In early 2023, the Ministry of Industry and Information Technology of the People’s Republic of China issued the "Robot+" Application Action Implementation Plan, which clearly stipulates that in the manufacturing sector, efforts shall be made to "advance the construction of intelligent manufacturing demonstration factories and develop typical application scenarios for industrial robots," and to "develop intelligent manufacturing systems based on industrial robots to facilitate the digital and intelligent transformation of the manufacturing industry."
Industry Overview: Critical Infrastructure Enabling the Shift from "Manufacturing" to "Intelligent Manufacturing"
Against the backdrop of a new round of technological revolution and industrial transformation, major economies worldwide are actively engaged in intense competition centered on the intelligent manufacturing industry led by industrial robots. As critical infrastructure supporting the transition from conventional manufacturing to intelligent manufacturing, industrial robots are assuming an increasingly pivotal role.
Industrial robots refer to multi-joint manipulators or multi-degree-of-freedom mechanical devices widely deployed in industrial sectors. Endowed with a certain level of autonomy, they can perform diverse industrial processing and manufacturing functions by virtue of their own power sources and control capabilities. Industrial robots are extensively applied across a wide spectrum of industrial fields, including electronics, logistics, and chemicals. Structurally, an industrial robot comprises three core modules and six subsystems. The three core modules are the mechanical module, the sensing module, and the control module. The six subsystems are categorized as the mechanical structure system, actuation system, sensing system, robot-environment interaction system, human-machine interaction system, and control system.
With the continuous advancement of robotic technology, the intelligent manufacturing paradigm characterized by digitalization, connectivity, and intelligence has emerged as a major direction of industrial evolution and transformation. Compared with traditional industrial equipment, industrial robots present distinct advantages, including user-friendliness, a high degree of intelligence, enhanced production efficiency and operational safety, ease of management, and significant economic benefits, enabling their operation in high-risk environments. The development of industrial robots not only improves product quality and output but also carries profound significance for ensuring personnel safety, optimizing working conditions, reducing labor intensity, enhancing labor productivity, conserving material consumption, and lowering production costs.
According to Tianyancha data, there are currently more than 231,000 enterprises related to industrial robots in China. Among them, over 22,000 new related enterprises were registered between January and October 2023.
In terms of geographical distribution, Jiangsu Province ranks first among all provincial-level regions with more than 42,000 related enterprises, followed by Guangdong Province and Shandong Province, with more than 38,000 and 23,000 related enterprises respectively.
Regarding the establishment timeline, 52.8% of industrial robot-related enterprises were founded within 1 to 5 years, and approximately 27.2% were established within one year, accounting for a combined 80% of the total.
Industrial Robot Industry Chain: High Technical Barriers in Core Components
The industrial robot industry chain mainly consists of raw materials and components (upstream), robot body manufacturing (midstream), system integration (downstream), and industry application sectors. In the cost structure of industrial robot production, upstream core components account for a dominant share. The combined cost of servo systems, controllers, and reducers exceeds 70% of the total production cost, with reducers alone accounting for nearly half, while bulk mechanical manufacturing accounts for only 15%. This is attributable to the fact that the actuation and control functions of industrial robots rely on core components, which feature higher technical barriers than general mechanical manufacturing, thus commanding a substantial proportion of production costs.
Upstream: High Proportion of Core Components and Elevated Production Costs
Upstream components primarily include controllers, servo motors, reducers, and execution systems. Among these, controllers, servo motors, and reducers represent the key components in industrial robot production, as well as the core competitiveness of both domestic and international industrial robot manufacturers.
In terms of development difficulty:
- The controller serves as the supporting control equipment for industrial robot operation, with moderate development difficulty.
- The servo motor acts as the core actuation mechanism of industrial robots, also with moderate development difficulty.
- The reducer is an independent transmission unit integrating gear drives, worm drives, or gear-worm drives, enclosed within the robot’s rigid housing, and presents the highest development difficulty.
Midstream: Industrial Robot Body Manufacturing
Manufacturers of industrial robot bodies are mainly responsible for the assembly and integration of the robot mechanical structure and core components. At present, the sales share of domestic brand industrial robots is on a continuous rise.
According to data from Robot Network, from 2015 to 2020, the market share of domestic brands in China’s industrial robot body market increased from 18.6% to 28.6%, and further rose to 33.7% in 2021.
Currently, domestic industrial robot manufacturers are mainly concentrated in the low-to-medium-end market segment, while the high-end application market remains dominated by four major international enterprises: FANUC, KUKA, ABB, and Yaskawa. Despite the high-end market being largely monopolized by the "Big Four," the domestic brand Eston has emerged as a close competitor to industry leaders.
According to industrial robot shipment data compiled by MIR Databank, the "Big Four" held a combined 41.5% market share in 2021, with FANUC (13%), ABB (12.3%), Yaskawa (8.8%), and KUKA (7.4%) respectively. The domestic leader Eston held a market share of 2.4%, ranking 11th globally. Other domestic brands such as Inovance and Siasun also ranked among the top players.
Downstream: Robot System Integration
Industrial robot system integrators occupy the downstream application segment of the industry chain. They are responsible for conducting targeted system integration and secondary software development on industrial robot bodies tailored to diverse application scenarios and functional requirements, equipping robots with specialized operational capabilities.
Application Fields of Industrial Robots: Extensive Deployment in Automated Production, Automotive Manufacturing, Logistics and Other Sectors
In 2022, China’s installed volume of industrial robots accounted for more than 50% of the global total, securing its position as the world’s largest market, with a manufacturing robot density reaching 392 units per 10,000 workers. Industrial robots are widely implemented in automated production, automotive manufacturing, logistics, medical care, 3C electronics, and other key sectors.
Automated Production
In the domain of automated production, industrial robots constitute mission-critical equipment. They are capable of performing repetitive, labor-intensive, hazardous, or high-precision tasks, liberating human workers to engage in more innovative and value-added work. On production lines, industrial robots can autonomously execute parts assembly, inspection, packaging, and other operations, significantly boosting enterprise production efficiency.
Furthermore, the programmable and high-precision control technologies embedded in industrial robots enable rapid adaptation to fluctuating production demands, facilitating seamless switching between mass production and small-batch customized manufacturing.
Automotive Manufacturing
In the automotive manufacturing industry, industrial robots enjoy extensive and mature applications. Throughout the automotive production process, industrial robots undertake a wide array of operations including welding, painting, assembly, and dispensing, thereby enhancing both production line efficiency and final product quality.
In auto parts manufacturing, industrial robots are also deployed in mold casting, milling, clamping, and other processes, driving improvements in production efficiency and product yield.
Logistics
In the logistics sector, the application of industrial robots has become increasingly widespread. They are utilized in cargo handling and sorting, warehouse management, and internal transportation, enhancing logistics efficiency and operational safety. Industrial robots also help enterprises reduce labor costs and mitigate operational risks.
3C Electronics
In the 3C electronics industry, industrial robots are extensively employed in the manufacturing and packaging of consumer electronic products such as smartphones. Featuring high operational flexibility and precision, they can accurately execute complex assembly tasks, providing essential support for the efficient automation of production lines.
The automation of repetitive tasks not only accelerates manufacturing speed but also minimizes human-induced errors. Additionally, the high-precision execution capability of robotic systems ensures that product accuracy and quality meet stringent specifications, effectively mitigating the adverse impacts of manual operation errors on product quality.
Medical Care
In the medical industry, industrial robots have found diverse and high-value applications, including surgical procedures, precision treatment, and rehabilitation therapy, enhancing the accuracy and safety of clinical operations. Moreover, industrial robots can help alleviate staffing shortages in medical institutions and provide patients with more diversified rehabilitation programs.
Investment and Financing Analysis: Jiangsu, Shanghai and Guangdong Lead in Financing Events
China’s vast manufacturing base has fostered the world’s largest industrial robot market, and China has maintained its position as the world’s largest consumer market for industrial robots for consecutive years since 2013. As a "crown jewel" in the field of intelligent manufacturing, industrial robots continue to attract strong attention from venture capital institutions.
In terms of industry distribution of financing events, financing deals related to industrial robot bodies ranked first with 60 cases. In addition, downstream application sectors closely associated with intelligent equipment, logistics equipment, warehousing services, and industrial robots have also emerged as hotspots for investment and financing activities.
Regarding the geographical distribution of financing events at the provincial and municipal levels:
- Jiangsu and Shanghai tied for first place with 16 financing events each;
- Guangdong ranked third with 15 events.
At the city level, Shenzhen, Nanjing, and Hefei recorded the highest number of financing events, with 11, 10, and 4 cases respectively. The geographical distribution clearly demonstrates the strong correlation between the industrial robot sector and leading manufacturing provinces, which in turn provides robust support for manufacturing upgrading.
From the perspective of financing round distribution, strategic financing, Series A, and Series B financing ranked at the forefront, with 14, 12, and 11 cases respectively.
Among active investment institutions, Lanchi Venture Capital, Daohe Ventures, and Lenovo Capital are notable players. Beyond financial investors, industrial capital from well-known enterprises such as BYD, Haier, and Ecovacs has also participated in the financing rounds of companies including Global Motion Technology and Tianchuang Robot.
Patent Analysis: Over 14,000 Patent Applications Filed as of January 2023
As a technology-intensive industry, the volume of patent applications reflects the technological sophistication and innovative capacity of the industrial robot sector.
In terms of total patent applications for industrial robots, the cumulative number has exceeded 10,000. Among them:
- Utility model patents ranked first with over 6,200 applications;
- Invention patents ranked second with more than 5,100 applications;
- Design patents ranked third with over 880 applications.
Regarding the annual distribution of patent applications, the number of filings has increased year by year over the past three years (2020–2022), rising from more than 1,500 to over 2,100, representing a substantial increase. In addition, more than 1,400 patent applications were filed as of January 2023.
Development Prospects: Domestic Substitution Driven by Performance Improvement and Cost Reduction
The continuous performance improvement and price reduction of domestic industrial robots have yielded significant economic benefits. According to the National Bureau of Statistics of China, the average import price of industrial robot products gradually declined from RMB 162,300 per unit in 2019 to RMB 85,200 per unit in 2022. Meanwhile, the price of domestic industrial robots is generally lower than that of imported counterparts.
With enhanced performance and falling prices, the economic viability of industrial robot applications has become increasingly prominent, which will help the industry expand its application scenarios and stimulate downstream demand.
Industrial upgrading and domestic substitution paint broad development prospects. On the one hand, demand is driven by industrial upgrading. China’s economy is at a critical stage of transforming its development model, optimizing economic structure, and switching growth drivers, creating an urgent need for the transformation and upgrading of labor-intensive industries. This process will generate substantial market demand for industrial robots.
On the other hand, the state has set clear goals for the localization of industrial robots. "Made in China 2025" establishes development targets for domestic industrial robots and puts forward explicit requirements for the localization rate of domestic robots and key components. The 14th Five-Year Plan for the Development of the Robot Industry clearly stipulates that "by 2025, breakthroughs will be made in a number of core robot technologies and high-end products; the overall indicators of industrial robots will reach international advanced levels; and the performance and reliability of key components will reach the level of comparable international products."
Domestic industrial robots are gradually expanding their market share supported by rapidly improving product performance, more competitive cost-performance ratios, and enhanced service capabilities.
The overseas expansion of domestic robots will become an important direction for future development. As the performance gaps of domestic industrial robots are gradually narrowed, alongside the "going global" of China’s manufacturing industry and the global shift of manufacturing capacity to Southeast Asia and Latin America, the internationalization of domestic robots will emerge as a key strategic direction.
The Tianyancha Research Institute holds that, under the guidance of the digital economy and against the backdrop of digital-real integration, vigorously developing the industrial robot industry and effectively promoting the structural transformation and upgrading of China’s manufacturing sector will help sustain and enhance the competitiveness of Chinese manufacturing in the global marketplace.
This article is compiled from public online sources.
