ABB launches New Robots for China to capture Mid-Sized market growth

date
02/07/2025
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GMT Eight
ABB is expanding its automation line in China with three new robot families, aiming to help mid-sized firms boost productivity amid labor shortages and growing demand for easier-to-use technology. The move strengthens the company’s position in the world’s largest robotics market, which installed over half of all new industrial robots worldwide last year.

Swiss engineering giant ABB (SIX: ABBN) announced plans to roll out three new industrial robot ranges tailored to China’s growing base of mid-sized manufacturers. The new models — Lite+, PoWa, and IRB1200 — are built to handle routine tasks such as polishing, product placement, and packaging in sectors including electronics, food and beverage, and metals.

The company expects China’s so-called mid-market automation segment, which covers simpler pick-and-place and basic inspection applications, to expand at an annual rate of 8% over the next three years — a pace that exceeds the global robotics industry’s recent performance (ABB, 2025). Rising wages and labor shortages, combined with more intuitive software and AI tools, are making robots more practical for companies that previously avoided them.

“Artificial intelligence makes these robots more user-friendly, which appeals to businesses that have not invested in automation before,” said Sami Atiya, president of ABB’s robotics division. He noted that certain models can be operational within an hour of unpacking and programmed either by voice or by demonstration of the desired tasks.

The company said the cost for a full robot setup, including controllers, ranges from about $20,000 to over $100,000, depending on what customers need. The new robots will be built at ABB’s advanced production facility in Shanghai, which supports the firm’s expansion in Asia.

China remains the dominant player in global industrial robotics, accounting for 51% of all new installations in 2023, according to the International Federation of Robotics (IFR). For ABB, China contributes roughly 30% of its robotics revenue.

Atiya added that the possibility of higher U.S. tariffs on Chinese goods is unlikely to dampen local demand for automation, given China’s strong domestic market and the pressure to tackle labor gaps. The new product launch comes as ABB prepares to separate its robotics arm into an independent unit by the second quarter of 2026, although the company did not comment on the spin-off’s potential valuation. ABB competes in this space with companies like Japan’s FANUC (TSE: 6954), Yaskawa, and Germany’s KUKA.

While ABB remains open to any sale offers, Atiya emphasized that the spin-off remains the primary plan: “We have to consider all possibilities, but our goal is clear — to complete the spin-off as scheduled.”