Croatian Companies Develop Robots for Niches, Not for Mass Production

At a time when global demand for automation is booming, Croatia is slowly but smartly grabbing its share of the robotics sector. Although the development of this sector is still in its infancy, and the market is dominated by only a few large players, domestic companies are striving to position themselves as important actors in this promising field across various niches.

Robots Mean Life

At the forefront of Croatian robotics manufacturers is DOK-ING, a Zagreb-based company with over thirty years of experience. Its unmanned systems for demining, firefighting, and other high-risk operations are recognized worldwide. It produces more than eighty different robotic systems annually.

The latest product from its Zagreb factory is the unmanned vehicle Komodo, designed for extreme conditions (such as chemical, biological, radiological, and nuclear threats). The company has repeatedly emphasized that its robotic systems literally save lives, as evidenced by the fact that no human life has been lost during their use so far.

Although the last list from the Ministry of Economy includes only about thirty prominent robotics companies, the Ministry highlights that there are as many as 152 active in Croatia related to robotics and automation, employing over 2,100 people and generating more than 250 million euros in revenue, of which 45 percent is from exports. However, since there is no separate category for robotics in the NKD, the actual number of companies is likely even higher and spread across various sectors.

Unlike DOK-ING, which focuses on land systems, INETEC has been developing robots for the nuclear industry for thirty-five years. It exports its robotic systems, software solutions, and engineering support worldwide, and it is also important to note that it participates in the international ITER project, the construction of the world’s largest fusion reactor. Despite not being on the government’s narrower list of robotics companies, it significantly impacts the overall picture of Croatian robotics.

A Combination of Experience and Youth

Half of the companies on that list are experienced like DOK-ING and INETEC, but equally strong in the market are ambitious startups and spin-offs from university laboratories. For example, Osijek’s Gideon, founded in 2017, stands out in industrial robotics with its autonomous robot Trey for loading and unloading in warehouses. Its technology has also been recognized by Toyota Industries Corporation, the world’s largest forklift manufacturer, which became its strategic partner and investor last year.

On the other hand, Croatian Orqa, which produces drones, is also relatively young and did not make the list, even though drones are also part of the robotics industry, making it an important player in that sector. For instance, it recently signed a cooperation agreement with DOK-ING, and their plan is to jointly develop capabilities for manned-unmanned teaming (MUM-T) technologies for dual purposes. This shows that experienced engineering companies are joining forces with young and technologically agile ones to accelerate the development of robotic solutions.

Another example of a promising robotics company is Zagreb’s Probotica, whose robots assist in physically demanding and time-inefficient tasks, such as cleaning coastlines, transporting heavy loads, supporting operations in nautical marinas, and inspecting and servicing solar panel fields or evacuating people from dangerous zones. Among its clients are also DOK-ING and the Ruđer Bošković Institute.

– Our robotic systems are used in development and demonstration projects that deal with industrial, municipal, and security applications. Probotica works on its own development projects, as well as for partners and customers seeking customized solutions and new technical concepts. Our most common collaborators are technology and engineering companies and organizations that develop specialized equipment, from the military industry to companies engaged in environmental maintenance. Our role includes developing solutions from concept to functional prototype and may also involve equipment delivery – explains Probotica’s director Miljenko Hrman.

The Strength of Academia

One of its clients is Ronna Medical, a company that produces robots for medical operations. It is an example of one of many robotics companies that originated from scientific projects of the Regional Center of Excellence for Robotics Technologies (CRTA), established a few years ago at the Faculty of Mechanical Engineering and Naval Architecture in Zagreb, where research ideas are aimed at being transformed into concrete technological solutions ready for market commercialization.

In this process, the Innovation Center Nikola Tesla (ICENT) of the Zagreb Faculty of Electrical Engineering and Computing plays an important role, under which, for example, the deep technology program Nuqleus operates.

STEMI’s director Marin Trošelj confirms that the development of the robotics sector in Croatia, which is quite strong considering the size of the country, is encouraged by prestigious faculties such as FER and FSB in Zagreb and Split, the Faculty of Engineering in Rijeka, and FERIT in Osijek. STEMI also operates in the educational sector, as part of its robotics program, where elementary and high school students are introduced to this field and gain experience similar to that in real companies or institutes.

However, Trošelj cites access to capital (because robotics requires significant capital investments and has long development cycles) and talent as the two main challenges. Hrman, on the other hand, emphasizes that the biggest challenge lies in the perception of the development process.

– Due to years of neglect of research and development activities, awareness of the actual costs, duration, and complexity of product development is still not sufficiently developed. This sometimes complicates planning and financing projects that require continuity, but at the same time creates an opportunity for the development of a new engineering culture and strengthening the understanding of development as a strategic investment – says Hrman.

Opportunities in Niches

Trošelj sees the greatest opportunities for the application of Croatian-manufactured robots in logistics and intralogistics, security and crisis interventions, energy and the nuclear industry, and education. Hrman emphasizes that the greatest opportunities lie in niches, from mobile and autonomous systems to industrial robotics and smart manufacturing to specialized machines for environmental maintenance, for the maritime and defense industries.

– Like many high-tech companies in the EU, we face the fact that the largest production capacities and components are concentrated in China, but also that China is today a global leader in robotics development. There, the highest number of development engineers is found, the widest range of components, and the strongest pace of commercialization of new products, including robotics for retail and consumer applications. In such an environment, European manufacturers, especially startups like us, must position themselves in specialized niches, with advanced technical competencies and sophisticated systems, rather than mass, off-the-shelf production – explains Hrman.

Co-founder and director of Orqa Srđan Kovačević points out that despite clear indications of future significant growth in robotics, ‘the capacities of this industry in Europe are developing more cautiously’.

– Although demand in the European Union and the West is clearly growing, that growth is still slow. As long as demand does not consolidate and increase, it is ungrateful to invest in full development of production capacities – says Kovačević.

Regarding drones, he states that they are most in demand in the defense sector, but he expects the majority of demand in the private sector in the long term.

– We expect that the technological advancements arising from security applications of this technology will enable the mass use of aerial robotics in a broader context for commercial purposes, such as in energy, logistics, construction, and infrastructure. That is why we estimate that aerial robotics will be the first branch in which robotic systems will be mass applied – says Kovačević, announcing plans to transfer Orqa’s portfolio of technological solutions from the airspace to land and maritime.

Good Foundations

The Croatian robotics scene is characterized by a high level of specialization. Most domestic companies do not target mass production but develop advanced solutions for narrow niches where they can compete with knowledge rather than quantity.

Aware that they cannot compete with Chinese competitors in terms of price and production volume, Croatian companies are strategically positioning themselves as European producers of high added value, directing most of their exports to the markets of the region, the European Union, and the United States.

Trošelj is convinced that if we continue to systematically invest in talent, standards, and first reference projects in the country, we can very quickly multiply the number of successful robotic products Made in Croatia.

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