At an event for the financial community at the Solutions Center in Freiburg, Germany, on February 27, ABB Robotics & Discrete Automation unveiled its strategy to drive profitable growth. With a diversified product portfolio, innovation capabilities, global business network and deep domain expertise, the Business Division will grow faster than the market, supporting existing customers in their transition to robotics and automation, while expanding new customer bases and driving growth.
ABB Robotics and Discrete Automation is well positioned to take advantage of structural growth opportunities
In a challenging market environment, balanced business development leads to strong performance
ABB Robotics and Discrete Automation reiterated its target margin of 13% to 17%
At an event for the financial community at the Solutions Center in Freiburg, Germany, on February 27, ABB Robotics & Discrete Automation unveiled its strategy to drive profitable growth. With a diversified product portfolio, innovation capabilities, global business network and deep domain expertise, the Business Division will grow faster than the market, supporting existing customers in their transition to robotics and automation, while expanding new customer bases and driving growth.
ABB Robotics & Discrete Automation supports customers in response to global megatrems such as skilled worker shortages, digitalisation, global uncertainty and personalisation of consumer needs. The market size of the division is expected to grow from $75 billion in 2019 to $110 billion in 2025, twice the annual growth rate of global GDP in the medium and long term.
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In the medium term, ABB Robotics & Discrete Automation expects its revenue growth to be higher than the expected market growth rate of 6% per year. To achieve this, the division will focus on existing segments such as the automotive industry (including electric vehicle manufacturing), new automation solutions including machine-centric robotics and flexible manufacturing concepts, and new segments including logistics and healthcare. Currently, about 60 percent of its revenue comes from outside the auto industry.
The division reiterated that it expects to achieve an operating margin of 13% to 17% in the medium term through measures such as improving plant production efficiency, balancing product portfolio and optimizing project execution.
"With strong positions in key markets across three continents and an emphasis on innovation, we are well positioned for above-market growth. At the same time, our initiatives to improve profitability will enable us to achieve our target margin in the medium term of operations." "In order to unlock new growth potential, we are constantly developing new applications for innovative robotics and automation solutions," said Martin Asley, president of ABB's Robotics and Discrete Automation division. Our deep domain expertise gives us a strong foundation to enter promising new market segments such as logistics, retail and healthcare, and we are constantly expanding our product portfolio to meet our customers' needs."
ABB Robotics and Discrete Automation is the world's only supplier of joint robotics and automation solutions to customers "from machine to factory level" in the "factory of the Future" model. The Factory of the Future is a fully automated and connected factory with high productivity, high flexibility, high quality and simplicity. With B&R Automation and robotics integration solutions, including machine-centric robotics solutions, ABB is able to provide a one-stop shop for customers to benefit from this new model.
To continue to meet customer needs, ABB Robotics & Discrete Automation invests approximately 5% annually in research and development to support the expansion of its product portfolio, particularly collaborative robots and their ease of use, machine-centric robotics, digital factory automation and artificial intelligence. The division also confirmed the completion date of ABB's new state-of-the-art robotics factory in Shanghai, China, in 2021, and the expansion of its machine automation campus, including a research and development center, in Egelsberg, Austria, by the end of 2020.
