1

Alex ShikanyDirector of Market Analysis

Robotic Industries Associationashikany@robotics.org

@AlexShikany

The North American Robotics Market: 2013 Recap

2

U.S. Economy & Manufacturing

Market Overview

Robot Applications

Robot Industries

Robot Types

CRI & Automate 2015

Conclusion

Table of Contents

3

2013 Set New Records

2013 Was the Best Year Ever for Robot Shipments!

Order Units

Order Dollars

21,562

$1.338b

Robotics is becoming one of the hottest areas of interest in manufacturing in North America

Shipment Units

Shipment Dollars

22,591

$1.385b

NEW RECORD

NEW RECORD

U.S. Real Gross Domestic Product (GDP) – Year-Over-Year Percent Change

2.5%

3.5%3.1%

2.7%1.9%

‐0.3%

‐3.1%

2.4%1.8%

2.8%

1.6%

2.6%

‐4.0%

‐3.0%

‐2.0%

‐1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(p)

2014(p)

Growth continued in the U.S. economy in 2013 but weaker than initial expectations. Economists are forecasting 2.6% growth

for 2014.Source: IMF

U.S. Economy

4

30

35

40

45

50

55

60

65

Exp

ansi

onC

ontr

acti

on

2009 20112010 2012 2013

U.S. Purchasing Manager’s Index (PMI)

U.S. Manufacturing PMI was very strong in 2013, never posting a month of contraction.

Source: Markit & HSBC

U.S. Manufacturing

5

707580859095

100105

2007

 Q1

2007

 Q2

2007

 Q3

2007

 Q4

2008

 Q1

2008

 Q2

2008

 Q3

2008

 Q4

2009

 Q1

2009

 Q2

2009

 Q3

2009

 Q4

2010

 Q1

2010

 Q2

2010

 Q3

2010

 Q4

2011

 Q1

2011

 Q2

2011

 Q3

2011

 Q4

2012

 Q1

2012

 Q2

2012

 Q3

2012

 Q4

2013

 Q1

2013

 Q2

2013

 Q3

2013

 Q4

U.S. Industrial Production continued its ascent back to pre-recessionary levels throughout the year.

Index of U.S. Industrial Production (Quarterly Data – 2007 to 2013, Manufacturing Only – 2007 = 100)

2007 20092008 2010 2011 2012 2013

Source: Federal Reserve

U.S. Manufacturing

6

60

65

70

75

80

85

2007

 Q1

2007

 Q2

2007

 Q3

2007

 Q4

2008

 Q1

2008

 Q2

2008

 Q3

2008

 Q4

2009

 Q1

2009

 Q2

2009

 Q3

2009

 Q4

2010

 Q1

2010

 Q2

2010

 Q3

2010

 Q4

2011

 Q1

2011

 Q2

2011

 Q3

2011

 Q4

2012

 Q1

2012

 Q2

2012

 Q3

2012

 Q4

2013

 Q1

2013

 Q2

2013

 Q3

2013

 Q4

2007 20092008 2010 2011 2012 2013

Percent U.S. Manufacturing Capacity Utilization

U.S. Capacity Utilization also remained at healthy levels in 2013, increasing a bit toward the end of the year.

Source: Federal Reserve

U.S. Manufacturing

7

0

1,000

2,000

3,000

4,000

5,000

6,000

-1.7%

-12.0%2.9%

-10.1%-6.2% 2.2% 1.1%

-10.1%

-3.8%

-40.5%

8.6%

33.1%

26.4%

8.3%

Source: BEA

U.S. car sales continued to increase in 2013, albeit at a slower rate than 2012.

U.S. Car Sales

U.S. Manufacturing

8

9

North America as a Percent of the Worldwide Industrial Robot Market(Based on Shipped Units)

North America has represented 14% to 18% of the world market (Average = 16.0%).

Total Units Shipped

Worldwide in 2013 = 168,000

North America

Asia/Australia

Europe

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013NA Share 15.6% 18.0% 15.7% 16.5% 14.4% 14.0% 15.1% 17.1% 17.5% 16.7%

0%

20%

40%

60%

80%

100%

Unspecified

Africa

Europe

Asia Australia

South America

North America

Market Overview

10

Total Net Orders in Dollars and Units – North America

Net Orders in North America contracted in 2013 due largely to a slowdown in automotive

related orders

 ‐

 5,000

 10,000

 15,000

 20,000

 25,000

$0$200,000

$400,000$600,000$800,000

$1,000,000$1,200,000$1,400,000

$1,600,000

UN

ITS

DO

LLA

RS

(000

'S)

Dollars Units

‐22% 18% ‐16% ‐3% 48% 38% 27%

‐30% 25% ‐21% 39%‐25% 47%Unit Growth 

Rates 17%

‐10%

‐5%

Market Overview

11

Orders Broken Down by Applications in Units – Relative Share

In 2013 the most important application in percent of orders was material handling followed by spot welding

and arc welding.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013

Parts, Service & Training

Inspection

Material Removal

Material Handling

Assembly

Coating & Dispensing

Arc Welding

Spot Welding

Material Handling

Arc Welding

Spot Welding

2013 = 49%

2013 = 14%

2013 = 21%

Robot Applications

Great Recession

12

Orders Broken Down by Applications in Units – Major Trends

In 2012, welding increased in importance as the focus of North American robotics companies while material handling

decreased. The reverse is true for 2013.

Material Handling and Welding as Percent of Total Orders

2005 2006 2007 2008 2009 2010 2011 2012 2013Total Welding 45.3% 37.3% 44.3% 36.3% 40.1% 34.2% 38.2% 46.8% 35.5%Material Handling 42.2% 43.9% 40.7% 45.9% 47.6% 52.5% 50.1% 41.7% 49.5%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

Robot Applications

13

Orders Broken Down by Industry in Units – Relative Share

Automotive and Automotive Components are the Most Important Industries in Terms of Robot Orders.

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013Automotive Automotive Components

Food & Consumer Goods Semiconductor & Electronics/Photonics

Plastics & Rubber Life Sciences/Pharmaceutical/Biomedical

Metals All Other Industries

29%

28%

Automotive Components

Automotive

Robot Industries

14

Orders Broken Down by Industry in Units – Major Trends

Since 2005, automotive related orders have declined in percentage of total orders while other industries such as life

sciences, semiconductors, and metals have grown.

0%

20%

40%

60%

80%

100%

2005 2007 2009 2011 2013

Automotive Related Non‐Automotive Related

30.4%

69.6%

43.4%

56.6%

 ‐ 2,000 4,000 6,000 8,000

 10,000 12,000 14,000 16,000

2005 2007 2009 2011 2013

Automotive Related Non‐Automotive Related

Great Recession

Revitalization of U.S. Auto

Industry

Robot Industries

15

Orders Broken Down by Industry in Units – Growth Rates

Automotive components and metals are growing fastest on average post-Great Recession.

Industry 2010 2011 2012 2013 AverageAutomotive 19% 59% 47% -30% 24%Automotive Components 63% 77% 21% -3% 40%Food & Consumer Goods 47% -7% -6% 67% 25%Semiconductor & Electronics/ Photonics 66% 24% -18% 32% 26%Plastics & Rubber 57% 2% -6% 35% 22%Life Sciences/Pharma/ Biomedical 26% 6% 3% 73% 27%Metals 90% 56% 12% 1% 40%All Other Industries 29% 37% -17% 5% 14%Total 39% 47% 17% -5% 25%

Robot Industries

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2011 2012 2013Cartesian/Linear/Gantry Robots Cylindrical Robots SCARA Robots Articulated Robots Others

16

Orders Broken Down by Type of Robots in Units – Relative Share

Articulated robots continue to account for the largest share of robots sold in North America.

Articulated Robots (2013 = 86%)

Robot Types

17

Orders Broken Down by Type of Robots in Units – Growth Rates

Orders for all types of robots have grown at a healthy average since the Great Recession. In 2013, the Other

category grew the most, likely due to an increase in demand for Delta type robots.

Robot Type 2010 2011 2012 2013 Average

Cartesian/Linear/ Gantry Robots 196% -82% 16% -30% 25%

Cylindrical Robots N/A N/A N/A N/A N/A

SCARA Robots 69% 46% -7% 49% 39%

Articulated Robots 37% 54% 19% -11% 25%

Others -35% 55% 3% 187% 53%

Total 39% 47% 17% -5% 25%

Robot Types

18

What to Expect in 2014

 ‐

 5,000

 10,000

 15,000

 20,000

 25,000

$0$200,000$400,000

$600,000$800,000

$1,000,000

$1,200,000$1,400,000

$1,600,000

UN

ITS

DO

LLA

RS

(000

'S)

Dollars Units

U.S. Economy to GrowManufacturing Remains StrongAutomotive is Cyclical +4%

Robot Orders in North America (2014 forecasted)

19

Alex ShikanyDirector of Market Analysis900 Victors Way, Suite 140Ann Arbor, MI 48108, USA

Phone: (734) 994-6088

Email: ashikany@robotics.org

Twitter: @AlexShikany

Web: www.robotics.org

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