Germany’s robotics and automation industry is expected to face continued contraction in 2026, with revenues projected to decline by 5 percent to €14.1 billion, according to the VDMA Robotics + Automation Association. The anticipated decrease follows a 7 percent revenue drop in 2025, reflecting sustained pressure across the sector.
The association cited weak demand from key customer industries, geopolitical disruptions and persistent economic headwinds as the primary factors behind the downturn. The continued decline highlights what industry representatives describe as structural challenges rather than purely cyclical effects.
“The situation remains challenging. Our industry is simultaneously struggling with weak demand, geopolitical uncertainty, and burdensome location factors,” says Dr. Olaf Munkelt, Chairman of VDMA Robotics + Automation. “This makes it all the more important that we decisively strengthen our competitiveness – our levers here are customer centricity, innovation, and courage. At the same time, we must pick up speed and become faster in implementation. The task of policymakers is to significantly improve the framework conditions for entrepreneurial action now.”
The association stated that international competitors, particularly from Asia, are expanding their market positions and increasing their share in global robotics and automation markets. It characterized the current environment as structurally driven, suggesting that longer-term adjustments may be required.
Despite the near-term challenges, industry representatives pointed to enduring growth drivers such as digitalization, artificial intelligence, smart production and automation. Munkelt said restoring competitiveness would require reducing bureaucracy and ensuring cost structures that support growth, with the aim of returning the German and European robotics and automation sector to a stronger market position.
