Growing competition from China is impacting the prognosis for Germany’s robotics industry, which is already battling with declining orders in a sluggish home economy, according to a VDMA engineering association representative.
“Competition is fierce,” Frank Konrad, head of VDMA’s robotics and automation department, said in a statement published Monday. “Many Chinese suppliers have grown strongly in their home markets and are now pushing into Europe.”
Germany, renowned for its engineering prowess that once pioneered many innovations, is currently experiencing an economic slowdown due to rising energy costs and interest rates as well as underinvestment because of red tape.
According to Konrad, foreign orders are the primary engine of growth in the German robotics and automation industry. Domestic orders declined 15% year on year in the first four months of this year, while international orders rose by 21%.
Major participants in the sectors include Kuka, a Chinese-controlled factory robot producer, and Siemens AG’s (SIEGn.DE) industrial automation unit.
According to statistics seen by Reuters, the VMDA has cut its annual sales forecast for the sector by half. It now predicts a 2% increase in revenues to 16.5 billion euros ($17.7 billion) in 2024, virtually matching last year’s level.
Sales in the sector increased by 13% in 2023, owing to an increase in orders following the epidemic.
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