The UK witnessed a record surge in industrial robot installations in 2023, with 3,830 units installed, marking a 51% increase from the previous year, according to the latest World Robotics 2024 report from the International Federation of Robotics (IFR). The surge was largely driven by significant investment from the automotive sector.
“The UK manufacturing industry has heavily invested in robotics this year,” said Marina Bill, President of the IFR. She pointed to the “super deduction” tax break for plant and machinery investment, which expired after the first quarter of 2023, as a key factor driving the boom. “This tax incentive reportedly gave a major boost to investment,” she added.
Automotive Industry Leads the Surge
The automotive sector played a pivotal role in the surge, with robot installations jumping by an astonishing 297%, reaching 1,924 units in 2023. Many of these robots were employed in assembly tasks as several high-profile electric vehicle (EV) projects reached completion. The automotive industry now accounts for 50% of the total market share for industrial robots in the UK.
Other industries also contributed to the increase in demand for robotics. The food and beverage industry saw a 59% rise in installations, with 555 units installed in 2023. Meanwhile, the metal industry experienced a 20% increase, installing 324 units.
Operational Stock Lags Behind European Neighbours
Despite the record growth, the UK still lags behind other Western European countries in terms of overall robot use. The UK’s operational stock of industrial robots reached 28,831 units in 2023, up 9% from the previous year. However, the number remains relatively low compared to nations such as Germany, which boasts 269,427 units – about nine times as many. Italy and France also outpace the UK, with operational stocks of 96,803 and 58,572 units respectively.
This discrepancy highlights the need for the UK to continue its investment in robotics and automation to remain competitive on the global stage. Both the automotive and general industries must increase automation efforts to keep pace with international rivals.
Uncertain Future for 2024
Looking ahead, the UK’s outlook for robot installations is less optimistic. With the expiration of the “super deduction” tax incentive in 2023, few new investment announcements have been made by the automotive sector. Major projects slated for 2025 and 2026 are expected to drive future growth, but 2024 is projected to see a significant decline in robot installations. Experts predict a gradual recovery starting in 2025, with growth resuming in subsequent years.
The record growth of robot installations in 2023, driven by tax incentives and the automotive sector, marks a significant milestone for UK manufacturing. However, with the uncertainty surrounding future investments, the UK’s ability to maintain this momentum in the coming years remains in question.