The foreign mobile robot industry has set off a wave of "acquisitions" this year, including many well-known companies, such as ABB, Zebra Technology, Jungheinrich and so on.
Wen | happy
After several years of market cultivation, the mobile robot (AGV/AMR) industry has entered a period of rapid development, both the market size and the number of enterprises are no longer the same.
According to the data of China Mobile Robot Industry Alliance, in 2020, China's mobile robot sales were 41,000 units, and the market size reached 7.68 billion yuan, an increase of 24.4% year-on-year; of which there were 24 companies with revenues of more than 100 million yuan.
While the entire mobile robot industry is improving, foreign markets are also in full swing. According to the incomplete statistics of the new strategic mobile robot all-media, in order to better layout the mobile robot market, the foreign mobile robot industry has set off a wave of "acquisitions" this year, including many well-known enterprises, such as ABB, Zebra Technology and Eternal Force.
Although it is all for a better layout of the market, but the way foreign companies enter the mobile robot industry is very different from domestic companies, the domestic is generally cooperation or increase investment, while foreign countries are mergers and acquisitions, then, what is the reason for this? Here, in the spirit of seeking truth from facts, the author has sorted out some viewpoints for the benefit of readers.
First, you love me and rely on each other
At present, the industry is changing rapidly. Some companies may have a competitive advantage when they are founded, but for various reasons, the competitiveness is gradually disappearing. When the competitiveness of their own enterprises weakens, they must rely on foreign investment to maintain the competitiveness of enterprises, and if they do not want to be eliminated by the economic climate of survival of the fittest, they can only rely on mutual acquisitions to maintain their own profitability, which is a way to rely on the shareholding system to seek enterprise development.
Take AutoStore, for example, which was founded in 1996 and is most talked about with its warehousing and logistics system. According to relevant reports, thanks to the advanced nature of AutoStore's warehousing and logistics system, AutoStore deployed 20,000 robots to serve in more than 35 countries and regions around the world and automate warehouses.
However, with the development of the industry, AutoStore began to encounter various problems in market operation, such as under the impact of current new technologies and new enterprises, the core competitive advantage of AutoStore warehousing and logistics system is declining.
In addition to the gradual decline in core competitiveness, AutoStore also faces other problems. In 2021, AutoStore broke out in legal proceedings with Ocado, the UK's largest online supermarket, which AutoStore claimed copied some of its robot designs. But Ocado has denied the allegations and counterclaims in several countries.
In addition, AutoStore also experienced an operating loss of $21.1 million in 2020, while the situation of AutoStore in the first half of 2021 is not objective, with revenue of $150 million and a net loss of $56.5 million.
Signs are that AutoStore's competitiveness is waning, a fact that was further illustrated when AutoStore accepted a $2.8 billion injection from SoftBank. Because AutoStore needs to maintain development, and SoftBank also wants to be further expanded on the robot track, it can be said that the two coincide.
Second, professional people do professional things
A company is very small, maybe only a few people, but their depth in their own area of expertise, may be more than the large enterprises in this special branch of the force and resources invested, large enterprises are generally a group fight, but the most able to fight may not be there, small business is good at single-handed, group fighting is not OK, single-handed ability is still good.
Here's amazon acquiring Kiva Systems. In 2012, Amazon acquired Kiva System for $775 million and integrated it into amazon robotics, its robotics division. In the next two to three years, Amazon began to deploy Kiva on a large scale in various warehouses.
As a representative of global retailers, Amazon is undoubtedly researched in terms of logistics, but the direction is very broad and involves the entire link. For example, Amazon's logistics model includes FBA, third-party overseas warehouse, and self-delivery, all of which involve warehousing, sorting, packaging, delivery, and delivery.
Although the overall strength of Kiva Systems is not as good as Amazon, in the aspect of warehousing and logistics, it is definitely the existence of "carrying handles", and Amazon looks at the potential of Kiva Systems in warehousing, so it has spent a huge amount of money to acquire Kiva Systems to make up for its technical shortcomings.
According to a 2013 report, Amazon's delivery cost for ordinary orders at that time was about $3.50 to $3.75, but after using Kiva robots, this cost dropped significantly, between 20% and 40%, and it is estimated that the robot can save Amazon about $900 million in the warehouse sorting process every year.
Third, better costs
As we all know, the ultimate purpose of an acquisition must be to expand its own business. So, in what way to expand? That's the key! If there is a simpler, more economical and more cost-effective way in front of us at this time, I believe that all enterprises are flocking to it!
Coincidentally, the mobile robot industry has this characteristic. First of all, although the mobile robot industry has developed strongly in recent years, it is still a small industry from the perspective of market volume. Small industries have a characteristic, if the initial investment is too large, it may cause a waste of resources, if the investment is too small, it is possible to polish the product or technology.
At this time, if you enter the market through acquisition, it is bound to save a large amount of money, and even form a technical complementarity. For example, Jungheinrich acquires Arcculus Technologies.
As we all know, although Jungheinrich is a traditional forklift company, it is "ambitious" in business. In response to the trend of upgrading automation in the manufacturing industry, it has launched a modern and comprehensive AGV product line. According to the data, in the first three quarters of 2021, Jungheinrich's operating income reached 3.02 billion euros.
However, despite this, Jungheinrich is still under pressure from tight global supply chains, and the search for a new growth curve has become an important means for Jungheinrich to cope with environmental pressures. Therefore, Eternal Force took aim at Arculus.
Arculus focuses on autonomous mobile robots (AMRs), modular production platforms, and software solutions. With an experienced team of hardware and software experts at its plants in Munich, Ingolstadt, Stuttgart and Dresden, many well-known automotive manufacturers and industrial customers from other industries are important arculus customers. With this acquisition, Jungheinrich adds highly innovative hardware and software solutions in the fast-growing field of autonomous mobile robots to its existing automation system portfolio.
In the current environment, many companies are looking for new opportunities, and Jungheinrich is no exception. However, as a traditional company, entering the market to autonomous mobile robots (AMRs), it is not necessary to spend any money, so for cost considerations, acquisitions are undoubtedly the best choice. The facts also confirm the feasibility of the acquisition.
Dr. Lars Burzoska, Chairman of the Board of Directors of Jungheinrich AG, said: "With the acquisition of Arcculus, we have been able to fully expand Jungheinrich's expertise in the field of automated action. Important application areas – such as person-to-person order picking – will continue to grow strongly, not least because of the increasing number of e-commerce. With the Arculus team, we can achieve strong growth synergies and unlock important areas of action in the future of automated warehouse logistics. Together, we open a new chapter in the history of the warehouse of the future."
Conclusion: In addition to the above reasons, cultural differences and business environment are also important reasons why foreign companies are more enthusiastic about acquisitions. Because in China, people have a stronger attribution of products, and they think that what they can really grasp in their hands is their own, so they tend to find someone to do it themselves; while in foreign countries, there is no such consideration, and everything can be "bought, bought, bought". In addition, foreign legal systems are sound, people are very good at protecting intellectual property rights, and once product infringement occurs, they have to pay a very high price. Therefore, when the cost of research and development is too high, and there is the protection of intellectual property rights, a company wants to squeeze into a certain field, and acquisition seems to be the best choice.