In the industrial robot industry, the reliance on imported core components has long constrained China's growth in this sector. However, local enterprises that have successfully developed these critical parts now possess a solid foundation for large-scale production and hold competitive advantages. Recently, key technologies in core components have seen significant progress, with some already entering small-scale industrial applications. Looking ahead, the trend of localizing robot parts is expected to accelerate.
In recent years, global industrial robot giants have expanded their presence in China, establishing factories and capturing market shares. For instance, ABB is setting up a Robot Application Center in Chongqing, while Yaskawa Electric has started construction on its third factory in Wujin National High-tech Zone. Kuka has also announced further investments in China, aiming to build a second-phase plant to boost production capacity. These moves put pressure on domestic manufacturers and highlight the longstanding challenge of relying on foreign components.
"Made in China 2025" is a strategic initiative aimed at transforming China from a manufacturing giant into a global leader in advanced manufacturing. Launched in 2015, this plan outlines a comprehensive roadmap for upgrading China’s manufacturing industry through technological innovation and intelligent development.
The journey toward smart manufacturing is not immediate but a gradual process, evolving from automation and connectivity to full intelligence. Industrial robots play a crucial role in this transformation, as they are essential for achieving intelligent equipment and systems.
An industrial robot typically consists of four main parts: reducer, servo motor, controller, and the body. Together, the first three components account for about 75% of the total cost, yet they are largely controlled by foreign firms. This dependency limits the bargaining power of Chinese manufacturers, often leading to higher costs compared to imported machines.
For example, precision reducers—accounting for the highest cost—are dominated by Japanese companies. Foreign robots can cost between $1,500 and $20,000 for a speed reducer, while the same component in domestic models can cost around $30,000, nearly double. In the case of servo motors, domestic companies hold less than 10% of the market, and over 80% of drives are still imported from Europe, the U.S., and Japan.
Domestic components face challenges such as low market share and issues with quality and reliability. However, recent breakthroughs in key technologies are showing promise. According to Zhao Jie, a professor at Harbin Institute of Technology, some core components have already achieved small-scale industrial applications. For instance, harmonic reducers are now being produced at a rate of 80,000 units annually, and RV reducers have enabled the production of nearly 20,000 domestically branded robots, significantly reducing import dependence.
China is making strides in core robotic technologies as part of its broader strategy. Domestic manufacturers have overcome challenges in key components like reducers and servo motors, and controllers are beginning to be localized. The shift toward self-reliance in core components is becoming more evident.
Meanwhile, the market share of domestic industrial robots has been steadily rising. More Chinese robots are now using locally made controllers and other components, and the capability in intelligent control systems and application development continues to improve. Additionally, as procurement scales up and enterprises evolve, leading companies in downstream sectors are accelerating R&D and internal robot adoption.
Under the new economic normal, smart manufacturing is driving supply-side reforms and reshaping the manufacturing landscape. For businesses, seizing the opportunity in industrial robotics requires domestic production of components and mass production breakthroughs. Companies with strong capabilities in component development, manufacturing, and system integration are well-positioned to compete and thrive.
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