China's Industrial Robot Sales Stumble for First Time in Five Years Amidst Weakening Demand
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China's industrial robot sales are projected to decline for the first time in five years, signaling a slowdown in the manufacturing sector, according to a new report by market consultancy Shenzhen Gaogong Industrial Institute (GGII), as reported by the South China Morning Post.
The institute estimates that China will see approximately 300,000 industrial robot deliveries in 2023, representing a 5% decrease from the previous year. This downturn is attributed to "obviously tightening demand" from manufacturers, particularly in the automotive and renewable energy sectors, as companies navigate profitability challenges and scale back fixed-asset investments.
This marks a significant shift from previous years, as China's industrial robot sales have consistently grown since 2018. GGII had initially forecast record sales of 320,000 units for 2023.
The report paints a picture of intensifying competition within the industry, stating that "industrial robot manufacturers are experiencing a test of survival." This fierce competition, driven by sluggish demand, has triggered a price war among manufacturers.
The slowdown in robot sales reflects broader economic headwinds facing China, including weakening global demand, rising inflation, and increasing manufacturing costs. As companies prioritize profitability, investment in automation technologies like industrial robots may be facing greater scrutiny and delayed deployment.
The impact of this downturn extends beyond the robotics industry, potentially affecting broader technological innovation and the pace of automation across various sectors within the Chinese economy.