Rapid change is driving a need for flexible production systems in industrial electronics. Evolving technologies and the rise of digitalization in manufacturing call for a new breed of smaller, faster and more powerful electronic components.
Today’s leading-edge, Internet of Things (IoT)-enabled factories create interconnected processes that use artificial intelligence (AI) and machine learning (ML) to optimize everything from production to logistics. Industrial electronics provide companies with the hardware to underpin this digital transition.
This is driving increased demand for electronics components, which is expected to grow at around 5.60 percent a year till at least 2030[1]. The challenge for component manufacturers is therefore to create adaptable, scalable production lines that can adapt quickly to all this change while maximizing profitability.
Robotic automation meets the challenge by boosting flexibility, speed, and precision, enabling manufacturers to quickly respond to changing conditions while reducing errors and optimizing production efficiency.
A growing market
Electronic components are the key to unlocking the digital aspirations of industries such as manufacturing, transportation, healthcare and telecommunications, especially with the rollout of 5G and 6G networks and the processing power demanded by new capabilities such as AI.
“The proliferation of AI processing, from cloud computing to edge devices, is fuelling the race to develop high-performance chips and driving a robust expansion of global semiconductor manufacturing capacity,” wrote Ajit Manocha, President and CEO of the global semiconductor association, SEMI[2] last year. “This creates a virtuous cycle: AI will drive the growth of semiconductor content across a diverse range of applications, which in turn encourages further investment.”
In addition to AI, growth in the production of semiconductor wafers is being driven by their role in core components for both consumer and industrial electronics, ranging from smartphones through to servers, vehicles, wind turbines, medical devices and the internet. Research carried out by SEMI in 2024 as part of its World Fab report[3] predicted that production will hit a record 33.7 million wafers per month in 2025, up 7 percent on 2024.
Preparing for a new age of industrial electronics with robots
Focusing on the industrial side, much of the growth in electronics can be attributed to automation, as companies turn to technologies such as robots to boost their resilience and reduce their reliance on an increasingly tight labour market. The electronics industry, both industrial and consumer-facing, has therefore been leading the way in the purchase of robots in recent years.
In 2022, the sector accounted for 28 percent of all new robot installations[4], with over 103,000 robots supplied for industrial electronics manufacturing applications, handling an expanded range of tasks from assembly through to packing and quality inspection[5]. There was a blip in 2023 as supply chain issues eased and businesses ran down stocks. This led to electronics temporarily dropping back to second place, but that effect will be short-lived as growth normalises and the roll-out of robotic automation accelerates again.
The productivity, flexibility and accuracy benefits offered by robots directly addresses the needs of electronics producers for agile, scalable production with reduced waste and increased profitability. Improved capabilities through developments such as AI, machine vision and force sensing will continue to expand the range of applications that robots can tackle successfully.
Ironically, the rising demand for robots has also been a key demand driver for industrial electronics, with components such as actuators, sensors, resistors, capacitors, microcontrollers and servomotors all performing key roles in robotic systems.
Geographically, the industrial electronics market is set for global growth as major regions seek to expand their industrial and technological capabilities. The Asia-Pacific region leads the way with a 42 percent market share[6], followed by Europe with 28 percent[6]. In North America, the market is growing by 23 percent, driven largely by its focus on automation systems[6].
How are robots transforming electronics production?
The ability of robots to address many of the challenges facing component manufacturers means they are being deployed in increasing numbers to handle an expanding range of production tasks. According to estimates from the International Federation of Robotics, the global electronics sector already has an installed base of over one million robots[7], with around 506,000 used in the production of industrial electronics components[8].
These numbers are expected to grow further as producers increasingly recognize the ability of robots to perform repetitive actions with unwavering precision, efficiency and accuracy, which makes them ideal for a variety of production line applications including assembly, inspection and testing, surface treatment, packing and unpacking.
Robots – the component for success
The industrial electronics sector is undergoing a major transformation, driven by the adoption of robotic automation. Robots are enhancing production efficiency, precision, scalability, and flexibility, enabling manufacturers to meet the growing demand for advanced electronic components while also improving their resilience against unexpected market challenges. From high-precision assembly and quality inspection to surface treatment and packaging, robots are opening possibilities for electronics producers to outperform at every stage of the manufacturing process.
Their ability to operate around the clock, reduce waste, and improve consistency makes them invaluable for producers striving for agility and scalability. With technological advancements such as AI and machine vision offering expanded capabilities, now is the time for industrial electronics manufacturers to invest in robotic automation, ensuring they remain competitive in an increasingly fast-paced and digitalized world.
For more information about current developments in robotic automation and how they are being applied to solve electronics industry challenges, visit https://new.abb.com/products/robotics/industries/electronics.
References:
[1]. Source: Cognitive Research (2024) – Industrial Electronics Market Report 2024 (Global Edition)
[2]. Note: SEMI is a global industry association connecting 1.5 million professionals from across the semiconductor and electronics design and manufacturing supply chain – see https://www.semi.org/en/about-semi-membership/about-semi.
[3]. Source: SEMI - Global Semiconductor Fab Capacity Projected to Expand 6% in 2024 and 7% in 2025, SEMI Reports | SEMI
[4]. Source: International Federation of Robotics (IFR) (2023) - World Robotics Industrial Robots report 2023
[5]. Source: International Federation of Robotics (IFR) (2023) - World Robotics Industrial Robots report 2023 – calculated based on categories re. Electrical machinery and apparatus (without automotive parts), Electronic components / devices, Semiconductors, LCD, LED (including solar cells and solar thermal collectors), Medical, precision and optical instruments)
[6]. Source: Cognitive Research (2024) – Industrial Electronics Market Report 2024 (Global Edition)
[7]. Source: International Federation of Robotics (IFR) (2023) – World Robotics Industrial Robots report 2023
[8]. Source: International Federation of Robotics (IFR) (2023) – World Robotics Industrial Robots report 2023 – calculated based on categories re. Electrical machinery and apparatus (without automotive parts), Electronic components / devices, Semiconductors, LCD, LED (including solar cells and solar thermal collectors), Medical, precision and optical instruments)
