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Industrial Robotics Revenue will Reach $45B in 2025

Artificial intelligence and robotics were top technology policy issues debated at the World Economic Forum 2017 in Davos last week. Meanwhile, new economic reports indicate that globalization trends and technology continue to raise concerns as more people assess the global employment impact.

However, technology vendors typically don't focus on the social impact of their products. Besides, the current market data can be interpreted in a variety of ways. As an example, more new jobs will be created across the globe to support the industrial robotics growth phenomenon.

Industrial Robotics Market Development

ABI Research forecasts that industrial robot shipments will exhibit an average year-over-year (YOY) growth rate of 16 percent by 2021.

As industrial robots continue to infiltrate the workforce to increase production efficiency, this will result in annual revenue exceeding $30 billion in 2020 and nearly $45 billion in 2025.

The automotive sector will remain the leading acquirer of industrial robotic systems, even as it loses share to other growing industry verticals, including the electrical and electronics, rubber, and plastics industries.

That being said, according to the ABI assessment, the food and food packaging, pharmaceutical and cosmetics segments will demonstrate the fastest growth over the next decade.

"The industrial robotic market is driven by the demand for increasing levels of speed, precision, and production flexibility," said Philip Solis, research director at ABI Research.

Other demand contributors include the introduction of robotics automation into industries that did not previously benefit from robotic industrial automation -- or new classes of robot and artificial intelligence applications.

ABI Research analysts believe that government driven manufacturing initiatives, such as entrepreneurship and investment programs, as well as public-private partnerships and re-shoring efforts, also provide momentum for the sector.

Outlook for Industrial Robotics Growth

The Asia-Pacific region currently leads in shipments of industrial robots, accounting for approximately 65 percent of the global market, with China responsible for roughly one-third of worldwide shipments.

ABB accounts for nearly one-half of worldwide shipments, with Yaskawa Electric Corporation, Kuka Robotics Corporation, Fanuc Corporation, Kawasaki Precision Machinery Company, Yamaha Robotics, Stäubli International AG, Nachi Fujikoshi Corporation and Epson Robots as other major shipment contributors.

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