VDMA: German Robotics and Automation in a Downturn

Summary

FRANKFURT - Jan. 28, 2025 - The robotics and automation industry in Germany has lost competitiveness: for 2025, it is forecasting a drop of minus 9% to 13.8 billion euros in total turnover. Last year, the sector closed with a turnover of minus 6% at 15.2 billion euros.

“The sales trend in the robotics and automation industry calls for action,” said Dr. Dietmar Ley, chairman of VDMA Robotics + Automation. “The current downward trend is not based solely on cyclical fluctuations in demand, but has very tangible structural causes: These include, for example, the excessive dependence of the robotics and automation industry on the German automotive industry. In addition, there are weaknesses in competitiveness that business and politics must address with consistent reforms.”

Order intake falls sharply

The cyclical and structural weaknesses in order intake were evident in 2024, showing a 16% decrease domestically compared to the previous year. Growth stimuli from abroad also faltered, showing a decline of 2%. The only bright spot for the German robotics and automation industry was exports to the eurozone, with incoming orders rising by an impressive 44% in 2024. By contrast, foreign demand excluding the eurozone countries was 13% below the previous year's figure.

Reforms needed

“Companies in the German robotics and automation industry need to focus on their own competitiveness,” said Dr. Dietmar Ley. “The priority is to accelerate innovation. More agility is also needed to respond more quickly to customer demands and to set ourselves apart from competitors abroad. Finally, we also need to bring costs down to a competitive level.”

Dr. Ley also calls for a determined reform agenda from politicians: “With a view to fierce global competition, Germany can no longer afford disadvantages such as disproportionate regulation and excessive costs. The economy needs reliable framework conditions in Germany that support, not hamper, growth,” he emphasizes. Only then robotics and automation could thrive again. “All long-term growth trends for our innovative industry remain intact. We now have to set the right course,” stresses the Chairman of the VDMA Robotics + Automation Association.

About VDMA 

The VDMA represents 3,600 German and European mechanical and plant engineering companies. The industry stands for innovation, export orientation and SMEs. The companies employ around 3 million people in the EU-27, more than 1.2 million of them in Germany alone. This makes mechanical and plant engineering the largest employer among the capital goods industries, both in the EU-27 and in Germany. In the European Union, it represents a turnover volume of an estimated 910 billion euros. Around 80% of the machinery sold in the EU comes from a manufacturing plant in the Single Market.

The VDMA Robotics + Automation Association (VDMA R+A) is a trade association within the umbrella of the VDMA with more than 420 member companies: Suppliers of components and systems from the fields of robotics, automated solutions and machine vision. The aim of this industry-driven platform is to support robotics and automation through a wide range of activities and services. Key activities include statistical analysis and market surveys, marketing activities, standards development, public relations, research, trend studies, trade fair policy as well as networking events and conferences.