ABB Gu Chunyuan: Demand for Industrial Robots in China Has Not Yet Really Erupted

Reported by Hong Kong journalist Du Hongyu from Guangzhou

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Gu Chunyuan, president of ABB Group’s Asia, Middle East and Africa, believes that the application climax of industrial robots in China has not yet entered a full-scale explosion. He emphasizes that the key lies in integrating fragmented technologies into specific industries or processes tailored to China's needs. Whether it's using robots to upgrade traditional manufacturing or developing them as a new industry, this reflects China's active participation in the next wave of technological revolution.

In recent years, China’s manufacturing sector has been accelerating its transformation and upgrading. Concepts like “Machine Replacement,” “Intelligent Manufacturing,” and “Made in China 2025” have sparked widespread enthusiasm across the country.

As an expert in robotics who joined ABB in 1989 and is a member of the Royal Academy of Engineering in Sweden, Gu has advised local governments on manufacturing transformation and smart production. How does he view the current boom in industrial robotics in China?

During an interview with the 21st Century Business Herald, Gu stated that while demand for industrial robots in China is growing, it hasn't reached a full-scale eruption. He pointed out that the real challenge is how to integrate various technologies into localized, practical applications.

Large-Scale Demand in Manufacturing

"21st Century": How do you see the current boom in Chinese industrial robots?

Gu Chunyuan: In 2013, China became the world’s largest industrial robot market, surpassing Japan, and it was also the fastest-growing. There are indeed signs of gradual growth in demand.

Faced with rising labor costs and overcapacity, China's manufacturing industry urgently needs digital solutions such as industrial robots to help transform traditional factories into smart ones. SMEs, in particular, need to use these technologies to enhance competitiveness—similar to what Europe experienced in the past.

"21st Century": What do you think about the "scale effect" of industrial robot applications?

Gu Chunyuan: It mainly comes down to cost. Without a scale effect, the application costs of industrial robots can’t be controlled, and they won’t be widely adopted.

China's manufacturing scale is much larger than Europe’s, with vast application potential and large individual orders—something Europe doesn't have. This means industrial robots have greater and faster development prospects in China.

A typical example is that the 3C industry in China has surpassed the automotive industry in robot adoption. However, only part of the process has been upgraded, and many areas, especially assembly lines, still need improvement. Therefore, I believe the demand for industrial robots in China hasn’t fully erupted yet.

Industrial Robots Moving Toward Intelligence

"21st Century": What trajectory will drive the progress of industrial robotics?

Gu Chunyuan: We must avoid the misunderstanding that an industrial robot is just a machine replacing human labor. I often tell local governments that simply introducing equipment or automation lines won’t solve problems. Crude automation may raise costs and reduce profits.

The robot itself is a digital product. Every action it takes generates data, which humans can’t replicate. This data mining will push machines beyond automation, leading to integration across entire production lines and even companies, breaking information silos and improving efficiency through digitization.

Looking further ahead, the trend is toward intelligence. We are exploring AI integration in manufacturing to achieve more human substitution and improve production efficiency.

Smart Factories: The Future Trend

"21st Century": With China’s huge market, foreign companies like ABB are accelerating their layout. How do you view the competition in the Chinese market?

Gu Chunyuan: We’ve already expanded capacity three times, but it's still not enough. We plan to double our robot production in China to become the world’s largest supplier of industrial automation equipment.

We’re focusing on R&D to develop the next generation of robots and improve service differentiation. ABB aims to provide full automation solutions, not just robots. We’ve acquired a leader in mechanical automation and developed a manufacturing MES system to support smart factory solutions.

Our goal is to offer practical transformation programs for SMEs in Guangdong and expand the "application center" model to cities like Qingdao, Chongqing, and Wuhan.

"21st Century": Many domestic Chinese robot companies are rising. How do you view this trend?

Gu Chunyuan: There are many local companies doing well, especially in Guangdong. This is a positive sign driven by market demand. Although China’s domestic robot industry started late, it has the advantage of adopting the latest technologies, including AI and software, right from the start. Of course, this requires time and experience.

Some say that the lack of core components is a bottleneck, but I don’t think it’s the biggest one. China will find its own path. Whether it’s upgrading traditional manufacturing or building a new industry, it shows China’s active participation in the next technological revolution.

Editor: Li Bo, if you have any comments or suggestions, please contact:

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