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China’s robotics revolution falls short of expectations
According to the plan “Made in China 2025”, local manufacturers were supposed to provide half of the domestic market with high-tech goods by 2021 and 70% by 2025. But in China, this plan could not be implemented. This happened in all areas, including robotics. In this field, the Celestial Empire is still far behind Japan and Germany.
Image source: Xinhua
Despite a 19.1% increase in production last year, China’s robotics industry did not meet Beijing’s industrial modernization targets, Shenzhen Gaogong Industry Research (GGII) analysts said. Instead of reaching 50% import substitution, Chinese companies provided only 39% of needs in the domestic market.
China buys and manufactures more industrial robots than any other country, but its market is still dominated by Japanese companies, followed by manufacturers from Europe and South Korea. This also applies to electronics used in robotics. Locally made machines only have 45% of Chinese chips. This is better than five years ago, when there were only 12% of those, but still far from the set goals.
China has been the world’s largest market for industrial robots since 2021, and in 20021-20221. it accounted for 38% of the total number of installations in the world. According to the International Federation of Robotics, 140,492 devices were installed in factories across the country in 2021, which is 9% less than in 20221, but still more than the number of robots installed in Europe and the United States combined.
Japan continues to dominate the production of the two main components of industrial robots, gearboxes and servo motors, especially in the mid to high end markets. More than 75% of gearboxes used in China are imported by Japanese companies such as Nabtesco and Harmonic Drive Systems, according to analysts at HSBC Holdings. These components account for more than a third of the cost of industrial robots manufactured in China.
Xpeng Fully Automated Electric Vehicle Manufacturing. Image source: Handout
COVID-19 pandemic sped up the automation of Chinese factories. Thus, according to Credit Suisse estimates, the industrial robot market in the country grew by 9.5% in 2021. According to the Ministry of Industry and Information Technology (MIIT), last year China increased the number of industrial robots produced by 19.1% (year-on-year to 237,068), with 29,706 units built in December alone, an increase of 32.4 % more than a year earlier. There is progress, but not as active as the authorities of the Celestial Empire expected.