German Robotics and Automation Industry Sees 10% Revenue Decline

### Summary

The robotics and automation industry in Germany is projected to generate total sales of €14.5 billion in 2025, reflecting a significant 10% drop compared to the previous year. Dr. Dietmar Ley, chairman of VDMA Robotics + Automation, confirmed this concerning forecast, stating that “growth prospects are currently clouded in all subsectors through the end of the year.”

*German Robotics and Automation Faces 10% Revenue Drop*

### A Closer Look at the Sub Sectors

As we dissect the different subsectors within robotics and automation, it is apparent that they are facing distinct economic challenges. The Machine Vision subsector is stagnating, showing no growth and is expected to yield revenues of €3.1 billion. Meanwhile, the robotics sector’s forecast has worsened from -3% to -5%, with anticipated revenues of €3.7 billion. Notably, the Automated Solutions sector is projected to suffer the most, with a staggering revenue drop of 15%, resulting in total earnings of €7.7 billion.

### Factors Influencing Economic Weakness

The decline in the industry’s growth can be attributed to several key factors, primarily including geopolitical tensions and a tightening competitive landscape, particularly from Asian rivals. Many companies are reacting by intensifying efforts to enhance their competitiveness. One key event on the horizon is automatica 2025, the world’s leading marketplace for automated production, which takes place in Munich from June 24–27. This event will showcase the latest advancements in technology and emerging trends aimed at all industrial sectors, focusing heavily on automation solutions tailored for small and medium-sized enterprises (SMEs) and the integration of artificial intelligence (AI).

### The VDMA Robotics Action Plan for Europe

Regarding the future, Dr. Dietmar Ley emphasizes the critical role of robotics and automation in maintaining industrial production, especially in a high-wage country like Germany. He urges both political and business sectors to collaborate in minimizing location-based disadvantages to bolster international competitiveness and foster growth. The “VDMA Robotics Action Plan for Europe” outlines three essential demands:

1. **Increase Venture Capital**: More financial resources should be allocated to startups and scale-ups within the industry.

2. **Roadmap for Competitiveness**: A clear and actionable plan needs to be established to enhance the industry’s competitive edge.

3. **Focus on Innovation Scaling**: There’s a pressing need to emphasize scaling up European innovations, ensuring that they thrive in the market.

These recommendations are timely, especially as a political dialogue is scheduled to occur during Poland’s EU Council Presidency on June 23, 2025, at the Polish Embassy in Berlin.

### Understanding VDMA’s Impact

The VDMA (Verband Deutscher Maschinen- und Anlagenbau) represents around 3,600 German and European mechanical and plant engineering companies, accounting for a robust segment of the European economy. The industry showcases a remarkable export orientation and innovation, employing roughly 3 million individuals across the EU-27, with over 1.2 million jobs in Germany alone. This sector stands tall as the largest employer within capital goods manufacturing and boasts a turnover volume estimated at an impressive €870 billion.

The VDMA Robotics + Automation Association (VDMA R+A) is a pivotal trade association within the VDMA framework, which comprises over 420 member companies specializing in components and systems in robotics, automated solutions, and machine vision. Their objectives are broad, ranging from statistical analysis and market surveys to establishing standards and facilitating public relations initiatives. They also engage in research, trend studies, and organize networking events and conferences, underlining their commitment to supporting the robotics and automation sectors.

Learn more about VDMA’s initiatives here.