German robotics industry faces stiff competition from China, VDMA saysGerman robotics industry faces stiff competition from China, VDMA says

According to Frank Konrad, head of VDMA’s robotics and automation department, the German robotic industry is facing increasing pressure from Chinese competitors. This comes as the industry already contends with declining orders amidst a sluggish domestic economy. Konrad highlighted the intense competition, noting that many Chinese suppliers, having expanded significantly in their home markets, are now aggressively entering Europe.

Germany, renowned for its historic engineering prowess that has led numerous technological advancements, is currently grappling with an economic downturn exacerbated by soaring energy costs, high interest rates, and inadequate investment hindered by bureaucratic hurdles.

Frank Konrad emphasized that foreign orders are pivotal for driving growth in Germany’s robotic and automation sector. He noted a stark contrast in performance, citing a 15% decline in domestic orders compared to a notable 21% increase in orders from international markets during the first four months of the year.

Key players in the industry include Kuka, a factory robot maker under Chinese control, and Siemens AG’s industrial automation division. The VDMA has revised its annual sales forecast for the sector, slashing it by half according to Reuters data. The new projection anticipates a modest 2% growth to reach 16.5 billion euros ($17.7 billion) in sales for 2024, roughly matching the figures from the previous year.

In 2023, the sector experienced a significant 13% increase in sales, driven by a resurgence in orders following the pandemic downturn.

This year’s sales so far are still supported by the strong order intake of the previous year, Konrad added.
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