During the recession of 2008/2009, the global demand for industrial robotics hit a standstill as companies were forced to put a brake on expenditures. Four years later, the robotics market has finally entered a phase of economic recovery-especially in the food and beverage industry sector which is expected to grow by more than $US 200 million during the 2012-2016 period.
The reasoning behind the rising prevalence of industrial robotics in the food and beverage industry is simple; the success of food and drink companies is dependent on product quality, consistency, and high-return on investment and robots deliver in each of these areas.
Nevertheless, this doesn’t mean that capitalizing on the food and beverage industry will be easy for industrial robotics vendors. Success in the market will be dependent on overcoming the three challenges outlined below.
1) Need for High Initial Investment
Although the adoption of industrial robots for manufacturing processes reduces operational costs in the long run, a high initial investment required up front. Although large enterprises with high budgets are able to readily adopt industrial robotics, SMEs and other cost-driven companies are often reluctant or unable to invest in the technology.
2) Continuous Decline in Vendors’ Profit Margins
Global Industrial Robotics market vendors are witnessing a steady decline in their profit margins due to the rising prices of raw materials and the constant decline in the average selling price of industrial robots due to competitive price wars between market players.
3) High Vendor Switching Costs
Investing in industrial robotics is expensive, and the costs for end-users are even higher should they choose to switch to a different vendors. Thus, end-users typically enter long-term contracts with industrial robotics vendors which affects the growth of the market and hinders the entry of new players.
In spite of these issues, we at TechNavio are confident that a few trends will ensure that the market for industrial robotics in the food and beverage industry continues to rise upwards. Namely, the emergence of next-generation robots, increasing adoption of customized robots, and an increase in focus on end-to-end solutions. Key vendors such as ABB, Denso Wave, Fanuc, and Kuka are already deploying some of these trends to sharpen their competitive edges, and with much success.
All things considered, it’s safe to bet that in the next few years we’ll be seeing big things in terms of both innovation and profit for the Global Industrial Robotics Market in the Food and Beverage Industry.
For more information, view our 2012-2016 report on the Global Industrial Robotics Market in the Food and Beverage Industry.
