growth leader in EU exceeding 20 % growth in 2023
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The German robotics sector is driving advancements in green and sustainable technologies, with a growing focus on reducing environmental impact through automation. Climate-friendly technologies are becoming a key factor in industry optimization investment.
Germany ranks fourth internationally in terms of gross R&D expenditure with EUR 132 billion. Generous European and German funding and incentives further support robotics research and innovation.
Above average growth is taking place in the automation sector (electrical automation, robotics and automation, measuring and testing technology, and conveyor technology) according to Germany’s VDMA trade association.
More than one third (36 percent) of all international inward investment in mechanical engineering is made in automation and robotics – an 11 percent increase on the period 2015 to 2021.
Germany is Europe’s top automation and robotics FDI location, with 201 FDI projects followed by France (61 projects) and Spain (54 projects) respectively. More than 22 percent of investment projects in Germany are in production and research and development, while 10 percent have a European headquarters function. Sixty percent of investments are made in the sales, service, maintenance, and support areas essential to automation projects.
Source: GTAI 2024
According to Germany’s Mechanical Engineering Association (VDMA), the R&A industry can be divided into three innovative sectors: robotics, integrated assembly solutions and machine vision technologies.
The robotics industry can be divided into two categories: industrial robots and service robots. Industrial robots represent the core of automation in production technologies. However, service robots are also gaining increasing importance in the market. Turnover in the German robotics industry (robots, systems and peripherals) has grown by almost 20 percent to EUR 4.2 billion.
The integrated assembly solutions sector mainly focuses on the creation of new hardware and components needed for tasks such as forming, measuring and testing. Integrated assembly solutions turnover has increased by 20 percent to EUR 8.9 billion in 2023.
Machine vision systems allow machines to see and comprehend. Application fields are diverse and include areas such as components identification, quality control and data collection. Machine vision turnover reached EUR 3.2 billion in 2023.
Industrie 4.0 has become an international by-word for intelligent, networked production – with Germany consolidating its reputation as the world’s factory outfitter and a country capable of meeting the challenges of the digital age. Collaborative robots ("cobots") complement production in smart factory environments and make digital manufacturing affordable for SMEs not previously able to afford turnkey solutions.
According to the World Robotics Report, the portfolio of cobots in the market has been continuously expanding, with new suppliers entering the market as the number of applications increases. The global share of total installations remains fairly constant at around 10 percent, with market share hovering just under the three percent mark. Increased client accessibility in terms of robot programming and user-friendly product interfaces should drive increased cobot demand.
The automotive industry is the leading client sector for industrial robots in Germany. According to the VDMA, the automotive industry – and its suppliers – are investing in electric and hybrid drive technologies that insist upon new production processes and equipment, particularly in battery production. The second largest client industry is the electrical and electronics sector. Beyond big industry, many SMEs are now looking at industrial robot implementation as a solution to increase production system flexibility.
Mobile Robots – Transportation and Logistics
With a 35 percent increase in units sold and over half of all professional service robots used for transporting goods or cargo, this sector has enjoyed significant growth. The Robot as a Service (RaaS) fleet grew by 20 percent to over 5,000 units.
Hospitality Robots
Over 54,000 units sold, a 31% increase. These robots are commonly used for tasks like room service and guest assistance in hotels and restaurants.
Agricultural Robots
Nearly 20,000 units have been sold in 2023 – marking a 21 percent growth. These robots enhance efficiency in planting, harvesting and other farming tasks.
Professional Cleaning Robots
Close to 12,000 units were sold (equivalent to a four percent increase) in 2023, with a 29 percent growth in the RaaS fleet. These robots are used for large-scale cleaning operations.
Search and Rescue/Security Robots
Search and Rescue/Security robots recorded a 12 percent increase in sales in 2023, with 3,475 robots sold. Robots of this type are essential for emergency response and security tasks.
Medical Robots
Sales grew by 36 percent with nearly 6,200 units sold in 2023. Used in surgeries and diagnostics, medical robots are transforming healthcare.
Source: IFR World Robotics Report 2024 - Service Robots
German robotics and automation (R&A) industry strength is supported by its engineering tradition, technological leadership, and highly diversified industrial base. The machinery and equipment (M&E) industry is a driving force in Germany’s high-tech economy, combining key future technologies such as materials, electronics, software, and robotics. Researchers, companies and employees active in the R&A industry profit from the country’s reputation and global know-how. The “Made in Germany” quality seal has long been recognized as a sign of engineering excellence and precision across the globe.
Germany led Europe in R&A foreign direct investments from 2019 to 2023 – with over 200 FDI projects in the sector. The country is also the top destination for R&A inward investments, with R&A projects comprising 20 percent of all R&A investments. Key investor countries include the USA, Switzerland and Japan.
As part of its High-Tech Strategy, Germany supports digital technologies through the PAiCE program. PAiCE allocates EUR 50 million over five years to develop digital platforms and promote collaboration. The program focuses on service robotics solutions for logistics and manufacturing.
Germany offers various incentives for investors such as cash grants for direct investment costs and R&D support. The High-Tech Strategy 2025 provides funding for research on human-technology interaction, with annual grants of around EUR 70 million until 2026.
The country’s network of universities offers approximately 300 study programs in robotics and automation. Germany's global reputation for R&D activity supports innovation and industry growth.