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Saying that the sector has lost its competitiveness and seeing an “urgent need for action,” Germany’s VDMA Robotics + Automation Association is forecasting that 2025 sales will be down 9% to €13.8 billion. That projected shortfall comes on the heels of a disappointing 2024 when the sector saw sales fall 6% to €15.2 billion euros.

“The sales trend in the robotics and automation industry calls for action,” says Dietmar Ley, chairman of VDMA Robotics + Automation Association. Ley said the downward trend goes beyond cyclical demand fluctuations and includes “tangible structural causes.” Among these, Ley cited “excessive” dependence of the sector on Germany’s automotive industry, as well as “weaknesses in competitiveness that ´óÏó´«Ã½ and politics must address with consistent reforms.”

Domestically in Germany, order intake fell sharply in 2024, dropping 16%, while foreign sales declined by 2%. For the German robotics industry, exports to the eurozone were a lone bright spot, rising 44% in 2024. Foreign demand excluding the eurozone, by contrast, was down 13%.

In terms of recommended reforms, Ley says the German robotics and automation industry needs to focus on its competitiveness and make accelerating innovation a priority. In addition, he says the industry needs to bring costs down to a competitive level. Due to global competition, Ley also called on the government to target disadvantages the industry faces, including “disproportionate regulation and excessive costs.” Despite the challenges, Ley says, “all long-term growth trends for our innovative industry remain intact. We now have to set the right course.”