After two years of highs, orders for industrial robots fell by nearly a third last year. According to the Association for Advancing Automation (A3), 31,159 industrial robots were purchased by North American companies in 2023, up from 44,196. This marks a 30% drop for this key market. The number is also down (albeit less) from 2021’s 39,708.
The drop is definitely a steep drop worth considering. What it is not, however, is a complete surprise. Last August, we cited a report from the industry group indicating a 37% year-over-year decline for the second quarter of 2023. This was the second consecutive quarterly decline for the industry.
Those numbers throw some cold water on what’s seen as a black-and-white industry that dates back at least to the beginning of the pandemic. No doubt, some cause for concern among robotics manufacturers. But all this must be predicted by the fact that both 2021 and 2022 set sales records for the industry. Some regression to the mean was probably inevitable here.
But the story behind the numbers is far more complicated than a slowdown in adoption following a pandemic-fueled automation spree. As strong as the category has appeared at times, it is not immune to the same macroeconomic headwinds as the rest of the tech world. In fact, in some ways, it may be weaker. Industrial robots aren’t exactly a luxury item, but they are big-ticket purchases with a lot of upfront cost, prompting many to start looking at the robotics-as-a-service (RaaS) rental model.
Uncertain times are undoubtedly a major cause for caution. Manufacturing is still the key driver for automation, and as the economy struggled in 2023, many put off plans to buy new cars. Chip shortages also continued to dampen output in the first half of the year. Car-building robots – which make up just over half of the total – fell 34% for the year.
Non-automotive robots fared slightly better last year, falling 25%. According to A3, electronic metal fabrication, food/consumer, medical and plastics/rubber saw the largest non-automotive demand for the year.
A3 President Jeff Burnstein struck a hopeful note, stating, “While robotics sales declined over the course of the year, 2023 closed with both an increase over the previous quarter and nearly equal sales from automotive and automotive companies. non. Both are promising signs that more industries are becoming more comfortable with automation overall. While we expect to see auto orders pick up again, there is no doubt that orders will increase from all non-automakers as they recognize how robots can help them overcome their unique challenges.”
There are certainly economic factors driving potential sales going forward, including the stated hiring issues of many industries. But the process of adopting automation for the first time is fraught with growing pains, and in some cases the promise of new robotics technologies isn’t ripe enough for meaningful widespread adoption.
Robots, on the other hand, are a common sight in the automotive industry, which has a decades-long lead over the rest of the industry. The slowdown in EV purchases significantly impacted the overall figures.
