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

“The sales trend in the robotics and automation industry signals a need for action,” says Dr. Dietmar Ley, Chairman of VDMA Robotics + Automation. “The downward trend is not based solely on cyclical fluctuations in demand, but now has very tangible structural causes: These include, for example, the robotics and automation industry’s excessive dependence on the German automotive industry. Added to this are weaknesses in competitiveness, which business and politics must address with consistent reforms.”

Incoming orders slump
The economic and structural weaknesses in incoming orders were not only evident in Germany in 2024, with a drop of 16% compared to the previous year. Growth impetus from abroad also failed to materialize: 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% in 2024. In 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,” says Dr. Dietmar Ley. “The priority is to speed up innovation. We also need to be more agile in order to react more quickly to customer demand and set ourselves apart from competitors from abroad. Finally, we also need to bring costs down to a competitive level.”

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