The German robotics industry is confronting significant challenges exacerbated by intensifying competition from Chinese firms, according to Frank Konrad, head of the robotics and automation department at VDMA engineering association. Konrad highlighted the fierce competition emerging as Chinese suppliers expand aggressively into European markets following substantial growth in their domestic sectors.
Germany, renowned for its engineering prowess and historic technological innovations, is grappling with an economic slowdown driven by factors such as high energy costs, elevated interest rates, and regulatory barriers that hinder investment.
Konrad underscored that foreign orders constitute the primary growth driver for Germany’s robotic and automation sector, contrasting sharply with a 15% decline in domestic orders during the first four months of this year. In contrast, international orders surged by 21% over the same period.
Key players in the sector include Kuka, a factory robot maker under Chinese control, and Siemens AG’s industrial automation business.
VDMA has revised down its annual sales forecast for the sector, now anticipating a modest 2% growth to reach 16.5 billion euros ($17.7 billion) in 2024, a level roughly on par with last year’s figures. In 2023, the industry experienced a robust 13% sales growth, buoyed by a resurgence in orders following the pandemic-induced downturn.
The outlook for Germany’s robotic industry remains challenging amid increasing global competition and internal economic pressures, setting the stage for ongoing adjustments and strategic responses within the sector.
