Optimism for high growth in the second half of 2024
The Association for Advancing Automation (A3) just issued its latest report, North America Robot Orders, revealing a 30% drop in robot sales in 2023 that followed the robust performances of 2021 and 2022. The decline was attributed to a slower economy, higher interest rates, and previous overstocking caused by supply chain uncertainty.
Robot units sold were 31,159 in 2023, compared to 44,196 ordered in 2022 and 39,708 in 2021. The automotive segment sold 15,723 robots and the non-automotive segment sold 15,436 robots, roughly equal amounts. While automotive experienced a 34% drop in sales to automotive OEMs and automotive suppliers from 2022, other industries saw a 25% total decrease.
“We’ve seen a slowdown in the manufacturing of electronic vehicles this year along with fewer new distribution centers, both likely reducing the demand for robots. From what we’re hearing in our member surveys and at recent events, however, optimism is strong for growth, potentially picking up in the second half of the year. In fact, we anticipate record numbers at our Automate Show in May as more companies prepare for new automation projects,” said Jeff Burnstein, president of A3.
Non-automotive companies are drawn from the metal industry, followed by semiconductor & electronics/photonics; food & consumer goods; life sciences, pharmaceutical and biomedical, plastics & rubber, and others.
Optimism for 2024 comes in large part from the fourth quarter of 2023 which saw an overall increase of 20% over the prior quarter. Higher sales were attributed to automotive (both OEM and components), metals, semiconductor & electronics/photonics, plastics & rubbers, metals, and the All Other Industries category.
Burnstein attributes the non-automotive orders increasing in 2024 to the growing number of industries becoming more comfortable with automation.
“While we expect to see automotive orders rise again, there’s little doubt that orders will increase from all non-automotive industries as they recognize how robots can help them overcome their unique challenges,” says Burnstein.
One example of robots moving into more industries is Knightscope founded by Bill Santana Li. The company provides Autonomous Security Robots (ASRs) that are a combination of self-driving technology, robotics, artificial intelligence, and electric “vehicles” that provide extra eyes, ears, and a voice on the ground to promote security.
As a recent guest on the podcast Experienced Voices™, Santana Li shares his excitement about the inroads Knightscope has made across its broadening client base, resulting in strong expectations for rising sales over the next few years.
The Association for Advancing Automation is a global advocate for the benefits of automating and promotes automation technologies and ideas to change the way business is done. Its membership includes over 1280 manufacturers, component suppliers, system integrators, end users, academic institutions, research groups, and consulting firms that drive automation forward.
A3 is hosting the Automate Show, the largest robotics and automation trade show in North America, May 6-9, 2024, in Chicago. More than 750 leading exhibitors—from cutting-edge robotics and motion control to vision and artificial intelligence (AI) innovations—will be there representing a wide variety of industries and applications.
