China’s growth strategy is fuelled by robotics

At its recent Third Plenum, China outlined the future of its economic strategy, emphasising the role of robotics as a key driver for growth amidst a new wave of industrial transformation. China’s achievements in the field of industrial robotics are unparalleled, with the country standing as the largest market for robots globally.

“China’s rapid development in industrial robot automation is extraordinary,” said Marina Bill, President of the International Federation of Robotics. “The operational stock surpassed the 1.5-million-unit mark two years ago, making China the first and only country with such a large industrial robot stock.” The installation of 290,258 units in 2022 alone represents 52% of the global market. 

To cater to this growing demand, both domestic and international robot manufacturers have set up production facilities in China, consistently expanding their capacities.

Since 2010, significant investment in the automotive sector has spurred demand. China has emerged as the largest car market and production hub worldwide, including for electric vehicles, with considerable potential for further growth. Additionally, China is a producer of electronic devices, batteries, semiconductors, and microchips. Since 2016, the electrical and electronics industry has overtaken the automotive sector as the primary customer and growth driver for industrial robots in China. Numerous other industries have also begun expanding their capabilities through advanced automation technologies.

China’s domestic market remains the largest for Chinese robot manufacturers.

“So far the number of exported robots from China is very limited,” said Xiaogang Song, Executive Director and Secretary-General of the China Robot Industry Alliance (CRIA). “Chinese robots going abroad started only a few years ago. According to our statistics, the total number of exported robots is less than 5%.”

“Like any business looking for a new market, Chinese robot companies go where there is demand for their products,” said Song.

Typically, these companies establish branches by collaborating with local partners and employing local staff. Building brand credibility abroad will take time, necessitating higher technology standards and improved services to meet the expectations of foreign markets. In certain areas, such as vision systems or AI applications, Chinese firms possess advantages tailored to the rapid automation needs of China’s manufacturing sectors. Furthermore, lower production costs remain a significant competitive edge for Chinese robots.

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