THE EVOLUTION OF ROBOTICS

IN SMBS—FROM HESITATION
TO INNOVATION
White Paper

OVERVIEW
Discover how tech advancements, lowering price points, and the urgent need to augment the existing
workforce are ushering in the next wave of robotics adoption by smaller manufacturers.
Digital transformation, made up of what’s commonly referred ARE SMBS READY TO USHER IN NEXT WAVE
to as Industry 4.0 initiatives, is largely recognized as a key OF ADOPTION?
enabler to both spurring growth and delivering the efficiencies SMBs in manufacturing have made significant advancements
manufacturers need to remain competitive today. They need in adopting automation technology. The combination of
the tools to combat industry-wide issues, such as the lingering advancements in robotics technology, lowering price points,
skills gap and disrupted global supply chain, while staying and the rather urgent need to augment the existing workforce
operationally agile. have led to the next wave of robotics adoption by smaller,
An important aspect of these Industry 4.0 initiatives is more innovative manufacturers.
automation and robotics. Robotics offer the potential to The narrative has now evolved from automation as a good-to-
automate mundane, repetitive tasks, such as welding, have luxury to a foundational necessity for SMB manufacturers,
painting, and assembly, which can help small and medium- underpinning their competitive edge in the market. With this
sized businesses (SMBs) in manufacturing cut production context in mind, let’s delve into the factors that have enabled
costs and improve quality control. Robots can also be used SMB manufacturers to embrace automation with more ease
to automate material-handling and packaging tasks, which than ever before.
can help these smaller manufacturers reduce labor costs and
improve efficiency. EVOLUTION OF AUTOMATION TECHNOLOGY TO
Integrating robotics into your manufacturing is also a great HANDLE PRODUCT VARIATIONS
way to attract the tech talent you will need to fortify
your future workforce, which you can learn more about in
the white paper “How Robotics Can Help You Build Your
Workforce of the Future.”
While larger companies, such as Amazon, Ford, Walmart,
and many more, have been reaping the cost and productivity
benefits of robotics for many years, the vast majority of
companies with 500 or fewer employees are still sitting
on the sidelines. The good news its the bigger companies’
use of automation has pushed the development of robotics
technology in ways that will greatly benefit SMBs. Automation technology has indeed become more adaptable
A report by The Manufacturer, published in 2019, found out and flexible, enabling SMBs to handle product variations
that only 16 percent of the SMB manufacturers at that time efficiently. Here are a few examples of how modern robotics
in the U.K. had implemented robotics, while a whopping systems and automation solutions have become more versatile:
71 percent did not plan to or were unsure if they would 1. 
Robotic Arms With Vision Systems: These can adapt to
use robots. The same study revealed the following top five varying product sizes, shapes, and orientations. They use
reasons behind these companies’ hesitation to using robots: cameras and sensors to identify and locate objects, allowing
1. Inflexibility coping with product variation the robot to adjust its grip and handling accordingly. This
flexibility enables SMBs to automate tasks such as pick-
2. High implementation costs and-place operations, assembly, and packaging, even
3. Products not easy to handle when dealing with different product variations.
4. Lack of programming and maintenance skills 2. 
Collaborative Robots (Cobots): Designed to work
alongside human operators, these robots can be easily
5. Lack of finance
programmed and taught new tasks, making them well-
This lack of deployment among smaller companies can be due suited for handling product variations, and can be quickly
to many factors, but certainly the cost of adoption and fear of reconfigured to work on different product lines or adjust
disruption to production are often-cited reasons. their movements and force exertion to accommodate
That was then. Today, the picture is different and the varying product sizes and shapes.
industry is booming. According to a white paper by ROBO 3. 
Modular Automation Systems: These allow SMBs to
Global entitled “Automation Isn’t Just for the Fortune 500,” configure and reconfigure production lines based on product
the global robotics market is predicted to skyrocket from variations. These systems consist of interchangeable
$65 billion in 2021 to $180 billion by 2027. modules or cells that can be easily rearranged or replaced
A significant portion of this growth will come from the SMB to adapt to different manufacturing needs.
segment. The availability of small-capacity and cost-effective 4. A
 daptive Grippers and End Effectors: These tools, which
solutions from major providers is helping to increase the attach to robotic arms, have become more versatile.
penetration of robots into this segment. In addition, the Adaptive grippers, for instance, can adjust their grip
increased availability of smaller sensors and faster processors strength, shape, or surface contact to handle various
has enabled the development of smaller, cheaper, and more product types so users can automate tasks that involve
flexible robots that are easier to program and operate. manipulating different product sizes, materials, or
geometries without the need for custom tooling.

The Evolution of Robotics in SMBs-From Hesitation to Innovation 1

5. F
 lexible Conveyor Systems: Automated conveyor systems outside consultants and systems integrators that can
have advanced to handle product variations efficiently. significantly add to the cost of implementing robotics.
For example, adjustable or modular conveyor belts can 3. 
Plug-and-Play Solutions: Driven primarily by advancements
accommodate different product widths or shapes. They
in component standardization, miniaturization of
can also be equipped with smart sensors to detect product
components, and improvements in connectivity technology,
variations and adjust the speed or direction of movement
robotic systems now provide plug-and-play capabilities,
accordingly, ensuring smooth material handling in diverse
enabling SMBs to effortlessly install and integrate robots
production scenarios.
into their operations. These systems are pre-configured and
require minimal setup or customization, facilitating quick
SIMPLIFYING USE OF ROBOTICS TECHNOLOGY
deployment. Plug-and-play solutions effectively reduce the
complexity and time involved in implementation, making
them more feasible for smaller manufacturers with limited
resources and time constraints.

ROBOTICS-AS-A-SERVICE

There’s been a perception that embarking into automation,

and more specifically into robotics, is an expensive and time-
consuming undertaking. In addition, many SMBs might worry
about a lack of internal expertise in robotics.
The good news is that in recent years, owning robotics
Robotics-as-a-Service (RaaS) has gained prominence in recent
technology has become easier and more feasible for SMBs
years as a flexible and cost-effective solution for businesses
due to several advancements in the field. Here are some key
seeking to leverage robotic automation. RaaS embodies the
factors that have made owning robotics technology more
concept of access over ownership, where businesses can
accessible for SMBs:
access robotic capabilities as needed without the burden of
1. L
ower cost of robotics: Technological advancements, long-term ownership or infrastructure investment. This trend
economies of scale, innovations in manufacturing, and aligns with the changing preferences of consumption, where
improved integration and ease of use have collectively convenience, flexibility, and cost-efficiency are prioritized over
contributed to the significant reduction in the cost of the ownership and long-term commitment associated with
robotics. Additionally, innovations, such as 3D printing, have traditional models.
reduced material usage, while improved integration and ease
The growth of RaaS can be attributed to several factors.
of use have made robotics more accessible and affordable.
Firstly, RaaS addresses the increasing pressure for automation
As a result of these trends, the cost of industrial robots in various industries. It provides a solution that lowers the
is expected to decline to less than $11,000 per unit by barriers to entry, making it easier for businesses, including
2025, down nearly 60 percent from 20 years ago, when smaller manufacturers, to adopt robotics without incurring
the average cost was more than $80,000. This trend has high upfront costs.
resulted in increased demand for industrial robots, with
Secondly, it leverages the concept of cloud computing,
sales projected to reach 3.4 million units by 2025, further
allowing users to access robotic capabilities on a subscription
driving down costs and enabling smaller companies to
or pay-as-you-go basis. This flexibility enables manufacturers
embrace robotics technology.
of all sizes to incorporate automation solutions as needed,
2. 
No-Code and Low-Code Technology: The emergence scaling up or down based on their requirements. RaaS also
of no-code and low-code programming platforms has eliminates the need for extensive infrastructure investments,
simplified the programming and integration of robots. as the cloud-based approach provides the necessary computing
These platforms allow operators and users without power and knowledge through the service provider. This
extensive coding knowledge to program and configure significantly reduces the implementation complexity and cost
robot applications. With intuitive interfaces and drag-and- for smaller manufacturers.
drop functionalities, SMBs can easily customize robot
Overall, RaaS offers increased productivity, reduced costs,
behavior, define tasks, and integrate robots into their
improved quality and accuracy, increased safety, flexibility in
existing processes. This eliminates the need for specialized
automation implementations, and access to industry expertise
programming skills and reduces the reliance on external
and innovation. These benefits make RaaS a valuable resource
experts or software engineers. It also reduces the chance
for SMBs looking to leverage robotics and stay competitive in
of smaller companies being at the mercy of expensive
the evolving manufacturing landscape.

The Evolution of Robotics in SMBs-From Hesitation to Innovation 2

GOVERNMENT EFFORTS TO PROMOTE The European Union (EU) has also taken initiatives to
AUTOMATION FOR SMBS promote automation and support SMBs. The European
The U.S. government has implemented several initiatives to Commission’s strategy for digitizing industry, known as
encourage robotic automation for SMBs in manufacturing. One Industry 4.0, aims to facilitate the digital transformation of
significant effort is the Advanced Robotics for Manufacturing European industry and enhance its competitiveness. The EU
(ARM) Institute, which is a public-private partnership focused provides funding and support for research and development
on accelerating the adoption of robotics in manufacturing. projects focused on automation, robotics, and advanced
The ARM Institute provides funding, technical expertise, manufacturing technologies.
and resources to support research and development projects The Horizon 2020 program, for example, offered funding
that advance robotics technologies and their integration into opportunities for SMBs to develop innovative technologies
manufacturing processes. and solutions. The EU has also launched the European Digital
The government has also established the Manufacturing USA Innovation Hubs, which provide access to expertise, testing
network, an alliance of innovation institutes that address facilities, and funding for businesses to adopt and implement
various advanced manufacturing technologies, including digital technologies.

©2023 Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or
robotics. These institutes foster collaboration among industry, Additionally, the EU promotes collaboration and knowledge

registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries.
academia, and government agencies to develop and deploy sharing through platforms such as the European Robotics
advanced manufacturing technologies, including robotics, to Forum and the European AI Alliance. These initiatives aim
enhance competitiveness. to foster innovation, increase productivity, and create new
Additionally, the government offers tax incentives and grants business opportunities for SMBs in the field of automation
to encourage investment in automation equipment and and robotics.
robotics technology. Programs such as the Manufacturing
Extension Partnership (MEP) provide assistance to SMBs,
THE BOTTOM LINE
including guidance on adopting and implementing robotics SMBs in manufacturing today must start evaluating the
and automation solutions. Overall, the U.S. government role that robotics can play in their business. By leveraging
aims to support SMB manufacturers in adopting robotic robotics, manufacturers can improve efficiencies, amid a slew
automation through funding, technical support, collaboration of challenges, and start their digital transformation journey to
platforms, and incentives to enhance productivity, innovation, assure they remain competitive today and in the future.
and global competitiveness.

Discover how adding robots can help you attract young skilled talent by downloading the white paper, How Robotics Can Help
You Build Your Workforce of the Future.
You can learn more about our manufacturing and production solutions by visiting https://www.solidworks.com/domain/
manufacturing-production.

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