Germany’s robotics and automation trade is making ready for an additional powerful 12 months. The VDMA Robotics + Automation Affiliation, a German commerce group, expects income to fall 5% in 2026 to about €14.1 billion. That follows a 7% decline in 2025, marking the second straight 12 months of contraction for one of many world’s main robotics clusters.
Business leaders say the issues transcend a standard financial slowdown. Weak demand from key clients has damage orders. On the similar time, geopolitical tensions and broader financial uncertainty have made corporations extra cautious about investing in new automation gear.
“The scenario stays difficult. Our trade is concurrently grappling with weak demand, geopolitical uncertainty, and difficult location circumstances,” mentioned Dr. Olaf Munkelt, chairman of VDMA Robotics + Automation. “This makes it all of the extra essential that we decisively strengthen our competitiveness – our levers for this are buyer centricity, innovation, and braveness. On the similar time, we have to decide up the tempo and be sooner in implementation. The duty for policymakers is to considerably enhance the framework circumstances for entrepreneurial exercise now.”
In keeping with the affiliation, Germany’s robotics trade can be shedding floor internationally. Rivals, significantly in Asia, are increasing sooner and gaining market share. The VDMA has warned that top prices, regulatory burdens, and sluggish decision-making in Europe are making it tougher for native corporations to compete.
Current knowledge reveals the downturn has been constructing. Income fell in 2024, and order consumption — particularly from inside Germany — dropped sharply. Home clients have pulled again on spending, and export markets haven’t been robust sufficient to offset the decline.
Nonetheless, Munkelt stays optimistic about the long run.
“The long-term development drivers – digitalization, AI, good manufacturing, and automation – stay intact,” Munkelt mentioned. “We now must create the circumstances in order that German and European robotics and automation can as soon as once more take a transparent lead. We’d like fast deregulation and aggressive price constructions to return to a development trajectory.”
In keeping with the Worldwide Federation of Robotics (IFR), Germany is the most important robotics market in Europe and the fifth-largest on the earth. In keeping with the 2025 IFR World Robotics Report, robotics installations in Germany fell 5% to 26,982 items in 2024, which is the second-best end result recorded after the document 12 months of 2023. This represents a 32% market share of the annual whole in Europe.
North American market rebounds in 2025
After a drop in 2024, North American robotic orders rose in 2025, based on the Affiliation for Advancing Automation (A3). The group mentioned this rise in orders and income displays robust funding in automation throughout a rising vary of industries. In 2025, corporations throughout North America ordered 36,766 robots valued at $2.25 billion. In contrast with 2024, this represents a 6.6% improve in items ordered and a ten.1% improve in income.
“The rebound in robotic orders over the course of 2025 displays renewed confidence in automation as a long-term answer to aggressive pressures,” mentioned Alex Shikany, govt vice chairman at A3. “We’re seeing growing adoption throughout sectors, particularly generally trade functions and at automotive OEMs, as producers look to automation to deal with workforce shortages, handle reshoring initiatives, and increase productiveness.”