Robots march into China's factories

A technician in Harbin, capital of Heilongjiang province, explains to children how a robot works. About 36,560 industrial robots were sold in China last year, up 60 percent from 2012. Liu Yang / For China Daily

China has overtaken Japan as the largest buyer of industrial robots, according to a trade report.

One in five robots sold globally in 2013 was purchased in China, as surging labor costs forced it to speed up productivity via automation, according to the International Federation of Robotics, an industry group based in Germany.

About 36,560 industrial robots were sold in China last year, up 60 percent from 2012, said the IFR report. Japan, which had long taken first place in purchases of industrial robots, accounted for 26,015 units in 2013, followed by 23,679 in the United States.

The IFR classifies robots into two categories: industrial and service. Industrial robots are used to automate manufacturing processes, and the market last year was worth $8.5 billion, the federation said. The service sector accounted for $636 million in robot sales.

"China has the fastest-growing robot market. In a few years, China will be significantly larger than the second- and third-largest robot markets," Per Vegard Nerseth, head of robotics for Swiss engineering group ABB Ltd, told the Financial Times.

Robot sales in China soared 36 percent on average from 2008 to 2013, according to the IFR, as the automation boom among Chinese manufacturers presented tremendous opportunities for robot makers.

Sales in China reached 2 billion yuan ($324 million) last year for German robot manufacturer KUKA AG, which accounted for one-fifth of its overall revenue, said Chief Executive Officer Till Reuter. He said that urbanization, which enables older, rural households to enjoy a modern lifestyle, generates huge demand for domestic robots.

Strong investment in automation will continue to increase productivity and achieve more environmentally friendly production processes, said Sun Zhiqiang, managing director of Guangdong Risong Electrical Equipment Group.

China has vast growth potential for robots. Compared with highly automated countries such as Japan, South Korea and Germany, with robot densities in the manufacturing industry ranging from 270 to 400 industrial robots per 10,000 employees, the density in China is relatively low at about 20.

To reach comparable levels of robot density, about 1 million new robots would have to be activated in the coming years in China, the IFR report said.

Demand is being driven in part by Chinese original equipment manufacturers, notably from the vehicle sector. Reuters had reported earlier that companies such as Great Wall Motors Co Ltd and Geely Automobile Holdings Ltd could lead the next surge in automation

In the long run, further growth in China will be achieved as technology opens up new industries to the use of robots, said IFR President Arturo Baroncelli.

China still relies heavily on imported robots. From 2014 to 2016, robot sales by foreign producers will gain momentum and increase by 15 percent every year, reaching about 38,000 units in 2016, according to the IFR report.

Domestic companies still can't meet international standards in critical robot sectors, such as motors, bearings, reducers, casting and software development, Sun said.