VDMA: German Robotics Industry Faces Tight Competition From China

Illustration of the robotics industry in Germany (photo: x @vdma)

JAKARTA - Increasing competition from China is weighing on the prospects of Germany's robotics industry, which is already struggling with declining orders amid the weak domestic economy. This was revealed by representatives of the VDMA engineering association.

"The competition is very tight," Frank Konrad, head of the robotics department and VDMA automation, said in a comment published on Monday, June 17. "Many Chinese suppliers have grown rapidly in their domestic market and are now pushing their way into Europe."

Germany, known for its engineering power that has pioneered many technologies, is now facing an economic downturn triggered by high energy costs and interest rates, as well as a lack of investment due to the bureaucracy.

"Mesananan dari luar negeri menjadi pendorong utama pertumbuhan industri robotik dan automasi Jerman," kata Konrad. Orderan domestik turun 15% dari tahun ke tahun dalam empat bulan pertama tahun ini, sementara pesanan dari luar negeri meningkat sebesar 21%.

The main players in this sector are makers of factory robots controlled by China, Kuka, and the automation business of the Siemens AG industry.

VDMA has cut its half annual sales projections for the sector. Now, they expect a growth of 2% to 16.5 billion euros (Rp290.3 trillion) in sales by 2024, roughly equivalent to last year's sales rate.

In 2023, the sector saw sales growth of 13% thanks to an increase in post-pandemic orders.

"Sales this year are still supported by strong order receipts from the previous year," added Konrad.