includes various activities, including designing, developing, producing, marketing, and selling motor vehicles such as trucks, cars, and motorcycles. Industrial cobots have found extensive application in the automotive sector due to their ability to automate various tasks and improve manufacturing processes.

One of the key areas where cobots are utilized is transportation within the manufacturing facility. Cobots can efficiently move components, parts, and materials between different workstations, optimizing the workflow and reducing the need for manual labor. Cobots also excel in assembling and disassembling operations in the automotive industry. They can perform precise and repetitive tasks, such as screwing, fastening, and component insertion, with high accuracy and consistency. Manufacturers can enhance productivity, reduce errors, and achieve faster production cycles by incorporating cobots into the assembly line.

Recent Developments

• February 2023- Universal Robots announced the launch of its new UR10e cobot, which is designed for use in harsh environments.
• January 2023- Fanuc announced the launch of its new CR-35iA cobot, which is designed for use in the electronics manufacturing industry.
• December 2022- ABB announced the launch of its new YuMi cobot, designed for use in the food and beverage industry.