Even a hot category like robotics is not immune to macroeconomic trends. The North American robot market declined in both sales and revenue in the first half of 2024, according to statistics from automation advocacy group A3.
The number of orders for industrial robots in the first half of the year was 15,705 units, down 7.5% from the same period last year. Total sales for the second quarter decreased 6.8% to $982.83 million. The association puts the blame on broader economic headwinds among manufacturers.
Sorting things into categories will give you different results. The auto industry, the largest employer of industrial automation, has had its ups and downs. On the OEM side, orders increased by 14.4%, but revenue decreased by 12%. Auto parts manufacturers saw sales and profits decline by 38.8% and 27.3%, respectively.
“Rising inflation and borrowing costs are constraining spending on robotics, with many companies choosing to postpone large investments,” A3 President Jeff Bernstein said in a statement.
The semiconductor market has been particularly hard hit due to continued supply chain issues, with orders down 40% and revenue down 41.4%.
After the pandemic accelerated sales across sectors, the numbers fell sharply, with annual orders dropping by 30% to 31,159 in 2023. Sales volume was 44,196 units in 2022 and 39,708 units in 2021.
But A3 sees a silver lining in the unfortunate numbers. “Despite these challenges, advances in operational efficiency and workforce expansion continue to drive demand for robots in industries such as food, consumer goods, and life sciences,” Bernstein said.
Life Sciences brought good news with sales up 47.9% and revenue up 86.7%. Food and consumer goods showed even stronger growth, with orders up 85.6% and sales up 56.2%.
None of the slowdowns seen in today's report should cause panic. A correction is inevitable after the pandemic-induced panic buying. And while larger economic issues pose headwinds, automation remains inevitable for most industries. It's not a question of if, but when.