Before 2018, industrial robots were growing rapidly at a compound growth rate of almost 20% per year, but in 2019, industrial robots declined for the first time, and this year, due to the impact of the new coronavirus epidemic, the manufacturing industry has been challenged unprecedented, and the robot market will continue to decline.

2090–SCVP32-0 However, some analysts expect that the robot market will grow slowly in the next few years, first of all, the trend of robot replacement has not changed; Secondly, new industrial manufacturing enterprises are more willing to use automated equipment to produce products; There is also the end of the novel coronavirus epidemic, when the industry recovers, robot companies will also benefit. Of course, there are still risks, and even next year, we still need to watch out for a second wave of COVID-19.

The performance of the four major robot families, led by Germany’s KUKA, Switzerland’s ABB, and Japan’s Fanuc and Yaskawa, has declined significantly. Especially since the beginning of this year, the operating income and profit of these four companies have both declined, and from the financial reports of 2019 and the financial reports of the first two quarters of this year, in addition to the performance of the Chinese market, the performance of other markets can be described as “bleak”.

According to ABB’s 2019 financial report, in the case of weak global robot sales, ABB robot and discrete automation orders were 3.262 billion US dollars, down 11%, and revenue was 3.314 billion US dollars, down 4%. Among them, European orders were 1.634 billion US dollars, an 2090–SCVP32-0  increase of 2%; Americas orders of $453 million, up 1%; Orders from countries in Asia, the Middle East and Africa were $1.157 billion, down 1%.

This year, in Q1 and Q2, ABB continued to decline both in order volume and revenue and profit. Orders in the second quarter were down 14 per cent year on year, while revenues were down 10 per cent.

Regional market performance, affected by lockdown and quarantine measures, European market orders fell by 14%; Orders in the American market fell by 23%, and orders in almost all countries in the Americas fell, including orders in the United States fell by 23%. Orders in Asia, the Middle East and Africa fell by at least 5 percent, with a significant decline in India (33 percent) and a 3 percent increase in China.

But the good news is that from the third quarter, there are signs of economic recovery in many countries, and the situation is changing for the better.

According to Fanuc’s financial report, as of March 31, 2020, Fanuc’s net income was 635.568 billion yen, down 12.5% year-on-year, total operating revenue was 16,3229.7 billion yen, down 28.9%, and net profit was 154.163 billion yen, down 15.3% year-on-year.

2090–SCVP32-0 In the Q1 quarter of 2020 (April to June), Fanuc’s total revenue was 109.266 billion yen, down 18.8% from the same period last year; Total profit was 11.078 billion yen, down 61.3% from the same period last year; Net profit totaled 9.091 billion yen, down 61.0 percent from the same period last year. Well below market expectations.

From the order situation, the order amount of Fanuc automation department in the second quarter was 32.9 billion yen, down 13% from the same period last year. Orders for the robotics division were 43.9 billion yen, down 22 percent from the same period last year. Orders for the robot machinery division were 16.5 billion yen, down 21% from the same period last year.

From the perspective of market segmentation, only the Chinese market is growing, in Q1, the order volume from the Chinese market was 35.5 billion yen, an increase of 61% over the same period last year. Orders from Asian markets (excluding China) stood at Y12.5bn, down 38 per cent from the same 2090–SCVP32-0 period last year. Orders for the European market were Y17.3bn, down 37 per cent from the same period last year. Orders in the Americas were 24.3 billion yen, down 33% from the same period last year. Domestic orders stood at Y183, down 39 per cent from the same period last year.

In fact, in 2019, Kuka’s results were not satisfactory, with annual revenue of 3.190.7 billion euros (2018:3.322.1 billion euros), a slight decline of 3% compared with the same period. In the 2019 fiscal year, the total order revenue of the robotics segment was 1,037.1 million euros, down 13.3% year-on-year (2018:1,196.5 million euros). Revenue was 7.1% lower than a year ago, at €1,247.3 million in 2018 and €1,159.2 million in 2019.

In the second quarter of 2020, the company’s operating revenue was 540 million euros, down 32.1% year-on-year; Earnings before interest and tax (EBIT) was a loss of €43.9 million, down more than 100% year-on-year. In China, Kuka’s sales revenue in the second quarter was 80 million euros, down 37.5% year-on-year; Order volume was €110 million, down 21.3% from the same period last year.

It is clear that the integration of the robot company, which was acquired by China’s Midea, is not smooth. Kuka’s performance is not only related to the environment, but also to the company itself, since the acquisition of Midea, Kuka has experienced senior departures, performance declines, and layoffs.