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VDMA Robotics and Automation Halves Growth Forecast – Positive Signs from International Business
June 17, 2024 | VDMAEstimated reading time: 1 minute
Robotics and automation in Germany will be mostly driven by foreign demand in a subdued domestic economy: The industry is forecasting an overall increase in sales of 2 percent to 16.5 billion euros in 2024. In the previous year, companies achieved a record of 16.2 billion euros with a 13 percent increase in turnover.
“The robotics and automation industry is treading water in a weak domestic economy,” says Frank Konrad, Chairman of VDMA Robotics + Automation. "Uncertain customers are reluctant to invest. The German economy needs better framework conditions so that we can return to a solid growth path. The industry is expecting some momentum from overseas business in 2024 as the incoming orders rose by 21 percent in the first four months."
China sets its sights on Europe
International competition for the German robotics and automation industry is likely to intensify in the future due to the increased focus of Chinese competitors on Europe. China is one of the most advanced economies in the world when it comes to industrial automation: according to the latest IFR data, robot density in the manufacturing industry rose to 392 units per 10.000 employees, on a par with Japan (397 units) and Germany (415 units). Beijing is also specifically promoting its own high-quality Chinese robotics industry as part of its five-year plans. The trade disputes with the USA mean that Chinese companies will increasingly establish local service and sales structures in Germany and the EU.
Germany needs speed
“Politicians have recognized robotics and automation as a key technology for Germany's competitiveness,” says Frank Konrad. “But now the pace of implementation needs to pick up: Germany needs a reliable framework for investment and new measures in order to strengthen its competitiveness.” The VDMA strategy paper “Robotics and Automation 2028”, which defines concrete recommendations, provides important guidance for this. The proposed actions include industrial policy measures, accelerated innovation, the promotion of talent and a pragmatic approach to regulation.
Conference “AI-based Robotics 2024” (KIRO2024) in Berlin
To strengthen Germany's competitiveness in robotics, the Federal Ministry of Education and Research (BMBF) together with the Federal Ministry of Economics and Technology (BMWK) is organizing this conference for the first time. Representatives from research, industry and politics will come together at FUTURIUM Berlin on June 18 and 19, 2024, under the motto “AI-based robotics”:
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