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Robotics firms lag behind overseas competition

By Shi Jing in Shanghai (China Daily) Updated: 2014-08-07 07:14

Despite the rapid growth of the Chinese robotics industry, Chinese robot manufacturers still have a long way to go before they have a fair share in the market along with their overseas competitors.

According to International Federation of Robotics, overseas robots manufacturers sold more than 27,000 units of robots last year, up 20 percent. Domestic companies sold only 9,600, but it was three times the number sold in 2012.

As the central government calls for an industrial restructuring and upgrading, China Consulting Research Institute predicted that the Chinese robotics industry will maintain an average 20 percent annual growth rate in the next three years.

Recognizing the rising demand, the international key players have long mapped out the Chinese market. The four leading companies - KUKA Robotics Corp from Germany, FANUC from Japan, ABB Group based in Switzerland and Yaskawa Electric Corp from Japan - have a long and extensive presence in the Chinese market, setting up subsidiaries, joint ventures and research centers.

Not only are the market leaders attaching more importance to the Chinese market but also the latecomers from overseas would like to have a share in the lucrative market.

Universal Robots, a 9-year-old manufacturer of small flexible industrial robot arms from Denmark, entered the Chinese market three years ago by seeking help from local dealers before setting up a subsidiary in Shanghai last year.

"Although we are relatively new to the market and still building our sales network and seeking more resources, we have great confidence in the market as the entire robotics industry is developing rapidly, providing plenty of opportunities," said Yang Zhenwu, commercial director of Universal Robots (Shanghai) Co Ltd.

Aldebaran, a French robotics company well known for its autonomous, programmable humanoid robots, entered the Chinese market three years ago.

Qi Jianwei, sales manager of Aldebaran Robotics China South Area, said the company has been seeking cooperation with local educational organizations to apply its 100,000 yuan ($16,224) humanoid robot.

Qi said: "We are not totally open to all inquiries at present because we are still studying the local market. It is common knowledge that the Chinese robotics market is quite promising, with government policies adopted and all kinds of robotics industrial parks set up all over China. But for Chinese robotics companies, they still have a long way to go before a complete industry is set up."

Li Boji, assistant managing director of Guangzhou-based GSK CNC Equipment Co Ltd, agrees that Chinese robot manufacturers have been making great strides.

As one of the first companies in China to enter the robotics industry, the company has owned some intellectual property rights in terms of producing Chinese robots with three years of hard work.

"It takes a long time for Chinese users to have a better understanding of the robotics industry. They need some time before they make the jump from investing just a little bit to becoming a generous spender on robots," he said.

But Li Xiaojia, director of the statistics department of China Robot Industry Alliance, said it is too early for Chinese robot manufacturers to be disheartened.

"There is no direct competition between domestic and overseas companies. Robots from overseas are now mostly applied in high-end manufacturing processes or products, while the domestic robot manufacturers are trying hard to take up the extensive manufacturing industry," she said.

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