The Dynamic Evolution of Robotics and Automation in Business

Robotics and automation represent a major evolution, significantly impacting industries where they are implemented, especially by driving productivity and increasing company revenues. In today’s context, where the business environment is facing intense competition and unprecedented challenges, strategic investments in automation and robotics are no longer optional but essential for organizations aiming to grow and remain competitive.
Author: Daniela Pampu, Senior Manager AI Enabled Transformations, EY Romania

Accelerating Global Adoption of Automation Technologies

Globally, the adoption of robotic and software automation technologies is accelerating at an impressive rate. Physical robots are making significant strides in streamlining supply chain operations, effectively speeding up processes that were once time-intensive. On the other hand, software automation leverages digital robots to imitate human activities, performing repetitive tasks with greater speed and accuracy. This not only reduces errors but also frees up human employees to focus on more strategic, high-value tasks.

Enhancing Operational Efficiency and Employee Engagement

The integration of robotics and automation technologies goes beyond merely improving operational efficiency. These solutions allow employees to engage in more creative tasks—jobs that have a higher impact on business performance. This shift is crucial, as it helps organizations maximize the potential of their human capital while simultaneously reducing operational costs and execution times. Software automation ensures the delivery of operational improvements by identifying human errors and maintaining consistent quality, ultimately offering organizations regulatory compliance and legal protection.

The Role of Artificial Intelligence in Automation

Both robotics and automation technologies can significantly enhance their impact when integrated with Artificial Intelligence (AI). AI acts as a catalyst, augmenting capabilities and enabling the development of more sophisticated applications that boast substantial business impact. The synergy between these technologies drives further innovation, paving the way for applications that were previously unimaginable.

The Emergence of Robotics in Modern Business

With the rapid technological advancements in robotics and automation, these tools are no longer distant or futuristic concepts. They have established themselves as essential components of modern business operations. As these technologies evolve, they are becoming increasingly accessible and cost-effective, solidifying their importance for organizations striving to boost efficiency, productivity, and overall competitiveness.

Global Trends in Industrial Robotics

The growing significance of robotics is clearly highlighted by the rapid global uptake of industrial robots. From 2012 to 2023, the number of industrial robots in use surged by 245%, reaching an astounding 4.28 million units worldwide. Annual installations have mirrored this upward trend, showcasing the sector’s rapid expansion, particularly in leading economies. Countries such as China, Germany, Japan, South Korea, and the United States have emerged as frontrunners in robotics implementation.

China’s Leading Position in Robotics

China has witnessed extraordinary growth in robotics, with annual installations climbing from 23,000 units in 2012 to approximately 276,000 in 2023. This remarkable trajectory underscores China’s strategic commitment to automation as a means to bolster its production capacity and enhance global competitiveness.

Germany’s Robust Automation Framework

Among the European nations, Germany stands out by being the only EU country in the top five global economies for industrial robot adoption. This not only highlights the strength of Germany’s industrial base but also reflects its unwavering commitment to advanced manufacturing. From 2012 to 2023, Germany saw a 56% increase in industrial robot installations, further consolidating its status as Europe’s leader in automation.

Robotics and Automation Trends in Romania

In Romania, the trend towards robotics and automation is gaining momentum, with a promising flow of companies pivoting toward full implementation. According to EY’s Emerging Technology Investment in Romania study, over one-fifth (21.3%) of respondents indicated their organizations have already integrated robotics and automation solutions. However, the most significant share (28.1%) is currently in the adoption phase, actively pursuing the integration of these technologies into their operations.

In addition, equal segments of 14.6% report being in the planning or testing stages. This indicates that many organizations are cautiously evaluating the potential benefits of these technologies before committing to significant investments. Nevertheless, a solid base of Romanian organizations is keen to fully embrace robotics and automation solutions.

Key Drivers of Investment in Romania

Romanian companies are prioritizing robotics and automation technologies to enhance product and service quality while increasing production volumes. These two factors have emerged as the main drivers of investment, cited by 82% and 81% of study respondents, respectively.

When examining motivations for automation, boosting production speed and improving quality emerged as primary concerns. Interestingly, while labor-related challenges remain significant, they were viewed as secondary to the quest for operational excellence. The trend indicates a fundamental shift: Romanian companies are not solely adopting automation to compensate for workforce shortages but are actively seeking to enhance operational performance and deliver greater value to their customers.

Insights by Company Size

When responses were disaggregated by company revenue, firms earning under EUR 10 million and those generating over EUR 50 million exhibited a striking alignment in their focus on production efficiency and quality, both indicating over 80% in these areas. Conversely, mid-sized companies expressed heightened concerns regarding workforce stability, showing higher percentages for reducing employee turnover and cutting labor-related costs.

Conclusion: A Call to Action for Romanian Businesses

Romanian companies find themselves at a pivotal stage in their journey toward robotics and automation. While large-scale implementation remains limited for now, a notable share of organizations is actively adopting, planning, or testing these transformative technologies. To stay competitive and align with global production trends, Romanian organizations must prioritize the integration of automation at all operational levels. By committing to company-wide implementation, businesses will drive efficiency, foster innovation, and secure long-term sustainable growth in an increasingly digital landscape.