Universal Robots, a prominent name in the field of collaborative robot arms or 'cobots,' is making a significant move to enhance its market presence in China, the world's largest market for industrial robots. The Denmark-headquartered company is set to open a production facility in Nantong, China, becoming its first overseas production site. This move marks a strategic effort to tap into the burgeoning demand for automation solutions in China.
The decision to establish a manufacturing base in China is aligned with Universal Robots’ recent announcement that it will be introducing two new robot models exclusively for the Chinese market. These models, named UR7e and UR12e, are specifically engineered to serve the needs of China's automotive, electronics, and metal & machinery industries. According to a statement to The Robot Report, the UR7e will feature a 7.5 kg (16.5 lb.) payload with a reach of 850 mm (33.4 in.), while the UR12e will support a 12.5 kg (27.5 lb.) payload and a reach of 1,300 mm (51.1 in.).
In providing these new models, Universal Robots is responding to the growing demand within China for advanced automation technologies, a trend underlined by the International Federation of Robotics (IFR). In 2023, China accounted for a staggering 51% of global industrial robot installations with 276,288 units. The IFR also foresees continued growth potential in the Chinese market, predicting an average annual growth rate of 5% to 10% until 2027.
Kim Povlsen, president of Universal Robots, expressed the strategic importance of extending production capabilities to China, which signifies not just a geographical expansion but also a deeper penetration into a critical market. “Our expansion into China aligns with our mission of making automation accessible to everyone,” Povlsen stated, highlighting Denmark’s culture of innovation as a key factor fueling the company’s global ambitions.
China’s manufacturing landscape is already heavily automated, with a robot density of 470 robots per 10,000 employees in 2023. It has seen substantial investment in automation technologies and is now the third largest globally in terms of robot density, trailing only the Republic of Korea and Singapore. This growing automation trend and future labor challenges position China as a critical frontier for robotics companies.
However, Universal Robots is entering a competitive market space. Domestic manufacturers such as AUBO Robotics, Jaka Robots, and Siasun already have a stake in China’s burgeoning cobot industry. Despite this competition, Universal Robots seeks to leverage its experience and technological prowess to carve out a significant market share.
In 2023, Universal Robots reported revenues of $304 million, a slight decline from the previous year’s record revenue. Owned by Teradyne, a leader in automated testing equipment, Universal Robots sees its penetration of the collaborative robotics market as under 5%, suggesting significant potential for expansion.
Beyond cobots, Teradyne's interests in autonomous mobile robots (AMRs) through its subsidiary, Mobile Industrial Robots (MiR), highlight a concerted effort to broaden its automation solutions offerings globally.
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