China relies on growth strategy with robots

Global Robots Record
China relies on growth strategy with robots

2024-08-29

Source: Press release

2 min Reading Time

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During the third plenary session of the Central Committee, China has charted a new course for its economic policy, emphasizing the strategic role of robotics as a key growth engine to spearhead the next phase of industrial transformation. China’s trajectory in industrial robotics is nothing short of extraordinary; it has become the world’s largest and most dominant robot market. Beijing’s approach aims to harness this leadership position, placing robotics at the core of its broader efforts to modernize industries and sustain economic growth.

“China’s remarkable progress in industrial automation with robots is unprecedented,” says Marina Bill, President of the International Federation of Robotics. “The nation’s operational robot stock exceeded 1.5 million units two years ago, setting a global record.” In 2022 alone, the installation of 290,258 industrial robots secured China a commanding 52% share of the global market.

Demand from various sectors 

In order to meet the high demand, domestic and foreign robot manufacturers set up production facilities in China and continuously expanded their capacities.

Enormous investments in the automotive industry have boosted demand very strongly since 2010. China has become both the world’s largest car market and the world’s largest production base for cars—including electric cars—with strong growth potential. China is also a major manufacturer of electronic devices, batteries, semiconductors and microchips. Since 2016, the electrical and electronics industry has replaced the automotive industry as the main customer and growth driver for industrial robots in China. In addition, various other industries are expanding their capacities with the help of advanced automation technology.

Robots as the new engine for growth 

Currently, the Chinese domestic market is still the largest single market for Chinese robot manufacturers: “So far, the number of exported robots from China is very limited,” says Xiaogang Song, Managing Director and Secretary General of the China Robot Industry Alliance (CRIA). “Chinese robots that are sold abroad have only been around for a few years. According to our statistics, the total number of robots exported is less than 5%.”“In their search for new markets, Chinese robot companies go wherever there is a demand for their products—just like any other company,” says Song.

Usually, Chinese robotics companies set up their subsidiaries by cooperating with local partners and hiring local employees. It will take some time to build brand trust through increased technological level and improved services to meet market demands overseas. In some areas, such as machine vision systems or AI applications, Chinese companies have advantages as they meet the requirements of accelerated automation in China’s manufacturing sectors. Low production costs or “low cost” are also among the main advantages of Chinese robots.

About China’s “Third Plenum”

The Chinese Central Committee had convened the plenary session of the 20th National Congress of the Communist Party from July 15 to 18, 2024, the so-called Third Plenum. It is a platform for the party leadership to announce important economic reforms and political guidelines for China’s long-term social and economic progress.

About IFR

The International Federation of Robotics is the voice of the global robotics industry. IFR represents national robotics associations, research institutions and robot manufacturers from more than twenty countries. IFR was founded in 1987 as a non-profit organization. More at: www.ifr.org (kib)