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Trends in roboticsView from the global technology sector
Page 2 Trends in robotics
Robert DeMaineSr. Technology Sector Analyst — EY Knowledge
Page 3 Trends in robotics
Disruptive digital technologies and the Internet of Things will continue to drive industry growth through 2020 and beyond.
Megatrends create a smart, connected world
3D printing Wearable computing
Artificial intelligence
Drones Augmented reality
Robotics Home automation
Telematics
Social networking Smart mobility Cloud computing “Big data” analytics Cross-industry “blur”
The Internet of Things
Page 4 Trends in robotics
Robots, defined …
Controlled or programmed
AutomatedComplex or
repetitive tasks
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Hardware
Software
Mobility
Autonomy
Intelligence
Smart robotics
Artificialintelligence
Batterytech
Open sourcesolutions
Cloud
Internet Of Things
Sensors
Advances in a smart, connected, digital world are enabling the rapid acceleration of smart robotics
Page 6 Trends in robotics
Robots vary in their levels of versatility and functionality
AssistedSimple
Image source: Wikimedia Commons; see appendix for image attribution
Smart
Page 7 Trends in robotics
Today’s robotics applications continue to expand for enterprises and consumers
Automotive Entertainment Health care
Hazmat/Security Manufacturing
Military
Transportation Warehouses
Space exploration Home OfficeOil and Gas
Agriculture
Construction
Services
Image source: Wikimedia Commons; see appendix for image attribution
Page 8 Trends in robotics
Robotics have global implications for human capital, connectivity and efficiency
Economicmobility
Ambient computing
of big data
Internetof
Things
Energy
Cost ofdoing
business
Education
Implications
Sharingeconomy
Page 9 Trends in robotics
Governments, investors and enterprises are preparing for a highly automated future
GovernmentTechnologyInvestmentEconomic and demographic
Catalysts and enablers
Page 10 Trends in robotics
Widespread investment has already begun to drive advances in robotics
Dyson sponsored a robotics center at Imperial College London for £5m
$125m investments within the European Commission’s Horizon 2020
$500m investments in the next five years to compete with China and Japan
Google spent $643m to acquire DeepMind
Prime Minister estimates a national $22b market in 2020
Overtook Japan to become the biggest robot market of the world; sold 38,000 robots in 2013
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Funding to private robotics companies nearly doubled in 2015, reaching a record high in deals and dollars
$155
$191$176
$273
$587
13
25 25
45
83
2011 2012 2013 2014 2015
Robotics (e.g. drones): yearly global financing history
Investment ($m) Deals
Source: CB Insights, March 2016
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Robotics start-ups span everything from industrial automation to security patrols to surgeries
1316
35
73
63
9
12
20
36
23
11
13
9
14 13
65 6
13 15
2012 2013 2014 2015 2016 (10/5)
Robotics start-ups: deals by category
Enterprise Consumer Medical Other
Enterprise• Drones
• Retail and warehouse
• Restaurants
• Heavy industry
Consumer• Drones
• Educational
• Social
• Service
Medical• Surgical
• Bionics and rehab
• Service
Other• Building security
• Field assistance
• Telepresence
• Systems and software
Source: CB Insights, March 2016
Page 13 Trends in robotics
2 4 58
11
17
45
6
11
16
24
1
2
3
6
11
17
1
3
5
9
2000 2005 2010 2015E 2020E 2025E
Global robotics market (US$ billions)
Personal, 17.4%
Commercial, 12.3%
Industrial, 7.6%
Military, 8.1%
Worldwide robotics spending is expected to reach $67b in 2025 driven by commercial and consumer markets
$7
$11$15
$27
$43
$67
CAGR
2000–2025E (%)
Sources: International Federation of Robotics, Japan Robot Association; Japan Ministry of Economy, Trade & Industry; euRobotics; company filings; Boston Consulting Group Analysis
Page 14 Trends in robotics
While Asia leads in the top countries with the highest robot density, half of the top 10 nations are in Europe
531
398
305 301
212190 188
170 169 160 150 136 128 127 126 120 119 11093 86 79 71
49
Number of multipurpose robots in the manufacturing industry (per 10,000 employees)
World average: 69
6992 86
57
Regional averages
Source: IFR, World Industrial Robotics 2016
Page 15 Trends in robotics
However, China is the largest and fastest-growing market for industrial robot sales
China27%
Korea15%
Japan14%
US11%
Germany8%
Rest of World25%
2015 sales volume of industrial robots
Source: IFR, World Industrial Robotics 2016
Page 16 Trends in robotics
The automotive industry is by far the main driver of robotics growth
1,2761,218 1,218
1,147
940 920883 877 859
795
213
411
93
170
74119
81126
2261
Japan Korea US Germany France Slovakia Spain Italy Thailand Canada
Number of multipurpose robots in the manufacturing industry —automotive vs. other industries (per 10,000 employees)
Source: IFR, World Industrial Robotics 2016
Page 17 Trends in robotics
Smart robots in the enterprise
Drivers
Productivity demands
Time to market
Industry 4.0
Collaborative robotics
Benefits
Quality
Cost
Production
Safety
Efficiency
Challenges
Return on investment
Worker displacement
Skills
Business need
Page 18 Trends in robotics
Emerging smart robotics applications in the enterprise
Se
cu
rity
Dis
trib
uti
on
Se
rvic
es
Re
tail
Enablers
• Artificial intelligence
• Sensors
• Cloud computing
• Data analytics Co
lla
bo
rati
on
Wa
reh
ou
se
Image source: Wikimedia Commons; see appendix for image attribution
Page 19 Trends in robotics
In the enterprise, smart robots can increase efficiency, quality and can support the workforce
Case Study: Rethink Robotics’ Sawyer and GE Enterprise
Page 20 Trends in robotics
There will be as many as 2.6m industrial robots in operation by 2019
3 66
454605
750
9231,059
1,4721,632
1,824
2,589
1973 1983 1990 1995 2000 2005 2010 2014 2015 2016E 2019E
Worldwide estimated operational stock of industrial robots (‘000 units)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2014 2015 2016E 2019E
Rest of World
Americas
Europe
Asia/Australia
Worldwide estimated yearly shipments of multipurpose industrial robots (units)
Source: IFR, World Industrial Robotics 2016
Page 21 Trends in robotics
Smart robots in the home and office
Challenges
Consumer perception
Security and privacy
Human error
Programming errors
Drivers
Quality of life
Expectations
Aging populations
Time pressure
Benefits
Time
Productivity
Convenience
Page 22 Trends in robotics
Emerging smart robotics applications in the home and office
Enablers
• Artificial intelligence
• Voice recognition
• Connectivity
• Display technology
Ind
oo
rs
So
cia
l ro
bo
ts
Ed
uca
tio
n
Tele
pre
sen
ce
Ou
tdo
ors
Image source: Wikimedia Commons; see appendix for image attribution
Page 23 Trends in robotics
Smart robots in the home can address the need for companionship driven by demographic shifts
Case Study: Toyota’s Kirobo Mini
Page 24 Trends in robotics
A sizable market opportunity for robots in the home and office is expected
• Domestic tasks
• $12b sales
• 26m units
• Entertainment and leisure
• $8b sales
• 9m units
• Assistive care
• 12,400 units
2015–2018
• Personal care robots
• $17b sales
2020
• $200b–$500b in time savings
2025
Page 25 Trends in robotics
Robotic process automation is being used to perform repetitive and time-consuming tasks
Sits alongside existing infrastructure, governed and controlled by IT
Emulates human execution of repetitive processes via existing user interfaces
A virtual workforce controlled by the business operations teams
1/3 of the cost of offshore FTE
Work with existing IT architecture
Cuts data entry costs by up to 70%
Can be trained by business users
Automated solution can work 24/7
Double-digit reduction in error rates
“Robotic automation … enables organizations to automate existing user actions — as if the user were moving through and across their current raft of applications.”
Page 26 Trends in robotics
Smart software robots are already being deployed in many industries
Financial and sports reporters
Law firm associatesFinancial
analysts/advisors
Health care workersOnline marketers
Page 27 Trends in robotics
Will robots take our jobs?
It’s complicated …
Job activities
Technical feasibility
Cost to automate
Skills availability
Worker scarcity
Regulatory environment
Benefits
Social acceptance
Page 28 Trends in robotics
Thank you!
Page 29 Trends in robotics
Appendix: image sources
► Slide 5► Tyres Lubrication.JPG, ICAPlants (Own work) [CC BY-SA 3.0 ], via Wikimedia
Commons► Float Glass Unloading.jpg, ICAPlants (Own work) [CC BY-SA 3.0 ], via Wikimedia
Commons► Drone with GoPro digital camera mounted underneath - 22 April 2013.jpg, Don
McCullough from Santa Rosa, CA, USA (Drone and Moon) [CC BY 2.0], via Wikimedia Commons
► Da Vinci Robot.jpg, Purplrockscissors (Own work) [CC BY-SA 3.0 ], via Wikimedia Commons
► IRobot PackBot 510 E.T..JPG, Outisnn (Own work) [CC BY-SA 3.0 ], via Wikimedia Commons
► SoftBank Pepper.JPG, Tokumeigakarinoaoshima (Own work) [CC0], via Wikimedia Commons
► Baxter, Rob Pegoraro (Own work) [CC BY 2.0], via Flikr► IRobot Roomba 780.jpg, Tibor Antalóczy (Own work) [CC BY-SA 3.0 ], via
Wikimedia Commons
► Slide 6► Industrial-robots.jpg, ISAPUT (Own work) [CC BY-SA 4.0 ], via Wikimedia
Commons► Police-robot-netanya-atzmaut-elefmilim.JPG, פנחסי מוטי( Own work) [CC BY-SA
3.0 ], via Wikimedia Commons► NASA Mars Rover.jpg, NASA/JPL/Cornell University, Maas Digital LLC [Public
domain], via Wikimedia Commons► MQ-1B Predator unmanned aircraft.jpg, Tech. Sgt. Sabrina Johnson [Public
domain], via Wikimedia Commons► Robot ABB 3.jpg, Peter Potrowl (Own work) [GFDL (), CC BY-SA 3.0 or CC BY
2.5 , via Wikimedia Commons► IRobot Scooba 380.jpg, Tibor Antalóczy (Own work) [CC BY-SA 3.0 ], via
Wikimedia Commons ► 13-06-28-robocup-eindhoven-067.jpg, Ralf Roletschek [GFDL () or CC BY-SA
3.0 ], via Wikimedia Commons► Google self driving car at the Googleplex.jpg, Michael Shick (Own work) [CC BY-
SA 4.0 ], via Wikimedia Commons
► IRobot Ava 500.jpg, Z22 (Own work) [CC BY-SA 3.0 ], via Wikimedia Commons► BioMek FX P200 96 liquid handling robot.jpg, National Institute of Allergy and
Infectious Diseases (NIAID) [Public domain], via Wikimedia Commons► IntelliCart1.jpg, Mukeshhrs (Own work) [Public domain], via Wikimedia
Commons► Tyco ROV - May 2005.jpg, tom jervis (Tyco ROV) [CC BY 2.0], via Wikimedia
Commons► Robot Milker, historic.Bremen (Own work) [CC BY 2.0], via Flikr► Robots invade the campus, GSSM Photos [CC BY-NC-ND 2.0], via Flikr► Meet “Connie,” Hilton Hotel's robot-concierge pilot with IBM Watson,
ibmphoto24 [CC BY-NC-ND 2.0], via Flikr
► Slide 18► AEMC Summit (11343420013).jpg, ENERGY.GOV (AEMC Summit) [Public
domain], via Wikimedia Commons► Lowes customer service robot, hnnbz (Own work) [CC BY 2.0], via Flikr► Robotic Stacking, Ripley Engineering [CC BY-NC-ND 2.0], via Flikr► Grocery delivery rover by starship.xyz.jpg, Photo: Mardus Rover: starship.xyz
(Own work) [CC BY-SA 4.0 ], via Wikimedia Commons► Uber OTTO autonomous driving truck.jpg, By Steve Jurvetson [CC BY 2.0], via
Wikimedia Commons► Robotex Avatar security robot, IntelFreePress [CC BY-SA 2.0], via Flikr
► Slide 22► Buddy-robot.jpg, By Gio.Pais (Own work) [CC BY-SA 3.0 ], via Wikimedia
Commons► Ozobot, pestoverde [CC BY 2.0], via Flikr► Suitable Technologies Beam telepresence robot.jpg, Intel Free Press [CC BY
2.0], via Wikimedia Commons► Winbot, IFA 2015, janitors [CC BY 2.0], via Flikr► Automower HC1.jpg, By Holger Casselmann (Own work) [CC BY-SA 3.0 ], via
Wikimedia Commons
Page 30 Trends in robotics
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