PACKAGING ROBOTS MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraint:

High capital investment is expected to hamper the global packaging robots market growth during the forecast period

Installation of an automated packaging system in a new line of packaging or in existing line requires substantial capital investment. Food and beverage industry is a highly fragmented sector with a large presence of small- and medium-sized manufacturers with extensive product offerings. These manufacturers are reluctant to install packaging robots since they are no feasible due to high capital investment for installation and maintenance. Moreover, other industries such as consumer products and tracking & logistics industries are controlled by local manufacturers and distributors, who usually do not have the capital to invest in automation of their facilities. Hence, these factors are expected to hamper the market growth over the forecast period.

Lack of skilled labors in high potential market is expected to hinder the global packaging robots market growth during the forecast period

According to Coherent Market Insights analysis, Food and beverage industry is the major end-use industry for packaging robots, accounting for 40% packaging robots manufactured worldwide. However, adoption of automation in packaging lines is relatively low in emerging economies such as China and India as compared to Western counterparts. This is typically due to the manufacturer’s hesitation to change established work practice and dearth of skilled laborers. Moreover, a highly skilled team of personnel is required for maintenance operations for proper functioning. Thus, dearth of team of skilled professionals and the availability of cheap labor force in these countries is expected to hinder the global packaging robots market growth in the near future.