UNUnited Nations Economic Commission for Europe

Press Releases 1998

[Index]

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Wednesday, 14 October 1998
00:01 hours GMT
8 October 1998

Record investment in industrial robots in 1997

A robust growth in industrial robot investment is forecast for North America and Europe until 2002 - for Japan and other Asian countries previous forecasts are revised downwards

The number of robots per employee in industry continues to rise sharply
In the next 10-15 years, dedicated service robots will be used extensively in a wide range of professional applications as well as in homes. A new substantial business area will be created

These are a few of the conclusions drawn in the World Robotics 1998 - Statistics, Market Analysis, Forecasts, Case Studies and Profitability of Robot Investment just published by the United Nations Economic Commission for Europe (UN/ECE), in cooperation with the International Federation of Robotics (IFR).

Record investment in industrial robots in 1997

In 1997, a record number of 85,000 industrial robots were installed worldwide, surpassing for the first time the previous record of 1990 (see table 1 and figure 1). In the same period, Japan=s share of new robot installations fell from 74% of the world total to 50%, marking a clear trend towards deceleration of the automation drive in that country. Although the 1997 robot investment in Japan was 43% higher than in the trough year of 1994, it was still only 70% of the record 1990 level.

For the United States and the major western Europe countries, on the other hand, robot investment was booming and in both 1996 and 1997 all-time records were set. The 1997 robot investment in the United States, for instance, was almost three times as large as in 1990. In the United Kingdom it was 2.5 times larger and about 50% larger in Germany and Italy but only 16% larger in France.

One consequence of the slowdown in robot investments in Japan, compared to the booming 1980s and early 1990s, is that a large share of new robot installations is made up of replacement investment. While almost 43,000 new robots were installed in 1997, the stock of operational robots only increased by an estimated 13,000 units. In other words, more than two thirds of all the new robots replaced older robots.

....but the value of the world robot market is slightly falling

In 1997, the market for industrial robots, in terms of units, increased by 6%. Total market value, however, fell by about 4% over 1996 to $4,8 billion. This drop in the world market, in dollar value, is mainly explained by the fact that the dollar appreciated against most other currencies. In this context it should be noted, however, that the value of robot shipments only accounts for 30% on average of the total system cost.

The market in the United States increased from $485 million in 1990 to almost $1,100 million in 1997. After the record year of 1996, it was expected that the market in Germany would fall back in 1997. The fall was, however, only 13%, in terms of DM, and the market amounted to about 1 billion DM. The market in the Republic of Korea, on the other hand, plummeted by almost 50% over 1996 to $143 million. While the United Kingdom market surged by 32% to ,66 million, France recorded zero growth and a market of FF 585 million. The Italian market grew by 5% to 410 billion lire.

Forecast to 2001 and inclusive - Europe and North America is catching up

Worldwide investment in industrial robots is forecast to be about 40% higher in 2001 than in 1997. In the six major economies, almost the same growth is projected (see table 1). Taking into account the fact that a raising share of robot investment is directed towards replacement investment, in particular in Japan, the stock of robots in operation is forecast to increase from about 710,000 units in 1997 to about 870,000 units in 2001, an increase of 23%. This forecast is significantly lower than was forecast in previous years, which is exclusively the result of significant revisions downwards of the forecasts for Japan and other Asian countries.

While the stock of robots is projected to grow by only 5% in Japan between 1997 and 2001, it is projected to increase between 20% (France) and 50% (United States) in the other major economies (see table 1 and figure 1). Western Europe, excluding the four major economies, is also projected to have a robot stock in 2001 which will be 50% higher than in 1997. One can therefore conclude that although Japan continues to be the country with the highest penetration of industrial automation, the balance of automation is swinging back towards Europe and North America.

The robot density continues to rise - more robots per employee

When comparing the rate of diffusion of industrial robots in various countries, the robot stock, expressed in the total number of units, can sometimes be a misleading measure. In order to take into account the differences in the size of the manufacturing industry in various countries, it is preferable to use a measure of robot density. One such measure of robot density is the number of robots per 10,000 persons employed in the manufacturing industry.

Employment in the manufacturing industry fell in many countries in the period 1991-1993, owing to the recession. Although the economy recovered in 1994-1996, employment continued to fall in some countries while it stabilized in others. As at the same time robot stocks continued to increase, in particular as from 1995, there was a significant increase in the robot density in 1993-1996 in most countries. In 1997, the employment situation improved in many countries but as the increase in the robot stock outpaced the employment gains, the robot density continued to increase.

Japan has by far the highest density of robots. In 1997, it amounted to 277 units per 10,000 persons engaged in manufacturing industries. Germany had the second highest with 90 units, followed by Sweden and Italy with just over 60 (see figure 2). In the other countries in western Europe, Australia and the United States, the density ranged between about 20 and 40 units.

Figure 3 shows the 1996 robot densities (expressed as the number of robots per 100 people employed) in the motor vehicle industry. In this industry there were 9 robots for every 100 persons employed in Japan, 4 in Italy, between 3 and 4 in the United States, Germany and Sweden and about 2 in France and the United Kingdom. These figures would have been twice as large if the density had been measured as number of robots per 100 production workers.

As one robot generally performs the tasks of at least two persons it could be said that robots in the Japanese motor vehicle industry correspond to some 20% of the total labour force.

Relative prices of robots continue to fall

The unit value of robots for United States, Germany, Italy, France and United Kingdom peaked at just under $110,000 in 1991. Since 1990, there has been a continuous fall in the unit price of industrial robots. In terms of national currencies, the unit price fell by 21% in the United States between 1990 and 1997. In the same period, it fell by 25% in Germany, 19% in the United Kingdom and a record 41% in France. In Italy, on the other hand, it fell by only 5%.

The relative price of robots, i.e. the price of robots for a given set of performance indicators, in relation to labour costs has been falling rapidly. Since 1989, prices of robots relative to employee compensation in the business sector have fallen by between 30% and 50% in the United States, Germany and France, although there was a slight reversal of this trend in 1996 in the first two countries. It should be noted, however, that these calculations of relative prices do not take into account the improvements made in the quality and efficiency of robots, factors which would, if included, have made relative prices fall even more. Data on different types of robots being installed strongly indicate that for many countries there has been a gradual shift towards a higher share of more sophisticated robots. The calculations of relative prices above thus underestimate the true relative prices. With raising labour costs and falling price/performance ratio for robots, manual operations will successively be replaced with robotic solutions.

Figure 4 compares the index of labour compensation in the business sector in the United States with the index of the average unit price of robots being installed, illustrating the widening gap between the two indices, the so-called Acrocodile gap@.

The food and agriculture industries - the robotization drive has not yet taken off as previously projected

The use of robots has become established in the automotive industry and is showing significant growth in electronics. For a number of years the food sector has been forecast to become the next major user of robots. This forecast has been based largely on the need for increased automation coupled with the significant numbers of personnel involved in basic handling operations in this sector.

In the case of the food sector the main drivers to encourage automation are worker health issues, due to highly repetitive handling of tasks, and increasingly hygiene. The increasing need for flexibility has encouraged the drive to robots as an alternative to other forms of automation. However, the difficulties of application, particularly processing speed and the nature of the product, coupled with the relatively low labour costs prevalent throughout the food sector has delayed the anticipated growth.

World Robotics 1998 demonstrates the low uptake of robots in this sector and also the slow growth to date. It is difficult to obtain a clear picture of the current situation without data from the United States, which is generally acknowledged as being one of the largest users of robots for food applications. However, it can be seen that the number of robots supplied to the food sector is still in the low single figure percentages of the total installations of the major robot users such as Japan, Germany and France.

Two major factors which are impeding the uptake of robots into this sector relate to the expertise and experience of the engineers in both the users and suppliers. A typical food plant consists of either highly automated machinery or manual operations. There is very little that is similar to a robot system, particularly in the combination of disciplines, required to specify, develop and implement robot systems. The robot suppliers and their system integrators may have a great deal of experience of robot applications but most of this has been gained within the automotive and electronics industries. The food industry has specific requirements and modes of operating that differ from both these sectors. These differences introduce a communications barrier and a gap in understanding which is impeding the introduction of robots.

Figures 2-4

However, there is still a widespread belief that there will be significant growth in robot applications in the food sector. The robot suppliers are making increasing efforts to tailor their products to meet the needs of the sector. The existing equipment suppliers to the food industry are also either developing their own machines or using robots from the major suppliers. These strategies are helping to remove the "cultural" barrier and make applications more likely. At the same time labour costs are increasing and particularly food cleanliness requirements are making robot installations more cost effective.

Three in-depth papers are reviewed in World Robotics 1998. The first paper surveys worldwide activities in the developments of robotics for agricultural applications, indicating the technologies and applications that are currently under development and will impact robot implementation over the next decade. The second paper gives an overview of the current situation regarding the use of robots for packaging applications and indicates how this will change in the future. Finally, the third paper entitled "Putting the icing on the cake", describes a particular robot project undertaken at a food manufacturing company in the United Kingdom. This provides a good example of how the customer and supplier cooperated to ensure that the installation was a success.

Motives for investing in robots - reduction of labour cost not the only objective

The reduction of labour costs is of course a major motive for investing in industrial robots. With falling prices of robots relative to labour costs, robots are increasingly becoming a cost-effective alternative to labour. There are, however, several other motives for investing in industrial robots. The following ones can be mentioned:

Reduction in material costs. In spray painting applications, e.g. of cars, there are examples where the targeted return on investment was almost exclusively achieved through a very significant reduction of paint consumption.

Higher quality. Subcontractors to the automotive industry and the electronics industry, for instance, in order to stay in business, must be able to certify that they can deliver components with zero faults and within given limits of tolerance. In many cases the only way to achieve these objectives is through robots and automation.

Flexibility in the production volume. Very often the targeted return on robot investments is based on the requirement that the robot operates in two shifts. If demand increases robot cells can easily be operated in three shifts without extra personnel. This also implies a higher degree of utilization in other pieces of equipment in the production system.

Improvement of the working environment. Robots are often used in work processes involving heavy lifts, e.g. servicing machine tools with heavy work pieces, repetitive work, e.g. assembly or servicing machines with very short process cycles, handling of dangerous chemicals, human presence in an environment with heat and smoke (foundries, furnaces) or as mentioned above in secluded spray painting boxes. In all these work processes robots eliminate bad working conditions. As is illustrated in Case Study 4 of the present publication, the main reason for a small company in Sweden to invest in a robot cell was that it had difficulties in recruiting machine operators because of bad working conditions and a general shortage of labour in the region where it was located.

Some of these motives are illustrated in four case studies (from the United States, Germany and Sweden) which are included in the present publication. Generally, robot investment has a pay-off time of about two years.

Service robots - an area which is expected to take off in the next 10-15 years

Statistics on the diffusion of service robots are very scarce and incomplete. Based on sales figures from some leading manufacturers, the total world stock can be estimated at a few thousand but certainly below 10,000 units. For instance, when cleaning robots, lawn mowing robots and other types of service robots have reached such a level of cost-effectiveness that they are affordable not only for professional use but also for households then the market for service robots could take off in the same way as it did for the PC. Other important growth areas for service robots are household robots (household equipment is increasingly being equipped with microcomputers, and will eventually be controlled by a central home PC - in such a system configuration the service robot would be an ideal component), robots for handicapped and disabled persons, surgical robots, safeguarding and patrol robots and repair robots.

Four major application areas for service robots are reviewed:

(a) Courier and transportation robots, e.g. for hospital transport of medications, lab samples, supplies, meals, medical records, and equipment between departments and nursing stations. Although much time was spent developing the technology that made it possible for the robot to perform these tasks completely autonomously, an even greater amount of time was spent learning how a service robot should behave when it is working together with human co-workers, travelling down the same corridors, using the same elevators and encountering the same patients and visitors. Unlike industrial robots, service robots come into contact with a variety of people and situations and they must be able to react appropriately at all times. They are not working in specially designed environments, as their industrial counterparts do. The success of service robots is therefore dependent on the manufacturer accepting the sometimes inflexible nature of these environments and their willingness to work within these well-established boundaries.

(b) Cleaning robots. In the domain of mobile robots a key target application is floor cleaning. Cleaning costs represent a significant proportion of overhead costs for a building. With labour costs accounting for 70-80% of the cost of cleaning, the pressures are there to find new means to reduce costs. Floor cleaning robots are seen as a means to dramatically improve productivity.

A floor cleaning robot is essentially a standard cleaning machine equipped with the necessary functions to drive itself round the cleaning area i.e. a navigation control system and sensors to detect and prevent collision with obstacles. This frees the machine operator to carry out tasks in parallel.

(c) Robots for surgery. Recent research activities concentrating on the introduction of robot technology into the operating theatre were motivated by the need for an assistive device to achieve a high accuracy of execution. This is planned pre-operatively by means of computer planning systems and provides a better task allocation regarding the complementary characteristics of the human operator and a robot. Depending on the complexity of the surgical task, the robot is either used only to position a surgical guide (semi-active) or to perform an autonomous execution.

Orthopaedic surgery procedures are currently performed using hand-held surgical instruments and air-powered tools (e.g. drills and oscillating saws), in a freehand manner. Although this approach is inherently safe, it also has a number of important implications with respect to surgical results. Given the obvious scope for human error, freehand surgical techniques can be imprecise. Also, owing to the high levels of skill required, the outcome of an orthopaedic procedure is heavily dependent upon the ability and experience of the individual surgeon, and can therefore vary considerably. In relation to accuracy and repeatability, existing orthopaedic surgery techniques therefore leave considerable scope for improvement.

In the surgical theatre, robots can assist in many ways. They can help the surgical team to avoid X-ray hazard; they can hold instruments steadily for longer periods than can the human; they can obtain access to difficult positions. For these applications, robots must be designed a-priori to meet different constraints than those imposed by industrial robots. Patient safety is the primary consideration, with the need to avoid obstructing or harming the theatre staff a close second.

Minimal access surgery (MAS) is a technique that does not require a large access wound but only a number of small openings through which the surgeon deploys a number of long slender instruments with which the surgical procedures are carried out. The trauma associated with this small opening is far less than that associated with the large wounds of open surgery. As a result, the duration of post-operative convalescence and its discomfort are both much reduced. Here robots, often teleoperated, are playing an increasingly important role.

(d) Robots for handicapped and disabled persons. An assistive robotic device, used by a disabled person, is likely to be working in an unstructured environment. The challenge of assistive robotics is to use the intelligent abilities of the disabled user, assisted by appropriate hardware and software, to interact with this unstructured environment.

An assistive robotic system may be able to benefit a person whose disabilities are such that either they have no control over their hand or arm function or have very limited strength or reach. Typical users are those with spinal cord injuries, muscular dystrophy, multiple sclerosis, cerebral palsy or motor neurone disease, to name but a few seriously debilitating conditions.

The following robot task areas have been identified:

- Eating and drinking: The robot would need to be able to handle implements such as spoons, forks and cups as well as some items of food directly.

- Personal hygiene: This might involve tasks such as washing face, hands, and cleaning teeth, as well as such simple tasks as scratching an itch.

- Work & Leisure: This will involve handling items such as CD=s, videos, remote controls, chess pieces, books, computer disks and the telephone.

- Mobility: Tasks such as opening doors and operating lift buttons.

- General: General tasks will include reaching objects from the floor or from shelves.

There is a huge potential demand for assistive robotic devices for handicapped and disabled persons. The technology is to a great extent already available. Why has the market then not started to take off? One reason is the huge investment cost, up to $50,000 for the most sophisticated systems although the cheapest ones cost less than $10,000. Another reason is that so far insurance companies and social security agencies have not sufficiently investigated the alternative social and economic gains that under certain circumstances could be realized by assistive robotic systems. What is probably also necessary is to set up a supply structure based on leasing.

A sophisticated assistive robotic device can have a technical life length of up to 15 years. As the maintenance costs are very limited, the total yearly costs ought to be in an affordable range for quite a large number of people.

In the next 10 to 15 years, there are several factors which favour the rapid growth in the market for assistive robotics systems for elderly and disabled persons:

A rapidly aging population (which implies not only more potential users of robotics systems but also relatively fewer active persons who can look after elderly and disabled people),

continuously improved cost-effectiveness of robot technology, and

economies of scale in the production of robotics systems.

* * *

The publication World Robotics 1998 - Statistics, Market Analysis, Forecasts, Case Studies and Profitability of Robot Investment is available, quoting Sales No. GV.E.98.0.25, through the usual United Nations sales agents in various countries or from the United Nations Office at Geneva (see address below), priced at US$ 120:

Sales and Marketing Section
United Nations
Palais des Nations
CH - 1211 Geneva 10, Switzerland

Phone: (+41 22) 917 26 06 / 26 12 / 26 13
Fax: (+41 22) 917 00 27
E-mail: [email protected]

For more information about the publication, please contact:

Mr. Jan Karlsson
Statistical Division
United Nations Economic Commission for Europe (UN/ECE)
Palais des Nations
CH - 1211 Geneva 10, Switzerland
Phone: (+41 22) 917 32 85
Fax: (+41 22) 917 00 40
E-mail: [email protected]

or:

International Federation of Robotics (IFR)
Box 5506
S - 114 85 Stockholm, Sweden
Phone: (+ 46 8) 782 08 43
Fax: (+ 46 8) 660 33 78