German automation sector is forecast to shrink by a further 5% this year
25 February 2026 
Revenues from the German robotics and automation sector will probably decline by a further 5.1% this year, following a 7% decline last year, according to VDMA Robotics + Automation, the association that represents more than 400 companies in the sector. It blames the decline on weak demand from key customer industries, geopolitical disruptions, and continuing unfavourable economic conditions.
If the sector’s revenues do shrink to €14.1bn as predicted, the total will be lower than in 2022. Last year’s 7% drop to €14.9bn was not as bad as VDMA had feared earlier in the year, when it was predicting a 10% collapse in revenues, but it does say that the year was marked by “significant strain”.
VDMA believes that the continuing decline of the German automation sector is structural in nature and goes beyond cyclical effects. International competitors – particularly from Asia – are continuing to expand their position and gain market share in Germany. The decline, VDMA states, heightens pressure on German companies and policymakers to act.
“The situation remains challenging,” says Dr Olaf Munkelt, chairman of VDMA Robotics + Automation. “Our industry is simultaneously struggling with weak demand, geopolitical uncertainty, and burdensome location factors. This makes it all the more important that we decisively strengthen our competitiveness – our levers here are customer centricity, innovation, and courage.
“At the same time,” he adds, “we must pick up speed and become faster in implementation. The task of policymakers is to significantly improve the framework conditions for entrepreneurial action now.
“The long-term growth drivers – digitalisation, AI, smart production and automation – remain intact,” Munkelt stresses. “We now need to create the conditions for German and European robotics and automation to return clearly to a leading position. We need rapid reduction of bureaucracy and competitive cost structures in order to return to a growth trajectory.”
