Issue 21 | 10.06.2024

As Mobile Robots become increasingly used in various industries, the question of whether their prices will drop is often discussed. Several factors contribute to this discussion, with arguments both supporting and opposing the trend of decreasing costs. Below, we explore the key points on both sides of this debate, providing insights into the future of Mobile Robot pricing:

Arguments Supporting Price Reductions

1. Increased Market Competition
   • More vendors joining the market
   • Higher competition leads to price decreases
   • Proven trend in various industries
      
2. Technology Advancements
   • Improved efficiency and capabilities
   • Mass production of components
   • Reduced cost of advanced technologies
      
3. Component Commoditization
   • Engines and sensors used in various devices
   • Suppliers producing in high volumes
   • Price drops due to high-volume production
      
4. Influence of Electrification
   • Battery technology improvements from EV sector
   • Reduced costs for batteries and motors
   • Cross-industry advancements benefiting mobile robots
      
5. Increased Production Volumes
   • Higher demand predicts higher production
   • Economies of scale reduce costs
   • Larger markets drive down prices
      
6. Chinese Market Dynamics
   • Intense competition in Chinese market
   • Chinese vendors expanding globally
   • Lower prices due to high volume production
      
7. Standardization and Interoperability
   • VDA 5050 and similar standards
   • Simplified integration with existing systems
   • Reduced costs through standard protocols
      
8. Learning Curve Effect
   • Suppliers improving efficiency over time
   • Customers becoming more self-sufficient
   • Reduced project and integration costs
      

Arguments Opposing Price Reductions

1. Rising Component Costs
   • Recent increases in component prices
   • Inflation and supply chain issues
   • Some components not seeing price drops
      
2. Temporary Effects of Supply Disruptions
   • COVID-19 impact on supply chains
   • Temporary price hikes due to disruptions
   • Possible lasting effects on component costs
      
3. Need for Advanced Technology
   • Future advancements requiring significant R&D
   • High costs for developing next-gen robots
   • Increased prices for revolutionary tech
      
4. Complex Use Cases
   • New, complex applications emerging
   • Higher costs for specialized robots
   • Limited savings from commoditization
      
5. Service and Maintenance Costs
   • Ongoing costs for upkeep and repairs
   • Differences in service quality affecting total cost
   • Higher costs for long-term maintenance
      
6. Quality and Certification Issues
   • Higher standards for global markets
   • Certification processes increasing costs
   • Quality assurance impacting pricing
      
7. Market Saturation
   • Easy use cases already covered
   • Remaining applications more difficult
   • Costs not dropping for niche use cases
      
8. Economic Factors
   • Global economic instability
   • Fluctuating material and labor costs
   • Impact of economic trends on pricing
      

Conclusion:

The future of Mobile Robot pricing is influenced by a wide set of different factors. While increased competition, technological advancements, and economies of scale suggest a trend towards lower costs, challenges such as rising component prices and the need for advanced technology may counteract this trend. Ultimately, the balance of these influences will determine whether Mobile Robots become cheaper. Us from Automation Awakenings rate the arguments suggesting a price reduction as stronger and therefore believe that customers will benefit from lower costs in the years to come