Robotics is one of the world's most dynamic and innovative sectors, with applications ranging from manufacturing and logistics to health care and agriculture. Europe is a major player in the global robotics market, with a strong tradition of research and development, a diverse industrial base, and a growing demand for robotic solutions. This article will examine how the European robotics industry is taking off, reaching new heights of investment, sales, and adoption.
One of the indicators of the vitality and potential of the robotics industry in Europe is the amount of investment that flows into robotics startups. According to The Robot Report, robotics investments for January 2023 totaled US$521 million due to 55 investments. This was a significant increase from the previous month when robotics investments reached US$1.14 billion due to 65 investments. Some of the notable deals in January 2023 included:
Exotec, a French company that develops autonomous mobile robots for warehouse automation, raised US$90 million in a Series C round led by 83North.
Memic Innovative Surgery, an Israeli company that develops robotic-assisted surgical platforms, raised US$96 million in a Series D round led by Peregrine Ventures and Ceros.
UiPath, a Romanian company that develops robotic process automation software, raised US$750 million in a Series F round led by Alkeon Capital and Coatue.
These deals reflect investors' growing interest and confidence in the robotics industry, especially in warehouse automation, surgical robotics, and software robotics. They also demonstrate the diversity and maturity of the European robotics ecosystem, which boasts startups from various countries and domains.
Another indicator of the health and growth of the European robotics industry is the number of industrial robots sold and installed in the region. According to the International Federation of Robotics (IFR), European industrial robots are rising: The European Union's (EU) 27 member states installed almost 72,000 units in 2022 – up 6% year-on-year. These are preliminary results presented by the IFR in June 2023.
The increase in robot installations in 2022 was a recovery from the decline in 2021 when the COVID-19 pandemic disrupted the global supply chains and demand for industrial robots. The IFR expects robot sales to continue to grow in 2023 and beyond, driven by factors such as digital transformation, automation of SMEs, reshoring of production, and innovation in robot technology.
The top five adopting countries within the EU are Germany, Italy, France, Spain, and Poland. They account for about 70% of all industrial robots in the EU in 2022. Germany is by far the largest robot market in Europe, with about 26,000 units installed in 2022. This was a share of 37% of total EU installations. Germany's leading industrial robots customers are the automotive, metal, plastic, and chemical products industries.
A third indicator of the evolution and transformation of the European robotics industry is the type and application of robots adopted by various sectors and users. While industrial robots have traditionally dominated the robotics market, professional services robots are expected to take over in the next decade. Professional services robots perform tasks outside manufacturing environments, such as medical, agricultural, cleaning, construction, or underwater activities.
According to BCG, professional services robots will have sales that may be more than double those of conventional and logistics robots by 2030. The global robotics market is expected to climb from about US$25 billion in 2023 to between US$160 billion and US$260 billion by 2030, with market share for professional services robots hitting up to US$170 billion and industrial and logistics robot sales topping off at about US$80 billion.
The shift to professional services robots is driven by changing consumer preferences and social trends that accelerate the need for advanced robotics solutions. For example, the consumer-driven demand for quicker deliveries of customized products will lead to expanding robot capacity in manufacturing individualization and logistics applications. Meanwhile, aging demographics will increase the need for mobile services robots to assist in personal hygiene, exercise, meal delivery, and other jobs. Increasingly emphasizing recycling and other sustainability measures will require robots to handle complex disassembly and sorting tasks.
The robotics industry in Europe is taking off, reaching record levels of investment, sales, and adoption. The region has a vibrant and diverse robotics ecosystem, with startups, established companies, research institutions, and users collaborating and innovating in various domains and applications. The future of robotics in Europe is bright as the sector continues to evolve and transform to meet the needs and challenges of the 21st century.
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