A feasibility study commissioned by the Danish Embassy in Prague has identified a potential €31–55 million market opportunity for Danish automation technology within Czech manufacturing over the next three to five years. The analysis estimates that Danish suppliers could capture between 8 and 12 percent of this segment as Czech small and medium-sized manufacturers increase investment in automation.
The research, conducted by the global automation platform HowToRobot, links the expected growth in demand to sustained labour shortages and rising employment costs in the Czech Republic. According to the study, manufacturers are operating amid approximately 264,000 job vacancies nationwide, while labour costs have risen by 83 percent since 2016. These conditions are driving companies, particularly SMEs, to seek automation solutions that are less complex and more cost-efficient than traditional systems.
The study indicates that many Czech SMEs continue to rely on manual production processes but are increasingly assessing automation as a means to maintain output and competitiveness. Lars Gade Holm, head of trade at the Danish Embassy in Prague, said that Danish robotics technology is aligned with these needs. “Many Czech SMEs are using manual procedures in production, but are increasingly aware of the need to automate and its advantages,” he said, adding that Danish solutions can help automate tasks traditionally performed by skilled workers who are difficult to recruit in the local labour market.
The research highlights ten automation applications where Danish suppliers are considered well matched to Czech manufacturing requirements, including material handling, welding, assembly, screwdriving, and machine tending. A distinguishing factor cited in the study is the prevalence of standardized, ready-to-deploy solutions offered by Danish companies, which can be configured by local system integrators without extensive custom programming. Mikkel Viager, principal advisor at HowToRobot, said this approach reduces delivery time and costs for integrators while lowering barriers to adoption for end users.
The study also notes that such systems allow manufacturers to adjust production processes, including the introduction of new products, without relying on specialized programming expertise or continuous external support. Modular system designs are described as enabling incremental investment as production volumes or operational needs change.
Partnerships with local automation integrators are identified as central to market entry and long-term adoption. The research mapped more than 146 Czech integrators active across the priority application areas, suggesting sufficient domestic capacity to support deployment and maintenance. The potential customer base is estimated at 6,764 manufacturing SMEs with between 10 and 249 employees, primarily operating in fabricated metal products, general engineering, plastics and rubber, and food and beverage processing.
The report places the opportunity in the context of a broader increase in automation across the Czech economy. Robot density rose from 101 to 207 units per 10,000 employees between 2016 and 2023, approaching the European Union average of 219 units. Based on projected growth rates, the study estimates that Czech manufacturers will need between 1,223 and 2,197 additional automation systems over the next three to five years to sustain productivity levels.
The Danish Embassy in Prague is preparing support measures aimed at facilitating cooperation between Danish technology providers and Czech integrators, including market visits, matchmaking activities, and technical presentations. Gade Holm said that many Danish robotics offerings are specialized components or subsystems rather than complete turnkey solutions, making local integration expertise essential for successful deployment.
The feasibility study draws on market data from HowToRobot, the Czech Chamber of Commerce, Eurostat, and the International Federation of Robotics, alongside interviews with Czech manufacturers, automation integrators, and Danish technology suppliers.
