VDMA: German robotics and automation industry turns negative

Robotics and automation in Germany have lost competitiveness: for 2025, the industry is forecasting total sales of minus 9 percent to 13.8 billion euros. Last year, companies closed with sales of minus 6 percent at 15.2 billion euros.

“The sales development of the robotics and automation industry signals a need for action,” says Dr. Dietmar Ley, Chairman of VDMA Robotics + Automation. “The downward trend is not only based on cyclical fluctuations in demand, but now has very tangible structural causes: This includes, for example, the robotics and automation industry being too dependent on the German automotive industry. In addition, there are weaknesses in competitiveness that business and politics must address with consistent reforms.”

Incoming orders collapse
The economic and structural weaknesses in incoming orders in 2024 were not only evident domestically, with a minus of 16 percent compared to the previous year. Growth impulses from abroad are also lacking: demand shrank by 2 percent. The only bright spot for German robotics and automation was exports to the eurozone: incoming orders from eurozone countries rose by an impressive 44 percent in 2024. Foreign demand excluding the eurozone countries, on the other hand, was 13 percent below the previous year’s figure.

Reforms required
“The companies in the German robotics and automation industry must focus on their own competitiveness,” says Dr. Dietmar Ley. “The priority is to speed up innovations. More agility is also needed in order to respond more quickly to customer demand and to differentiate ourselves from competitors from abroad. After all, we too must bring costs to a competitive level.”

A determined reform agenda is also needed from politicians, demands Dr. Ley: “We can no longer afford locational disadvantages such as excessive regulation and excessive cost burdens in international competition. The German economy needs reliable framework conditions that support growth and do not slow it down,” he stresses. Then robotics and automation can shine again. Because: “All long-term growth trends for our future industry are still intact. We must now set the right course,” stresses the VDMA trade association chairman.