From record orders in 2021 and 2022, robot sales in North America fell by as much as 30 per cent in 2023, which is the picture of the industry that emerges from the latest report, which was prepared by the Association for the Advancement of Automation (A3).
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Companies purchased 31,159 robots in 2023, compared to 44,196 ordered in 2022 and 39,708 in 2021.
Severe drop in sales
The 2023 orders were split almost equally between automotive (15,723 robots sold) and non-automotive companies (15,436 robots sold), representing a 34 per cent drop in sales to automotive OEMs and automotive suppliers compared to 2022, and an overall 25 per cent drop across all other industries.
- While robot sales naturally rise and fall, the return to more typical robot sales after the last two record years can probably be attributed to a few obvious issues: a slow US economy, higher interest rates and even over-purchasing of robots in 2022 from supply chain concerns - Jeff Burnstein, CEO of A3, said in a statement.
No nervous moves
According to Burnstein, the current declines have not led to panic moves in the market. Investors are still looking to the future with a fair amount of optimism, believing in a change in trend. - In the last month or so, we have seen a slowdown in the production of electric vehicles and fewer new distribution centres, which has probably reduced demand for robots - Burnstein added.
- From what we can hear, however, optimism about growth is strong. 'We anticipate a record number of attendees at our Automate exhibition in May, as more companies prepare for new automation projects - he concluded.
Not just automotive
In 2023, the greatest demand for robots from companies outside of the automotive industry came - by far - from the metals industry, followed by semiconductors and electronics/photonics; food and consumer goods; life sciences, pharmaceuticals and biomedical, plastics and rubber and others.
While each of these industries showed an overall decrease compared to 2022, the last three months of the year saw higher sales in automotive (both OEM and components), metals, semiconductors and electronics/photonics, plastics and rubber, metals and the "other" category, resulting in a 20 per cent increase compared to the previous quarter (Q3 2023).
The "other" category includes companies in areas such as construction, hospitality and agriculture, so those more traditional and newer in terms of robotics and betting on fresh solutions.
The rebound will come
- Although robot sales have been lower over the past twelve months, 2023 ended with both an increase over the previous quarter and an almost equal number of sales from automotive and non-automotive companies - Burnstein said.
Both are promising signs that more and more industries are becoming more comfortable with automation in general. 'We expect orders from the automotive industry to increase again, but there is no doubt that orders will increase across all non-automotive industries as they recognise how robots can help them overcome their unique challenges
