Full Breakdown
Global Industrial Robot Demand Surges Amidst Economic Challenges
9/26/2025, 4:10:51 PM
Overview of Global Robot Demand
The International Federation of Robotics (IFR) released its World Robotics 2025 Report, revealing that global demand for industrial robots has more than doubled over the past decade. In 2024, 542,000 robots were installed worldwide, marking the second-highest annual installation count in history, just 2% shy of the all-time high recorded two years prior. Asia dominated the market, accounting for 74% of new deployments, while Europe and the Americas contributed 16% and 9%, respectively.
Key Markets and Trends
China emerged as the largest market for industrial robots, representing 54% of global installations with a record 295,000 units in 2024. This shift is notable as Chinese manufacturers have surpassed foreign suppliers in domestic sales, increasing their market share from 28% to 57% over the past decade. Japan followed as the second-largest market, with 44,500 units installed, although this reflects a slight decrease from previous years. The Republic of Korea and India also showed growth, with installations of 30,600 and 9,100 units, respectively.
In contrast, the European Union's automotive sector experienced a decline in robot installations, with a total of 30,650 units installed in 2024, a 5% decrease from the previous year. Germany, the largest producer in the EU, saw a significant drop of 25% in robot installations, reflecting broader challenges in the automotive industry, including reduced investments and a shift in demand towards electric vehicles.
Economic Implications and Challenges
The global robotics industry is not immune to macroeconomic conditions. Geopolitical tensions, trade disruptions, and a sluggish market have impacted growth prospects. Bosch, a leading automotive supplier, announced plans to cut 13,000 jobs in Germany due to high costs and competitive pressures, highlighting the industry's struggle to adapt to changing market dynamics. The company aims to achieve annual savings of €2.5 billion ($2.9 billion) as it navigates these challenges.
Despite these setbacks, the IFR projects a continued upward trajectory for robot installations, forecasting a growth of 6% to 575,000 units in 2025. The long-term outlook remains positive, with expectations to surpass 700,000 installations by 2028.
Criticism and Opposition
Critics of the declining robot installations in Europe argue that the automotive sector's hesitance to invest in automation could hinder competitiveness in the global market. The decline in demand for electric vehicles and ongoing political uncertainties have led to postponed investment projects, raising concerns about the future of the robotics industry in the region.
Official Statements
Takayuki Ito, President of the IFR, emphasized the importance of the automotive sector as a traditional stronghold for industrial robots, stating, “The automotive sector is traditionally one of the strongest customer industries worldwide, accounting for around a quarter of all robot installations in 2024.” However, he noted that many EU countries have significantly reduced their investments in robotics.
What's Next
Looking ahead, the EU's automotive industry is not expected to drive growth for the robotics sector in 2025. However, the recent trade agreement between the EU and the United States, which lowered tariffs on imported vehicles, may provide a glimmer of hope for recovery in the coming years. The industry awaits further developments as it adapts to evolving market conditions and technological advancements.
