China's industrial robot production and sales ranked first in the world, with output in May increasing by 50.1% year-on-year

As the only "full industrial chain country" in the world, China has become the "world's largest industrial robot market" as early as 2013. It is worth noting that although China's manufacturing added value accounts for nearly 30% of the global proportion, the per capita manufacturing output value is only between 30% and 40% of that of Germany, the United States and Japan. The design, manufacture and maintenance of industrial robots will become an important support for China to move from a "manufacturing power" to an "industrial power" in the future.

China's industrial robot production and sales volume ranks first in the world

Unfortunately, China produces the most industrial robots in the world, but the money is still earned by foreign companies. The "four major families" of industrial robots: FANUC, KUKA, ABB, and Yaskawa Electric, monopolize more than 70% of China's robot industry. In 2020, the localization rate of China's industrial robots was less than 30%, and the market share of domestic leading enterprises was less than 3%.

In the fields of high-end automobiles, chips, and electronics, the "four major families" occupy more than 90% of the Chinese market.

It is worth mentioning that Midea, the world's most profitable home appliance company, acquired Kuka, one of the "four major families" of industrial robots, which greatly promoted the development of China's industrial robots.

Cumulative shipments of robots in the Chinese market from 2015 to 2020

(Data source: MIR Industry)

But Japan is the most powerful player in the global industrial robot market, and Kuka alone cannot allow Chinese companies to compete with it.

As early as 2008, Japan's FANUC became the world's first manufacturer to exceed 200,000 robots, and its market share has remained the world's number one. The company also monopolizes 14% of the Chinese market. As early as 2000, Japan had become the world's largest exporter and producer of industrial robots.

Currently, about 85% of reducers, 70% of servo motors, and more than 80% of controllers in China's industrial robot market are occupied by foreign brands.

China has an unparalleled market advantage. Since 2013, China has been the world's largest market for industrial robots. In 2016, China's total robot installation volume ranked first in the world. In 2025, the market size will reach 146.3 billion yuan.

As the population size is controlled and the quality of the population is improved, China's industrial production will transform from "labor-intensive" to "technology-intensive", and the replacement of low-end production workers by industrial robots will become an inevitable trend.

In 2020, China's industrial robot output reached 230,000 sets, a year-on-year increase of 19.1%; in December alone, the output exceeded 29,000 units, setting a historical high.

In May 2021, the output of industrial robots was 29,743 sets, a year-on-year increase of 50.1%; the cumulative output of industrial robots from January to May was 136,405 sets, a year-on-year increase of 73.2%. Compared with March and April, the output in May fell slightly, but it was still in the high-speed growth range.

The robot market resonates with the general trend of the industry. In the post-epidemic era, the manufacturing industry in the Chinese market continues to pick up, and the demand for robots has become more certain. Many leading foreign-funded manufacturers have directly benefited from the recovery of downstream demand, and their shipments to China have increased significantly. For example, Fanuc and Yamaha saw their shipments in China grow by more than 100% in the first quarter of 2021.

However, there is still a hint of concern amid the bright general trend. The continued recurrence of the epidemic around the world has added uncertainty to the global economy. In addition, rising raw material prices and the "chip shortage" crisis will also have a certain impact on the robotics industry chain. For example, the delivery period of best-selling models of some leading manufacturers has been extended.

For local manufacturers, in order to quickly seize market share in a certain growth market, they need to further strengthen supply chain management and development of new scenarios.