China to lead the world in industrial robot production

China will contribute significantly to the Asia-Pacific region’s forecast 9.6% CAGR growth in industrial robot production, according to IMS Research. While the majority of robots manufactured in 2012 were produced in Europe and Japan, the Asia-Pacific region (excluding Japan) is set to grow more than any other region in the world.

Chinese industrial production has increased at a CAGR of approximately 14.5% over the past decade and the country’s demand for automation has followed suit, IMS Research says.

According to IMS, China’s recently announced 12th five-year plan makes it clear that the country will seek to source goods from domestic suppliers rather than rely heavily on foreign imports. Local manufacturers such as GSK and SIASUN are two examples of domestic suppliers.

However, it may take some time for domestic producers to establish credibility (even with a low-cost solution), especially since major robot manufacturers such as ABB, KUKA Roboter and Yaskawa have opened up manufacturing facilities in the region.

IMS says the changing social demographic in China is impacting on businesses, with low-cost labour becoming increasingly difficult to find as more young people pursue education rather than taking up vocational apprenticeships.

“As more local robot manufacturers appear in China, alongside some of the more established names, it is clear that industrial robot production is set to increase more than in any other country in the world over the next decade,” IMS said.