VDMA
German Robotics and Automation in a Downturn
The robotics and automation industry in Germany has lost competitiveness: for 2025, it is forecasting a drop of minus 9 percent to 13.8 billion euros in total turnover. Last year, the sector closed with a turnover of minus 6 percent at 15.2 billion euros.
»The sales trend in the robotics and automation industry calls for action,« says 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 percent decrease domestically compared to the previous year. Growth stimuli from abroad also faltered, showing a decline of 2 percent. The only bright spot for the German robotics and automation industry was exports to the eurozone, with incoming orders rising by an impressive 44 percent in 2024. By contrast, foreign demand excluding the eurozone countries was 13 percent below the previous year's figure.
Reforms needed
»Companies in the German robotics and automation industry need to focus on their own competitiveness,« says 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.
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