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The global robot industry is booming, China's demand is driving robot production
Japanese media has highlighted the unprecedented growth of the global robot industry. In Japan, where an aging population and labor shortages are pressing challenges, the push for automation is gaining momentum. Meanwhile, emerging economies are also seeing rising demand for robots due to increasing labor costs. As a result, both major robotics companies and component manufacturers are ramping up production to meet this growing need.
According to a report by the "Nihon Keizai Shimbun" on January 26, the Japanese robot industry showed strong performance. Data from the Japan Robotics Industry Association revealed that shipments of industrial robots in the July-September 2017 period rose by 33.9% year-on-year, reaching 195.9 billion yen (approximately $1.8 billion). This marked a significant increase and reflected the robust demand across the sector.
In early 2017, the Japanese Robotics Industry Association had predicted a 7% annual growth in total industrial robot production (including non-member companies), aiming for a record 750 billion yen. However, the actual growth far surpassed these expectations. If current trends continue and non-member companies are included, the annual production could exceed 800 billion yen.
To meet this surge in demand, leading robot manufacturers are expanding their capacities. FANUC, the world's largest industrial robot company, has invested around 6.3 billion yen to build a new factory in Chikusei, Ibaraki Prefecture. With a monthly capacity of up to 4,000 units, the facility is expected to boost FANUC’s overall production capacity by 1.5 times, allowing it to produce 11,000 units per month once fully operational.
Swiss company ABB, another top-four global robot manufacturer, is also accelerating its expansion. It plans to more than double its industrial robot production capacity within the next one or two years.
Component suppliers are also playing a key role. For example, Hamernaco, a major producer of precision reducers, is constructing a new plant to increase domestic production from over 80,000 units to 200,000 units by 2020.
The strong demand for robots can be largely attributed to China's influence. As labor costs rise and manpower becomes scarce, the Chinese government launched the "Made in China 2025" initiative, aiming to modernize its manufacturing sector and encourage widespread adoption of robotics. Many analysts believe that the integration of robots in electronics manufacturing has been a major driver of this growth.
To capture a larger share of the Chinese market, leading robot manufacturers have expanded their operations in the country. KUKA, a German firm now owned by Midea Group, has built two new plants in China, planning to increase its local production capacity by four times by the end of 2019. Mitsubishi Electric also began producing industrial robots in China in June 2018, with its Japanese operations aiming to reach 1.5 times the 2016 level.
As robot demand continues to grow, more advanced and user-friendly models are becoming increasingly popular. Companies are developing collaborative robots that can work alongside humans, integrating artificial intelligence to enhance performance. The robotics industry is poised for significant growth, potentially reshaping not only global manufacturing but also Japan’s industrial landscape.