The robotics market - France

1.2 Global market dominated by the Asia-Pacific region

Overall, the robotics market is expected to almost triple in size between **** and ****, rising from $**.* billion to $**.* billion over this period, representing a CAGR of +**.**%. This growth is mainly based on increasing demand for automation in various industries. Service robots in particular are expected to experience strong growth in the coming years, driven by the rise of logistics robot systems. [***]

globally, Asia-Pacific leads the way with a market share of **.*% and is expected to maintain its leading position, while Europe and the Americas both rank second at similar levels. However, as a result of greater investment by the Americans, they have been widening the gap slightly since ****. Markets in the rest of the world should see the highest compound annual growth rate (***), but they will not yet play a major role.

robotics sales trends World, ****-****, US$ billion Source: ****

1.3 Key figures for the French market

The French market is still a long way from the volumes seen in Asian countries, but nevertheless seems to have the wind in its sails. It represents the *e european market for industrial robot sales, behind Italy and Germany, according to iFR. In ****, the French industrial robot inventory grew by **% to **,*** units, and sales by **% to *,***. On average, between **** and ****, industrial robot installations in France grew by **% per year.

robotics sales trend France, ****-****, millions of euros Source: ****

The World Robotics **** annual executive report provides an insight into the breakdown of sales by product type. Of a total of $**.* billion in sales in **** worldwide, $** billion was generated by industrial robotics, and $*.* billion by service robotics[***].

Taking the breakdown of sales by segment in **** worldwide, as well as the ratios between volume sales and value sales by segment, and based on the sales volume in the industrial robotics sector given by IFR for the same year (***), our estimate of the French robotics market is *** million euros in ****.

if we take this order of magnitude and the figure of **% growth in industrial robot sales, the sector's driving force, over the period, we can estimate sales of *** million euros in ****.

1.4 Consequences of Covid-19

the decline in robot sales in France in **** is a direct consequence of the general drop in investment in French industry, caused by the Covid-** crisis. Faced with the health crisis, French companies have reduced their margins by -**% in ****. This explains their reluctance to invest, resulting in a decline in French productive investment of -*.*% in ****.

In addition, the crisis has hit hardest the two industries with the greatest demand for robots, namely the automotive and electrical/electronics sectors. This is against a backdrop of trade tensions between China and the USA, the main importers of robots.

However, some sectors managed to maintain their investments during the crisis and boosted robot sales in France:

Logistics ; Medical ; Chemicals Pharmaceuticals; Food processing.

This increase in robot sales is directly linked to :

Automation of production workstations; On-line test and measurement operations; Palletizing; Packaging; Pick and place.

On the other hand, some sectors have been hard hit by the crisis, which explains the contraction in sales to these players. This is particularly significant in the transport sector: after substantial investments in ****, automakers have endorsed a **% drop in the number of their annual installations. As for air and rail transport, their robot purchases are down ...

2.1 Demand for industrial robotics

On the industrial market, France ranks *th worldwide and*rd in Europe behind Italy and Germany, in terms of operational robots, with *** robots per **,*** employees in **** [***].

Industrial robot sales volume France, ****-****, number of units Source: ****

After years of strong growth, robotics sales in industry declined by **% in ****. This downturn is cyclical, however, and is linked to the Covid-** crisis, which led to a drop in investment. The sector should return to strong growth as soon as the crisis is over.

The French industry with the highest demand for robots is the automotive sector, with **% of installations in ****. In fact, over the ****-**** period,the automotive and electrical and electronics industries alone accounted for almost */* of the global market.

2.2 Professional service robotics, a dynamic segment

The market for professional service robots grew by **% in ****, with worldwide sales of $*.* billion and ***,*** units sold [***].

The IFR report also highlights several trends in this segment:

Sales of autonomous mobile robots(***) and delivery robots grew by **%, exceeding one billion dollars in value; Outdoor transport robots are becoming increasingly popular, as part of the drive to deliver the "last mile"; Sales of professional cleaning robots jumped by **%, with **,*** units sold. More than ** companies have developed disinfection robots to meet post-Covid hygiene standards; Sales of medical robots accounted for **% of total sales in the professional service robotics segment. They were driven in particular by demand for robotic surgical devices, the most expensive in the segment, as well as robots for rehabilitation and non-invasive therapy.

Breakdown of service robots by application World, ****-****, thousands of units Source: ****

2.3 Demand for service robotics for personal use

In ****, consumer service robots generated sales up **% on ****, reaching US$*.* billion . Most ofthese robots are focused on the domesticdomestic tasks**.* million units were sold in ****, representing sales of $*.* billion. These includecleaning robotsincludingvacuum cleanerswith sales of US$*.* billion. Thelawn-mowing robotsare expected to grow by more than **% a year over the next few years [***].

Global market size for personal service robots World, ****, US$ billion Source: ****

This demand is driven by major demographic trends:

French households are spending less time on domestic chores: the time French people devote to domestic chores is dropping by more than an hour (***); An aging population: **.*% of the French population was over ** in ****, *.*% more than in ****. Domestic robots are helping to meet the growing need for assistance for the elderly in their own homes.

Furthermore, while industrial robotics now account for the majority of the market, the rise of service robotics, with its many applications, represents a major market trend. Already present in the elderly and disabled care sectors, robotic systems can improve assistance through tools such as teleassistance, for example.robotic systems can improve assistance via tools such as teleassistance, prostheses, meal assistance or "companion robots" (***).

French start-up Cutii has enteredthis segment with the launch of its voice-controlled ...

2.4 Towards Industry 4.0

Artificial Intelligence, the Internet of Things, Cloud Computing and Big Data technologies , and their complementarity, will be the main technologies driving Industry *.* and the transformation of production plants. They will also increase the capabilities and use cases of robots tenfold: equipped with sensors and intelligent systems capable of analyzing a large mass of data with tenfold computing and communication power, robots will be better able to analyze their environment and react accordingly. Artificial intelligence technologies could also enable the optimization of robot fleets in warehouses, for example (***).

in this respect, the strong growth in cloud computing is acting as a catalyst for the development of Industry *.* [***]. Depending on the region, between **** and ****, the sector grew by between **% (***) .

Value of the global enterprise cloud computing market World, ****-****, in billions of euros Source: ****

The growth of AI is also a key dimension of *.*. In France, AI has gained new momentum, particularly since the report published in March **** by Cédric Villani on the main challenges and recommendations for AI in France, and could well support the rise of robotics in France, which has a rich pool of start-ups in the field.

2.5 The recent craze for cobots

Demand for cobots continues to grow, as this tool proves to be a central element of Industry *.*. What's more, cobots are taking advantage of the decline of traditional robots to win market share and establish themselves as the dynamic force to be rec koned with in the robotics market. Although the sector suffered from the Covid-** crisis, it is expected to recover rapidly, benefiting from strong international appeal.

Despite major difficulties in ****, the cobot market experienced a significant rebound in ****, and is set to experience dazzling growth over the coming decade, reaching US$*.** billion in ****, with annual growth of between **% and **%. In ****, this segment should account for **.*% of the total robot market, compared with *.*% in **** [***].

estimated sales growth in the cobot market World, ****-****, US$ million Source: ****

This success of cobots is benefiting from the dra ught caused by the slowdown in demand for industrial robots, which could already be seen before the health crisis, as worldwide robot deliveries had fallen by -**% between **** and ****. Over the same period, sales of cobots grew by +**%.

Cobots appeal for their versatility: equipped with sensors, vision systems and other innovative software, they are highly flexible and can be adapted for use in non-manufacturing industries, ...

3.1 A fast-growing market, concentrated in certain countries

The industrial robotics market is booming. The number of industrial robots installed per year is set to jump by **% between **** and ****, from *** robots installed in **** to *** in ****.

evolution of industrial robot sales World, ****-****, in thousands of units Source: ****

the market is highly centralized. It is driven by a handful of high-demand countries

**% of sales were concentrated in * countries in ****

International Federation of Robotics (***)

**% of new

deployments

pass the million mark in terms of operational units

Annual installation of industrial robots World, ****, thousands of units sold Source: ****

service robotics

be driven

domestic robots

IFR

**% were located in Europe

Breakdown of service robot manufacturers by geographic region World, ****, units Source: ****

This segment is driven by a large pool of innovative and generally young companies, which are then acquired by major robotics groups : **% of service robotics companies are start-ups according to the IFR Robot Group.

3.2 Some production considerations

Both industrial and service robots are made from the same materials, with a few exceptions. Steel, cast iron and aluminum are the main components used to build robot bases and arms, according to Madehowwhile rubber tires are the products usually used for mobile robots. Cylinders and other equipment used to move the robot generally contain hydraulic oil or pressurized air.

Production is divided into * main phases [***]:

The robot design and conception phase, to design a shape and mechanism in line with the expected uses. This phase is usually carried out in-house by the robot manufacturer itself, using specialized staff and tools. The manufacturing phase of the robot, which is broken down into several parts, including the base, arms, columns or supports. Once the materials have been sourced from raw material suppliers, manufacturing is also carried out in-house, usually by robots. The assembly phase of the robot and its various parts. A robot can contain up to *,*** different parts, including main parts, hydraulic cylinders, electrical connectors, motors... These ancillary parts are generally purchased from specialized companies, such as car manufacturers for engines.

Service robotics

France is also well placed in the service robotics segment, with *** companies and start-ups, making it the*nd ...

3.3 Distribution

Sales of industrial robots and service robots for professional use are, by definition, aimed at companies, and therefore have a distribution network specific to a B*B market. As such, most robot manufacturers are vertically integrated vertically integrated, that is, they handle the entire value chain without intermediaries, from R&D to product distribution. These players also recognize the importance of a local presence in their distribution network, which is why most of them have their own networks distribution networks in each of the countries in which they operate in each of the countries in which they operate, such as Yaskawa France.

Location of robotics players' main activities

Source: ****

The distribution of domestic robots, on the other hand, takes place in a B*C-type market, due to the characteristics of the products: low average price compared to other segments, and a mass target market, forcing manufacturers to use specialized or non-specialized distributors. Robotic vacuum cleaners, for example, can easily be purchased over the Internet via e-commerce platforms such as C Discount, or in specialized physical stores such as Darty.

3.4 The value chain

The DGE has detailed the robotics value chain. In particular, it highlights the diversity of government intervention along the chain and in the market.

Source: ****

4.1 Product classification

The typology of robotics products drawn up by the DGE highlights the types of market addressed by each segment: service robotics for personal use is a fairly mature mass market, which explains the low prices in this sector compared to others.finally, service robots for professionals are still in an experimental phase, with considerable potential for mass sales.

Source: ****

4.2 Price trends

Robotics prices vary widely according to market segment, with very expensive industrial robots on the one hand, and low-cost, mass-market domestic robots on the other. Products in each segment also vary widely according to application, but all show the same trend: a general drop in selling price.

Prices in industrial robotics

The average selling price of an industrial robot has stabilized for several years at around $**,***, down **% since **** . The price is expected to continue to fall sharply, and should be in the US$**,*** to US$**, *** range by **** according to estimates [***].

Industrial robot price trends France, ****-****, Thousands of euros Source: ****

However, some industrial robots can cost up to US$**,***. The installation of application-specific peripherals (***) must also be taken into account: the result is a robotic system with a total cost of between US$***,*** and US$***,***. Reconditioned industrial robots and components generally cost half as much as new ones [***].

Prices in service robotics

Professional service robots are undoubtedly the most expensive on the market, with high prices that can exceed a million dollars per unit. As an example, a medical robot cost an average of $***,*** in **** , according to theiFRand remains the most expensive type of robot across all markets.

Average price of ...

5.1 Regulations still under construction

Some of the regulations governing industrial robots can be likened to those governing industrial machinery, as highlighted by the european Parliament Directive ****/**/EC.

Nevertheless, the regulations still have a long way to go to answer the ethical and philosophical questions raised by robots and artificial intelligence. In ****, according to l'Humanitérobots and artificial intelligence remained objects not responsible for their actions. According to Rodolphe Gelin and Olivier Guilhem (***) are subject to the regulations of the Civil Code on liability for defective products.

In ****, the france Robot report raised questions about theeconomic and social acceptability of robots, particularly in the field of safety. The report also discusses the relationship between the object and the human being: ensuring that human privacy and dignity are always respected is seen as an imperative.

The support of public authorities in France will be decisive in the future for the robotics market, particularly to avoid the "Alderaban syndrome"in other words, French players find it difficult to industrialize their solutions due to a lack of resources, forcing them to be bought out by leading foreign companies, such as Aldebaran by the Japanese bank Softbank. However, the French company has since been acquired by Germany's United Robotics ...

5.2 Current ISO standards

ISO *****-part* (***) is still in gestation within the ad-hoc ISO working group. France, via its UNM**- Robots Industriels standardization committee, has requested that the official release be no later than mid-**** [***].

During this transitional period, the French UNM** commission decided to revise the French standard NF E**-*** (***).

These changes to the standard have had a knock-on effect. The ISO *****-* working group has proposed a revision of ISO ***** (***) certain positioning distance values for protective devices for applications on robotized sites. The modification of these minimum values in the standard is intended to facilitate the implementation of collaborative robot functionalities, while ensuring a high level of safety for operators.

ISO is also looking at the opportunity to launch international standardization work in the field of safety for non-manufacturing robotics (***).

6.1 Player segmentation

The robotics market in France is made up of different players depending on the application: while the industrial market is dominated by foreign giants, French players are well positioned in the service robotics segment.

• Yaskawa
• Mitsubishi Electric
• Fanuc
• Kuka
• SEPRO Group
• Siléane
• Intuitive Surgical
• Lely
• Naïo Technologies
• Stanley Robotics
• IRobot Corporation
• ABB Robotics
• Universal robots (Teradyne Group)
• Omron
• Aldebaran Robotics
• Blue Frog Robotics
• Effidence
• ERM Robotique & IOT
• Robosoft
• Sterela (Ermic groupe)
• Wandercraft
• Fadilec
• Niryo
• Coriolis Composite
• Osé Engineering
• eCential Robotics
• MS-Innov MINTAKA SYSTEM INNOVATION
• Boa Concept
• Scallog
• Robots Recif Technologies
• Proxinov Association
• Hellomoov Groupe - Elcom
• Delta Electronics Cobots