Keywords
Citation
(2006), "Robotics opportunities abound in European SME, consumer, and life sciences markets, says Frost", Industrial Robot, Vol. 33 No. 6. https://doi.org/10.1108/ir.2006.04933fab.005
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited
Robotics opportunities abound in European SME, consumer, and life sciences markets, says Frost
Robotics opportunities abound in European SME, consumer, and life sciences markets, says Frost
Keywords: Robotics, Market research
Robotics manufacturers can offset softening market demand from European automotive OEMs with business opportunities in the European small and medium sized enterprise (SME), food and beverage, and life sciences markets, according to Frost and Sullivan. The business growth consultancy says these traditionally conservative markets increasingly present robotics companies with strong growth potential.
Frost and Sullivan says, given the decreasing demand from automotive OEMs in 2003 and 2004, robot manufacturers have to stop depending on this sector for consistent revenues. Niche market participants should take a more generalist approach and look to developing markets for regaining profits. “The automotive sector has traditionally been the biggest user of flexible automation in manufacturing, and hence most robot manufacturers have a presence in this sector” said Frost and Sullivan Research Analyst Kashyap Chandrasekar. “Intense competition and price pressures from OEMs and the slump in demand are making a niche automotive approach highly unfavourable.”
The booming packaging industry specifically in respect to the consumer markets offers immense potential for robotics. Changing product types and varying product volumes necessitate flexible automation solutions. Manufacturers in consumer markets are opening up to the idea of investing in robots to reduce costs and maintain quality, thereby boosting sales of robotics in the packaging market.
Most SMEs cannot afford huge investments in flexible automation, and the need for flexibility is greatest among SMEs that have to constantly cope with changing demands of end- users. In the short run, the success of robot manufacturers depends on their efforts to offer reliable and inexpensive robotic solutions to SMEs.
Frost and Sullivan recommendations
Niche participants have immense technical know-how, successful pricing strategies and experience in competing globally with the generalist participants in the automotive sector. Widening their end-user spectrum will be profitable in the near future and a necessity in the long run.
Generalist participants should focus their efforts on taking robotic materials handling solution to the high potential SMEs market.
Frost and Sullivan finds that European Robotics for Materials Handling Markets earned revenue of $ 762.3 million in 2004 and estimates to reach $1.28 billion in 2012.
About the market research study
Frost and Sullivan's analysis of the European Robotics for Materials Handling Markets is part of its Robotics and Materials Handling Subscription, which also includes research in the following markets: North American Packaging Machinery Market, European Industrial Vision Systems, Emerging Robotic Technologies and, Robotic Automation: Industry Impact Research Service. All research included in subscriptions provide detailed market opportunities and industry trends. All research is evaluated following extensive interviews with market participants. Contact Frost for more information.