Electrification in mobility will accelerate the robotic adoption in multiple industries
Published on : Monday 05-06-2023
Saurabh Bhatnagar, Partner and Lead, Industrial Automation, Intelligence and Digitalization, KPMG in India

What is the present status of sector wise robots’ penetration in India? What are the segments that are witnessing increased demand?
The Indian robotics market is projected to reach US$ 700+ million (70 percent Service Robots and 30 percent Industrial Robots) in 2023, however it is still a small number in comparison to the global market of US$ 88 billion. But it is growing at a tremendous pace, with an average annual growth rate of 16% since 2016.
The automotive industry remains the largest adopter of industrial robots followed by metals, chemicals, electronics, and pharmaceuticals. These industries have successfully integrated industrial robots into assembly line, welding, packaging, material handling, logistics, warehousing, and cleaning operations. Service Robots are gradually gaining attention in agriculture, retail, healthcare, and defence sectors for a plethora of use cases such as seeding, weeding, pest control, helping customers, critical surgery assistance, rescue operations and bomb disposals.
Overall, while the use of robots is increasing in India, it is still limited to a few select sectors, and there is significant scope for expansion in other industries as well.
Traditionally the automotive industry has been the main user of industrial robots. How will the electrification of mobility impact this dominance?
The automotive industry has been using industrial robots for more than seventy years, but there have been significant upgrades in the ways in which robots are used. By employing robots, companies have experienced accelerated production, reduced costs, improved quality, and enhanced worker safety. As the competition grows stiffer and Health, Safety and Environment (HSE) norms become stricter daily, these aspects will become more critical in future.
This shift towards EVs will require the reconfiguration of manufacturing facilities and the adoption of new automation technologies specifically designed for electric vehicle production, such as battery assembly and advanced electronics integration, due to this battery supply chain has also experienced a surge in demand. To address this need, battery manufacturers, auto ancillaries Original Equipment Manufacturer (OEM) are looking to robotic automation for fast and reliable manufacturing.
Thus, electrification in mobility will accelerate the robotic adoption in multiple industries.
The Covid pandemic struck a blow for digital transformation. Has this led to increased demand for robotic automation?
Yes, the Covid-19 pandemic has indeed resulted in an increased demand for robotic automation in various industries. The pandemic highlighted the need for social distancing, reducing human-to-human contact, and ensuring the safety of workers. Robots and automation technologies have played a significant role in addressing these challenges.
Robots can perform multiple tasks without the need for human intervention, minimising the risk of virus transmission in workplaces. They can be used for tasks like cleaning and disinfection of spaces, delivering supplies, and conducting temperature screenings, reducing the potential exposure of workers to the virus. Robots can automate various stages of the supply chain, including warehousing, inventory management, and order fulfillment, ensuring a more robust and efficient operation.
Overall, the Covid-19 pandemic has acted as a catalyst for the increased adoption of robotic automation across industries.
How is the entry of cobots and AMRs/AGVs changing the overall scenario of robotic automation in the manufacturing industry?
Cobots and Automated Mobile Robots/Automated Guided Vehicles (AMRs/AGVs) in the manufacturing industry are revolutionising robotic automation. Cobots collaborate with human workers, automating repetitive and physically demanding tasks, thereby enhancing productivity and safety. AMRs/AGVs autonomously handle material movement and logistics, transforming operations within manufacturing facilities.
The integration of cobots and AMRs/AGVs offers a flexible and scalable automation solution, increasing efficiency, reducing costs, and enabling manufacturers to adapt swiftly to changing production needs, ultimately leading to a streamlined and agile manufacturing process that unlocks new possibilities for productivity and innovation.
Traditionally robots are utilised in process industries or continuous assembly lines now because of cobots and AMRs/AGVs, discrete manufacturing is adapting more and more robotic solutions.
For example, a leading two-wheeler mobility company has employed five thousand robots and AGVs, another leading two-wheeler company has employed a large number of cobots for material handling, decal application, assembly, and some other processes. These companies experience significant percent downtime and productivity gains.
While robots are gaining in versatility with integration of machine vision and greater use of AI/ML capabilities, is there a supporting infrastructure in terms of skills and system integrators?
The integration of machine vision, AI/ML capabilities in robots is indeed expanding their versatility and potential applications. However, the availability of supporting infrastructure, including skilled professionals and system integrators, is a critical factor for the successful implementation.
The country has a growing pool of skilled professionals in robotics and automation, with several educational institutions offering specialised courses and industry – institutional tie ups are happening to bridge the skill gaps via classroom or on job training.
Additionally, there are emerging startups and companies specialising in system integration services, catering to the specific needs of industries such as manufacturing, healthcare, and agriculture.
Will the recent emphasis on manufacturing incentives for the electronics industry via PLI schemes lead to greater demand for robotic solutions?
The recent implementation of PLI schemes in India, aimed at incentivising domestic manufacturing in the electronics industry, has sparked a surge in demand for robotic solutions. These incentives have made it more appealing for companies to establish or expand their production facilities in the country. Robotic solutions offer enhanced efficiency, precision, and productivity, aligning with the goals of the PLI schemes to strengthen manufacturing capabilities.
Especially, the electronics industry is expected to witness a significant increase in the adoption of robotic solutions as manufacturers seek to meet the scheme requirements and capitalise on the government-provided incentives.
The Production Linked Incentive (PLI) scheme made subsidised companies to create discrete production capacity in India in industries like IT Hardware, electronics, automotive, metal, pharmaceuticals, and food processing which in turn is increasing demands for robots.
(The views expressed in interviews are personal, not necessarily of the organisations represented)
Saurabh Bhatnagar is currently Lead Partner – Industrial Automation, Intelligence and Digitalization (IAID) at KPMG in India. He has over 25 years of experience across Business Functions, viz., Supply Chain, Manufacturing, Product Development, Product Lifecycle Management, Capital Project Management and Business Analytics.
Key sectors of expertise includes – Natural Resources, Consumer Products, Textiles, Metals and Mining and Auto Ancillary.Additionally, he has also served as the India lead for the Metals and Mining Sector and I4.0 practice for a large consulting firm and has led several large manufacturing transformation engagements for clients across industry