Currently, the once dominant German robotic and automation industry has seen a drop in sales as well as having to adapt to structural challenges. The 2025 forecasts anticipate a 9% decrease in the overall revenue, totaling out to €13.8 billion, after a 6% annual loss in 2024. These numbers clearly indicate the necessity of immediate modifications for regaining the business sector competitiveness.
The automation industry’s strong connection with the German automobile sector has been a disadvantage to it through the exposure of both vulnerabilities as global automation demand stands still.
National demand was 16% lower in 2024, while in the eurozone area, the international demand decreased by 13%. But still, when it came to trade with the eurozone states, which were left on their own, they enjoyed a boost of 44%, which seemed to be a ray of sunshine. p.97
Dr. Dietmar Ley, the Chairman of VDMA Robotics + Automation, stressed that the problems at hand were not merely due to the cyclical nature but are rather the result of more fundamental gaps.
The only way that the area can manage this problem is through diversifying its client portfolio and incorporating future technology in the process so that it can remain a player in a very tough and dynamic global market.
Automation continues to be of great importance for the German industrial sector. However, the sector should eliminate the failures that it currently has and also embrace innovation. Joining hands with new markets and also making use of the most recent technologies will not only stop the decline, but also ensure the company’s success in the long term.
