 Good day everyone. This is the final video in the series on industrial robotics. Today we are going to discuss industrial robot market scenario. I have included this particular topic so that the student have an idea regarding what the industrial robot market is like who makes the top number of robots, where are they sold, what are the typical exports, which industries buy these and so on. So, the learning outcomes for this session will be that the student will be able to identify major markets and producers of industrial robots obviously, identify the market scenario and future trends in industrial robots. Now, if you take a look at robot shipments by region right from 2007 to up to 2017, you will see a very distinctive upward trend. In 2007 and Asia Pacific region has been shown in blue, Europe is in red and the gray color represents the Americas. Throughout this graph, you will notice it is actually Asia which is the top producer of industrial robots. Now, that is the reason being the Japanese are one of the top manufacturers of industrial robots and China is actually one of the largest consumers of industrial robots. So, that is why the Asia Pacific region tower stands significantly higher than the others. In 2007, you would notice the sales of industrial robots stood from Asia stood around 60,000 units while Europe was around 30,000, 35,000 and Americas around 20,000. There is a significant gap even in the Asia region which you can see in 2009, which this is basically because of the financial crisis that we saw in 2008. So, that was even evident in the drop of the number of units sold, but after that soon in the industrial activity picked up and you can see a very significant trend here towards it. Europe and the Americas are relatively flat if you compared to Asia, but there is still significant growth. Now, much of this growth you will notice later on has been driven by two major domains, one obviously is automobile and the other is actually the electronics industry, especially driven by the smartphone market. Now, if you take a look at the industrial robot sales by industry, so we have the automotive industry, we have the metal industry, steel industry etc. So, which industry you can say is the largest consumer. In this case, if you take a look at the figures here, you have in 2017 which is shown in blue, you have 2016 in red and then 2015 which has been shown in grey. Remember all this data is available on IFR.org and it is very extensive and informative data. So, here it is very clear that the largest consumer is actually the automotive industry and it has been so for a very long time. In fact, the earliest applications of industrial robots were in the automotive industry. The first industrial robot which was installed was in I think in 1959 in General Motors, this next spot welding robot coming into picture around 1969. So, automotive industry has always sort of helped and assure the developments in the industrial robotics sector and they still continue to do so. A major development as you can see here is the electronics industry which is catching up. Now, here the sales are almost neck and neck. So, nearly to 125,000 units sold in each sector in 2017. It is expected that actually in the next 5 to 10 years maybe by 2025. In fact, the electronics industry would be the largest consumer of industrial robots and automotive segment will have to play second fiddle. After automotive and electronics, now you can see the metal and machinery industry in which they typically tend to group all steel, the aluminum and the ancillary. So, they form actually a second group when it comes to handle when it comes to the procurement and deployment of industrial robots. This is followed by plastics and chemicals industry, food processing industry and then all other industries have been grouped separately. This has this is nothing surprising about this. The only thing is if an older graph was available, one would clearly notice that there is a significant development in the sales of industrial robots in the electronics sector which and this information does not actually tell you what were the configurations, but it will tell you the overall trend towards the procurement of industrial robots of different configurations in these sectors. Now, one more thing which is a measure of the extent of automation is the number of robots per 10,000 employees. So, that gives us an idea how well automated these lines are and this table shows you the extent of automation for all the top countries in the world. Now, the average is around 85. So, you have 85 robots installed for every 10,000 employees that was the average figure as quoted by IFR. For Europe, the average is around 106. America is slightly less 91 and for Asia is 75. Now, surprising is today Asia is one of the largest consumers of industrial robots, but this tells you that there is even more scope for automation and more so for procurement of industrial robots. So, this is likely to grow you can say until it reaches the automation figure that which is will be around 90 to 106. Republic of Korea, one can say is one of the most automated when it comes to robot installations. They have nearly 710 robots for every 10,000 employees in the manufacturing industry. This is followed by Singapore with around 658, then you have Germany and Japan which is around 300, 322 and 323 to be precise. Japan is actually surprisingly low which we would expect Japan to be higher, but in fact is the Korea which is has more robots installed in its manufacturing sector. Then you have Sweden, Denmark, the US, Taiwan, Belgium, Italy and so on. In fact, India doesn't even feature in this particular list. China in spite of being the largest consumers of industrial robot in the past few years is still at a very low 97. So, this is expected to grow in the coming future. This will be one of the major markets. So, we expect China to reach somewhere around the 200 mark maybe by 2021 or 2023. So, this gives you an idea how the industrial robot scenario is going to spread out. In fact, if there is any sales when it comes to industrial robots in these regions, these are likely to be replacements. If some usually the lifespan is fixed at around between 10 to 15 years. So, these robots which have been installed in these countries, already developed countries will be due for replacement in the coming time in the next 5 years probably. So, you might see a little bit of activity when it comes to sales of industrial robots in the European and in Japan in probably after 2020. Now, the same data, let's discuss it in detail. One more thing that stands out is we saw the extent of industrialization that is of industrial robotics that is number of robots installed per 10,000 employees. But if you take a look at this over here, the automotive industry has significantly more robots installed than all other industries. So, in South Korea itself we have 2,435 robots every 10,000 employees in the automobile industry compared to 533 for the remaining you can say industry sector. And this trend is sort of consistent amongst all countries. So, this clearly indicates that automotive industry is the one which is which very significantly tends to go for automation first. They are the ones who pioneer the use of industrial automation equipment and this is also this is directly evident in the number of robots which are installed in the automotive sector. Now, let's interpret some of the information that we saw in the previous slides. I have given these for reference. I discussed this before. So, 80 percent of the robots in Singapore were installed in the electronics industry. So, this data was not actually available in the graphs that we seen, but the information that comes out from the report is that 80 percent of the reports in Singapore were electronics industry. The level of automation obviously is significantly higher in automotive industry than in other sectors. We saw this in the previous slide. We have also noticed that there are lot of huge investments which are piled up because of the transformation of the automotive industry towards electric vehicles and batteries and this has actually prompted the growth in South Korea. South Korea is one of the biggest suppliers of batteries for electric vehicles followed by Japan and China and these are the ones which have spurred growth of industrial robots in Korea. Now, what are the sales projections now over the next few years? Now, we have seen the data which is available to overall 381,000 that is 381,000 robots were shipped all over the world and this is expected to climb gradually to nearly 630,000 or 630,000 by the year 2021. So, we expected a very linear growth in this at a rate of 14 percent year on year till 2021. So, this is a very decent growth that one can see in industrial robot sales. Now, what is why this industrial robot market is likely to see sustained growth in the coming years? One is energy efficiency and new materials requires continuous retooling. So, that is an you can say an impetus for automation. Then rapid production and delivery of customized products at competitive prices are major incentives. Digitalization and production industry 4.0 kicking in more automation, greater emphasis on new technology that will also drive the industrial robot. You can say applications and installations. One more thing is these are getting very easier to program and use as compared to let us say 20, 30 years ago. So, in fact, now we have graphical programming ready to make models which are available for offline programming plug in place systems coming in. So, that is also reason why people are going for more and more industrial robots. Another issue is global competition which is always the case. So, more modernization grows in growing consumer markets, strong demand, all this together we can say driving the demand for industrial robots. One more thing is like I said increased demand from the electrical electronics industry because of cell phones which is somehow is not going to stop in the coming years and also the electronics industry as a corollary to the automotive industry with increased electrical application of electric powertrains will be one of the major impetus for industrial robots. The machinery and the plastics of the industry will also likely to put some demand that is probably going to remain constant. So, quite an informative you can say session we had. I definitely recommend you look up more details on this on the IFR website which has several information flyers that will be available along with significant information that is contained on the robotics association website and other similar websites on automation blogs and companies. So, with this we will call it a day and we will see further more details of robotics regarding the configuration in the coming lecture.