VDMA Issues Warning on Further Revenue Declines in Robotics and Automation Technology

The robotics and automation sector is currently facing significant challenges, leading to concerns about further declines in revenue. The Verband Deutscher Maschinen- und Anlagenbau (VDMA), Germany's leading association for machinery and plant manufacturers, has projected a 9% drop in revenue for the sector in 2025, following a 6% decline in 2024.

According to VDMA, the total revenue for the industry fell to EUR15.2 billion in 2024, with projections suggesting it will decrease to just EUR13.8 billion in 2025. This downturn is attributed to a weak domestic demand that plummeted by 16% and a 13% decline in requests from non-European markets. Although exports to European countries surged by 44% during the same time, it was insufficient to offset the overall revenue losses.

The VDMA emphasizes that these challenges cannot solely be explained by cyclical fluctuations in demand. Instead, they point to deeper structural weaknesses within the industry. A major factor is the sector's heavy reliance on the automotive industry, which is currently experiencing its own downturn. The VDMA also identifies shortcomings among its members, suggesting that companies need to prioritize accelerating the development of new innovations. Additionally, they must respond more swiftly to customer demands to differentiate themselves from foreign competitors.

Dr. Dietmar Ley, the head of VDMA Robotics + Automation, stated that the industry must align its cost structures to remain competitive. He called for political reforms to address the disadvantages faced by German companies, which include excessive regulations and high operational costs.

With the upcoming Bundestag elections in February, the VDMA is urging the future government to implement measures that create reliable conditions conducive to growth, rather than hindering it. They believe that with the right adjustments, the robotics and automation sector can thrive.

The provided data illustrates the revenue trends within the robotics and automation industry in recent years, highlighting the urgent need for strategic changes to reverse this downward trajectory.