Rapid Growth of the Collaborative Robot Market and Manufacturing Innovation – Analysis of the Global Cobot Ecosystem in 2025
Editor
Explosive Growth of the Collaborative Robot Market and Paradigm Shift Across Industries
As of December 2025, the global collaborative robot (cobot) market is experiencing unprecedented growth, opening a new chapter in manufacturing automation. According to the latest report from the International Federation of Robotics (IFR), the cobot market size is expected to reach $18.7 billion by 2025, which is approximately a 340% increase compared to 2020. Notably, the compound annual growth rate (CAGR) of 32.8% significantly surpasses the overall industrial robot market growth rate of 12.4%. This rapid growth is driven by the increased maturity of cobot technology, reduced adoption costs, and, most importantly, the growing automation needs of small and medium-sized enterprises.
The key differentiators of collaborative robots from traditional industrial robots are ‘safety’ and ‘flexibility’. While traditional industrial robots operate in isolated spaces with safety fences, cobots can safely collaborate in the same space as human workers through advanced sensor technology and AI algorithms. For instance, the latest UR20 model developed by Denmark’s Universal Robots has improved the precision of force/torque sensors to 0.1N, enabling an immediate stop upon contact with humans. This meets the ISO 10218 and ISO/TS 15066 safety standards, allowing close work with humans without additional safety devices.
In terms of market share, Denmark’s Universal Robots maintains a dominant lead, accounting for approximately 47% of the global cobot market as of the third quarter of 2025. Germany’s KUKA follows with 16%, Switzerland’s ABB with 14%, and Japan’s FANUC with 12%. An interesting development is the rise of Korean companies. Hyundai Robotics has increased its market share to 8% in 2025, emerging as the fifth largest globally, while Doosan Robotics and Rainbow Robotics have secured 3.2% and 2.8% shares, respectively, establishing Korea as a stronghold in the cobot industry.
From a technological perspective, the most significant change in the cobot market in 2025 is the acceleration of AI integration. With the commercialization of simulation-based learning using NVIDIA’s Omniverse Isaac platform, the adaptability of cobots has greatly improved. Hyundai Robotics’ Hi5-A series, combined with vision AI, has achieved a 99.7% accuracy in part recognition and reduced learning time for new work environments by 85% compared to previous models. These technological advancements are expanding the application of cobots from simple repetitive tasks to complex assembly, inspection, and packaging operations.
Automation Revolution in Small and Medium-Sized Manufacturing Enterprises and ROI Analysis
One of the most important drivers of the cobot market’s growth is the proactive adoption by small and medium-sized enterprises. According to McKinsey Global Institute’s 2025 report, 37% of manufacturing companies with 50-200 employees have adopted or plan to adopt cobots, a significant increase from 14% in 2022. This indicates that cobots have transitioned from being exclusive to large corporations to becoming a means for small and medium-sized enterprises to enhance competitiveness. In Korea, this growth is further accelerated by the Ministry of SMEs and Startups’ smart factory dissemination policy, with approximately 2,800 cobots introduced to domestic SMEs in the first half of 2025 alone.
From an ROI perspective, the economic viability of cobots is highly attractive. According to an empirical study by Germany’s Fraunhofer Institute, the average payback period for cobot adoption projects is 18 months, half that of traditional industrial robots, which is 36 months. This is due to the relatively low adoption cost of cobots (average $50,000-$80,000 vs. industrial robots $150,000-$300,000) and the quick installation and programming time (average 3-5 days vs. 4-6 weeks). For instance, a small automotive parts manufacturer in Ansan, Gyeonggi Province, adopted three Hi5 models from Hyundai Robotics, improving productivity by 47% and saving 230 million KRW in annual labor costs.
The economic impact of cobots extends beyond mere workforce replacement. Capable of 24-hour continuous operation, cobots increase production uptime from 85% to 96% and reduce defect rates due to human error by an average of 67%. Additionally, they reduce the incidence of repetitive strain injuries (RSI) among workers by 43% and significantly lower the risk of industrial accidents, leading to reduced insurance premiums. A mid-sized Japanese electronic components manufacturer reported a 78% reduction in annual quality-related losses after adopting six CRX-10iA cobots from FANUC, recovering their investment in just 14 months, 9 months earlier than expected.
Amidst ongoing global supply chain instability, cobots are emerging as a key tool for manufacturers to achieve production flexibility. With many companies considering reshoring and nearshoring due to the COVID-19 pandemic and recent geopolitical risks, cobots are being highlighted as an automation solution to offset relatively high labor costs. According to a survey by the National Association of Manufacturers (NAM), 73% of manufacturers relocating production back to their home countries selected cobots as their core automation equipment.
Technological Innovation and Future Prospects – AI Integration and New Business Models
The most notable trend in the collaborative robot market in 2025 is the integration with generative AI. As research utilizing large language models like OpenAI’s GPT-4 for robot control enters the commercialization stage, an era of controlling cobots through natural language commands is dawning. A system based on Google DeepMind’s RT-2 model can interpret and execute natural language commands like “find and assemble the red part” with 99.2% accuracy. These technological advancements significantly lower the entry barrier for cobot programming, enabling even non-experts to easily utilize robots.
Advancements in sensor technology are also a key driver of improved cobot performance. Multimodal sensing systems integrating LiDAR, vision sensors, and tactile sensors have dramatically enhanced cobots’ environmental perception capabilities. ABB’s latest YuMi series can perform delicate tasks, such as picking up an egg without breaking it, thanks to force control precision of 0.02mm. Additionally, with the development of computer vision technology, cobots can recognize and manipulate complex-shaped parts with over 99.5% accuracy.
In terms of business models, innovation is occurring as well. The transition from traditional equipment sales models to Robotics as a Service (RaaS) models is accelerating, particularly lowering the barriers for SMEs to adopt cobots. Universal Robots’ UR+ ecosystem offers a subscription service that includes cobot usage, maintenance, and software updates for a monthly fee of $1,200-$2,500. This model reduces initial investment burdens and provides predictable operating costs, garnering positive responses from SMEs.
Looking at market forecasts, the global cobot market is expected to grow at an annual rate of 28.5% to reach approximately $74 billion by 2030. The growth in the Asia-Pacific region is expected to be particularly prominent, with Korea, China, and Japan serving as major growth drivers. The Korean government has announced a goal to increase the smart manufacturing rate to 30% by 2030 and plans to increase the budget for cobot adoption support by 150% compared to 2025. In China, as part of the ‘Made in China 2025’ policy, the goal is to introduce over 100,000 cobots annually, which is expected to drive global market growth.
However, along with market growth, there are challenges to address. Cybersecurity risks are increasing, with concerns that network-connected cobots could become targets for hacking. Additionally, the shortage of skilled robot engineers is intensifying, making the expansion of training and education programs urgent. From an ethical standpoint, social discussions on job replacement and finding the right balance in human-robot collaboration are emerging as important tasks. Addressing these challenges while ensuring sustainable growth is expected to be a key task for the collaborative robot industry.
This report is intended for general informational purposes and does not constitute investment advice. Please consult a professional before making investment decisions.
