Introduction and Industry Overview
Industrial robots are programmable machines that weld,
assemble, handle, paint and inspect products in factories. They help
manufacturers raise output, keep quality consistent and manage labour
shortages. The sector serves automotive, electronics, metals, food and
logistics customers, and demand is spreading well beyond its traditional
automotive base.
According to the International Federation of Robotics, the
global number of industrial robots in operation reached a record 5 million
units in 2025, an increase of 9%. Annual installations grew by 11% to more than
600,000 units. China led with 354,000 installations, while the United States
overtook Japan to become the second-largest installer. These figures highlight
the growing adoption of industrial robots and the shifting demand across major
markets.
Key Trends and Developments
The robotics industry is moving towards more intelligent,
autonomous and adaptable systems, with Physical AI emerging as a key area of
development. Reflecting this shift, the International Federation of Robotics
identified five major trends for 2026, including AI-driven autonomy and agentic
AI, the convergence of information technology (IT) and operational technology
(OT), the rapid expansion of humanoid robotics, increasing focus on safety and
security, and the use of robots to address labour shortages. In practice, robot
makers now compete on software and simulation as well as on hardware, as the
following examples show.
•
FANUC announced a
collaboration with NVIDIA to bring AI computing and simulation tools into its
robot range, and it has also released a ROS 2 driver and standardised Python
support.
•
KUKA is finalising a new
operating system and AI tools designed to accelerate the transition from
simulation to deployment in operational robotic cells.
• The
International Federation of Robotics highlighted the rapid growth of humanoid
robotics, while noting that its application in industrial production remains
under evaluation.
Key Applications and Business Benefits
The automotive industry remains a major buyer of industrial robots,
but demand is expanding into other sectors. The Association for Advancing
Automation reported that North American companies ordered 36,766 robots in
2025, an increase of 6.6%. Orders from non-automotive industries exceeded those
from automotive customers. While orders from automotive manufacturers improved,
orders from automotive parts suppliers remained below 2024 levels. These
applications bring clear business benefits.
•
Collaborative robots made up
7,212 units, or 19.6% of North American robot units ordered in 2025, which
points to rising demand for flexible automation.
•
The International Federation
of Robotics linked the recovery in United States installations to strong growth
in the food industry and other sectors outside manufacturing.
• FANUC
has described voice commands and Python support as ways to let operators adjust
processes without advanced programming skills, which lowers the barrier to
deployment.
Growth Drivers and Emerging Opportunities
Growth is being supported by the increasing adoption of
robotics and automation to address labour shortages, as highlighted by the
International Federation of Robotics. Demand is also expanding across different
regions and industries, while manufacturers are increasingly shifting
production closer to customers to improve supply chain efficiency and
responsiveness.
•
The Association for
Advancing Automation reported six consecutive quarters of year-on-year growth
in North American robot orders through the fourth quarter of 2025. Annual
orders reached their highest level since 2022, indicating continued growth in
demand for industrial robots.
•
India installed nearly
10,500 industrial robots in 2025, an increase of 15%, making it the
sixth-largest market globally. Brazil recorded stronger growth, with
installations rising 38% to nearly 4,300 units.
• Yaskawa
announced plans to develop a campus in Franklin, Wisconsin, with an investment
of USD 180 million over 8 to 10 years, including industrial robot manufacturing
operations in the United States.
Source:
Statbase Dataset
The chart illustrates the distribution of industrial
robot installations by country in 2024, with China accounting for the largest
share, followed by other countries collectively, Japan, and the United States.
This concentration highlights China's leading role in industrial automation,
supported by its large manufacturing base and adoption of robotics. It
encourages robot manufacturers to prioritize China while expanding
opportunities in Japan, the United States, and emerging markets. This
geographic distribution also influences investment decisions, production
capacity, supply chains, and competition across the global industrial robot
industry.
Challenges and Industry Constraints
Growth in industrial robot adoption varies across
markets, and some regions are experiencing declines. Japan's installations fell
19% in 2025, while Europe and the United Kingdom recorded declines of 8% and
35%, respectively, in 2024. According to the International Federation of
Robotics, the automotive industry remains Germany’s largest industrial robot
user, although its share of overall demand is declining. These pressures sit
alongside technical and regulatory constraints.
•
As robots connect to cloud
and AI systems, the International Federation of Robotics warns of growing
cybersecurity threats and calls for clear governance and assignment of
liability.
•
KUKA noted that new robot
regulations come into force in 2027, which means controllers and software must
be updated to stay compliant.
Recent Company Developments
|
Company
|
Category
|
Announcement and Date
|
|
ABB
|
Product
Launch
|
On June 2025, ABB expanded its industrial robotics portfolio
in 2025 with the launch of the IRB 6730S, IRB 6750S, and IRB 6760 robots,
strengthening its market position by addressing growing demand for
high-performance automation solutions across manufacturing industries.
|
|
ABB
|
Product
Launch
|
On April 2025, ABB Robotics launched the PoWa cobot family in
2026, expanding its collaborative robot portfolio to meet rising demand for
flexible and high-speed automation solutions. The launch strengthens ABB’s
position in the industrial robotics market by supporting manufacturers
adopting next-generation robotic automation.
|
|
Fanuc
|
Business
Expansion
|
On March 2026, FANUC announced a planned investment of around
$90 million in a new U.S. factory and distribution center to expand robot
manufacturing capacity. The expansion supports FANUC’s growth in the
industrial robotics market by strengthening local supply capabilities and
meeting rising automation demand in North America.
|
Industry Outlook and Conclusion
The industrial robotics market is poised for continued
growth, led by Asia, while the United States strengthens its position as a
major market. The International Federation of Robotics initially forecast
575,000 installations for 2025, but its later report recorded more than
600,000, exceeding expectations. However, a single year of growth does not
confirm a long-term trend, and performance varies across regions. The points
below are the ones most likely to shape the sector.
•
AI enabled programming and
simulation are lowering the effort needed to deploy robots, which opens the
sector to a wider range of customers.
• Uneven
demand in Japan and Europe, together with cybersecurity and safety
expectations, remain the main risks for buyers and investors.