Robotics System Integration Market is Estimated To Witness High Growth Owing To Increased Adoption By Manufacturing Sector

 The Robotics System Integration Market is estimated to be valued at US$ 46 Bn in 2023 and is expected to exhibit a CAGR of 10 % over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Robotics systems integration involves combining robotic components and subsystems into a process or manufacturing application. It includes various tasks such as mechanical and electrical installation, programming, validation and verification of the robotic cells. Robotics system integration helps customers deploy collaborative robots safely and efficiently on the plant floor. It reduces downtime and improves production throughput.

Market key trends:
One of the major trends driving the growth of robotics system integration market is the increased adoption of robotics in manufacturing sector. Various manufacturing companies are implementing robotics systems to automate routine and repetitive tasks which helps in improving productivity and reducing production costs. For instance, according to International Federation of Robotics, global operational stock of industrial robots increased by 6% to around 2.7 million units in 2020. Industrial robots are extensively used in automotive, electronics, plastics and rubber industries for applications such as welding, packaging and palletizing. The implementation of robotics also helps manufacturing companies enhance product quality, consistency and comply with stringent regulations. This growing demand from manufacturing sector is expected to contribute significantly to the revenue growth of robotics system integration market over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the robotics systemintegration market is moderate. High capital requirements for infrastructure, software development, robot programming, and maintenance pose challenges for new companies. However, opportunities exist for small businesses focusing on niche applications.
Bargaining power of buyers: The bargaining power of buyers is high. Large manufacturing companies have significant bargaining power and can drive down pricing by playing integrators against each other. Smaller systems integrators depend on establishing long-term relationships.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While a few large robot manufacturers dominate the market, standardized components from multiple suppliers keep prices competitive. However, integrators still rely on timely parts availability.
Threat of new substitutes: The threat of new substitutes is low as robotics provide unique automation capabilities compared to traditional labor. However, continued technological advancements may lead to new competing solutions.
Competitive rivalry: Intense as major integrators compete on innovative solutions, price, quality, and customer support.

SWOT Analysis
Strengths: Robotics integration provides increased productivity, quality control, and safety. Integrators focus on customizing robotics for specific manufacturing processes.
Weaknesses: High upfront capital costs. Implementation challenges for complex automation projects. Dependent on core robot and software technologies from large suppliers.
Opportunities: Growth in e-commerce driving warehouse automation. Increased usage of collaborative robots in SME manufacturing. Expanding into systems integration for driverless vehicles, drones, and other emerging technologies.
Threats: Economic uncertainty could delay investment in major capital projects. Skilled labor shortages hamper growth if not addressed. Open architecture technologies challenge exclusivity of integrator-supplier relationships.

Key Takeaways
The global robotics system integration market is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period, due to increasing demand for automation from various industries like automotive, food processing, and electronics. Approximately 55% of the revenue comes from the automotive sector alone with other industries also significantly adopting robotics for flexibility and optimized production.

Regional analysis - Asia Pacific dominated the robotics system integration market in 2023, accounting for over 35% of global revenue. This was mainly due to large manufacturing presence and government support for industrial automation in China, Japan, and South Korea. The North America region followed with a 25% share and is anticipated to grow at a faster rate due to ongoing expansion of e-commerce infrastructure.

Key players operating in the robotics system integration are Dynamic Automation solutions, Geku Automation, RobotWorx, Midwest Engineered Systems Inc., Van Hoecke Automation nv, FH Automation, Fitz-Thors Engineering, Inc., Mesh Engineering, TW Automation, Concept Systems Inc., Amtec Solutions Group, Inc. These