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In a year marked by sluggishness in the robotics sector, the Association for Advancing Automation (A3) forecasts a more promising outlook for 2025.
Despite a faltering start to the year, A3’s recent data reveal a robust resurgence in the robotics industry as 2024 neared its conclusion. During the fourth quarter, North American firms placed orders for 8,277 robots worth $506 million, marking an 8% increase in both the number of units and revenue compared to the same period in 2023. The food and consumer goods sector stood out with an impressive 77% year-over-year growth in orders, fueled by seasonal demand and ongoing investments in automation, as noted by A3.
“There’s significant optimism and various indicators suggest that 2025, extending into 2026 and 2027, could be strong years for automation,” stated Alex Shikany, executive vice president of A3, in a recent discussion at Collaborate North America 2025, as reported by The Robot Report.
In summary, North American companies ordered a total of 31,311 robots valued at approximately $1.963 billion throughout 2024, reflecting minimal growth of 0.5% in unit sales and 0.1% in revenue compared to the previous year.
Automotive Industry Trends
Despite the positive developments in Q4, sales of robots within the automotive sector continued to lag. Traditionally a stronghold for robotics, automotive robot orders saw a decline of 15% in 2024 compared to 2023, according to A3’s analysis. Nevertheless, Shikany is optimistic about a rebound in automotive orders by the end of 2025.
“There’s potential for growth within the automotive industry,” he remarked. “What we experienced over the past two years was primarily due to manufacturers adjusting their strategies, as they were not achieving the expected performance in their electric vehicle initiatives.”
Many automotive manufacturers anticipated a surge in consumer interest for electric vehicles (EVs), yet the uptake has been slower than projected for most in the industry.
“I sense that a new wave is emerging from the automotive sector, even if it hasn’t fully materialized yet,” Shikany added.
He emphasized that the automotive industry, while established, often requires retooling of assembly lines to meet the demands of new automotive designs and technologies.
Contribution of Food, Consumer Goods, and Life Sciences
Food and consumer goods have emerged as the most rapidly expanding sector in 2024, with a remarkable 65% increase in robot orders. Additionally, the life sciences sector, including pharmaceuticals and biomedical industries, reported a robust 46% growth in robotic orders.
Looking ahead, Shikany believes the primary areas for robotics expansion will be in consumer-centric industries, such as warehousing, agriculture, and construction. As demand for food and housing persists, the trend towards online shopping is likely to continue.
“We’re witnessing numerous malls shuttering across the United States,” he remarked. “The era of relying solely on physical retail spaces for shopping is fading.”
However, not all sectors experienced a favorable conclusion to 2024. The semiconductor and electronics industry saw a staggering 37% drop in orders, attributed to ongoing supply chain challenges and diminishing demand, while the metals sector reported a 4% decrease.
Regionally, Shikany identifies significant opportunities for robotics growth in the Midwest and Rust Belt, noting a diverse range of industries and a relatively low adoption rate of robotic technologies, which highlights untapped potential.
Challenges Ahead
Shikany anticipates a positive trend for robotics in 2025, especially in the latter half of the year. Nonetheless, he acknowledges lingering challenges. Small to medium-sized enterprises often perceive robotics as overly complex to implement.
“Instances exist where businesses feel that the investment in robotics is daunting. Some believe we can continue our traditional methods effectively enough,” he explained. “However, this perspective is diminishing as more global competitors embrace automation technologies.”
Additionally, there remains a fear among some workers that robotics could undermine job security.
“Numerous studies have shown that, quite the opposite tends to happen; employee satisfaction often increases when they engage with advanced technology,” Shikany observed.
He further suggested that the future will see robots increasingly collaborating with humans in the workplace. He anticipates that fully automated facilities, often referred to as “lights out” manufacturing spaces, will emerge, although achieving this will require a comprehensive approach from the initial planning stages to implementation.
Shikany cautions that businesses hesitant to adopt automation risk falling behind their competitors.
“If companies are preoccupied with the perceived complexities and costs of robotics, they may inevitably lag behind,” he warned. “Eventually, their competitors will likely outpace them through automation.”
In a notable letter to the Trump administration, A3 president Jeff Burnstein argued that automation is crucial for bringing manufacturing back to the U.S. He urged collaboration between the federal government and the robotics sector to cultivate a strategic approach that enhances both economic competitiveness and national security.
Source
www.therobotreport.com