China has 12½ times more robots in its workforce than industry experts predicted: report

• ‘Only a matter of time’ before Chinese robotics companies catch up to leading-edge technology, according to a US think tank
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• But world’s largest robotics market still lags in software development and innovation
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“China does not yet appear to be leading in robotic innovation, but … it is likely only a matter of time before Chinese robotics companies catch up to the leading edge,” the Information Technology and Innovation Foundation (ITIF) said in a report released on Monday.

 

 

The decision to replace a human worker with a robot is often about saving money. It follows that developed countries with high wages would have greater penetration rates of robots than do lower-wage countries.

 

But, the ITIF found that China is using automation far more than expected based on what workers get paid in manufacturing, with 12½ times more robots in use than predicted – a big jump from 1.6 times more in 2017.

 

In contrast, the United States uses only 70 per cent of the robots it should be using, given the wages paid to its manufacturing workers.

 

The study found that production and deployment rates of robotics in China were increasing rapidly. The Chinese government has made the robotics industry a priority, suggesting that the country’s robotics firms were soon likely to be leading-edge innovators.

 

The upwards trend was inferred from the data in the report. “China is already the largest industrial robot market in the world. In 2022, 52 per cent of all industrial robots in the world were installed in China, up from 14 per cent a decade earlier,” said Robert D. Atkinson, ITIF president and author of the report.

 

 

China’s booming robotics market could be traced to robust domestic demand and strong policy support, according to the government.

 

Robots are now used across vast sectors of China’s economy, including manufacturing, logistics, hospitality, healthcare and construction. “China’s automobile industry is now the largest in the world, which is also a boon to Chinese robotic adoption, as the auto industry is a major purchaser of industrial robots,” Atkinson said.

 

 

“China has been the world’s largest market for industrial robots for eight consecutive years, according to the International Federation of Robotics,” Atkinson said.

 

The thriving Chinese robotics market has been aided by massive subsidies from various levels of government, according to the ITIF, which has encouraged the adoption of robots and other automation technology.

 

The enormous and rapidly growing demand for industrial automation has spawned numerous robotics start-ups, many of which are based in Dongguan, in southern China’s Guangdong province, an area known for its extensive robotics industry.

 

The rise of these start-ups has heralded significant cost advantages and efficiencies. The ITIF report cited Li Zexiang, a Hong Kong University of Science and Technology professor, who said: “People here [in Dongguan] can develop a new tech product five to 10 times faster than in Silicon Valley or Europe, at one-fifth or one-fourth the cost.”

 

The report also pointed out that China’s robotics industry still relied heavily on foreign technologies, and remained dependent on many imported parts that were predominantly made by companies in Japan, Germany and Switzerland.

 

Software, which constitutes about 80 per cent of a robot’s value and is a key differentiator of robot quality and versatility, was a weak point for Chinese companies, he said.

 

The other was innovation.

 

Many automation products from China resembled those of Fanuc in Japan or Boston Robotics in the US, indicating an inclination to imitation over original development.

 

“Many Chinese robotics companies are copiers,” he said.