The North American robotics market saw a decline in both units ordered (down 7.9% to 15,705 units) and revenue (down 6.8% to $982.83 million) during the first half of 2024 compared to the same period in 2023.
Despite some bright spots in specific industries, the overall performance reflected in the latest report from the Association for Advancing Automation (A3) shows a pullback in robotics investments across key areas, influenced by ongoing economic headwinds faced by North American manufacturers during the first six months of 2024.
“Rising inflation and borrowing costs have dampened spending on robotics, with many companies opting to delay major investments,” said Jeff Burnstein, president, A3. “Despite these challenges, the push for operational efficiency and workforce augmentation continues to drive demand for robotics in industries such as food and consumer goods and life sciences, among others. As companies navigate labor shortages and increased production costs, the role of automation is becoming ever more critical in maintaining global competitiveness.”
Automotive sector unit sales up, revenue down
Automotive OEMs ordered 4,159 units in the first half of 2024, marking a 14.4% increase over the first half of 2023. However, revenue dropped by 12.0% to $259.96 million. By contrast, the Automotive Components sector declined significantly, recording a 38.8% drop in orders to 3,574 units, and a 27.3% decline in revenue to $191.93 million. This downturn suggests component manufacturers pulled back on automation investments in the first six months of 2024, likely due to tighter budgets or softer demand forecasts.
Non-automotive sectors indicate potential bright spot
On the positive side, Food & Consumer Goods reported a strong performance, with orders surging by 85.6% to 1,173 units and revenue rising 56.2% to $62.84 million. This growth reflects the increasing reliance on robotics for efficiency in food processing and packaging as companies seek to address labor shortages and rising costs.
The Life Sciences industry was also a bright spot, with 1,007 units ordered, representing a 47.9% increase, and revenue growing by 86.7% to $47.29 million, reinforcing the sector's ongoing reliance on robotics for efficiency and precision.
Semiconductor & Electronics/Photonics, however, saw orders fall by 40.0% to 603 units, with revenue down 41.4% to $23.43 million, possibly driven by slower capital spending in semiconductor production due to global supply chain issues and decreased demand. Plastics & Rubber also experienced moderate declines in both orders and revenue, but these were less pronounced compared to other industries.
Related Glossary Terms
- robotics
robotics
Discipline involving self-actuating and self-operating devices. Robots frequently imitate human capabilities, including the ability to manipulate physical objects while evaluating and reacting appropriately to various stimuli. See industrial robot; robot.
- sawing machine ( saw)
sawing machine ( saw)
Machine designed to use a serrated-tooth blade to cut metal or other material. Comes in a wide variety of styles but takes one of four basic forms: hacksaw (a simple, rugged machine that uses a reciprocating motion to part metal or other material); cold or circular saw (powers a circular blade that cuts structural materials); bandsaw (runs an endless band; the two basic types are cutoff and contour band machines, which cut intricate contours and shapes); and abrasive cutoff saw (similar in appearance to the cold saw, but uses an abrasive disc that rotates at high speeds rather than a blade with serrated teeth).
