A3 Report: Industrial Robot Orders Decline in the First Half of 2024
Automation Advancement Association (A3) Sees Bright Spots Amidst Sales Growth Across Multiple Industries
According to a new report from the Automation Advancement Association (A3), both the number of orders (down 7.9% to 15,705 units) and revenue (down 6.8% to $982.83 million) in North America’s robot market have declined compared to the same period in 2023.
Despite亮点in certain sectors, A3 noted that overall performance indicates a pullback in robotic investments across key areas due to ongoing economic headwinds faced by North American manufacturers during the first half of 2024.
“Rising inflation and borrowing costs have dampened demand for robots, with many companies opting to postpone significant investments,” said Jeff Burnstein, President of A3. “Despite these challenges, the pursuit of operational efficiency and workforce augmentation continues to drive demand for robotics in sectors such as food and consumer goods, life sciences, among others. When faced with labor shortages and rising production costs, automation plays an increasingly critical role in maintaining global competitiveness.”
Trends in the Automotive Industry
In the first half of 2024, Original Equipment Manufacturers (OEMs) in the automotive sector ordered 4,159 units, marking a 14.4% increase from the same period in 2023. However, revenue fell by 12.0%, reaching $259.96 million. In contrast, the automotive parts industry saw a significant decline, with orders down 38.8% to 3,574 units and revenue decreasing by 27.3% to $191.93 million. This decline suggests that parts manufacturers reduced their investment in automation during the first half of 2024, possibly due to tightened budgets or weak demand forecasts.
Bright Spots in Non-Automotive Industries
On a positive note, the food and consumer goods industry showed strong performance with orders surging by 85.6% to 1,173 units and revenue growing by 56.2% to $62.84 million. This growth reflects companies’ increasing reliance on robots for improving efficiency in food processing and packaging as they cope with labor shortages and rising costs.
The life sciences industry was also a bright spot, with orders up 47.9% to 1,007 units and revenue growing by 86.7% to $47.29 million, highlighting the sector’s reliance on robots for efficiency and precision.
However, orders in the semiconductor and electronics/optoelectronics industry fell by 40.0% to 603 units, with revenue declining by 41.4% to $23.43 million, possibly due to slowed investment in semiconductor production as a result of global supply chain issues and weakened demand. The plastics and rubber industries also saw mild declines in orders and revenue, but the drop was less pronounced compared to other sectors.
A3 is a leading advocate for global automation interests. It promotes the advancement of automation technologies and ideas that transform business operations. A3’s membership includes over 1,300 manufacturers, component suppliers, system integrators, end-users, academic institutions, research groups, and consulting firms.
A3 hosts several industry-leading events, including the International Robot Safety Conference (October 1-3, Cincinnati, Ohio); Humanoid Robotics Forum (October 7, 2024, Memphis, Tennessee); Autonomous Mobile Robots & Logistics Conference (October 8-10, 2024, Memphis, Tennessee); AI and Smart Automation Conference (November 12-13, 2024, Atlanta, Georgia), as well as the A3 Business Forum (January 20-22, 2025, Orlando, Florida) and Automate (May 12-15, 2025, Detroit, Michigan).
Source: Modern Materials Handling
