Insight Report 2020 GLOBAL ROBOTICS FOOTPRINT MADE IN ODENSE

WHERE ROBOT HEROES GROW CONTENTS PREFACE

The cluster ...... 6 Many robotic companies are born global, and Odense’s industry For the first time, we have figures on international is no exception. Having established strong R&D functions in collaboration. They show a cluster with an extensive network People ...... 11 their home market, companies in the Odense Robotics cluster of global partners. Almost half of companies collaborate with are now expanding globally more than ever before. This annual other robot and automation companies internationally. And Performance ...... 14 report tracks the growth of companies in the Odense Robotics more than one in four companies in the cluster collaborate cluster. Once again, we can see strong results. with research and educational institutions abroad. Partnerships ...... 21 Companies significantly strengthened their global Odense has become an internationally renowned centre for footprint in 2019, opening international affiliates and robotics and has played an instrumental role in positioning expanding their workforce at home and abroad. Last Denmark as a leading robot nation. Odense is home to half of year saw a 25% increase in the number of employees the country’s producers, accounting for half of the country’s abroad totalling 950 employees, almost double the robotic exports and 37% of Denmark’s robotics turnover. number than two years ago. At the same time there Can Odense’s success be replicated in the rest of was an 8% increase in employees in the cluster in Denmark? Unequivocally, yes. Our goal is, together Denmark, from 3,600 in 2018 to 3,900 people in with partners, to create a national framework that 2019. Today, the cluster employs close to 5,000 accelerates growth amongst high-growth robotics people worldwide. companies in Odense and the rest of Denmark. We While key markets within robotics and automation are will continue to strengthen the epicentre in Odense currently experiencing a slowdown, the cluster generated while extending growth opportunities to innovative, impressive financial results in 2018, the latest available high-growth robotic companies across the country. figures for the cluster’s financial performance. Despite By leveraging synergies across Denmark, we can build on challenging market conditions, many companies expect our global position of strength to realise the full potential continued strong growth. of the country’s innovative robotics companies with high- Exports rose by an impressive 26% to reach EUR 643 growth potential. million in 2018 compared with the previous year – and growth is set to continue. More than 80% of companies plan to export in the future, a steep rise from the Data, analysis and editorial by Odense Robotics. situation today where just over half of companies © Odense Robotics export. Turnover increased by 18% on 2017 to reach EUR 897 million in 2018 and the large majority of www.odenserobotics.com Mikkel Christoffersen companies expect a more than 20% increase in Cluster Director, Odense Robotics turnover for 2020-2022 compared to 2018. January 2020.

2 KEY FINDINGS THE CLUSTER 133 companies in the cluster PEOPLE 41% of companies work in full or in part with collaborative and mobile robots 3,900 employees in the cluster 40+ education programmes 4,800 employees in the cluster by 2021

10+ research and education institutions 950 employees abroad

PERFORMANCE PARTNERSHIPS 83% collaborate with other EUR 897 million turnover in 2018 cluster companies ion 62% collaborate with robot and automat EUR 643 million in exports in 2018 companies in the rest of Denmark 48% collaborate with robot and automation EUR 800+ million invested in companies since 2015 companies internationally

3 3 KEY FIGURES IN A DENMARK NATIONAL PERSPECTIVE 292 companies 8,500 employees The Odense Robotics cluster is a strong 140 producers epicentre for Denmark’s growing robotics industry. 91 integrators EUR 2.4 billion in turnover Denmark ranks among the world’s leading nations within industrial robots. This global position of strength has to a large extent been secured as a result billion exports of innovation and development by companies in the Odense area, particularly EUR 1.3 within the collaborative robots, mobile robots and food automation. Analysis of the Danish robotics industry – a position of strength on the rise, Damvad Analytics, 2019. Indeed, the Odense Robotics cluster is regarded as the epicentre of Denmark’s growing robot and automation industry. Odense is home to half of the country’s producers, accounting for half of the country’s robotic exports and 37% of Denmark’s robotics turnover. Denmark’s robotics industry is growing with increasing activity in areas such as Aarhus, Aalborg, the Greater Copenhagen area and Southern Jutland. And figures show that companies across the country are leveraging synergies to generate growth and drive innovation. More than 60% of companies on Funen collaborate with other robot and automation companies in the rest of Denmark.

Financial figures for the robotics industry in Denmark and in the Odense area are not directly comparable, as the figures were the latest available from Statistics Denmark at the time of report writing.

4 ODENSE AREA 133 companies 3,900 employees 72 producers 25 integrators EUR 897 million turnover 60%+ EUR 643 million exports of companies on Source: Odense Robotics, January 2020. Funen collaborate with other robot and automation companies in the rest of Denmark

5 5 THE CLUSTER

WHERE ROBOT HEROES GROW Boelbjerg Maskinværksted

Ega Matic ApS

Laptics Ivs IES AN P COM S S DER I D D NER T PROV

AR Public Family Venture T OR AN P

T Funding Funding D CING EC POR N S A AN C I S Crowd Business Loan and Bank IN S SUP S F

ER Investors Angels (100+) Financing ES PUBL ST

SIN EUR 800+ million invested in (investments, acquisitions and

CLU IPOs) in robot companies in the cluster since 2015. BU T

• Knowledge Center for Automation Academy Profession AP Electricity Automation and IT Bachelor Disciplines Faculty of Engineering Faculty of Science and Robotic Technology • Advanced robots TEK Innovation • Department of Mathematics and BEng MSc • Automation Technology • Automatics Electrician • Marine Engineer MEN • Knowledge Center for N Computer Science (IMADA) • Electrical Power Engineering • Applied mathematics • Mechanical P • Co-working robots N • Computer Science • Data Technician (+EUX) The Mads Clausen Institute Health and Welfare Technology • Electronics and • Computer science • Mechatronics IO • Sensors and robots • SDU Mechatronics • IT Technology • Electrician (+EUX) • Mobile robots Computer Engineering • Electronics • Operations Management • SDU Innovation and Design Engineering TIO • Multimedia Design and Faculty of Health Sciences • Global Management and • Drones (UAS) VAT A • Energy Technology • Physics and Technology • Department of Sports Science and Communication • Personal care robots The Maersk Mc-Kinny Møller Institute Manufacturing Metal, Industry and Technology Clinical Biomechanics • Engineering Robot Systems • Product Development • Production Engineer OTHERS • Industry 4.0 and data • SDU Robotics • Integrated Design (Advanced Robotics Technology and Innovation • Automation Technician (+EUX) NO • Department of Clinical Research • Augmented reality • SDU UAS Centre • Manufacturing Engineering and Drone Technology) • Industrial Operator • Bachelor BA IN • • • Department of Public Health H, DEVELO EDUC and Management • Knowledge Center for Automation • Information Technology • Industrial Technician (+EUX) • SDU Electrical Engineering • Welfare Technology • E-Concept Development C • Safety • Mechanical Engineering - Product Design and Robotic Technology • • Sheet Metal Worker (+EUX) • SDU Embodied Systems for Robotics • Mechatronics • Learning and Experience • Product Development and and Learning SDU Research & Innovation • Technical Designer AND Activities Technology • SDU Health Informatics and Technology • Robot Systems Technology Integration • Implementation of solutions Organisation (RIO) • Mathematics • SDU Energy Informatics • • Web Development • Dissemination, training and education Department of Technology and Innovation Continuing Education RESEAR • Analysis and consultancy • SDU Mechanical Engineering • Academic Education • SDU Engineering Operations Management • Diploma

7 Share of turnover in the robotic Activity in cluster COMPANIES ARE SELECTED BASED ON AN ASSESSMENT OF THE FOLLOWING PARAMETERS: Strategic focus Dedicated technology and automation industry cooperation GROWTH IN 133 companies in the cluster

COMPANIES 28% 133 Number of companies 129 120 The robot and automation Source: Odense Robotics, January 2020 100 industry in and around 85 Odense continues to grow.

The cluster has grown steadily in terms of the number of companies in recent years, reaching 133 at the end of 2019. This represents a more than 50% increase since 2015.

A total of 13 companies – including a high proportion 2015 2016 2017 2018 2019 of promising robotic startups – joined the cluster in 2019, while nine companies either ceased operations or ceased to be part of the cluster. Companies by Rest of The Odense area continues to be the primary base Abroad headquarters Denmark for companies’ development. A total of 80% of 12% 8% 16 companies are headquartered on Funen, while Source: Odense Robotics, 11 12% have their headquarters abroad and only 8% January 2020 elsewhere in Denmark. Denmark 88% Funen 80% 117 106

8 The cluster’s strong entrepreneurial environment STRONG means it is home to many young companies ENTREPRENEURIAL and startups. The cluster is made up of many young companies and startups. Close to 70% of companies have been established since 2010 and almost 60% of companies have ENVIRONMENT fewer than 10 employees. Many newcomers to the cluster in 2019 were indeed promising robotic startups, several of which also secured a place in Odense Robotics StartUp Hub – one of Europe’s leading robotic incubators. This high concentration of young companies and startups can to a large extent be contributed to the cluster’s entrepreneurial environment. With strong support from the municipality and the cluster management team, the area offers prime conditions for growth and innovation to robotics startups.

Companies Companies by foundation year according to size 68 19 Source: Odense Robotics, January 2020 Source: Odense Robotics, 14% January 2020

75 39 57% 31 29% Less than 10 employees 21 ees 10-49 employees 13 ees 50+ employees Before 1990 1990-1999 2000-2009 2010-present

9 41% STRONGHOLD FOR of companies work with collaborative COLLABORATIVE AND and / or mobile MOBILE ROBOTS robots or related products An increasingly large proportion of companies work with collaborative and mobile robots. The Odense area is a global stronghold for collaborative robots and mobile technologies – and an increasing number of companies are active in these fields. More than 40% of companies work with collaborative robots and/or mobile robots and related products. The figure equates to a total of 55 companies in the cluster active in this area, more than double the number in 2017. The strong focus on collaborative and mobile robots stems originally from early pioneers Universal Robots and Mobile Industrial Robots, both global leaders and headquartered in Odense. The city is also home to a plethora of companies creating new technologies that build on existing collaborative and mobile platforms, thereby extending functionality and creating new application areas.

For example, OnRobot offers a range of gripper and sensor end-of-arm tooling to be fitted to collaborative robot arms, including Universal Robots, and light industrial robots. Likewise, Nord Modules and ROEQ offer modules to be fitted to the Mobile Industrial Robots platform, enabling heavy payload transportation between production lines.

10 PEOPLE

WHERE ROBOT HEROES GROW WORKFORCE employees employees EXPANDS GLOBALLY 3,900 in the cluster 950 abroad

Almost 4,000 people are employed 4,800 in the cluster today. Companies are Number of employees Source: Odense Robotics, 3,900 also expanding internationally, with January 2020. 3,600 the workforce outside of Denmark 3,200 2,600 approaching 1,000 people. 2,200 The cluster’s workforce grew by more than 8% in 2019 totalling around 3,900 people – a high growth rate, particularly considering companies’ ongoing recruitment challenges. The total workforce is expected to *) Growth is based on expectations from existing companies. The figure does increase by 23% to as many as 4,800 in 2021. not include additional companies being established and other induced factors. 2015 2016 2017 2018 2019 2021 (expected)* While workforce growth in 2019 is lower than previous years, it is in line with global industry trends and reflects companies’ increasing focus on building a 1000 strong global presence in order to drive exports and secure talent. Number of 950 The cluster significantly expanded its global presence in 2019, with employees 800abroad many companies opening offices and hiring employees abroad. In 120 November alone, for example, Universal Robots, Mobile Industrial 760 Source: Odense Robotics,600 Robots and OnRobot established offices in Barcelona. January 2020.

Companies increased their workforce abroad by 25% last year to 950 400 employees, almost double the number than two years ago. The cluster 500 now employs close to 5,000 people in total in Denmark and worldwide. 200

0 2017 2018 2019

12 HIGH DEMAND FOR TALENT 70% of companies say Attracting talent continues to recruiting qualified employees is be the greatest growth barrier. the greatest growth barrier Companies expect to recruit more from abroad. As many as 70% of companies say recruiting qualified employees is a growth barrier. While this represents a slight decrease on previous years, talent attraction remains the greatest growth barrier for companies.

Companies have long struggled to attract qualified employees, particularly engineers, developers and other people with a technical background. As a result, talent of companies expect attraction, onboarding and retention are key focus areas for 22% companies and the cluster as a whole. Many companies to recruit from abroad in 2020 are actively participating in joint cluster efforts to create and retain a strong talent pool, with key activities including the ‘We are robot heroes’ campaign.

Employing talent from abroad for open positions in Odense is one way in which some companies are addressing their recruitment needs. Indeed, this is set to be increasingly commonplace in coming years. In 2020, 22% of companies expect to recruit from abroad for positions in the Odense area. Last year, 15% of companies recruited from abroad to Odense.

13 PERFORMANCE

WHERE ROBOT HEROES GROW STRONG FINANCIAL RESULTS

Companies generated EUR Turnover, EUR 897 million in 2018. Turnover EUR million Source: Statistics Denmark, is expected to increase September 2018 1000 897 despite challenging marketing million conditions. 897 800 turnover in 2018 The robot and automation industry generated a turnover of 763 EUR 897 million in 2018 on Funen alone – an increase of 683 56% since 2015. This shows a profitable industry successfully 600 performing in terms of both development and sales. 576 Turnover is set to increase significantly in the coming years despite challenging market conditions, with 400 expectations higher than previous years. A total of 58% 20%+ expect an increase in turnover of 20% or more for 2020- increase 2022 compared to 2018. 200 The global industrial robots market experienced a expected by 2022 slowdown in 2019 and this will inevitably have an impact on turnover in the short term. Indeed, several companies 0 in the cluster say that they are seeing the first signs of a 2015 2016 2017 2018 decrease in growth. Nevertheless, there is good reason to be optimistic. Long-term drivers, for industrial robots and automation as a whole, remain strong.

15 Satisfaction with SATISFACTORY financial result 2018

Source: Odense Robotics, PROFITS January 2020

On the whole, companies 11% are satisfied with their financial result. 43% 28% 43% A total of 43% of companies said their result in 2018 of companies was acceptable or satisfactory. are satisfied with their financial result 18%

Satisfactory/acceptable profit Satisfactory/acceptable profit Result about +/- 0

Unsatisfactory/unacceptable deficit Unsatisfactory/unacceptable deficit Unknown

16 RISE IN Export activities in 2018

Source: Odense Robotics, January 2020 No 46% 800 EXPORTS Yes 54% 700

Exports have increased 600 643 significantly and will continue 500 509 to rise in coming years. 400 415 300 348 Companies are expanding globally more than ever Exports, EUR million200 before, establishing affiliates worldwide to support Source: Statistics Denmark, global sales. This strong focus on internationalisation is 100 September 2018 driving significant export growth. 0 Exports rose to an impressive EUR 643 million in 2018 2015 2016 2017 2018 – a 26% increase on the previous year and an 85% since 2015. Exports now account for 72% of the cluster’s total turnover on Funen. And exports are set to grow even more. Today, just over Out of the companies that do not export today, No half of companies in the cluster export, and as many as 17% 83% say they expect to export in the future. how many expect to do so in the future Source: Odense Robotics, January 2020 Yes 83%

17 Since 2015, more than EUR 800 million has been invested in cluster companies. Investors represent the primary source of capital (54%), followed by public funding and loans. Indeed, the CLUSTER ATTRACTS cluster has become a magnet for investors who want to be part of the industry’s growth journey. These investments from Denmark and abroad have been instrumental in enabling robotic startups INVESTMENTS and high-growth companies to fuel their expansion. Particularly of note is the acquisition of Universal Robots and Mobile Industrial Robots by Teradyne in 2015 and 2018 respectively. More than EUR 800 million has been There were several investments of note throughout 2019. On the venture capital side, OnRobot announced that the company had secured EUR 25 million from Vaekstfonden, the European invested in companies since 2015. Investment Bank and several prominent investors to fund its global growth within end-of-arm tools. Blue Ocean Robotics announced that it has raised around EUR13 million from Danish investors to fund its continued development of service robots for the healthcare, hospitality, construction and agriculture industries.

On the corporate side, Sensohive received a significant investment from Vancouver-based construction company Kryton International in exchange for 30% ownership in the company.

Total investments in 800+ Sources of capital companies, EUR million 750 Source: Odense Robotics, January 2020 54% Source: Odense Seed and Venture, 2020 Investors Note: Additional investments that are not public knowledge can have taken place. Public funding / Soft funding 31%

447 429 Loans / Convertible notes 31%

322 Other 19%

2015 2016 2017 2018 2019

18 Companies’ contribution to the UN Sustainable CONTRIBUTION TO Development Goals, top 5 SUSTAINABLE FUTURE Source: Odense Robotics, January 2020 Goal 9: Industry,innovation 69% and infrastructure Companies in the cluster are making important Goal 8: Decent work and 59% contributions to a sustainable future. economic growth Goal 12: Responsible Robotics technologies and automation are key drivers for sustainable development, consumption and production 59% supporting several UN Sustainable Development Goals (SDG). New innovative solutions Goal 7: Affordable can solve global challenges and improve development within areas such as human and clean energy 34% health, economic development and climate change. For example, robotics technologies can be applied to shape healthier work environments, smarter workflows, more efficient Goal 3: Good health and well-being 28% energy consumption and distributed production close to customers.

For the first time, figures are available for the cluster’s contribution towards a sustainable 20 30 40 50 60 70 future. Companies contribute to a wide range of SDGs, with by far the greatest contribution being to SDG 9: Industry, innovation and infrastructure followed by SDG 8: Decent work and economic growth and SDG 12: Responsible consumption and production. Integrate UN Sustainable Results also show that many companies are actively integrating SDGs in operations and Development Goals in development. As many as 68% of companies work/have worked proactively with SDGs or operations and Completed plan to do so. This demonstrates a widespread recognition of the importance of the SDGs development or in progress and that many companies are already actively working towards sustainable development. 23% Source: Odense Robotics, Planned In 2019, several companies highlighted how their technology contributes to the January 2020 45% sustainability agenda. For example, Farmdroid launched their autonomous vehicles for Unknown sowing and weed removal that allow crops to be grown organically, thereby reducing 9% CO² emissions and contributing to sustainable agriculture. Trivision further marketed their technology that can reduce food waste by controlling packaging and labelling. No plans And Blue Ocean Robotics acquired Beam, a telepresence robot that enables people to 23% communicate virtually and as a result reduce transport costs and CO² emissions.

19 STARTUP HUB FOSTERS

SUCCESSFUL BUSINESSES startups20 Robotic entrepreneurs grow their business at Odense Robotics StartUp Hub. Odense Robotics StartUp Hub is recognised as one of the best robotic incubators in Europe. It is located at the 2,000m² specialist facility at the Danish Technological Institute, a leading research and technology organisation. Here, robotic and drone startups are joined by a team of business and technology experts that help turn technology into good business. 110+ The Hub focuses specifically on hardware startups and aims to create the shortest route from prototyping to financing employees and commercialisation. Unlike many other incubators, the Hub does not claim any ownership interest or membership fees. What is more, startups access the Hub services for free. Many successful robotic startups emerge from Odense Robotics StartUp Hub and stay in Odense as they continue to grow their innovative businesses in international markets. The Hub also works with promising drone startups.

A total of 20 companies have been or are currently part of the Odense Robotics StartUp Hub since it’s opening in 2015. Today, these companies employ more than 110 people. Since 2015, the 20 startups have secured more than EUR 20 million in external investments and more than EUR 6 million in soft money, without giving up any equity to the Hub.

TripleA ROBOT Robotics LOGISTICS

2015 2016 2017 2018 2019

20 PARTNERSHIPS

WHERE ROBOT HEROES GROW Companies recognise that cluster collaboration is key to driving innovation and THRIVING growth. As many as 83% of companies collaborate with other companies in the cluster. For the first time, figures are also available for collaboration with other robot and automation companies outside the cluster. As many as 62% companies collaborate COLLABORATION with other robot and automation companies in Denmark outside of Funen, and 48% with robot and automation companies internationally. Collaboration thrives in the cluster, where A high percentage of companies – 85% – collaborate with research and education institutions in Denmark. And more than one in four companies in the cluster 83% of companies work together. collaborate with research and educational institutions abroad.

Collaboration between Collaboration with other robot and Collaboration between companies in companies in the cluster automation companies in Denmark research and education institutions in

Source: Odense Robotics, January 2020 and internationally Denmark

Source: Odense Robotics, January 2020 Source: Odense Robotics, January 2020

In Denmark No 62% No outside Funen 17% 15%

Internationally 48% Yes Yes 83% 85%

No 22%

22 METHODS

Scope This report includes the companies that are currently or have been part of the Odense Robotics cluster. Data concerning the number of companies is derived from Odense Robotics, which tracks the cluster’s The companies typically have strong links to the robot and automation sector through, for example, development on an ongoing basis. Data concerning the year when companies were established and their a dedicated strategic focus on the industry, a significant share of revenue from the industry, dedicated location is taken from public databases and registers based on company VAT numbers. Data relating to technology and/or actively collaborate in the cluster. Geographically speaking, the companies are whether companies work in full or in part with collaborative and/or mobile robots or related products is located on the island of Funen, Denmark, either with a headquarters or branch. based on Odense Robotics’ market insights. The number of full-time employees on Funen and abroad is calculated by Wilke A/S based on the latest Categories of companies company survey and desk research. Future growth in the workforce is based on company projections. The companies have been categorised as one of the following: These figures do not take into account additional companies being established in the cluster in the future and other related factors. • Producers: Develop and manufacture automated machines, robots or components. • Integrators: Sell automated machines, and design and develop automation solutions that can Data concerning companies’ turnover and export is calculated by Statistics Denmark. The data include robots. relates to companies in the cluster in September 2018 and solely relates to turnover and export generated on Funen. • Suppliers of components and services: Dedicated suppliers of parts and/or services for automatic machines or robots. Data relating to company satisfaction with financial results and expectations for turnover and exports are • Distributor/sales: Companies that distribute and/or sell automatic machines and robots, and based on the latest annual survey. The same applies to data on UN Sustainable Development Goals as related parts and products. well as data on company collaboration with other companies and organisations in and outside the cluster. • Consultancy: Consultants offer advisory services on a range of topics relating to robot and Data relating to investments in companies is based on interviews by Odense Seed and Venture with automation. investors, founders, CEO’s in the cluster as well as public data. Dates refer to the day deals were signed. While many companies have products or services across multiple categories, the category selected Additional investments can have taken place without the knowledge of Odense Seed and Venture. indicates a company’s primary focus. Data sources Use of material The report primarily uses quantitative analysis. It is based on data from Odense Robotics’ annual survey of Odense Robotics would like to thank all the companies that took part in the survey. Thanks to their cluster companies conducted by Wilke A/S, data from Statistics Denmark and data from the public Central participation, this report can offer unique insights into the development of the cluster. Please state Business Register. the source when using or referring to the material in this report. The latest company survey was sent in October 2019 and a total of 65 companies participated. The result This report is available on Odense Robotics’ website. is considered to be representative of the cluster as a whole, because responses were spread evenly in terms of company size and type.

23 ODENSE ROBOTICS Our vision is to make Odense the global leader of the next industrial revolution by serving the needs of its robotics cluster. We accelerate growth and innovation in the robot and automation cluster in and around Odense. We do this by connecting businesses, people, research and education, advancing policy and branding the cluster. We do this because we believe that robot technology can bring about meaningful change in the workplace – not just for businesses, but also for the people who work there. www.odenserobotics.com