FACT SHEET

The Robotics &

Automation Industry
in Germany

ISSUE 2018/2019

Germany’s robotics and automation (R&A) industry has Tomorrow’s Robotics and Automation Technologies
enjoyed unprecedented success over the last decade, The R&A industry is one of the most innovative in the Ger-
recording average annual growth of 10 percent and man mechanical engineering sector. German OEMs number
almost doubling turnover in the period 2010 to 2017. The among the world’s leading R&A companies. Human-robot
sector generated record turnover of EUR 14.5 billion in collaboration (HRC) and machine vision (MV) technologies are
2017, with revenue of more than EUR 15 billion forecast considered major strengths in a global hub that boast robot-
for 2018. ics players from all market segments. Machine vision counts
as one of the major growth sectors in the R&A industry and
Global Market Growth has become the key technology for the automation industry
According to the International Federation of Robotics (IFR), worldwide. The increasing application level of HRC represents
global industrial robot sales reached record levels in 2017 – a perfect example of the move towards connectivity within
with the international market value for robot systems advanced manufacturing. Technological developments in the
estimated at around USD 40 billion. The IFR forecasts that field of artificial intelligence including machine learning and
robot installations will have a compound annual growth deep learning will lead to further applications of conventional
rate of at least 15 percent during the period 2018 to 2020. industrial robots and collaborative robots.
It is also estimated that more than 1.7 million new industrial
robots will be installed in factories around the world
by 2020. The global trend towards automation and
digitalization in the manufacturing sector is providing Estimated Annual Supply of Industrial Robots
continuous growth momentum. Accordingly, the world in Germany 2017-2020
market for industrial and non-industrial robots is forecast in thousand units
to rise to EUR 499 billion in 2025 according to market
analyst Tractica.
25
24
Europe’s Robotics and Automation Technology Hub
22
With a workforce of almost 53 thousand people, Germany’s 21
robotics sector boasts a robot density level of 309 industrial
robots per 10 thousand employees. This gives the country
the highest density level in Europe and puts it third in global
comparison (global average of 74 robots per 10 thousand
employees). Between 2018 and 2020, domestic annual supply
will continue to grow by at least five percent on average per
year thanks to demand for robots in industry in general and
the automotive industry in particular. According to the Ger-
man Mechanical Engineering Industry Association (VDMA),
the sector has an export share of 60 percent, with China 2017 2018 2019 2020
representing the largest single overseas market (14 percent
export share). Source: IFR 2017
MARKET OPPORTUNITIES

Main Application Industries

The automotive industry is the leading client sector for technologies) – are increasingly making use of machine vision
industrial robots in Germany. According to the VDMA, the technology. Machine vision plays a pivotal production optimi-
automotive industry – and its suppliers – are investing in zation role in Industrie 4.0 thanks to its peerless data gathering
electric and hybrid drive technologies that insist upon new and analysis capabilities.
production processes and equipment, particularly in the area
of battery production. The second largest client industry is Robotics and Automation Turnover Development
the electrical and electronics sector. Beyond big industry, in Germany
many SMEs are now looking at industrial robot implementa- in EUR billion
tion as a solution to increase production system flexibility.

2016 14.5
VDMA Classification
2017
According to VDMA classification, the industry can be 12.8
divided into three innovative sectors.

·· Robotics 7.0 7.4

The robotics industry can be divided into two categories:
industrial robots and service robots. Industrial robots 4.2
3.6
represent the core of automation in production techno- 2.6
2.2
logies. However, service robots are also gaining increasing
importance in the market.
Mach. Vision IA Solutions* Robotics Total
·· Integrated Assembly Solutions
* IA Solutions: Integrated Assembly Solutions
The integrated assembly solutions sector mainly focuses Source: VDMA 2018, Statista 2018
on the creation of new hardware and components need-
ed for tasks such as forming, measuring and testing.
With 25 thousand employees, integrated assembly solu- Estimated Yearly Shipments of Multipurpose Industrial
tions describe the biggest sector within this industry. Robots in Selected Countries
·· Machine Vision Technologies number in thousand units
Machine vision systems allow machines to see and com-
prehend. Application fields are diverse and include areas
25.0

such as components identification, quality control and 2019

data collection. 2015

Machine Vision
20.1

Automation and the implementation of MV technology help

make consistently high quality, permanent traceability and 100
percent production accuracy a reality. High levels of production
flexibility can be achieved and product changes quickly real-
ized using efficient automation solutions. Germany is the most
important sales market for the European image processing
11.4

industry, with more than 30 percent of total industry turnover

generated domestically. In just a decade, MV industry turnover
9.0

has more than doubled. Record turnover of EUR 2.6 billion was
reached in 2017 (18 percent increase), with dynamic market
6.7

6.0

development set to be maintained in 2018 (forecast annual

5.1

4.5
3.8

turnover increase of 10 percent).

3.0

2.5

1.6

Beyond the automotive industry (20 percent of total turnover)

and the electrical and electronics industries (including semicon-
ductors), other sectors – including the metal, food, and packag- Germany Italy Spain France UK CEE *

ing as well as non-manufacturing industries (e.g. intelligent * CEE: Central/Eastern Europe

traffic technology, medical diagnostic equipment and surgical Source: IFR 2016, national robot associations 2016
Innovative Application Areas
INDUSTRIE 4.0 and Cobots great potential to boost Industrie 4.0 flexibility levels with
R&A technology provides the core elements for the shift application also seen in the areas of e-commerce and hospital
towards Industrie 4.0. Collaborative robots (“cobots”) sup- logistics. Industry voices believe that service robot sales could
port human labor by automating repetitive and physically reach the same level as that of industrial robots during the
demanding tasks. They can be used for diverse applications period 2020 to 2025.
in modern production sites and no longer require cages.
Pick-and-place solutions represent one typical area of cobot
activity. HRC activities facilitate quick training and can be Projected Sales of Collaborative Robots
controlled via platforms that allow robots to be deployed Worldwide 2018-2024
at the appropriate workstation and the workload to be in thousand units
increased or decreased subject to changing production
requirements. Within Germany alone, around five thousand
cobots are expected to be sold in 2018. Current market fore-
casts expect cobots to represent around 34 percent of the 637
global robotics market up to 2025. 20 0%
~4
GR
CA
Service and Assistance Robots
Service and assistance robots are one of the major growth
sectors in the automation industry, with German robot 24
353
manufacturers counting among the world’s service robotics
pioneers. According to the IFR, service robot for professional 50
use turnover for 2017 saw an increase of 12 percent, generat-
ing record revenue of USD 5.2 billion. Cumulative volume 126
in the USD 27 billion region is forecast for the professional
61
service segment during the period 2018-2020. Medical robots
and logistics systems are established service robot client
2018 2020 2022 2024
sectors with considerable double-digit growth potential.
In the logistics sector, autonomous guided vehicles have Source: IFR 2017, HMC Investment Securities 2018, Statista 2018

Collaborative Robot Systems Regulation

A number of standards, rules and regulations have been ·· safety standards are defined within the
established in Europe to provide practical guidance to revised EN ISO 10218 standards 1 and 2 as
cobot manufacturers, system integrators, users, and other well as the ISO/TS 15066 specification;
interested parties.
·· require a collision risk assessment that ­covers
the industrial workplace in accordance with
Collaborative robot systems…
the two standards outlined above and
·· comprise the cobot, the robot arm-adapted tool the EC Machinery Directive.
used to perform tasks (and objects moved by it),
workpieces, and devices that constitute machinery
according to the EC Machinery Directive 2006/42/EC;
More information can be found online at
·· are subject to the EC Machinery Directive and →
the DGUV website www.dguv.de or contact
require an EC Declaration of Conformity and Germany Trade & Invest's industry experts at
CE Mark before being placed on the market; www.gtai.com/machinery
INVESTMENT CLIMATE

Supporting Business Success

A Tradition of Engineering Quality Robot Density in the Manufacturing Industry:
German R&A industry strength is driven by a combination Top 5 European Countries
of Germany's proven engineering tradition, its position as a number of installed industrial robots per 10,000 employees 2016
leader in technological development, and its highly diversi-
fied industrial base. The machinery and equipment (M&E)
industry is one of the technological motors that drive Ger- Germany 309
many as a high-tech nation combining all of the key future
technologies, such as materials, electronics, software, and
Sweden 223
robotics: Researchers, companies and employees active in the
R&A industry profit from the country’s reputation and global
know-how. The “Made in Germany” quality seal has long been Denmark 211
recognized as a sign of engineering excellence and precision
across the globe.
11.15 10.45
Italy 185
Dual Education System
In order to secure the economy’s demand for highly qualified
personnel, Germany developed a dual system in vocational Belgium 184
training – combining the benefits of classroom-based and
on-the-job training over a period of two to three years. In Source: IFR 2018
close cooperation with the German government, the German 4.30
Chambers of Industry and Commerce (IHKs) and the German
Confederation of Skilled Crafts (ZDH) ensure that exacting Public Incentives and R&D Programs
standards are rigidly adhered to, guaranteeing the quality Germany offers numerous incentives for all investors
of training provided across Germany. One in five German – regardless of country of provenance. There is a large
companies take part in the dual vocational training system, selection of programs designed to support a wide variety
thereby turning apprentices into specialists who fit each com- of business activities at different stages of the investment
pany’s individual needs. Most apprentices receive an employ- process. These range from cash incentives for the reimburse-
ment contract after training. In production-based industries ment of direct investment costs to support for research and
more than 70 percent are taken on as employees, underlining development and labor. The highly innovative character of
the importance of the training system for companies. More the robotics industry makes it an important part of Ger-
than 1.3 million young people are currently in vocational many’s High-Tech Strategy. This is complemented by other
training in Germany. government R&D support programs that provide public
grants – either as a reimbursable advance or in the form of a
Competitive Labor Costs non-refundable cash grant. As part of the research program
High productivity rates and steady wage levels make Ger- on human-technology interaction, the federal government
many an extremely attractive investment location. Since will support companies, research institutes and academics
2005, wages in the manufacturing sector have risen in most with non-refundable cash grants of around EUR 70 million
European countries (EU-28), with the growth rate averaging each year during the period 2016 to 2020.
2.7 percent. While some countries – particularly those in East-
ern Europe – experienced a rise of more than five percent, Academic Study Programs
Germany recorded one of the lowest labor cost growth rates Germany provides access to a network of universities highly
(2.1 percent) in the manufacturing sector within the EU. Highly active in the field of mechanical engineering with a special
flexible working practices such as fixed-term contracts, shift range of robotics and automation study programs. Around
systems, and 24/7 operating permits contribute to enhance 300 automation and robotics-related study programs are cur-
Germany’s international competitiveness as a suitable invest- rently available. German industry also enjoys a global reputa-
ment location for internationally active businesses. tion for its high R&D activity.
LOCATION ADVANTAGE

World-Class Robotics and Automation R&D

Europe’s Leading R&D Nation Several Fraunhofer-Gesellschaft research institutes are also
Germany is Europe’s leading R&D investment nation. Interna- actively conducting research in the areas of automation, robot-
tionally, only the US, Japan, and China have bigger domestic ics and related fields. These include, inter alia, the Institute for
R&D budgets. Germany is also one of the European leaders in Manufacturing Engineering and Automation (IPA); Institute for
terms of R&D investment as share of GDP, with a 2.9 percent Production Systems and Design Technology (IPK); Institute for
share in 2015 putting it above the OECD 2.4 percent average Factory Operation and Automation (IFF); and the Institute for
and the EU-28 average of less than two percent. In 2016, Intelligent Analysis and Information Systems (IAIS).
machinery and equipment companies invested EUR 5.7 billion
in R&D activities. Germany also has an internationally leading go-cluster
intellectual property role in terms of industrial robot patents. Launched in 2012, the “go-cluster” excellence program brings
together more than 100 innovation clusters from across Ger-
Clusters, Networks and Research Institutes many. The program provides financial stimulus – in the form
Regional innovation clusters help bridge the gap between of support for innovative services and funding for novel
science and industry. Stakeholders are organized in multiple solutions – to optimize cluster management allowing Ger-
regional clusters such as the Automation Valley Northern man clusters to position themselves as highly effective and
Bavaria cluster. The country’s specific strength in the develop- visible international clusters. Compliance with go-cluster
ment and manufacturing of robotics is further illustrated by membership quality criteria also prepares clusters for Euro-
the existence of specialized clusters such as the Robotics and pean Cluster Excellence Initiative silver and gold excellence
Mechatronics Center at the German Aerospace Center (DLR). label certification.

Selected Robotics and Automation Selected Clusters and Networks

Clusters and Networks 1* Automatisierungsregion Rhein Main Neckar e.V.
2* Intralogistik Netzwerk in Baden Württemberg e.V.
3* Kompetenz Netzwerk Mechatronik in Ostbayern
4* CFK Valley e.V.
Schleswig- 5* it's OWL – Intelligente Technische Systeme OstWestfalenLippe
Holstein
6* REGINA e.V. – Regionaler Industrieclub Informatik Aachen
Mecklenburg-
Hamburg Vorpommern 7* Silicon Saxony e.V.
4
8* Cluster Mechatronik & Automation e.V.
Brandenburg 9 Robotics and Mechatronics Center at the DLR
10* Strategische Partnerschaft Sensorik e.V.
Nieder-
Berlin 11 Automation Valley Nordbayern
5 sachsen
12 Allianz Industrie 4.0 Baden-Württemberg
Saxony-
Anhalt
13 Forum MedTech Pharma
North Rhine-
Westphalia
Clusters
7
Small cluster (<85 member companies)
6 Thuringia
Saxony
Hessen
Medium-sized cluster (85-200 member companies)

Rheinland- Large cluster (>200 member companies)

Pfalz
1 Networks
Saarland 11 13 Small network (<85 member companies)
3
10 Medium-sized network (85-200 member companies)
12
Bavaria Large network (>200 member companies)
2 8
Baden-
Württemberg 9

Source: Clusterplattform, GTAI Research 2018, *go-cluster certified

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Germany Trade and Invest Claudia Grüne All rights reserved.
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