The Case of Harmonic Reducers in China

With rising labor costs and an increasingly aging population, the Chinese robotics industry is entering a golden period of development. The entire robotics industry chain is mainly divided into three levels: upstream core components, midstream equipment manufacturers, and downstream industry application providers.

The three core components of industrial robots are the robot reducer, controller, and servo system, accounting for 60% of the overall cost. Among them, due to the high cost proportion of the reducer (reaching 30%) and the high technological threshold, it has garnered significant attention in the robotics industry. In fact, as any industry develops to a certain stage, cost reduction becomes a crucial consideration, and in the industrial robotics field, the reducer, which has the highest cost, becomes the primary factor in reducing the cost of domestically produced industrial robots.

It is well known that in the past, due to the weak industrial foundation in our country, critical components heavily relied on imports. Although the Chinese robotics industry has developed over 30 years and formed a relatively sound industrial foundation, there still exists a significant gap compared to developed countries, with the industrial foundation remaining weak and critical components heavily reliant on imports.

The cost of the three core components (reducer, controller, and servo system) accounts for 60% of the overall cost of industrial robots, with the reducer having the highest cost proportion at 30%, followed by the servo system (20%) and the controller (10%).

In reality, as any industry develops to a certain stage, cost reduction becomes a crucial consideration, and the reducer, which has the highest cost in the industrial robotics field, has become the key to overcoming this challenge.

Precision reducers have become the primary factor restricting the reduction of costs for domestically produced industrial robots. In comparison to reducers, the servo motor and driver market have not formed a major manufacturer monopoly, and several major international manufacturers have also established production facilities in China, ensuring adequate supply and relatively reasonable product prices.

Looking at the global precision reducer market, Japanese brands Harmonic Drive System Inc. and Nabtesco monopolize nearly 75% of the market share.

In the field of robotic harmonic reducers, Harmonic Drive System Inc. has a global market share of over 80%, while in the RV reducer field, most of the market share is still held by Nabtesco, leaving ample room for domestic RV reducer alternatives.