SILVER VALLEY, Calif., USA -- The rate of technical change is giving the materials handling industry opportunities to exploit untapped markets and expand current applications, according to a new study by Frost & Sullivan.
The study, European Robotics for Material Handling Markets, says the use of robotics is raising productivity and quality standards in emerging application areas, but high installation costs and competition from conventional automation continue to challenge manufacturers.
F&S is an international market monitor for industry, collecting data on trends, measurements and growth rates. The latest study looked at the progress of the materials handling robotics market in Europe.
The company says the compound growth rate for the European market will hit 3.8% before 2006, raising market revenues from US$424 million in 1999 to US$551.4 million.
Increases in the technical change rate are being driven by increases in power, speed and more efficient programming processes, but the pace of such change is affecting pricing structures, says research analyst Brian Flannery.
"The technological advances in robotics are rising at a faster rate than their prices and, in some instances, prices are actually falling as the performance increases," Flannery said.
European robotics for the industry are expected to continue growing, but this is likely to be adversely affected by a predicted slow-down of investment from Germany and Italy, two major markets.
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