VDMA: German robotics industry to hit an all-time high in 2023

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The Sawyer robot from Rethink Robotics, a German-based robotics company after its acquisition from the Hahn Group. | Source: Rethink Robotics

The German robotics and automation industry is poised to hit an all-time high in 2023, according to the VDMA Robotics + Automation Association. The industry is forecast to increase sales by 13% in 2023, reaching 16.2 billion euros (around $17.7 billion).

This is an increase from estimations that VDMA Robotics + Automation made earlier in the year, when the association expected the sector to grow 9% in 2023.

“The robotics and automation industry is on course for growth,” Frank Konrad, chairman of VDMA Robotics + Automation, said. “In 2023, the previous record result from 2018 of 15.1 billion euros with an expected turnover of 16.2 billion euros should be significantly exceeded. Full order books are currently shaping the market situation. During the pandemic, providers have built up large order books, which the easing bottlenecks in the supply chains are now being worked off step by step. Our industry is finally leaving the pandemic behind.”

Important sub-sectors have developed well in 2022 and will continue to develop in 2023. The industrial image processing division, for example, grew 11% in 2022, with sales reaching 3.4 billion euros.

The integrated assembly solutions sub-sector also saw growth in 2022, with sales growing by 5% to reach 7.4 billion euros, and is expected to grow by 17% this year, with sales reaching 8.7 billion euros.

While robotics sales only increased 1% in 2022 to 3.5 billion euros, 2023 should fare better for the sector. VDMA Robotics + Automation expects it to grow by 12% in 2023 to 3.9 billion euros.

Germany faces global competition

Despite this growth, VDMA Robotics + Automation expects Germany to fall behind China in robot density by the end of 2023. Germany was the fourth-most automated country worldwide in 2020 and 2021, with the country reaching 397 industrial robots for every 10,000 employees in 2021, according to the International Federation of Robotics (IFR).

While Germany’s robotics industry has been growing, China’s has been increasing at a much more rapid pace. The country saw a huge jump in robot installations in 2021, putting it ahead of the US for the first time. China’s industrial robotics market saw 243,300 installations in 2021, a 44% increase from the year before.

“We welcome the initiative of the Federal Chancellor’s Future Council to strengthen robotics and automation in Germany,” Konrad said. “In view of the new challenges, there is no time to rest in international competition.

In particular, Germany’s robotics and automation industry has a lot of room for growth in service sectors, which generate 70% of the overall economic value added for the country.

The VDMA Robotics + Automation Association is a trade association that is made up of more than 370 member companies. These companies include suppliers of components and systems for robotics, integrated assembly systems and machine vision.