According to Oxford Economics, the use of industrial robots across the manufacturing sector identifies three man drivers behind this new pace of adoption: price, innovative applications, and consumer demand.
Reason #1: Robots are becoming cheaper than humans.
The expansion of robot installations is driven in part by the plummeting real costs of machines. As with other advanced technology, the growth of the processing power of microchips, extended battery live, as well as, having all the benefits of ever-larger, smarter networks have all increased the per-unit value of the technological components, while the average price of a robot fell 11% between the years of 2011 and 2016.
Reason #2: Robots are rapidly becoming more capable.
We can give a big thank you to AI for making robot technologies more sophisticated processes, and can be installed more rapidly. Robots can actually learn from their experiences and from those make decisions informed by data from a network of other robots. These developments have helped propel robot adoption in sectors beyond the automotive industry.
Reason #3: Demand for manufactured goods is rising, and China is investing in robots to position itself as the global manufacturing leader.
A lot of the growth in robot stock over the past decade can be attributed to rising demand for manufactured goods. With government policies aimed at expanding the use of electric vehicles and the establishment of high-tech manufacturing, we expect that China will most likely continue its acceleration in robot investments for the next decade.