Robotics in North America: Sales Down, but Interest in Advanced Solutions Increases | Festina Lente - Your leading source of AI news | Turtles AI

Industrial robot sales in North America continue to decline, falling 9.7 percent in the second quarter of 2024 compared to the same period a year earlier, according to data from the Association for Advancing Automation (A3). This decline is mainly attributable to declines in the automotive components and semiconductor sectors, which declined 39 percent and 40 percent, respectively. However, the total value of units sold increased 6.9 percent to $489 million, highlighting an interest in more advanced and expensive robotic technologies. In the first half of 2024, 15,705 robots with a total value of $983 million were ordered, representing a 7.9 percent decline in units and 6.8 percent decline in revenues from the previous year. A3 points out that despite the decline in unit sales, the increase in revenues can be interpreted as a sign of increasing adoption of more sophisticated robotic systems, which are needed to meet the challenges of labor shortages and improve production efficiency amid economic uncertainties. In particular, the food, consumer goods, life sciences, and pharmaceutical sectors showed growth of 86 percent and 48 percent, respectively, demonstrating an increased focus on advanced robotics.

Key points:

•  In Q2 2024, robot sales in North America decreased 9.7 percent in terms of units, but revenues increased 6.9 percent.
•  The automotive components and semiconductor sectors saw significant declines, down 39% and 40%, respectively.
•  Increasing investment in more sophisticated and expensive robots to compensate for labor shortages and improve efficiency.
•  The food and pharmaceutical sectors are growing, highlighting increased adoption of robotics in non-automotive settings.

A3’s analysis of second-quarter 2024 sales data confirms a downward trend in unit sales of industrial robots, which began as early as the first quarter of the year with a 6 percent decline from 2023. Between January and March, companies purchased 8,582 robots worth $494 million. However, the continued decline in unit sales reflects the contraction of traditionally dominant sectors, such as automotive and semiconductors, which have always accounted for a large share of the robotics market. The slowdown in these sectors is partly offset by growth in other areas such as food, consumer goods, and pharmaceuticals, where demand for robotic automation is increasing. In fact, these non-automotive sectors have shown significant growth in orders, suggesting a shift in market dynamics.

A3 pointed out that the data do not include sales of autonomous mobile robots (AMRs) or collaborative robotic arms, and that the figures reported are based on data provided by industry participants in North America. These results place the North American market in contrast to the international landscape, particularly China, which continues to consolidate its position as the world leader in robotics. The International Federation of Robotics (IFR) highlighted the rapid development of robotic automation in China, which is set to become a significant driver of the country’s economic growth.

As the robotics sector in North America struggles to recover after a difficult 2023, marked by a 30 percent drop in orders, market players remain cautiously optimistic for the second half of 2024, hoping for a turnaround that can return the market to the record levels seen in 2021 and 2022. However, the evolution of the global situation and the ability of companies to adapt to new economic and technological environments will be crucial to the future of industrial robotics in the region.

In this context, the RoboBusiness conference, organized by The Robot Report and scheduled for October 2024, will provide a crucial discussion platform for the global robotics industry. The event will feature more than 70 industry experts who will share best practices for the development of commercial robotics at a time when the market seems to need new impetus to meet future challenges.

Robotics continues to evolve, and adapting to economic and technological changes will be essential to remain competitive in an increasingly dynamic global market.