Hong Kong, Hong Kong S.A.R., September 27, 2020 –(PR.com)– The COVID-19 outbreak in China has caused investment contraction in Q1 2020 between 50% to 57% YOY, setting off a difficult funding situation across China and globally. Their latest white paper, “How is COVID-19 Shaping China’s Robotics Industry?” highlights that a decent recovery was estimated for Q2 2020. The USD 8 billion robotics industry now projects a positive long-term growth outlook in the manufacturing, hospitality, and healthcare sectors.
COVID-19 Impacts and Trends on China’s Robotics
The virus outbreak has impacted the funding landscape due to very selective investment decisions and lowered valuation as the due diligence process gets more strenuous. Still, some industry trends below are promising a bright outlook in the coming years to follow:
1. Industrial Robotics: Short-term demand dampened by factories’ tight cash flows, but positive growth in long-term
Factories that cannot afford industrial robots during the pandemic due to tight cash flow are expected to gain an appetite for automation as the business climate warms, with China accounting for 36% of global new installations. The pandemic also created a sense of urgency in moving to “Smart Manufacturing” with the increased use of AI, IoT, and automation.
2. Service & Special Service Robots: Positive growth due to continued effort for minimizing human contact and increased efficiency
China’s service robotics, which totaled USD 2.2 billion, saw a 33% YOY growth in 2019. Despite a slight fall to be brought into the coming 2021, the future outlook will remain steady. The use of medical service robots as a measure of minimizing human contact and relieving pressure from frontline medical staff will likely continue. An increase of service robots and drones in public areas is also expected – tasked with, e.g., monitoring the crowd size, taking temperatures, or even as robotic waiters and deliverers.
3. Pandemic-Generated Robotics and Automation Demand are Here to Stay Demand generated by the pandemic such as robotic solutions, online collaboration tools, tracking and detection systems, hygiene, and health care products will mostly stay due to increasing awareness of hygiene. And the use of robotics and automation technologies will continue to improve the operational efficiency and user experience, contributing to improve all aspects of our society and different industries.
Key Learning Points for Businesses in Manufacturing, Healthcare, & Hospitality Sectors
Start-ups today should leverage the COVID-19 pandemic as an accelerator of change. To capitalize on potential opportunities under the pandemic-stricken business environment, start-ups can adopt three crucial strategies below:
● To be customer-centric in identifying new revenue streams and capturing them with existing resources.
● Sensitive to co-creation opportunities with other companies.
● Be socially responsible.
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