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Worldwide Spending on Drones, Robotics System to Reach Approx $128.7 Billion This Year

The resource industry will move ahead of both construction and discrete manufacturing to become the second largest industry for drone spending in 2021

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Drones
Spending on drones will also be dominated by hardware purchases with more than 90 per cent of the category total going toward consumer drones, after-market sensors and service drones in 2020. Pixabay

Worldwide spending on robotics systems and drones will be $128.7 billion in 2020, an increase of 17.1 per cent over 2019, according to a new report from International Data Corporation (IDC).

By 2023, this spending will reach $241.4 billion with a (CAGR) of 19.8 per cent, said the IDC “Worldwide Robotics and Drones Spending Guide”.

Robotics systems will be the larger of the two categories throughout the five-year forecast period with worldwide robotics spending forecast to be $112.4 billion in 2020.

Spending on drones will total $16.3 billion in 2020 but is forecast to grow at a faster rate – 33.3 per cent CAGR than 17.8 per cent CAGR of robotics systems.

“Software developments are among the most important trends currently shaping the robotics industry. Solution providers are progressively integrating additional software-based, often cloud-based, functionalities into robotics systems,” Remy Glaisner, Research Director at IDC’s Worldwide Robotics: Commercial Service Robots.

Discrete manufacturing will be responsible for nearly half of all robotics systems spending worldwide in 2020 with purchases totalling $53.8 billion.

The next largest industries for robotics systems will be process manufacturing, resource industries, healthcare and retail. The industries that will see the fastest growth in robotics spending over the 2019-2023 forecast are wholesale, retail and construction.

Spending on drones will also be dominated by hardware purchases with more than 90 per cent of the category total going toward consumer drones, after-market sensors and service drones in 2020.

Drone software spending will primarily go to command and control applications and drone-specific applications while services spending will be led by education and training. Consumer spending on drones will total $6.5 billion in 2020 and will represent nearly 40 per cent of the worldwide total throughout the forecast.

Drones
Worldwide spending on robotics systems and drones will be $128.7 billion in 2020, an increase of 17.1 per cent over 2019, according to a new report from International Data Corporation (IDC). Pixabay

Industry spending on drones will be led by utilities ($1.9 billion), construction ($1.4 billion) and the discrete manufacturing and resource industries ($1.2 billion each), IDC said.

The resource industry will move ahead of both construction and discrete manufacturing to become the second largest industry for drone spending in 2021, according to the forecast.

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The fastest growth in drone spending over the five-year forecast period will come from the federal/central government, education and state/local government, said the report. (IANS)

Next Story

Huawei to Build its First European Manufacturing Plant in France

Huawei to Build First European 5G Factory in France to Soothe Western Nerves

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Huawei
A Huawei company logo at Shenzhen International Airport in Shenzhen, Guangdong province, China. VOA

Huawei will build its first European manufacturing plant in France, its chairman said Thursday, as the Chinese telecom giant seeks to ease worldwide concerns stoked by U.S. charges that Beijing could use its equipment for spying.

Liang Hua said , the world’s biggest producer of telecom equipment, would invest 200 million euros ($217 million) in the first phase of setting up the mobile base station plant. He said it would create 500 jobs.

Huawei, which denies its equipment poses a security risk, is at the center of a storm pitting the United States against China over 5G, the next-generation mobile technology. Europe has become a major battleground.

Continental market

Huawei
Huawei Technologies Co Ltd Chairman Liang Hua speaks during a news conference in Paris, France. VOA

“This site will supply the entire European market, not just France’s,” Liang said at a news conference. “Our group’s activities are worldwide and for this we need a global industrial footprint.”

5G technology is expected to deliver a huge leap in the speed and capacity of communications and an exponential spike in connections between billions of devices, from smart refrigerators to driverless cars, that are expected to run on 5G networks.

It was not immediately clear whether Huawei’s decision had the blessing of French President Emmanuel Macron, who has courted foreign investors but also led warnings about Chinese encroachment into the European Union’s economy.

Liang said that the company had outlined the group’s plans to the French government. “This is not a charm offensive,” he said.

There was no immediate reaction from Macron’s office.

Early stages 

The United States has repeatedly warned European allies against allowing the Chinese firm into the continent’s 5G infrastructure. But European capitals are divided about how to deal with Huawei.

France has yet to start rolling out its 5G networks but the top French mobile operator, state-controlled Orange, has already chosen Huawei’s European rivals, Nokia and Ericsson.

Smaller operators Bouygues Telecom and Altice Europe’s SFR, whose existing networks rely heavily on Huawei, are urging Paris to clarify its position on Huawei.

Huawei
The Huawei logo is pictured at the IFA consumer tech fair in Berlin, Germany. VOA

France says it will not discriminate against any vendor but requires all suppliers to be screened so they can secure a green light from the cybersecurity agency, which is examining Huawei equipment. Sources close to the French telecom industry say they fear Huawei will be barred in practice even if no formal ban is announced.

Neighboring Germany is also struggling to reach consensus on the way forward. Chancellor Angela Merkel’s ruling conservatives back tougher rules on foreign vendors but have stopped short of an outright ban on Huawei.

British plan

Britain has defied the United States by allowing “high-risk vendors” such as Huawei into nonsensitive parts of its 5G network but not what it describes as “core” components.

Washington has pressed London to reconsider.

The mobile base stations that will be manufactured in France are not considered core to 5G network infrastructure.

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Huawei accuses the United States of seeking to frustrate its growth because no U.S. company can offer the same range of technology at a competitive price.

The French plant will be Huawei’s second manufacturing facility outside China. It has a plant making smartphones in India but only has assembly plants elsewhere. The plant in France will generate 1 billion euros a year in sales. (VOA)