The Impact of Robotics in the Growth and

The Impact of Robotics in the Growth and Economic Development Sanjida Ahmed Daffodil International University Dhaka, Bangladesh Professor Dr. Md. Fokhray Hossain Daffodil International University Dhaka, Bangladesh

Introduction • Personal assistants • Surgical assistants • Delivery vehicles • Autonomous vehicles • Exoskeletons • Customer service • Cleaning systems • Defense weapons • Agricultural systems • Construction service • Unmanned aerial vehicles • Industrial and Manufacturing Sector • Security Service • Medical Sector

Purpose • Impact in the economy through worldwide • Threats, Reasons and Opportunities • Future of Robotics

Are robots really taking our jobs away?

Job losses to Automation since 2000 Source: Oxford Economics

Up to 20 million manufacturing jobs around the world could be replaced by robots by 2030!!!

How does losing job can help in economic growth? !

Reasons behind the Economical Breakthrough Ø Ø Ø Ø Demand for Labor Job Creation Improved Efficiency and Work-Speed Cost Effectiveness Make our work easier and safe Productivity Growth Gross Domestic Product Growth

China Market Share Robot Installation Increment 25% 21% 36% Ø about 154, 000 units were installed Ø the value of installations reached 5. 4 billion USD Ø domestic market share 20% 15% 10% 5% 64% 0% 2017 China 2018 Rest of the World installation rose 21% higher than in 2017

Japan Global Supply Robot Sales Increment 25% 21% 48% 52% Ø about 55, 000 units were sold 20% Ø average annual growth rate was 17% since 2013 15% 10% 5% 0% Japan Rest of the World 2017 2018 sales increased by 21%

United States Robot Installation Increment 25% 22% 20% Ø approximately 40, 300 units were installed Ø robot shipments reached 28, 478 Ø global robotics market will be $147. 26 billion USD from 2017 to 2025 15% 10% Ø revenue will be increased 17. 4% in the CAGR from 2017 to 2025 5% 0% 2017 2018 installation increased 22% higher than in 2017 Robot Shipment Increment 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2017 2018 shipment increased by 16%

The Republic of Korea Automobile, Electronics, Machinery markets 50% Korea Rest largest portion of the entire machine tool market, accounts for about 50% Ø about 38, 000 units have been sold Ø expected to grow to as much as CHF 4 billion by 2019 Ø automobile, electronics, and machinery markets is expected to grow at CAGR of 9. 46% Ø automobile, electronics, and machinery markets is expected to reach about CHF 16 billion Ø sales of domestic products amount to 31% Ø average installation growth rate was 12% since 2013 Robot Installation Increment 2017 2018 the annual robot installations declined by 5%

Germany Robotics sector’s growth Robot Sales Increment Ø robots sold rose to almost 27, 000 units Ø growth reached 15 billion euros Ø prediction is that sales in 2019 will increase by 2 to 5% to sales of somewhere in the 15. 3 to 15. 7 -billion-euro range 30% 26% 25% 5% 4% 4% 4% 3% 20% 3% 15% 2% 2% 10% 1% 5% 1% 0% 0% 2017 2018 Sales rose to a new all-time record of 26% 2017 2018 the German robotics and automation sector’s growth was 4%

United Kingdom Ranks 22 nd worldwide with a density of 85 units Robot Sales Increment 35% European Union’s Sales Increment Robot Installation Increment 31% 14% 30% 12% 25% 10% 20% 8% 15% 2306 units 10% 6% 4% 5% 2% 0% 0% 2016 2017 sales had risen by 31 percent in 2017 2018 installations fell by 3 percent to 2, 306 units 2017 2018 the European Union´s recent sales are up 12 percent

Global Market Ø installations rose to about 43, 500 units in 2018 Ø robotics market was valued at USD 31. 78 billion Ø annual global sales value of robots of 16. 5 billion USD Ø 422, 000 units were shipped globally Ø 6% increment compared to the robot shipments in 2017

Global Market Robot Density The metal and machinery industry are the largest customer industry in, 217 Metal & Machinery Industry 140 831 247 21% 44% Finland 26% 327 Sweden Switzerland Belgium 27% 42% 338 Austria 774 Italy Denmark 30% 40% Singapore Korea Germany Japan Sweden USA Robots per 10, 000 employees in manufacturing China

The Future of Robotics Economy Ø three-fold to a total of 2. 25 million since late 90 s Ø estimate of about 584, 000 units in 2022 Ø 20 million by 2030 Ø 14 million manufacturing robots in China alone Ø estimate impact of AI alone will be $15. 7 trillion by 2030 Ø estimate cost of robots will be falling by 65% between 2015 and 2025 Ø estimate 35% of time will be spent on routine work by 2030 Ø estimate 10 -15% of jobs by 2025 Ø estimate 35 -50% of jobs by 2035

To Conclude “This is a symphony of human and machines working together. You need both of those and the challenge we have in front of us is how do we smartly design our machines to extend human capability. So, you need both. ” - Tye Brady, Chief technologist, amazon robotics

References • Oxford Economics, (2019). How robots change the world. [online] Available at: http: //resources. oxfordeconomics. com/how-robots-change-the-world [Accessed 22 Sep. 2019]. • International Federation of Robotics, (2019). Industrial Robots: Robot Investment Reaches Record 16. 5 billion USD. [online] Available at: https: //ifr. org/ifr-press-releases/news/robot-investment-reaches-record-16. 5 billion-usd [Accessed 11 Sep. 2019]. • International Federation of Robotics, (2019). Brexit: UK falling back in global automation race – robot sales down 3%. [online] Available at: https: //ifr. org/ifr-press-releases/news/brexit-uk-falling-back-in-globalautomation-race-robot-sales-down-3 [Accessed 11 Sep. 2019]. • Switzerland Global Enterprise, (2018). Industry Report: The MEM market in South Korea. [online] Available at: https: //www. s-ge. com/en/publication/industry-report/20182 -mem-korea [Accessed 11 Sep. 2019]. • Transparency Market Research, (2018). Global Robotics Market to Expand with a CAGR of 17. 4% due to Extensive Application in Numerous Industries, TMR Observes. [online] Available at: https: //www. transparencymarketresearch. com/pressrelease/robotics-market. htm [Accessed 11 Sep. 2019]. • VDMA, (2019). VDMA: Robotics and Automation expects further growth in 2019. [online] Available at: https: //rua. vdma. org/en/viewer/-/v 2 article/render/29252544 [Accessed 11 Sep. 2019].