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AI to boost industrial robotics growth, but manufacturers may benefit less than <a href="https://myappsplus.com/monetizing-an-ai-portfolio-without-confusing-your-customers/” title=”Monetizing an AI Portfolio Without Confusing Your Customers”>customers: S&P Global
Artificial intelligence is anticipated to significantly enhance the long-term prospects of industrial robotics and automation. Manufacturers may experience reduced benefits compared to their customers, as equipment utilization increases. Global industrial robot installations have increased markedly, driven by labour shortages and productivity needs. AI improvements are projected to further expand automation capabilities before achieving full autonomy. However, the overall impact on manufacturers’ profits remains uncertain due to competitive market dynamics.
ANI
New Delhi [India]: Artificial intelligence (AI) is expected to boost the long-term growth prospects of industrial robotics, however, manufacturers may benefit “less” than their customers, as per a report by S&P Global.
The report noted that AI could make automation increasingly economical for industrial processes requiring frequent production changes or extensive programming, potentially expanding the market for industrial robots.
“However, robot manufacturers may see less benefit than their customers; greater equipment flexibility and utilization could partly offset demand for additional robots, while software providers may capture a share of the resulting economic value,” it said.
Citing data from the International Federation of Robotics (IFR), the report highlighted that global industrial robot installations increased 11 per cent to a record 603,000 units in 2025, while the number of robots in operation rose 9 per cent to approximately 5.1 million units.
Demand for industrial robots continues to be supported by labour shortages, the need for higher productivity and investments in manufacturing, although growth varies across regions and industries.
The report further noted that AI-driven improvements in robot programming, simulation and application engineering are expected to emerge before fully autonomous robotic capabilities become commercially viable on a large scale.
“AI is poised to expand industrial robotics’ addressable market, particularly where programming complexity and process variability have constrained automation,” it said.
However, S&P Global cautioned that greater efficiency could allow manufacturers to automate more tasks using existing equipment, potentially limiting demand for additional robots despite wider adoption of automation.
It noted that while lower deployment costs could open new markets and support additional robot installations, the overall impact on equipment sales and manufacturers’ revenues remains uncertain.
AI could improve the profitability of existing industrial operations without generating additional equipment demand. Conversely, it could lead to higher robot installations without significantly improving manufacturers’ profit margins if customers and competing suppliers capture much of the economic value.
“We therefore do not assume that rising AI adoption will necessarily translate into higher profitability across the industry,” it said.
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