The robot industry faces triple risks: Qu Dao Kui: Needs to be in the market

　　As a jewel in the crown of manufacturing, the landscape of the robot industry is undergoing profound changes.

　　The 2017 World Robot Conference officially opened in Beijing on the 23rd. Following the debut of the "Songguo" series of service robots in 2016, Siasun Robot & Automation Co., Ltd. (hereinafter referred to as "Siasun Robot") and Intel Corporation once again joined forces to launch the "Songkang" bed-chair integrated robot, extending the combination of artificial intelligence and robots from industrial to life scenarios.

　　Siasun Robot President Qu Daokui revealed in an interview with People's Daily Online that using various technologies of robots to build a robot perception network will form a new system solution for life processes.

　　China's robot industry faces three major risks.

　　Data shows that in 2014, global industrial robot sales reached 227,000 units, with the domestic market accounting for 56,000 units, or 20% of the global market. In 2015, China's robot market sales exceeded 75,000 units; for every 3 robots sold globally, 1 was sold to China. In 2017, the industry predicted domestic robot sales to exceed 100,000 units.

　　However, while the development of robots is booming, Qu Daokui pointed out three potential major risks in China's robot industry: technological hollowing-out, low-end application, and market marginalization.

　　Qu Daokui cited several key data points to illustrate the huge problems facing China's robots. Firstly, at the technical level, foreign companies account for 90% of the production of complex robots, particularly multi-joint robots; secondly, in terms of robot operation difficulty, robots are currently more prevalent in welding, with foreign companies accounting for 84% of the welding field; thirdly, in terms of industry application, high-end applications of robots are currently concentrated in the automotive industry, where foreign companies again account for 90%.

　　Industry statistics show that there are over 100 listed companies in China with robot concepts, and thousands of large and small companies related to robots. However, less than 10% of these companies are competitive, and most operate in low-end application areas, posing a huge risk to China's robot industry.

　　A researcher with many years of experience in robot research said that Chinese companies cannot enter many mainstream markets. Many, or most, Chinese companies lack core technologies, core components, and key process technologies in perception systems, resulting in technological hollowing-out, low-end application, and market marginalization, which will turn our market into a stage for foreign companies.

　　Qu Daokui also said that this crisis, on the other hand, is forcing domestic robot companies to enter new fields ahead of schedule.

　　Qu Daokui believes that the mission of traditional robots is to support the first three industrial revolutions, and they are merely mechanical equipment. These areas have been occupied by foreign robot companies, and their replaceability is not strong. However, the fourth industrial revolution must be supported by a new generation of robots that meet the new requirements of interconnection, interoperability, data, networks, and clouds. Therefore, there is a major change, which we call the new generation of robots. For Chinese robots to escape the crisis, they must first break out of the traditional category and directly exert their efforts in the field of new robots.

　　In his view, new robots also require three aspects of support: technology-driven, market-guided, and manufacturing model innovation. Chinese companies must focus on research and exploration in the field of new robots, conducting R&D based on the characteristics and requirements of new robots. New robots have more prominent performance in intelligence, perception, and interaction capabilities, and are more human-like, and these products will have broader market space in the service sector.

　　Robot technology also has a "shelf life".

　　The inability to sell produced products will bring risks to enterprises, and the inability to transform research results into technological achievements will also create risks for enterprises.

　　The risk Siasun faces is that if the company's new technologies are not quickly transformed into products, or if the company's new products fail to meet or lead market demand, the company will miss market opportunities, leading to ineffective returns on early investments, increasing the company's operational development risks, and affecting the company's rapid development process.

　　This requires the company to continuously improve its ability to judge and respond to the market. Where does this ability come from? Qu Daokui believes that it is only by relying on the market and fully immersing oneself in the market.

　　Qu Daokui believes that in the process of innovation, one cannot work behind closed doors; it is necessary to combine with market applications to provide conditions for innovation. Ultimately, a complete industrial chain system must be formed. The formation of this industrial chain system relies on a large platform for resource sharing and common use. Siasun adopts an "internal growth + external expansion" strategy, using the power of capital to integrate the technical forces and demand application objects in various aspects. This platform can achieve the shortest distance between technology and demand.

　　Statistics show that there are more than 30 robot-related industrial parks that have been built or are planned to be built nationwide. In terms of investment, the planned investment of existing local robot industrial parks by 2020 exceeds 500 billion yuan. Qu Daokui said that Siasun may participate in the construction of such parks nationwide, with no less than 10.

　　In 2017, Siasun Robot's Siasun Investment signed agreements with multiple regions, laying out multiple regions at home and abroad. It is understood that since last year, Siasun has been in close contact with local development zones and industrial parks, promoting its layout in industrial fields across the country.

　　"Robot industrial parks and intelligent industrial innovation service platforms have become platforms for Siasun to directly enter the market. This platform can quickly test technologies and products, and is also the source of market demand information," said Qu Daokui.

　　Robots should no longer rely on subsidies to survive.

　　Qu Daokui said that from the perspective of the development of the robot industry, it is no longer possible to use old methods such as fiscal subsidies to develop the robot industry. It is time to abandon the mindset of making up for shortcomings. Siasun is building technology platforms, talent platforms, and capital platforms to improve its own robot ecosystem.

　　In May of this year, after Siasun conducted a survey of the "Chang-Zhu-Tan" industrial system, it landed in Xiangtan to build a robot industrial park, and subsequently signed agreements with Fuyang, Luoyang, and Shijiazhuang. Two weeks ago, Siasun signed another agreement with Suzhou to build a future technology city project. The reporter learned from Siasun that Siasun will build another robot platform in Guangzhou after the World Robot Conference.

　　Siasun's frequent actions have dazzled the industry. In fact, Qu Daokui publicly stated a year ago that he would use the power of capital to build robot platforms across the country. He once said that he would use the power of capital to build multiple robot industrial projects across the country and use Industry 4.0 thinking to promote the popularization of robots across the country.

　　Siasun's actual actions began as early as 2014, when Siasun Holdings' Beijing Huize Boyuan Robot Investment Co., Ltd. began operations. In the same year, it successfully acquired the 110-year-old German educational institution, Tautlov, becoming the first successful case of a Chinese company acquiring a German educational institution as one of 14 important cooperation projects between China and Germany. In April of this year, Beijing Huize Boyuan Robot Investment Co., Ltd. was officially renamed Xin Song Robot Investment Co., Ltd. The reporter found in Siasun's 2016 annual report that Siasun has clearly stated its intention to "seek suitable targets to integrate industry resources." It will also continuously improve its industrial layout, comprehensively covering the Northeast region, Beijing-Tianjin-Hebei, the Yangtze River Delta, the Pearl River Delta, and the Southwest region, and improve the market share of the company's products and services.

　　Qu Daokui believes that in addition to the core and key platform technologies and common technologies of the robot industry that require national-led R&D, applications can be fully market-driven, allowing enterprises to judge market demand and fully utilize market resources for self-adjustment.

　　According to a report released by market research firm Market, the global robot market is expected to reach $23.9 billion by 2022, with a compound annual growth rate of 15.18% from 2016 to 2022.

　　According to Qu Daokui's analysis, the current number of robots is less than 2 million. China's annual automobile production is 20 million.

　　"As an industry or product, robots are almost negligible. This also shows that this huge market has not yet been truly opened," said Qu Daokui.