Over the past three years, more than half of the world’s robots were sold in China. While not historically seen as a technological leader in robotics, China is increasingly setting global trends in this industry. Georg Stieler shares his impressions from this year’s CIIF in Shanghai.
Packed, despite a slowdown in sales
Even as China is facing its worst economic sentiment in 20 years, CIIF was vibrant and full of energy. While we estimate a 20% drop in industrial robot sales in the first half of the year—mainly due to a cooling investment boom in electric vehicles, batteries, and photovoltaics—there are bright spots in the market: 3C is gaining in importance again, and cobots are on a growth path, driven by applications in electric vehicle production and inspection.
Key exhibition themes
The leading robotics manufacturers focused on the following key themes at the exhibition:
FANUC presented applications for battery production, cutting, painting, palletizing, and semiconductor manufacturing, as well as dynamic uses of cobots. However, as the market suggests, FANUC is facing challenges due to its high price levels compared to local competitors in the latter segment.
ESTUN showcased its wide product range and industry-specific solutions, particularly in the battery, solar, and automotive sectors. Cobots were more prominently featured than in 2023.
KUKA and ABB demonstrated applications that highlight the technical strengths of their robots and differentiate them from local competitors. As a premiere, ABB introduced the Ultra Accuracy feature for the GoFa Cobot for ultra precise cobot applications in the electronics, automotive, aerospace, and metalworking industries.
Additionally, the following topics were highlighted at the exhibition:
Who will still be around in two to three years?
The robotics sector remains hot in China, but many companies at CIIF, despite their large booths, are not yet profitable. The question remains: who will still be around in two or three years? Inovance and ESTUN stand out, but the future is less certain for others.
Foreign companies must become more Chinese to be successful
Foreign firms face challenges in this competitive environment. Higher prices are one hurdle; another is the lack of local engineering capacity. Special requests sent to Europe are often delayed or lost.
Universal Robots, for example, just signed a strategic partnership with Gree Intelligent Equipment in Zhuhai to address these issues.
While Western politicians call for decoupling, many European companies are doing the opposite, increasing their sourcing from China for greater flexibility and faster product development.
Automotive suppliers are even adopting “Go East” strategies to reduce investment costs in Europe by sourcing machines and robots from China.
Mixed outlook for the domestic market
While some expect a sales pickup towards the end of the year, others remain pessimistic.
However, even if the Chinese market shrinks by 20% this year, it will still be five times the size of the US market and three times the size of the EU.
Chinese robotics companies push abroad
One thing is certain: With intense competition in the domestic market, attractively priced products, a powerful ecosystem rapidly producing new solutions at unmatched speed and cost, and extensive application knowledge from the world’s leading manufacturing hub, Chinese robotics companies are expanding abroad. Expect to see much more of them in Asia, the EU, and the US. As I finish this summary, Inovance has just announced plans to exhibit their industrial robots at SPS in Nuremberg this coming November.
