The demand of industrial robots is growing at a rapid pace. The industrial robots are being used for a wide variety of applications in different industries, such as automotive, food industry, pharmaceutical industry, packaging industry, etc. They are specially useful for the applications where high precision and accuracy is required. In the following sections we will see the various application areas, an overview of market in Asia, America and Europe, and the forecast of industrial robots market.

Application Areas of Industrial Robots

The primary application areas of industrial robots are as following:

• Welding: According to IFR, one-fourth of all the industrial robots are used in different welding applications. Robot welding enhances safety. Robots never miss a spot and work with same efficiency and accuracy all day.

• Assembling: Almost 33% of all industrial robots are engaged in varieties of assembly applications. A major chunk of these robots can be found in the automotive and electronics industries.

• Packaging /Palletizing: The number of industrial robots involved in packaging applications is still in nascent stage but it is expected to grow as robots become easier to handle.

• Food Industry: Robots are expected to play a major role in the food industry.

As per the data provided by the International Federation of Robotics (IFR), currently the worldwide market for industrial robots is 4B Euro and it is forecast to grow by 4.2 per cent per year till 2010. The worldwide stock of operational industrial robots are estimated to approach 1,173,300 units at the end of 2010. From now on the industrial robot market will grow with an average annual growth rate of 5.5%. China saw a 29% surge in the demand of industrial robots.

Market Overview

Asia: Among Asian countries Japan continues to dominate other countries in terms of use and purchase of industrial robots. At second and third spots are the republican of Korea and China. Robot investment in Asia stagnated at about 60,900 units in 2007.

• Japan remain the largest robot market in the world, selling 38,100 units in 2007. The sales increased slightly by 2%.

• The Robot supplies to Republic of Korea fell by 4% in 2007, to 10,300 units. Almost all the industries reduced their orders, especially motor vehicle suppliers.

• 6,600 units of industrial robots were sold in China, an increment of 14%.

• India's consumption of industrial robot reached 830 units. In spite of the modernization of production sites in most of the industries, the stagnating number of robot sales is astonishing.

• Supplies to Taiwan (Province of China) were reduced by 34%.

• Total supplies to all other Asian markets, including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, surged by 21%.

Supply of industrial robots to motor vehicle industry was dipped in Asian market but it was compensated by the increasing supplies to the other industries like metal products industry, the electrical/electronics industry, the rubber and plastics industry and the pharmaceutical and medical devices industry.

America: In 2007 around 21,000 industrial robots were supplied to the American countries, 17% more than in 2006. It was primarily due to the surge in the demand of the motor vehicle industry in the United States and in Canada.

• Supplies to United States grew by 12% to 16,600 units, Canada by 67% to 2,900 units, Brazil by 62% with 700 units, as compared to 2006.

• Demand in Argentina grew remarkably but Mexico was down by 33%.

• The supplies of welding industrial robots were increased by 42%.

• Assembly industrial robots supply declined sharply by 42 %.

• 52% growth is recorded in motor vehicle supplies of robots.

However the total number of 6,200 units still did not reach the record number achieved in 2005 (8,200

units). The electrical/electronics industry especially the semiconductor industry was prominent in purchasing robot purchases. The pharmaceutical industry and the food and beverage industry ordered more number of industrial robots. A slight decrement is noticed in sales to the metal and engineering industries, the rubber and plastics industry.

Europe: One-third of the world's industrial robots are produced in Europe. The European Commission have already announced to invest 400 million Euro ( about $620 million) in European robotics research. This investment between 2007 and 2010 will be twice as much of the previous four-year investment. This program is aimed at forging stronger links between academia and industry, and planned to fund a widespread experimentation by academic researchers and industry.

The sales of industrial robots were reported to show a 10% increase during 2007. 34,600 units, the highest number of robots ever recorded in one year, were sold in 2007. It was due to surging investments in the non-automotive sector as well as in the motor vehicle industry.

• Germany:The largest market for industrial robots in Europe, showed 29% increase to about 14,800 units in its supply of industrial robots. All the industries especially of the motor vehicle industry, the medical devices industry, the electrical/electronics industry, the metal and engineering industry and the food and beverage industry were reported to have surging investments.
  

• Italy: The second largest European market was however low by 10% to about 5,600 units. The automotive industry, the metal industry and the food and beverage industry invested heavily but the rubber and plastics industries cut their robot investment sharply in 2007.

• France: The supply of industrial robots in France decreased by 10% to about 2,800 units. All industries cut down their robot investment. This has been due to the largely stagnant investment climate in France.

• Supplies to Central/Eastern European countries surged by 56%. Sales to Spain and the United Kingdom were down.
  

Market Forecast in 2008

As per the reports collected yet the robot market continues to grow in the current year. We will see investment in industrial robots segment in the growing markets such as China, India, Southeast Asia, Russia, Eastern Europe and South America. The non-automotive sector especially the metal and machinery industry, the semiconductor industry, the glass/ceramics industry, the furniture industry will continue to increase their robot investments.

The development of the robot sales will again be different in the three big regions.

• In the American countries, the non-automotive sectors will grow remarkably in 2008. But this increases will not be enough to offset the expected decline in sales to the automotive sector. Finally robot sales will decrease in 2008 in this region.
  
  

• InEurope it will continue to grow. In Germany, the order intakes of the first quarter in 2008 are still at double-digit rates. Italy is expected to show growth between 5 to 10% in robot installations. Strong robot investment will be seen in the Eastern European countries.
  
  

• After the stagnation in 2007, the robot supplies to Asia will increase in 2008. Average growth in Japan and the Republic of Korea will be seen. According to first estimates, in 2008, the total increase of the robot shipments in the world will be between 8% and 12% higher than 2007.