- The industrial automation sector is witnessing a pause in robot shipments this year as customers optimize their operations with the factory and warehouse robots they’ve already bought.
- Artificial intelligence is expected to boost sales of industrial robots in the near future.
- Companies shipped a record 44,303 industrial robots to U.S. manufacturers last year, according to the International Federation of Robotics.
Industrial automation is taking a breather after a record year, but AI is set to drive future growth. This article explores the current state of the sector and the role of AI in its future.
Record Shipments in Industrial Automation
Last year, companies shipped a record 44,303 industrial robots to U.S. manufacturers, as reported by the International Federation of Robotics. The automotive sector was the biggest buyer, accounting for 33% of all industrial robot installations in the U.S. The electrical and electronics sector followed, accounting for 12% of all industrial robots installed in the U.S. manufacturing industry.
Slowdown in Robot Installations Expected
Despite the record shipments, a slowdown is expected this year. Jeff Burnstein, president of the Association for Advancing Automation (A3), attributes this to a 30% decline in robot purchases in North America last year after record orders in 2021 and 2022. However, Burnstein remains optimistic about the future of automation due to trends such as worker shortages and the need for companies to improve the speed and efficiency of their operations.
Artificial Intelligence: The Future of Automation
Artificial intelligence is playing an increasing role in automation technologies. According to Burnstein, AI is making robots smarter and able to perform more tasks. This functionality, combined with advances in machine vision and motion control, is expected to enable robots to perform better and take on new tasks.
Investment Opportunities in Factory Automation
Investors should consider the growth of industrial robots, says Taylor Krystkowiak, vice president and investment strategist at Themes ETFs. As the capabilities of AI continue to expand exponentially, Krystkowiak expects to see a corresponding expansion in the capabilities of automation and robotics that can execute ever more complicated tasks.
Conclusion
While the industrial automation sector is currently experiencing a pause, the future looks bright with AI expected to drive growth. As robots become smarter and capable of performing more tasks, the sector presents promising investment opportunities.
