AI to Supercharge Industrial Robotics, But Will Manufacturers Miss Out?
S&P Global reveals how AI will expand the industrial robotics market, though robot manufacturers might gain less than their customers.
The landscape of global manufacturing is on the brink of a massive shift as AI industrial robotics growth gains momentum. According to a recent report by S&P Global, artificial intelligence is set to significantly enhance the long-term prospects of industrial robotics, making automation more accessible and economical than ever before.
The AI Advantage: Breaking Barriers in Automation
For years, certain industrial processes remained manual because they required too many frequent production changes or overly complex programming. AI is changing that narrative. The report suggests that AI will make automation viable for tasks that were previously too volatile or intricate to automate.
By simplifying robot programming, enhancing simulations, and refining application engineering, AI is expanding the "addressable market" for robotics. This means industries that once found robots too rigid or expensive to program can now integrate them into their workflows.
The Paradox: Customers Win, Manufacturers Might Struggle
While the outlook for the industry is positive, S&P Global highlights a surprising twist: the companies using the robots may benefit far more than the companies making them.
The report points out a potential "efficiency trap" for robot manufacturers:
- Better Utilization: As AI makes existing robots more flexible and efficient, companies might be able to do more with the machines they already own, potentially reducing the need to buy new hardware.
- Software Dominance: A significant portion of the economic value created by AI may be captured by software providers rather than hardware manufacturers.
- Margin Pressure: Even if the number of robot installations increases, the profit margins for manufacturers might not rise if the cost savings are absorbed by the customers or competing suppliers.
"We therefore do not assume that rising AI adoption will necessarily translate into higher profitability across the industry," the report cautions.
Robotics by the Numbers: A Record-Breaking Surge
Despite the uncertainty regarding manufacturer profits, the actual adoption of robotics is skyrocketing. Citing data from the International Federation of Robotics (IFR), the report reveals staggering growth figures:
- New Installations: Global industrial robot installations jumped 11 per cent in 2025, hitting a record 603,000 units.
- Total Fleet: The total number of robots currently in operation has risen by 9 per cent, reaching approximately 5.1 million units.
What is Driving the Demand?
The surge in robotics isn't just about the allure of AI; it is a response to critical global pressures. The report identifies three primary drivers fueling this growth:
- Labor Shortages: A dwindling workforce in key manufacturing sectors is forcing companies to turn to automation.
- Productivity Needs: The relentless drive for higher output and precision.
- Manufacturing Investment: A general increase in capital expenditure toward modernizing factories.
The Road to Full Autonomy
While the dream of fully autonomous robots is the ultimate goal, S&P Global notes that we aren't quite there yet. Before large-scale commercial viability for fully autonomous systems is achieved, the industry will first see a wave of AI-driven improvements in how robots are programmed and simulated. These incremental leaps are what will first open the doors to new markets and lower deployment costs.