The automotive market is stronger than ever, with countries such as the United States and China experiencing rapid growth in recent times. By 2020, global profits for automotive Original Equipment Manufacturer (OEMs) are expected to rise by close to 50 percent, with emerging markets leading the growth. In Southeast Asia, the automotive industry is forecast to show positive signs of growth in the next few years, thanks to its growing number of middle class that is expected to more than double to 400 million by 2020.
With the rise of middle-income group, coupled with fast-paced lifestyles of today’s modern society, consumer preferences are constantly evolving. Automotive users nowadays not only seek high safety standards, they are also constantly on the lookout for new products and services that would make their driving experiences smoother and more enjoyable.
Additionally, globalisation has led to the increase in competition, which means that industry players are expected to meet higher production volumes within shorter timelines to remain competitive in the market.
In short, the automotive industry, similar to other industries, is fast-paced, labour intensive and poses many production challenges for manufacturers striving to succeed, or perhaps, survive. They have to find ways to ensure great efficiency while maintaining production costs, all while ensuring a safe working environment for their employees.
Embracing Technology
One key solution to addressing all the challenges is simple—innovate. Manufacturers have to constantly find ways to innovate, shifting from the ways they traditionally operate in order to gain an edge amidst the competitive economic climate. Some ways for them to do so include automating production processes to increase productivity or implementing new technologies to enhance their products.
In fact, market research firm Research and Markets predict s the global automation market of the automotive industry will grow at a CAGR of 8.62 percent between 2016 and 2020. The automotive industry is known to have pioneered the introduction of industrial robots to automate their production lines in order to boost productivity in factories. In fact, the first industrial robot in the world was installed by General Motors. It was used in its assembly line at one of the company’s automobile factory in the 1960s.
Fast forward to the 21st century, and the automotive industry is currently the largest market for industrial robots. According to the International Federation of Robotics, around 95,000 units of robots were sold in this industry last year.
Industrial robots are machines that have been designed to operate on behalf of humans in a dangerous or repetitive setting, reducing error and providing more strength or accuracy to increase productivity.
In Part II of this article, we look at installation of industrial robots to bring a range of benefits to automotive manufacturers.
APMEN Sept 2016, Machine Tools
