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.
Our latest white paper, “How is COVID-19 Shaping China’s Robotics Industry?” Click Here 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.
China’s Robotics Industry Segments
Despite the challenges, the Robotics industry in China faces the three segments which include Industrial Robotics, Service Robotics, and Special Service Robotics experience nice growth. T
hose segments are expected to obtain more benefits after the pandemic. Let us dive deeper to see how those segments grow.
- Industrial Robotics
This segment provides robotic equipment designed to be used in many manufacturing scenarios.
COVID-19 has created a high sense of urgency in using Smart Manufacturing.
The use of the internet of things, artificial intelligence, and automation whether in the design sector or in production execution is preferred.
Industrial Robotics is expected to long term benefit in those sectors.
- Service Robotics
Service Robotics has divided again into three different subsegments.
Service Robotics’ household subsegment shared 47.7% of the market share which is the biggest compared to the medical subsegment and public service subsegment.
The Service Robotics segment itself experienced a 33% growth in 2019 and is expected to grow higher in this year and upcoming years.
- Special Service Robotics
During the COVID-19 pandemic, this segment is the most important one.
Special Service Robotics are important in minimising any human contact while providing automatic public disinfection. An excellent example comes from TMIRob that is based in Shanghai.
The robot maker tasked exhibition robots to sterilise quarantine wards and facilities. Similar bots also deal with medical waste that is contaminated.
Surviving and Developing during COVID-19 Pandemic
To survive and benefit the way China’s Robotics Industry does, start-ups need to apply three strategies.
Each strategy requires different approaches that must be followed to succeed in during the pandemic and beyond.
- Being Customer-Centric
The first approach to do is identifying what customers need during this pandemic.
Once we understand what they need, we can assess the core competence of the business. By leveraging the core competence, we locate the demand that can be captured by the company.
Finally, start-ups must act very quickly before other companies do and it will be too late.
- Being Sensitive to New Opportunities
Start-ups must look for a win-win solution as well as synergies with the other corporation which has aligned strategy and values.
Start-ups must also implement the quick winds while transforming the business process using the network and resources of the corporations that put its trust in start-ups.
If the entire approaches are applied, start-ups will end up like the Robotics Industry, survive the pandemic and even gain long-term benefits.