Recently, according to data from the automation advocacy group A3, despite the robotics industry remaining a hot sector, the North American robotics market experienced a dual decline in sales and revenue in the first half of 2024.
Specifically, the number of industrial robot orders decreased by 7.5% year-on-year to just 15,705 units in the first half. Overall revenue also fell by 6.8% to $982.83 million. Jeff Bernstein, head of A3, pointed out that the macroeconomic pressures faced by manufacturers are the main reason for this situation.
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Looking at different categories, the automotive industry, as the largest user of industrial automation, showed some volatility. In terms of original equipment manufacturers (OEMs), the number of orders increased by 14.4%, but revenue decreased by 12%. In the automotive component manufacturers, both sales and revenue declined by 38.8% and 27.3% respectively. Bernstein stated that due to rising inflation and borrowing costs, many companies chose to postpone major investments, thereby affecting robot procurement.
The semiconductor market faced particularly severe conditions, with a 40% drop in orders and a 41.4% decrease in revenue due to ongoing supply chain issues. During the pandemic, robot sales experienced rapid growth, but with a sharp drop in orders by 30% to 31,159 units in 2023, the industry appears to be undergoing an adjustment. Looking back at 2022 and 2021, sales were 44,196 units and 39,708 units respectively.
Despite the overall bleak situation, A3 still sees some positive signs amidst the difficulties. Bernstein mentioned that, despite the challenges, the demand for operational efficiency and enhanced human resources continues to drive the demand for robotics technology in industries such as food, consumer goods, and life sciences. Notably, sales in the life sciences sector grew by 47.9%, while revenue surged by 86.7%. Orders in the food and consumer goods industries grew by 85.6%, with revenue growth of 56.2%.
These declining figures do not signify the decline of the industry. After the buying frenzy during the pandemic, market adjustments are inevitable. Although the current economic situation presents significant challenges, the trend towards automation in various industries remains irreversible, the key lies in when it will be implemented.
Key Points:
🌟 In the first half of 2024, North American industrial robot orders decreased by 7.5%, and revenue by 6.8%.
📉 The automotive industry showed mixed results, with OEM orders rising but component manufacturers both declining.
🚀 The food and life sciences industries achieved strong growth, with increases of 85.6% and 47.9% respectively.