iREX 2017 by The Worldfolio

INTERNATIONAL ROBOT EXHIBITION 2017

NOV 29 - DEC 2, 2017

WELCOME TO THE ROBOTICS REVOLUTION PRESENTING STATE-OF-THE-ART PRODUCTS, TECHNOLOGIES AND SERVICES FOR NEW POSSIBILITIES BROUGHT ABOUT BY DEVELOPMENTS IN ROBOTICS

YOUR ENGLISH-LANGUAGE GUIDE TO THE LEADING ROBOTICS EXHIBITION

WWW.THEWORLDFOLIO.COM

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STAFF

ALVARO LLARYORA Chairman

JAPANESE ROBOTICS SPEARHEADING INDUSTRY 4.0

JONATHAN MEANEY

Much has been written about the growing role that the Internet of Things, AI, Factory Automation and Robotics will play in our modern societies.

Chief Editor

FABRIZIO FITZGERALD FARINA Regional Institutional Director

ANTOINE AZOULAY Country Director

ALINE OUAKNINE Project Director

ALEXANDRE MARLAND Editorial Director

ANDREA SEGURA Project Coordinator

CHARLES JOHNSON Market Analyst

EDUARDO BERTONE & IGNACIO PLASENCIA Art Direction

SPECIAL THANKS TO iREX, JARA, HIROSE, FANUC Corporation, The University of Aizu

With its aging population, Japan has been forced to develop innovative solutions to offset its shrinking workforce, while maintaining the competitiveness and quality of its manufacturing output. In the process, it has fostered some of the world’s most innovative technologies and solutions. From the medical field to the automotive sector, Japanese robotics is spearheading Industry 4.0. The iREX 2017 exhibition will provide an insider’s look into the Japanese and international robotics industry, showcasing the solutions to increase the efficiency of manufacturing processes, to improve our quality of life, and to contribute to creating a better world. The Worldfolio is proud to assist iREX 2017 in presenting the state-of-the-art products, technologies, and services that are engendering new possibilities in cross-sectorial industries while ensuring safety and peace of mind. WELCOME TO THE ROBOT REVOLUTION! The Worldfolio Team

CONTENTS:

04 An interview with Chairman of iREX 2017, Mr. Yasuhiko Hashimoto

08 The Robotics Revolution

12 How robotics will transform the food industry, manufacturing and healthcare

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iREX 2017

‘COME AND EXPLORE HOW WE CAN SHAPE THE FUTURE TOGETHER’ Mr. Yasuhiko Hashimoto, Chairman of iREX 2017 and Managing Executive Officer of Kawasaki Heavy Industries’ Robotics Division, speaks with The Worldfolio about why iREX 2017 is the leading event for the global robotics industry, the growing role robots are playing in our societies, and the innovative work at Kawasaki Robotics

Another aspect is of course speed. Not only speed in the development of the product, but also in terms of its manufacturing and adjustment based on the customers’ feedback. Specifically, in the case of industrial robots, IoT allows real time and remote monitoring which further eliminates distances. This is not only from a purely manufacturing perspective, but also in terms of software changes and further developments. This new technology enables therefore a different decisionmaking process when it comes to business strategies and communication. We can now more easily and efficiently decide where to set up manufacturing sites and strategic headquarters. Mr. Yasuhiko Hashimoto, Chairman of iREX 2017 and Managing Executive Officer of Kawasaki Heavy Industries’ Robotics Division

The IoT industry is estimated to reach a global value of $14.4 trillion by 2022. Can you please share your personal perspective on the status of the industry today and what the future holds when it comes to applications of IoT, AI, and Big Data? IoT will drastically reduce the distance not only between the manufacturer and the customer, but also within the manufacturer’s plant itself, thereby streamlining the different processes and eliminating inefficiency. Moreover, IoT will facilitate the estimation of future trends thanks to accurate monitoring activities and new data that will be developed. Manufacturers will therefore be able to adjust to customers’ requirements and revert back to them in a timelier fashion. In this way, distance can be almost eliminated not only within Japan but also between Japanese companies and overseas customers that can also enhance trust among the players.

Manufacturers of course look at those opportunities you just mentioned. However, there is growing skepticism when it comes to issues such as privacy or even cyber-attacks that could disrupt production activities that are so technologically interlinked or that over rely on M2M (machine-to-machine) interactions. What is your personal point of view on this matter? Technology will always be controlled by humans. So, the question is more directly linked to the goodwill of people utilizing this technology. The new frontier is of course applying IoT to sophisticated industrial robots and we see that many large manufacturers are uncertain about this move, precisely because there could be some risk of disruption not from the outside, but from the inside. We can provide a system, similar to a VPN, that cuts off the communication but that still allows the customer to intervene within the system in case of emergency. Certainly, the higher sophistication of the technology goes hand in hand with the necessity of higher standards in terms of safety and security.

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Could you give our readers an overview about the genesis and evolution of Kawasaki Robotics over its history? We are now preparing some ceremonies to celebrate our 50th anniversary. In 1968, some of our executives traveled to the U.S. and learned about robotics technology. They immediately understood that robotics was crucial for the development of industry in Japan. So they began to manufacture the first robots in Japan, which were hydraulic robots. Cultural differences between Japan and the U.S. or Europe also played a key role in the development of the industry. On the one hand, Japanese people are accustomed to seeing and playing with robots. So, robots are seen as friendly. However, in the West, there is a tendency of portraying robots as a threat to human activities. On the other hand, the difference in the labor union systems played an important role. In Japan, if a robot replaces a job for safety reasons, the worker simply switches position becoming, for instance, the robot operator. The worker doesn’t lose their jobs at the expense of the adoption of robots. In the West, workers fear for their job because trade unions are organized differently. The first robot in Japan was delivered in 1969 for the automotive industry. This is the starting point of the robot industry in the country. Before that only one or two robots were used. Robots were utilized for activities that were unsafe or too hard for humans. Of course, automotive plays a big role for the robotics industry. But Kawasaki Robotics is trying to expand the business to what we refer to as “general industries.” So, we develop press machines or machine tools, for instance. Another industry that is very important nowadays is semiconductors. Kawasaki Robotics now holds the largest share of the global semiconductor market – more than 50 percent. By 1988, we had developed a robot for medical purposes. We were probably way too ahead of the time back then. However, I think the time is ripe now. We have continuous discussions with our customers to adjust to their new requirements on a regular basis. Our focus is to customize all our solutions. This is why we are very successful in the semiconductors industry, which requires very flexible solutions. I worked in California from 2001 to 2009 with the objective of expanding the business to the semiconductors industry. I also wanted to diversify business segments and that’s why I am currently pushing to create new collaborations in the medical sector. In 2013 we created a collaboration with Sysmex in the medical robot area and we are now expanding the business and pioneering new solutions in this medical segment.

What segments offer Kawasaki Robotics the highest growth potential in Japan and overseas? To answer your question, I think it’s essential to start from a premise about our business philosophy. Part of our philosophy hinges around the challenge of the aging society. To give you an image of the issue in Japan, every year 640,000 people retire. This creates a huge shortage in the labor supply. Especially younger generations, as we were saying earlier, may get scared about this technology. But if you consider the magnitude of the challenge, you immediately see that the scarcity of labor supply is far greater than the capability of robot supply. The way we interpret the role of robots is a complementary one to human activities. Robots will help us to overcome these

socio-economic issues and create a safer labor environment. Furthermore, it is a fact that in Japan, corporations that utilize robots pay higher salaries to the workers. This is natural considering that the workers will be required to have higher skills to handle the sophisticated machines.

With more than 300 exhibitors and over 100,000 visitors, iREX claims to be the largest robot trade shows in the world, with two broad categories: the industrial robot zone, and the service robot zone. What is your personal opinion about the meaning of the overarching theme of iREX 2017: “The Robot Revolution Has Begun–Toward a Heartwarming Society”? In my opinion the theme underlines the need for the application of robots for the enhancement of social welfare. For customers and social purposes alike. We have to counterbalance this image of robot invasion. At iREX 2017, we will show how we conceive the robots for the future with the objective to positively contribute to the business objectives of our customers but also to create a safer and more efficient environment.

Will robots make some workers obsolete? Or is it just a new cycle that will create new high-skilled jobs and replace unskilled work? Undeniably there are jobs that are more suitable for humans and vice versa. I see the two as complementary. It is up to the business leaders to decide how to distribute human resources to more creative activities and apply robots for hard working activities and for safety reasons. Corporations that are facing hard financial situations may decide to adopt robots to avoid bankruptcy but in Japan there are instances of corporations utilizing robots because they want to lower salaries. In fact, if you take into consideration not only Japan but also China, the salaries are growing in companies that utilize robots. So again, I don’t really see this battle between labor force and robots. To give you an example: one of the indicators more commonly used is the number of robots per 10,000 workers. In Singapore this indicator stands at 600 per 10,000 workers, or 6 percent. In Japan, it’s 300 per 10,000 workers, so 3 percent. The share, as you can see, is minimal.

“At iREX 2017, we will show how we conceive the robots for the future with the objective to positively contribute to the business objectives of our customers, but also to create a safer and more efficient environment”

Why would you like to invite potential customers and all relevant stakeholders from all over the world to come to visit iREX 2017? I’d like to invite potential customers to come and explore how we can shape the future together. Let’s try to find solutions together for the wellbeing of our societies. We cannot just think about profit making. With this attitude we are probably going to fail to achieve new dreams. So, we want all stakeholders to take part in this event and explore what we can achieve together.

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The International Robot Exhibition 2017 (iREX 2017) is being held under the theme of ‘The Robot Revolution Has Begun―Toward Heartwarming Society’. Held once every two years, 2017 marks its 22nd anniversary as the world’s biggest robot exhibition. iREX 2017, held on the largest scale ever, expects 612 companies/organizations and 2,775 booths for exhibitors. This grandiose figure surpassed the numbers of 2015, which hosted some 446 companies/organizations and 1,882 booths. Robot-related element technologies, the latest nursing care robots, disaster reaction robots and life support robots, along with large-scale industrial robot manufacturers are all brought together in Tokyo Big Sight. As our feature symposium and forum, ‘iREX Robot Forum 2017’ is going to be held by 6 major robot manufacturers and 2 users under the theme of ‘Change the Workplace! Together with Robots!’, to discuss the future utilization of robots. Other major forums such as ‘NEDO Robot/AI Forum’, ‘RRI International Symposium’ will be held by famed robot developers from overseas. In addition, various hands-on projects are to be held on Saturday, Decemebr 2 in East Hall 8, offering visitors a chance to experience the latest robotics technologies.

TOTAL NUMBER OF EXHIBITORS

TOTAL NUMBER OF BOOTHS

612

2,775

TREND IN NUMBERS OF EXHIBITORS / BOOTHS

NO. OF JAPANESE EXHIBITORS

NO. OF EXHIBITORS FROM OVERSEAS

NO. OF JAPANESE BOOTHS

NO. OF BOOTHS FROM OVERSEAS

NO. OF EXHIBITORS

NO. OF BOOTHS

700

252

600 500 400 300 200 100 0

125

2,523 88

159

3.000 2.500 2.000

1,723

1.500

1,141

1.000

987

500

236

281

389

524

2011

2013

2015

2017

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EXHIBIT CATEGORY

Industrial Robot Zone (IR)

Exhibition Categories: • Plastic Welding • Press • Welding • Picking • Conveyance • Measurement • Inspection • Testing • Food Processing • Al (Artificial Intelligence) • UAV (Drone) and many others

Service Robot Zone (SR)

Exhibition Categories: • Nursing Care/Welfare /Medical Care • Agriculture, Forestry and Fisheries/ Food • Infrastructure/Life • Education and many others

Robot Simulation/ Vision System (IRV)

Exhibition Categories: • Simulation System/Simulation Software • Application Software • CAD/CAM • Al (Artificial Intelligence) and many others

Component Technology & Devices

Exhibition Categories: • Components • Connectors • Conductors • Modules and many others

Toward the Realization of a World Where Robots and Humans Live and Work Together The Japanese government is promoting a robot competition to be held in 2020 for the first time in the world. Facing the reduction in labor force caused by the low birthrate and longevity, Japan is taking the lead by holding the competition in order to make a breakthrough related to this demographical problem. The theme will be ‘Robotics for Happiness’, which describes our hope to build a society where robots and humans live and work together. Entries are expected not only from Japan but also from across the world. A great deal of attention is being focused on this upcoming event. And we look forward to your participation.

World Robot Summit 2020 AICHI/FUKUSHIMA Aichi International Exhibition Center/ Fukushima Robot Test Field August and October, 2020

World Robot Summit 2018 Tokyo @ Tokyo Big Sight October 17-21, 2018

2018

2019

2020

Held alongside: Japan Robot Week 2018 @ Tokyo Big Sight October 17-21, 2018

Held alongside: RoboCup Asia-Pacific Open and Japan Robot Week 2020

Japan Robot Week E-mail: n-event@media.nikkan.co.jp Website: biz.nikkan.co.jp/eve/s-robot/english/

World Robot Summit (WRS) Secretary E-mail: info@worldrobotsummit.org Website: www.worldrobotsummit.org/en/

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THE ROBOTICS REVOLUTION From manufacturing to healthcare and the services industries, advanced robotics is becoming ever-more ubiquitous. This will bring significant increases in productivity, quality and speed of delivery; while human workers are freed up from monotonous tasks to spend more time on skilled, technical or knowledge-based work. Optimists say that with less time spent on monotony, there will be more time for creativity and innovation, as well as leisure, family and other pursuits

Industrial robots have been used on assembly lines for decades now, but technological advances have enabled them to take on more complex work, with more speed and accuracy than human workers. Today Asia is witnessing the strongest growth in the use of industrial robots. China is the largest market in the world, with sales of 87,000 units in 2016; South Korea was second with 41,400 units, and Japan third with 38,600 units. The International Federation of Robotics (IFR) predicts that 1.7 million industrial robots will be installed in factories worldwide by 2020. The use of industrial robotics can result in significant improvements in quality and efficiency for manufacturers. After a Chinese factory replaced 90 percent of its human workforce with automated machines, it experienced a 250 percent increase in productivity and an 80 percent drop in defects. Sony’s automation activities have reduced defect rates from 2000 to 20 parts per

million. Quality has, therefore, become a key driver for factory automation in Japan. But so too has the nation’s demographics. “Relying on automation processes and robots will be one of the solutions to our decreasing workforce and aging population,” says Mr. Yoshiharu Inaba, Chairman and CEO of FANUC Corporation, the world’s leading manufacturer of industrial robots. “However, this solution is clearly not limited to Japan. It will be applicable to the entire world. Our industry is focused on developing robots that can help human beings. The idea is to have machines, robots and such, do the heavy and monotonous labor, while humans focus on precise and unique work.” In the coming years, disruptive technologies such as the Internet of Things, Big Data and cloud computing will also have a major impact on the evolution of industrial robotics. “Robot manufacturers are already developing and commercializing new service models: these are based on real-time data col-

lected by sensors which are attached to robots. Analysts predict a rapidly growing market for cloud robotics in which data from one robot is compared to data from other robots in the same or different locations,” says the IFR. “The cloud network allows these connected robots to perform the same activities. This will be used to optimize parameters of the robot’s movement such as speed, angle or force. Ultimately, the advent of big data in manufacturing could redefine the industry boundaries between equipment makers and manufacturers.” With advances in artificial intelligence, machine vision, motions sensors and hydraulics, robots are now capable of more intricate and delicate tasks, from picking and packing small electronic parts and preparing food in fast-food restaurants, to performing robotic surgery and allowing the disabled to regain movement with the use of robotic prosthetics. At the same time, the cost of robotics is declining, which will lead to the rapid increase of robotics applications in the manufacturing, services and healthcare industries over the coming years. Worldwide spending on robotics and related services will more than double by 2020, growing from $91.5 billion in 2016 to more than $188 billion, according to the newly updated Worldwide Semiannual Commercial Robotics Spending Guide from the International Data Corporation (IDC). The Asia/Pacific region, including Japan, will account for more than two thirds of total robotics spending throughout the forecast period. Europe, the Middle East, and Africa (EMEA) is the second largest region with expenditures of $14.7 billion in 2016, followed by the Americas with a 2016 spending total of $12.9 billion. Robotics spending will more than double in Asia/Pacific over the 2015-2020 forecast period, making it the fastest growing region followed by the Americas, which will edge ahead of EMEA in total spending by 2018.

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“The market for robotics continues to experience tremendous growth,” said John Santagate, a research manager at IDC Manufacturing Insights. “This growth is really fueled by a combination of technology improvements, expanded use cases, and acceptance in the market. Innovators in the field of robotics are delivering robots that can be used to perform a broader range of tasks, which is helping to drive the adoption of robotics into a wider base of industries.” Manufacturing made up more than half of all robotics spending in 2016, and this situation will remain throughout the forecast period. After manufacturing, the three industries with the largest robotics spending in 2016 were Resource Industries ($8.0 billion), Consumer ($6.5 billion), and Healthcare ($4.5 billion). These industries will maintain their relative positions throughout the forecast period. A study by McKinsey Global Institute (MGI) predicts that the application of robotics across these and other industries could generate a potential economic impact of $1.7

trillion to $4.5 trillion per year by 2025, including between $800 billion to $2.6 trillion in value from healthcare issues. “Advanced robotics also holds a great deal of promise for businesses and economies,” MGI says. “Early adopters could gain important quality, cost, and speed advantages over competitors, while some companies could find that advanced robotics lowers the barriers for new competitors.” It also says that businesses in developing countries could be the biggest buyers of robotics. However, at the same time these economies will have to face the impact from the lower demand for low-skilled manual labor. Indeed, for both developed and developing countries, the biggest challenge will be finding new roles for workers in the services and manufacturing industries, whose tasks will be fulfilled by robots or automated processes. The World Economic Forum predicts that robotic automation will result in the net loss of more than 5 million jobs across 15 developed nations by 2020; while Oxford University researchers have estimated that

47 percent of U.S. jobs could be automated within the next two decades. Of course, the key for companies, workers and society itself will be adapting to this huge disruptive change. While robots look after the monotonous – and sometimes dangerous – tasks, human workers can be retrained to do more skilled, technical or knowledgebased work, or focus more of their time on creativity and innovation. The view of many optimists is that robots will not only free up time spent on monotonous work, they could also help to significantly reduce the hours in the working week, giving us more time for leisure, family and other pursuits. “We are currently in an era where leisure time and work-life balance have taken a great deal of importance, and the automation of processes will further allow for that to happen,” says FANUC’s Mr. Inaba. “With the enhancement of manufacturing productivity through robots, we could imagine a society where there would only be three work days of five hours for an even better result and delivery.”

SIZED APPLICATIONS OF ADVANCED ROBOTICS COULD HAVE DIRECT ECONOMIC IMPACT OF $1.7 TRILLION TO $4.5 TRILLION PER YEAR IN 2025 SIZED APPLICATIONS ROBOTIC HUMAN AUGMENTATION INDUSTRIAL ROBOTS

SURGICAL ROBOTS

POTENTIAL ECONOMIC IMPACT OF SIZED APPLICATIONS IN 2025 $ TRILLION, ANNUALLY

0.6– 2.0 0.6– 1.2 0.2– 0.6

PERSONAL AND HOME ROBOTS

0.2– 0.5

COMMERCIAL SERVICE ROBOTS

0.1– 0.2

SUM OF SIZED POTENTIAL ECONOMIC IMPACTS

1.7– 4.5

ESTIMATED SCOPE IN 2025

ESTIMATED POTENTIAL REACH IN 2025

POTENTIAL PRODUCTIVITY OR VALUE GAINS IN 2025

• 50 million amputees and people with impaired mobility in advanced economies

• 5–10% of amputees and people with impaired mobility in advanced economies

• $240,000–390,000 per person for extended/improved quality of life

• 355 million applicable industrial workers

• 30–60 million FTEs* of work potentially automatable across key job types

• 75% potential improvement in productivity per unit of work automated

• 200 million major surgeries in countries with developed health care

• 5–15% of major surgeries in countries with developed healthcare systems

• 60,000–180,000 lives saved per year• 50% reduction in sick and inpatient days

• 90–115 billion hours spent on tasks such as cleaning and lawn care per year in advanced economies

• 25–50% of households in advanced economies

• 20–50 billion hours saved per year • $10 value per hour of time saved

130 million applicable service workers

10–15 million FTEs* of work potentially automatable across key job types

35–55% potential improvement in productivity per unit of work automated

*Full-Time Equivalent Units SOURCE: McKinsey Global Institute

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‘Robots will help us to achieve new and amazing things’ The Worldfolio sits down with Mr. Hiroshi Fujiwara, Executive Director of the Japan Robot Association (JARA), to discuss the compatibility between humans and robots, the advantages robots will bring to industry and our daily lives, and the role of JARA in the promotion of the robotics industry Being at the forefront of the Fourth Industrial Revolution, Japan can regain its leadership role as a technology trend-setter. How do you see the growth of applications such as IoT, AI, Big Data, and Cloud technology and their impact on industry? IoT and Big Data is without a doubt a huge trend in today’s world. It started in Germany and Japan is now a big innovator in this field. It is undeniable that these technologies will shape the future of our world. IoT is starting to become applicable to so many different fields nowadays, and this is undeniably creating new opportunities in the market. For example, in a manufacturing plant, production can be increased and therefore the efficiency of companies can increase two or three-fold. In addition, the way we conduct business will change as there will be less human interaction, but once again, efficiency will increase. The relation between customers and suppliers will change – specifically, the connection between both sides will become even closer, and suppliers will become more aggressive proponents.

Could you please give us an overview of JARA’s activities and mission? JARA started in 1971 but was actually incorporated in 1973. The present name of JARA was adopted in June 1994 in order to accommodate non-industrial robots such as “personal robots”. Our aim at JARA is to encourage research on robots in order to promote the development of the robot manufacturing industry. We encourage the use of advanced technologies in different industries, and through this we hope

to help our nation by stimulating its economic growth and also to improve living standards. Today, oversea markets are the main drivers of growth for our members.

Based on your expertise, what are the overseas markets and industries with the highest growth potential for your members? Here in JARA, we don’t really have common strategies targeting specific countries that we think have growth potential. Each member has its own strategy. We are thinking about dividing the market into domestic and overseas. In other words, the markets and industries with growth potential is different in Japan and overseas. But naturally, the U.S., Western Europe and the rest of Asia are big markets for our members, and especially China, which is the biggest one.

“The most important thing is creativity. New technologies stimulate people’s imagination and push their creativity. That is how we will continue to create new innovative technologies and robots” Hiroshi Fujiwara, Executive Director of the Japan Robot Association

Today, Japan is facing demographical problems, such as an aging population and a declining workforce. How can robots contribute to the further growth of the Japanese economy taking into account the challenges that you are facing today? The problem is, firstly, the lack of labor force, then the decline of social vitality due to aging. Speaking of my personal conclusion, the robots are not substitutes for the missing labor force, they help to raise the productivity of the fewer workers we have. The use of robots can make it easy for elderly people, disabled people and women to participate in the labor market also. At the same time, robots will become a supporting partner for those people to live independently and with dignity.

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We don’t personally think that robots can replace the human workforce, but they can rather be good assistants to humans. Robots can assist in helping and boosting the productivity of humans, but they won’t be able to replace them completely. They are particularly helpful to accomplish dangerous tasks, or repetitive dull tasks. In addition, they can assist disabled or older people in order to make their work and life easier. However, they will never be able to accomplish the job of a highly skilled workforce accompanied by experiencebacked inspiration.

What is your opinion about the meaning of the overarching theme of iREX 2017: “The Robot Revolution Has Begun – Toward a Heartwarming Society”? Three years ago, Prime Minister Shinzo Abe advocated to start a Robot Revolution and launched a new strategy to promote robots and the robotics industry. The Robot Revolution is aimed at realizing a society in which robots create new added value by utilizing robots in various situations from the manufacturing site to everyday life, solving social problems and strengthening international competitiveness. The revolution has therefore already begun, and we can notice that in our everyday life. People think that robots will replace humans but that is not true. They will never be able to replace highly skilled workers. In addition, if robots start assisting us in our repetitive tasks, that will release humans from stress in the workplace and society, and will make humans focus more on innovation, it will boost their creativity and their imagination. Once again, robots are here to assist us, and will help us to achieve new and amazing things.

In the western world, people are becoming increasingly scared of this robot mega-trend, as they believe that they will make the workforce obsolete, and they will put many people out of jobs. Do you think that this misperception will make it harder to have business opportunities with Europe or the U.S.? Robots do not replace people with jobs that people can do or work that people want to do. Robots will engage in work that people dislike, work that people should not do, work that people cannot do, such as dangerous, unsanitary, or extreme environmental tasks. We want people to realize that robots are here to assist us, to help us, and not to make workers obsolete. Here in Japan, robots have been present for a much longer time than in Europe or the U.S., and we regard the robots as our reliable friends, colleagues, and even as heroes or heroines. So, we believe that mentalities in Europe and the U.S. will change slowly over time, and people will realize that they can be of great help to us.

What changes are needed in the educational system in the future to further support these new technologies that are appearing in our world today? Robots are only a tool for humans, and it is important that we can use them in an efficient way. That is why we want all new technologies to be user friendly. We also want to educate the people on how to use machines, how to use technologies and how they can be of use to us. When new tools and technologies appear, people need to learn about their mechanisms and how to handle them. Therefore, the educational system will also change. Nevertheless, the most important thing is creativity. New technologies stimulate people’s imagination and push their creativity. That is how we will continue to create new innovative technologies and robots.

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How robotics will transform

the food industry, manufacturing and healthcare With the technology getting cheaper and more advanced, robotics is on the verge of transforming a number of industries and has the potential to change how we live and work. In this article, The Worldfolio looks at three industries on which robotics will have an enormous impact in the coming years The Food Industry Compared to other industries, the food manufacturing sector has been relatively slow to adopt robotics. But the use of advanced robotics in all segments of the food industry is set to grow rapidly over the coming years, from the farm to the fast-food kitchen. This will lead to drastic improvements in productivity, efficiency, food quality, worker safety and consumer health, as well as reductions in expenses and food waste. For years robots have been used in food manufacturing to perform simple tasks in the downstream production process, such as packaging and fulfilment. Now, thanks to technological advancements, robots can be used for filling, capping, sterilizing, cutting, high-speed picking and sorting, defect removal and other activities. Technological advancements, decreasing costs of industrial robots and the increasing demand for improved productivity, safety regulation fulfilment and advanced packaging, will be among the main drivers of growth of the food robotics market. According to a recent report by research firm Markets and Markets, the food robotics market is set to grow at a rate of 12.8 percent, reaching $2.5 Billion by 2022 – almost double its current value. Europe currently accounts for the largest share of the food robotics market, but in line with the trends in the general robotics industry, the Asia-Pacific region is projected to grow at a fastest rate of 15.4 percent during the forecast period. The use of robotics in agriculture is also set to expand quickly over the coming years. The precision farming market is expected to reach $7.87 Billion by 2022, growing at a rate of 13.47 percent between 2016 and 2022 – and robotics and automation will make up a huge part of this. Robotic applications include planting, identifying and sorting seedlings.

There will also be a growing demand for autonomous tractors, weeding robots and harvesting robots. Drones and autonomous ground vehicles are also being used to monitor and analyze crops. Like in many other industries, Japan can offer us a glimpse of what the future of farming may look like. A number of Japanese companies are at the forefront of the robot farming revolution, such as Kyoto-based company Spread, which opened the world’s first robotrun farm in 2016. At Spread’s indoor lettuce farm, robots look after all but one task, doing everything from re-planting young seedlings to watering, trimming and harvesting crops. The innovation has boosted production from 21,000 to 50,000 heads of lettuce per day. A lot of the robotics innovations in the food industry have gone on “behind the scenes”, unseen by the end user – the food consumer. But that could all change in the coming years as robots become more prevalent in the food services industry. It may not be long until we see robots putting the lettuce in our hamburgers at our favorite fast food restaurants; or robot chefs preparing our pancakes – something which is already happening in Japan at the Henn-na restaurant in the Huis Ten Bosch amusement park in Nagasaki. “In food service particularly, more businesses will employ robots to improve product consistency and overall efficiency,” said Henry Hu, CEO of Café X, a robotic café in San Francisco, in an interview with website Quora. “This will enable more businesses to apply resources in high quality and sustainable ingredients. This just means consumers will get better tasting and healthier food.”

Manufacturing According to a study by McKinsey Global Institute (MGI), industrial robots with features

such as machine vision and high-precision dexterity typically cost $100,000 to $150,000. By 2025, it is possible that very advanced robots with a high level of machine intelligence and other capabilities could be available for $50,000 to $75,000 or less. In recent decades, robot prices have fallen about 10 percent annually (adjusted for quality improvements) and may decline at a similar or faster rate through 2025. As industrial units have become cheaper, they have become more prevalent in the manufacturing industry, particularly in the U.S., Europe, Japan, China and South Korea, and demand for robots and automated machines will continue to grow. The global market for factory automation machines and systems is estimated to increase 180 percent from around $22 billion this year to about $61 billion in 2022, according to market research firm Fuji Keizai. As the global leaders in industrial robotics, Japanese manufacturers such as FANUC Corporation and Kawasaki Heavy Industries are speeding up development of industrial robots, to meet the increased demand. FANUC is already a large supplier to U.S. industry, which installed around 135,000 new industrial robots between 2010 and 2015, according to the International Federation of Robotics (IFR). The principal driver is automation in the car industry, which will continue to be a heavy user of industrial robots. The electronics industry continues to be the fastest-growing emerging industry for industrial robots in the United States. Increasing numbers of orders can also be expected from the metals and machinery industry, the rubber and plastics industry, the pharmaceutical and cosmetics industry, and the food and beverage industry. The use of robotics is not limited to the big players. Robotic penetration is also rising

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in the small and medium-sized enterprise sector, which sees robotics as a key factor in improving productivity and product quality in order to stay globally competitive. Manufacturers are now developing affordable, compact, customized and energy-efficient robotics solutions aimed at increasing the efficiency of SMEs. MGI estimates that applications of industrial robots could have a direct economic impact of between $600 billion and $1.2 trillion by 2025, saving up to 30 to 60 million full time equivalents of work potentially automatable across key job types, and improving productivity by 75 percent per unit of work automated. “Global manufacturing labor costs today are $6 trillion annually, so additional automation represents a huge opportunity,” states the MGI report. “Manufacturing and service companies with large workforces could benefit from reduced costs, reduced injuries, and lower overheads, as well as reducing payrolls in human resources, labor relations, and factory supervisory roles. Factories might no longer need to be located near sources of lowcost labor, allowing them to be located closer to final assembly and consumers, simplifying supply chains and reducing warehousing and transportation costs.”

Healthcare Robotics technology will help manufacturers to save time and money. But perhaps its most important application will be in healthcare, where robots will be used to help save lives. By 2025, MGI estimates robotics surgery has the potential to save 60,000 to 180,000 lives each year, and significantly reduce both in-patient care time and missed work days. “Currently, about 3 percent of all major surgeries result in death, but it is possible that by 2025, advanced robotic surgical systems could help reduce these deaths substantially, perhaps by as much as 20 percent, by reducing common complications such as bleeding or internal bruising,” says MGI. A report by Allied Market Research expects the surgical robotics market to almost double to $6.4 billion. That would represent a 10.2 percent annual growth rate between 2014 and 2020. “Surgical robotic systems offer less post-surgical complications and reduce labor cost,” the study said. “Due to this, large-scale hospitals based in developed and developing economies are now favoring automated surgical/hospital services, which ultimately drives the market growth.” The global robotic prosthetics market, meanwhile, is expected to reach $1.76 billion by 2025, up from $790.8 million in 2016,

Robotic applications in agriculture include planting, identifying and sorting seedlings; while drones and autonomous ground vehicles are also being used to monitor and analyze crops

McKinsey Global Institute estimates robotics surgery has the potential to save 60,000 to 180,000 lives each year, and significantly reduce both in-patient care time and missed work days according to a recent report by Grand View Research, as the number of amputation cases rises globally, due to various risk factors such as accidents, severe injuries, cancerous tumors in the bone or muscles of limbs, limb infection, and frostbite. Some other causes such as obesity, diabetes, vascular disease, stroke, and arthritis also contribute to the increasing number of amputation cases. MGI predicts that 5-10 percent of amputees or people with impaired mobility in advanced economies could have access to robotics prosthetics or exoskeletons, leading to extended lifespans. Robots are also set to become more commonplace in hospital rooms and halls, supporting doctors, physiotherapists, nurses and other care givers in their daily tasks. Robots can be used to deliver medicines from room to room, draw curtains, and perform other menial tasks a bedridden patient would normally need to call a nurse for. In Japan, Toyota has developed its Welwalk WW-1000 robot, a machine that can rehabilitate stroke victims some 60 percent faster than regular physiotherapy; while in Belgium, two hospitals have added an innovative staff member to their reception desks: humanoid

robots called Pepper, that can recognize the human voice in 20 languages and detect if they are talking to a man, woman or child. “Robots in the medical supporting segment could really support human activities and increase the safety levels in many different aspects of hospitals,” says Yasuhiko Hashimoto, Managing Executive Officer of Kawasaki Heavy Industries’ Robotics Division. “For example, special machines could help change the posture of patients at regular times. Of course, this would make life easier not only for the patient but also for the nurses that won’t have to wake up at night because the patient is in pain and needs to change position in bed. Similarly, this kind of robottype beds could guide patients to restrooms on their own even at night times.” Like manufacturing and the food industry, increased adoption of advanced robotics is set to transform healthcare. While there are many critics of robots and their use across a number of industries, particularly in relation to the loss of jobs, healthcare is perhaps one area where it is hard to find an argument against the use of robots helping to extend and save lives.

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ESTIMATED ANNUAL SUPPLY OF INDUSTRIAL ROBOTS AT YEAR-END BY INDUSTRIES WORLDWIDE 2014-2016

1.7 MILLION NEW INDUSTRIAL ROBOTS BY 2020 Double-digt average annual increase

â&#x20AC;&#x2DC;000 of units

2016

Estimated annual worldwide supply of industrial robots 2008-2016 and 2017*-2020*

2015

2014

AUTOMOTIVE INDUSTRY

600

+15% on average per year

ELECTRICAL/ ELECTRONICS

500 METAL

400

+18%

CHEMICAL, RUBBER AND PLASTIC

+16% 300

FOOD

200 OTHERS

100 UNSPECIFIED

*2020

*2019

*2018

*2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

0 UNITS

20,000

40,000

60,000

80,000

100,000

Source: IFR World Robotics 2017

FOOD

MANUFACTURING

HEALTHCARE

12.8%

180%

60-180k

annual rate of growth of food robotics market (2016-2022)

projected growth rate of factory automation market (2017-2022)

no. of lives saved by robotics surgery by 2025

$7.9bn

$600bn-$1.2trn

$1.76bn

projected size of precision farming market by 2022

estimated direct economic impact of industrial robots by 2025

projected size of global prosthetics market by 2025

Sources: Markets and Markets, Fuji Keizai, McKinsey Global Institute, Grand View Research

120,000

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Japanese universities key to the nation’s robotics aspirations Reputed for their historical strengths in engineering, design and manufacturing, Japanese universities will be crucial in developing the engineers that will lead the new robotics-driven industrial revolution The difference in attitudes between Japan and the West towards robots can mainly be attributed to differences in cultural history. For close to a century, Western science fiction literature and movies such as Fritz Lang’s 1927 film Metropolis, Terminator, Blade Runner and iRobot, have created a level of fear and apprehension in the U.S. and Europe towards robots and androids. Japan’s love of robots, on the other hand, mainly stems from the popularity of ‘Karakuri Ningyo’ – mechanized dolls that first appeared in the 17th century during the Edo Period. Traditional Shinto and Buddhist teachings in Japan also say that a soul or spirit resides even in inanimate and manmade objects, which could also partly explain the nation’s reverence towards the machine. It’s no wonder then that Japan has embraced robots like friends or helpful co-workers, and has lead the world in the field of robotics since the 1970s, with highly competitive research, development and applied technologies, much of which is carried out and developed at the nation’s universities and research institutions. In 2014, Prime Minister Shinzo Abe unveiled a plan to maintain the country’s position as an international robotics superpower, by creating a new industrial revolution driven by robotics – a market which Mr. Abe hopes will reach a value of $21 billion by 2020. Academic research is central to Japan’s robotic aspirations. There are more than 70 university-sponsored robotic laboratories in Japan, according to the Robotics Society of Japan. Leading labs include the facilities at Kyoto University, Yokohama National University, Osaka University, and the Nagoya Institute of Technology. Public research organizations involved in robotics development include the Japan Aerospace Exploration Agency (JAXA), the National Institute of Informatics, and the National Institute of Science and Technology. Many universities in Japan offer bachelors and postgraduate courses in robotics and AI, which churn out the engineers that

will shape the new robotics-driven industrial revolution. Even a private high school is now offering studies in robotics. Tokyo’s Vantan High School launched its Drone & Robotics Course this year. The full-time three-year course curriculum includes drone piloting, maintenance and inspection; aviation and radio laws; and computer programing for system upgrades. With this course, Vantan believes it can help to address the lack of human resources to handle the steadily increasing demand for skilled drone engineers in Japan. Established in 1993, The University of Aizu (UA) in Fukashima was the first university dedicated to computer science engineering in Japan. UA’s Research Center for Advanced Information Science and Technology (CAIST) specializes in five emphasized fields of research, or “clusters”: Robots, Space Science, Biomedical Engineering, Cloud, and High-Performance Computing. According to UA, research will be promoted to meet social needs, so that CAIST can contribute to development of local industries and the creation of new businesses.

At the Aizu Research Cluster for Robots (ARC-Robot), UA says it will apply its information communication technologies to robotics in order to take robots to the next stage, as well as creating a new field of study in computer science and engineering from the experience it garners in robotics development. University robotics research centers and laboratories like Aizu’s are commonplace throughout Japan and will help to build the 21st-century ‘Karakuri Ningyo’ that will drive the nation’s new robotics revolution.

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