Industrial Robot Orders Break All Records

Canadian manufacturers are rapidly increasing robotic installations

Canadian automotive industry market 2015.

The automotive and automotive component industries comprise 69 percent of the Canadian robotics market.

The world of manufacturing experienced a pivotal breakthrough in 1961 when factories opened their doors to robotics. The world’s first industrial robot, Unimate, was installed in a General Motors plant in New Jersey. Fast-forward to 2015 and you’ll find robotics everywhere. Automotive is still king, but industries like medical, food and beverage, plastics, electronics, and metals are adopting robotics fast and not planning to slow down anytime soon.

Robotics enables companies to manufacture more efficiently, become more competitive, and keep production in North America rather than offshoring. With robotics, manufacturing as a whole is stronger.

North American Market on the Rise

The robotics industry has been getting stronger every year since the great recession. Investments in robotics continue to increase and are reflected in recent, impressive statistics. A record 14,232 robots valued at $840 million were ordered from North American robotics companies in the first half of 2015, an increase of 1 percent in units and 7 percent in revenue over the same period in 2014, which held the previous record.

In the first half of 2015, sales of all types of robots continued to grow in a number of key industrial segments. Semiconductors (30 percent), automotive components (23 percent), and life sciences (8 percent) increased strongly over the first half of last year. In contrast, orders to automotive OEMs cooled in the first six months, down 18 percent from the record-high performance in the first half of 2014.

“We’re encouraged by the continued strength in the North American robotics market,” said Jeff Burnstein, president of Robotic Industries Association (RIA). “The interest in robotics remains strong not just in North America, but all over the world, as companies recognize that robots can help them improve productivity, product quality, and flexibility.”

The market’s best start to the year has also been realized in key robot application segments like coating/dispensing and material handling. “Robots ordered for use in coating/dispensing and material handling applications grew 36 percent and 27 percent, respectively, through June,” said Alex Shikany, RIA’s director of market analysis. “Material handling is the largest category we measure and touches many industries that are important to the robotics market. It’s encouraging to see such strong growth in this segment.”

Shikany added that the notable increase in material handling applications can be traced, to some degree, to the growth in nonautomotive industries such as semiconductors/electronics and life sciences. RIA estimates that some 232,000 robots are now in use at U.S. factories, placing the U.S. second only to Japan in robot use.

Strong Growth in Canada

Canada makes up about 10 percent of the overall North American robotics market with a growth rate that surpasses that of the overall North American market. Since 2010, the Canadian robotics market had an average 35 percent growth in robot orders (compared to 26 percent in North America) and 32 percent growth (compared to 21 percent in North America) in shipments year-over-year.

A record 3,222 robots valued at $201 million were ordered by Canadian companies in the first half of 2015. The automotive and automotive component industries combined account for 69 percent of the Canadian robotics market. Two heavily automotive processes–spot welding and arc welding–comprise 51 percent of the robotics applications.

The robotics industry in Canada, however, is tracking for a shift in its shares of robot applications in 2015 versus 2014. More spot welding, coating and dispensing, and assembly applications are expected to be reflected in the 2015 numbers. Projections are for a 99 percent growth in spot welding, a 109 percent growth in coating and dispensing, and a 137 percent growth in assembly applications. Arc welding, however, is expected to decrease 30 percent.

Canadian industrial applications in 2015.

Material handling and spot welding robotic applications together account for 72 percent of industrial applications this year.

The semiconductor and electronics industries as well as the metals market are tracking for significant robotic growth in 2015. Automotive-related sales in 2015 are expected to display a shift. Data for the first half of the year points to automotive OEM orders increasing and automotive component orders decreasing in 2015 relative to 2014.

A number of Canadian robotics companies are on the rise and making an impact in the industry. For example, Ontario-based robot integrator JMP Engineering recently earned the title RIA Certified Robot Integrator. “We are thrilled to be among the very best certified system integrators,” said Ken McLaughlin, general manager, JMP Engineering Inc. “Our certification is a testament to the effort we have made and continue to make to consistently be at the top of our game and a leader in our field.”

JMP Engineering was also recognized as one of the top 50 best workplaces in Canada by Great Places to Work®.

Two Canadian members of the RIA were recently included in the Top 50 Robotic Companies to Watch list from Robotics Business Review. Kitchener, Ont.-based start-up company Clearpath Robotics specializes in the design and manufacture of unmanned land and water vehicles for academic, industrial, and military R&D applications.

St-Nicolas, Quebec-based Robotiq was also on the list. It designs and manufactures flexible electric robot grippers. Robotiq is heavily involved in developing grippers for robots with collaborative applications that are at the forefront of a new robotic era. Safely working alongside humans in an uncaged environment, collaborative robots are opening opportunities for OEMs, integrators, start-ups, venture capitalists, and users and catching the attention of potential users. Machine vision technology is also growing in Canada.

2015 is tracking to be a record-setting year for robotics in North America, especially in Canada. The growth of new applications and industries is a testament to the functionality and flexibility of robotics. Robots are here to stay and transforming manufacturing every step of the way.

The Association for Advancing Automation (A3) has a “Why I Automate” video series that showcases manufacturers’ success stories with automation. Visit www.a3automate.org/resources/videos.

The Robotic Industries Association sponsors a series of robotics-specific conferences, seminars, and webinars. See the full list of educational opportunities at www.robotics.org/upcoming-events.