#1SCHUNK Welcome to the IFR Press Conference 18th September 2019 Shanghai IFR International Federation of Robotics#2IFR statistical department Robotics Industrial Robots 2019 IFR department World Robotics Service Robots 2019 MATE MUE COMAU Statistics, Market Analysis, Forecasts and Case Studies Kawasaki Statistics, Market Analysis, Forecasts and Case Studies Agenda IFR International Federation of Robotics Welcome Presentation of the Speakers World Robotics 2019 Industrial Robots World Robotics 2019 China Market Data World Robotics 2019 Service Robots Questions Page 2 | 18 Sept. 2019#3Speakers on the Panel IFR International Federation of Robotics Steven Wyatt IFR Vice President Group Vice President and Head of Marketing & Sales Robotics ABB, Switzerland Susanne Bieller General Secretary International Federation of Robotics, Germany Christopher Müller Daokui Qu Director Statistical Department International Federation of Robotics, Germany CRIA President President SIASUN, China Xiaogang Song CRIA Executive Vice President and Secretary General Member of the International Federation of Robotics Executive Board Dr. Susanne Bieller Page 3 | 18 Sept. 2019#4International Federation of Robotics IFR International Federation of Robotics • • • Voice of the global robotics industry Annual global robotics turnover almost $50 billion (robot systems including software & peripherals) Almost 60 members: • National robot associations • R&D institutes ● Robot suppliers Integrators • Sponsor of the International Symposium on Robotics (ISR) Co-sponsor of the IERA Award Primary source for world- wide data on use of robotics IFR Statistical - Department owered by by IFR ISR International Symposium on Robotics IERA AWARD. Invention and Entrepreneurship in Robotics and Automation IFR statistical department Dr. Susanne Bieller Page 4 | 18 Sept. 2019#5IFR statistical department 2018 Another Record Year - First Time over 400,000 Units IFR International Federation of Robotics World Robotics Industrial Robots 2019 Steven Wyatt Kawasaki Statistics, Market Analysis, Forecasts and Case Studies 2018: 422,000 Units, +6% 2019: 421,000 Units, +/-0% 2022 584,000 Units, +12% on average per Year Page 5 | 18 Sept. 2019#6Steven Wyatt Positive medium-Term Growth Expectations '000 of units Annual installations of industrial robots 2013-2018 and 2019*-2022* +12% p.a. +10% 522 +6% 0% 465 422 400 421 304 254 221 178 2013 2014 2015 2016 2017 2018 2019* 2020* 2021* *forecast 584 2022* Source: World Robotics 2019 IFR International Federation of Robotics Page 6 | 18 Sept. 2019#7Steven Wyatt '000 of units Asia Region the Growth Engine Annual installations of industrial robots 2017-2018 and 2019*-2022* 368 320 280 283 285 420 LL 83 87 76 74 79 64 69 67 55 54 59 46 2017 2018 *forecast. 2019* 2020* 2021* 2022* Asia/Australia Europe America Source: World Robotics 2019 IFR International Federation of Robotics Page 7 | 18 Sept. 2019#8Steven Wyatt China remains the main End User of Industrial Robots IFR International Federation of Robotics Annual installations of industrial robots 15 largest markets 2018 China Japan United States Rep. of Korea Germany 154.0 55.2 40.4 37.8 26.7 Chinese Taipei 12.1 Italy 9.8 France 5.8 Mexico 5.7 Spain 5.3 India 4.8 Singapore 4.3 Canada 3.6 Thailand 3.3 Czech Republic 2.7 '000 of units Source: World Robotics 2019 Page 8 | 18 Sept. 2019#9Steven Wyatt Key Industries Automotive, Electronics & Metals Automotive Electrical/electronics Metal and machinery Plastic and chemical products Annual installations of industrial robots at year-end worldwide by industries 2016-2018 -1% -6% +32% Food +48% All others Unspecified +44% +2% -14% 2018 2017 2016 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 units Source: World Robotics 2019 IFR International Federation of Robotics Page 9 | 18 Sept. 2019#10Steven Wyatt Collaborative Industrial Robots still a Niche 2018 2017 Collaborative and traditional industrial robots Traditional Industrial Robots ■ Collaborative Robots 409 14 389 11 '000 units Source: International Federation of Robotics IFR International Federation of Robotics Page 10 | 18 Sept. 2019#11Steven Wyatt Technological Developments expanding Robot Adoption Today - More intelligent components, e.g. Smart Grippers Greater Connectivity, e.g. "Plug & Play" Interfaces and Cloud Computing Easier to Use, e.g. "Programming by Demonstration" Tomorrow "Machine learning" enables Robots .... ■ to learn by trial-and-error or by video demonstration. ■ to self-optimise. ■ to communicate with other machines to improve entire processes. New business models, e.g. Robots as a Service (RaaS) IFR International Federation of Robotics Page 11 | 18 Sept. 2019#12Steven Wyatt 2022: 4 Million Industrial Robots in the World's Factories IFR '000 of units Operational stock of industrial robots 2013-2018 and 2019*-2022* +13% p.a. 3,971 +15% 3,554 +13% 3,152 2,747 2,440 2,125 1,838 1,332 1,472 1,632 2013 2014 2015 2016 2017 2018 2019* 2020* *forecast 2021* 2022* Source: World Robotics 2019 International Federation of Robotics Page 12 | 18 Sept. 2019#13Steven Wyatt robots installed per 10,000 employees Highest Robot Density in Singapore - lowest Average in Asia 831 774 Robot density in the manufacturing industry 2018 Average Europe: Average America: Average Asia: 114 99 91 338 327 Average world: 99 247 240 221 217 200 188 182 175 174-172-168-165-154-146 140 140 135 Singapore Rep. of Korea Germany Japan Sweden Denmark Chinese Taipei Source: World Robotics 2019 United States Italy Belgium Netherlands Austria Slovenia Canada Spain Slovakia France Switzerland Finland China Czech Rep. Page 13 | 18 Sept. 2019 IFR International Federation of Robotics#14Steven Wyatt Short-Term Volatility, but the Future for Robots is very bright! Today - Automotive Industry Transition from ICE to EV - Declining Smartphone Sales Political Headwinds Tomorrow Increased Manufacturing Flexibility: Batch Size = 1 Demographic "Time Bomb" Emerging and rapidly-growing Market Segments Business and Technological Innovation, e.g. for SME Category IFR International Federation of Robotics Page 14 | April 8, 2019#15Daokui Qu, PhD '000 of units China slightly declining after 8 Years of strong Growth IFR Annual installations of industrial robots in China 34.7 41.3 121.5 112.7 27.0 20.4 69.5 16.0 48.1 9.0 41.1 27.6 7.9 5.5 22.6 23.0 15.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016, 2017 revised 2017 2018 Source: World Robotics 2019 International Federation of Robotics Page 15 | 18 Sept. 2019#16Daokui Qu, PhD Robot Density in China surpassing Global Average industrial robots per 10,000 employees Number of installed industrial robots per 10,000 employees in the manufacturing industry 2010 - 2018 in China 140 108 99 75 87 71 66 59 48 50 53 55 51 36 23 25 15 18 2010 2011 2012 2013 2014 2015 2016 2017 2018 China Global average Source: International Federation of Robotics IFR International Federation of Robotics Page 16 | 18 Sept. 2019#17Daokui Qu, PhD Main Industries in China Electronics, Automotive & Metals Electrical/electronics Automotive Metal and machinery Rubber and plastics Food Pharma/cosmetics All others/unspecified Annual installations of industrial robots at year-end in China by industries 2016-2018 2018 2017 2016 0 10,000 20,000 30,000 40,000 50,000 units 60,000 Source: World Robotics 2019 IFR International Federation of Robotics Page 17 | 18 Sept. 2019#18Daokui Qu, PhD Chinese Suppliers gaining Market Share Electrical/electronics Automotive Metal and machinery Rubber and plastics Food Pharma/cosmetics All others/unspecified 0 Estimated annual supply of industrial robots at year-end in China by industries 2017 and 2018 ■Chinese Suppliers 2018 » Foreign Suppliers 2018 ■Chinese Suppliers 2017 » Foreign Suppliers 2017 LO 5 10 15 20 '000 of units 25 30 35 40 45 Source: World Robotics 2019 IFR International Federation of Robotics Page 18 18 Sept. 2019#19Main Applications in China : Handling and Welding Daokui Qu, PhD Handling Welding Assembling Annual installations of industrial robots in China by applications 2016-2018 Dispensing Cleanroom Processing All others/unspecified 0 10 20 30 '000 of units 440 2018 2017 2016 50 50 60 70 Source: World Robotics 2019 IFR International Federation of Robotics Page 19 | 18 Sept. 2019#20Daokui Qu, PhD Chinese Suppliers increased their share in Handling Applications Handling Welding Assembling Dispensing Cleanroom Processing Annual installations of industrial robots in China - 2017 and 2018 ▪ Chinese Suppliers 2018 > Foreign Suppliers 2018 ■Chinese Suppliers 2017 > Foreign Suppliers 2017 0 5 10 15 20 25 30 30 35 40 45 '000 of units Source: World Robotics 2019 IFR International Federation of Robotics Page 20 | 18 Sept. 2019#21Daokui Qu, PhD '000 of units Operational Stock in China: increased by 30% IFR International Federation of Robotics Estimated operational stock of industrial robots at year-end in China 700 600 500 400 300 349 256 200 189 100 133 97 74 0 32 37 2008 2009 52 2010 2011 2012 2013 2014 2015 2016 501 2017 2018 649 Source: World Robotics 2019 Page 21 | 18 Sept. 2019#22IFR department Domestic Service Robots IFR International Federation of Robotics World Robotics Service Robots 2019 MATE DOMALI MATE COMAU Value of Sales : 2018: US$ 3.7bn, +15% 2019: US$ 4.6bn, +27% 2022: US$ 11.5bn, +35% (CAGR) Unit Sales: 2018: 16.3 million units, +59% 2019: 22.1 million units, +35% 2022: 61.1 million units, +40% (CAGR) Dr. Christopher Müller Statistics, Market Analysis, Forecasts and Case Studies Page 22 | 18 Sept. 2019#23Vacuuming and Floor Cleaning Robots are established Personal/Domestic Service Robots billions of USD Service robots for personal/domestic use. Estimated value 2017** and 2018, forecast 2019* and 2020*-2022* 4.6 3.3 2.0 2.5 6.5 9.7 1.1 1.1 1.3 1.4 1.5 1.7 Robots for domestic tasks *forecast, **revised 2017** 2018 2019* 2020* 2021* Entertainment 2022* Source: World Robotics 2019 Dr. Christopher Müller IFR International Federation of Robotics Page 23 | 18 Sept. 2019#242018 : 12 Million Units (+90%) - further Growth expected IFR millions of units Service robots for personal/domestic use. Unit sales 2017** and 2018, forecast 2019* and 2020*-2022* 25.5 17.6 12.2 6.4 37.2 55.1 3.8 4.1 4.5 4.9 5.4 6.0 Robots for domestic tasks *forecast, **revised 2017** 2018 2019* 2020* 2021* Entertainment 2022* Source: World Robotics 2019 Dr. Christopher Müller International Federation of Robotics Page 24 | 18 Sept. 2019#25IFR department World Robotics Service Robots 2019 MATE DOMALI MATE COMAU Professional Service Robots support our Workers IFR International Federation of Robotics Value of sales 2018: US$ 9.2 bn, +32% 2019: US$ 12.6 bn, +37% 2022: US$ 38 bn, +45% (CAGR) Unit sales: 2018: 271,000 units, +61% 2019: 361,000 units, +33% 2022: 1,000,000 units, +41% (CAGR) Dr. Christopher Müller Statistics, Market Analysis, Forecasts and Case Studies Page 25 | 18 Sept. 2019#26Dr. Christopher Müller Professional Service Robots: Main Value Growth Drivers are Logistic Systems billions of USD Service robots for professional use. Main Applications Estimated values 2017** and 2018, forecast 2019* and 2020*-2022* 14.1 22.5 8.9 5.7 3.7 2.4 9.1 6.7 5.0 3.7 2.2 2.8 Logistics *forecast, **revised Medical robotics 2017** 2018 2019* 1.0 1.0 1.1 1.2 1.3 1.4 Field robotics 12020* 2021* 2022* 0.9 1.0 1.2 1.3 1.5 1.7 Defense Source: World Robotics 2019 IFR International Federation of Robotics Page 26 | 18 Sept. 2019#27Image: Omron DIRECT Dr. Christopher Müller OMRON BOS BARION AGVs in Factories, Warehouses, Logistic Centers, Hospitals ... IFR International Robotics 111,000 units deployed in 2018, 60% more than in 2017 7,700 units in manufacturing 103,000 units in warehouses, logistic centers, hospitals ... 2019: 176,000 units (+58%) 2022: 712,000 units (+59% on average each year) Page 27 | 18 Sept. 2019#28Image: Naio Image: AOT Carlo Dr. Christopher Müller Medical Robots - most valuable service robots: US$ 2.8 billion in 2018 • 2018: 5,100 units (+50%) . 2019: 7,200 units (+39%) 2022: 19,700 units (+40% CAGR) Field robotics - the future of plowing 5,800 milking robots in 2018 (+8%) agricultural robots expected to grow strongly 2018: 480 units (+30%) • 2019: 720 units (+50%) • 2022: 2400 units (+50% CAGR) IFR International Federation of Robotics Page 28 | 18 Sept. 2019#29Dr. Christopher Müller '000 of units Logistic Systems are also the Growth Driver in Units IFR International Federation of Robotics 279 Service robots for professional use. Main Applications Unit sales 2017** and 2018, forecast 2019* and 2020*-2022* 444 712 176 167 111 106 118 132 148 12 69 53 14 16 18 21 24 Logistics Inspection Defense *forecast, **revised 2017** 2018 2019* ■2020* 2021* 2022* Source: World Robotics 2019 Page 29 | 18 Sept. 2019#30Public Relations Robots on the Rise '000 of units 21 15 11 9 Service robots for professional use. All other applications Unit sales 2017** and 2018, forecast 2019* and 2020*-2022* 29 41 6 LD Public relations *forecast, **revised 2017** Dr. Christopher Müller 8 Co 19 15 10 12 7 7 ம 11 13 16 6 7 8 6 11 10 Professional cleaning Exoskeletons Field robotics 2018 2019* 2020* 2021* 2022* Source: World Robotics 2019 IFR International Federation of Robotics Page 30 | 18 Sept. 2019#31Image: KUKA Dr. Christopher Müller Image: KUKA AXIU? KUKA VE IFR International Federation of Robotics The blurring Lines between Industrial and Service Robots Depending on its application, the same unit can be a service robot or an industrial robot. Usage concepts change – new applications emerge. - Reimagine business processes to make optimal use of collaborative robots. Al and machine learning technologies enable robots to sense and respond to their environment. Robots are increasingly supporting humans both at work and in their private lives. Page 31 | 18 Sept. 2019#32Contact: Dr. Christopher Müller International Federation of Robotics IFR c/o VDMA Robotics+Automation 60528 Frankfurt Main, Germany Email: [email protected] Phone: +49 69 6603 1191 Internet: https://ifr.org/ Dr. Christopher Müller Thank you! IFR International Federation of Robotics Page 32 | 18 Sept. 2019