Market Trends of India Digital Transformation Industry
Industrial Robotics is Expected to Occupy the Largest Market Share
- The industrial robotics segment consists of SCARA robots, articulated robots, cartesian robots, piece picking robots, collaborative industry robots (cobots), parallel robots, etc. The adoption of industrial robots is proliferating in most end-users and applications as these robots enhance speed, flexibility, accuracy, reduced product damage, and the efficiency of operations.
- In manufacturing industries, industrial robots are generally used for the fabrication, finishing, transfer, and assembly of parts. In material handling industries, where finished products are prepared for distribution, these robots are used for picking, sorting, packaging, and palletizing of products.
- In a country such as India, where there is a significant trend for startups and entrepreneurship, robotics and automation can play an important role in the growth of the country. Additionally, the Indian government has been promoting the use of automation and robotics through different initiatives such as the ‘Make in India’ campaign and the National Robotics Initiative.
- Moreover, in November 2022, Reliance-backed robotics company Addverb Technologies announced that it would start production at its second manufacturing facility in Greater Noida in the next three months. The company produces fixed and flexible industrial robots, which are used for automated storage and retrieval systems in factories etc.
- The use of collaborative robots (cobots) is rapidly increasing as they are utilizing advanced software, sensors, and end-of-arm tooling that safely and quickly respond to the changes in the environment and assist in improving efficiency.
- The collaborative robots in the market are also becoming more affordable, easier to use, and less simple for training purposes. This primarily offers multiple options to organizations, which increases the drive and the demand for these robots.
- In February 2023, Svaya Robotics unveiled India's inaugural line of collaborative robots, boasting a distinct 'Made in India' stamp. These robots feature cutting-edge motion control and precision encoders, guaranteeing a remarkable 0.05 mm repeatability and consistent high accuracy. Svaya's lineup currently comprises five models, each equipped with digital twin technology and AI prowess. Additionally, the robots enable users to be fitted with a multitude of third-party end-effectors enabling diverse applications.
Understand The Key Trends Shaping This Market
Download PDF
Manufacturing is Expected to be the Fastest Growing Market
- Manufacturing already contributes significantly to the Indian economy, making over 17% of its GDP and employing over 27 million people. As government incentives, business tax cuts, and infrastructure spending encourage capital investment in manufacturing, India is also in a position to become the global manufacturing hub. Therefore, the increasing emphasis on increasing process efficiency and lowering the cost of production across multiple industrial verticals are expected to drive the market in the future.
- According to the Ministry of Statistics and Programme implementation, manufacturing production in India increased 5.7% year-over-year in May 2023, picking up speed from a growth of 4.9% in the previous month and above market estimates of 1.8%. This growth was attributed to the contributions of several business sectors. Due to market demand being driven by technological advancements, force/torque sensors, and end-effectors, manufacturers are heavily automating these processes with robotics.
- The overall ecosystem has improved rapidly and has also become affordable for manufacturers to implement innovative solutions and is expected to drive demand and adoption among the supply chain partners of big manufacturers. With the growth of the Indian manufacturing sector, additional competitive advantages in productivity, profitability, safety, and long-term manufacturing processes have become necessary. Due to the 'Make in India' push and the easing of FDI policies in the manufacturing sector across several industries, the notion of semi-knock-down production and domestic manufacture is projected to grow.
- According to the 8th annual "State of Smart Manufacturing Report" by Rockwell Automation, India has the most manufacturing companies that invest in technology. India's manufacturers are spending more on technology than the typical manufacturer worldwide (23%), spending 35% of their operating budgets on it. The survey also reveals that smart manufacturing is becoming a more major driver of digital transformation for Indian firms, which is anticipated to result in a considerable increase in demand for the market digital transformation in India.
- IBEF predicts that the Indian e-commerce market will increase from USD 38.5 billion in 2017 to USD 200 billion by 2026. It is anticipated that among Indian consumers with access to the internet, there will be a considerable demand for foreign goods and brands, which would lead to a significant increase in the need for highly automated warehouses to manage the rising number of packages entering the country. The need for automation solutions is anticipated to remain strong in the upcoming years due to increasing investments in expanding warehousing capabilities.
- Moreover, India's industrial automation market will grow in the future with rapid development in Artificial Intelligence (AI) and Robotics Technology (RT); automation is revolutionizing the modern world, as robots can perform a slew of functions without considerable human intervention. AI and RT are expected to double in India in the next 3 to 5 years, and every organization must be ready to embrace the change. Innovative solution for demanding automation tasks and complex robot applications implemented is increasing, which will also help the market grow.
- Conclusively, considering the immense growth of the various end-user industries and the subsequent increasing adoption of automation solutions at various levels will propel the growth of the market over the next five years.
