This paper estimates the potential market for robotic assembly. The potential market is defined in terms of: (i) the percentage of assembly: (ii) the number of displaced workers and (iii) the number of installed robots, where robots are a lower-cost method than conventional techniques (hard automatic and manual). It also estimates the effects of developments in visual sensing for part recognition, tactile sensing for flexible grippers and reduced control engineering costs (software) on the economics and potential market for robotic assembly. Though the primary concern is to estimate future, as opposed to existing, costs of robotic assembly, many of the cost estimates are based on systems that are currently available. The paper has implications for product and research and development planning in industry, universities and federal research and development programmes.