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Flexing your logistics muscle

08 January 2025

What does the future hold for the flexible automation market? AMHSA secretary Dave Berridge investigates.

THE PLETHORA of mobile automation solutions available today – from AMRs and AGVs to cobots, AutoStore bots and even intelligently mobile conveyor sections – reflects the ever-increasing demand for them. Although research firm, Interact Analysis recently downgraded its forecast for the global mobile robot market due to the impact on demand of various macro-economic factors, it still predicts that mobile robot revenues will grow by more than 20% annually up to 2030. The firm forecasts an installed base of more than 4.2 million mobile robots at the end of 2030, with almost one million being added in 2030 alone.  

Labour availability issues remain a key driver for the adoption of mobile robots. In the UK, the recent increase in employers’ National Insurance costs has tipped the scales further in favour of automation. Demand for bots has also been fuelled by the availability of Robotics-as-a-Service (RaaS) financing options. RaaS enables customers to pay-as-they-go in a metric-based financing model, typically per robot movement. All costs – deployment, integration, software and support – are included in the contract, enabling firms to scale up and down as their needs change. This approach also avoids the hurdle of capital expenditure approval, speeding up the procurement process. 

Of course, the downside to rapid innovation and an evolving market can be inadequate regulation. This seems to be the situation for the AMR market, with controversy regarding the safety of some imports to European markets. What is clear, with RaaS and leasing models easily accessible, is that the challenge is not so much buying the required technology but integrating it with any existing systems. Indeed, lack of interoperability is one of the main barriers to adoption cited by those still considering investment in mobile robots. Others include site-specific factors, such as lack of space, unsuitable floors and inadequate WiFi connectivity.

Currently, Chinese vendors dominate the mobile robotics market, accounting for almost half of all revenues and two-thirds of shipments in 2023 (figures from Interact Analysis). Looking ahead, this situation may change if Trump’s new administration does impose its threatened tariffs or the EU steps us its regulation. For AMHSA members, the key takeaway of this evolving market should be the changing customer profile – many more SMEs are now considering intralogistics automation and should be targeted by business development teams.

For more information, visit www.amhsa.co.uk

 
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