Orders dropped by 30%?

After two years of record sales, North American robot orders fell 30% in 2023, according to a new report from the Association for Advancing Automation (A3). The group said it expects the economic slowdown, especially in auto manufacturing, to continue until the second half of 2024.

“While robot sales naturally ebb and flow, the return to form after the past two record years can be attributed to several distinct issues: a slowing U.S. economy, rising interest rates, and even over-buying of robots in 2022 due to supply chain issues,” A3 President Jeff Burnstein said in a press release.

“We’ve seen a slowdown in the manufacturing of electric vehicles this year, as well as a reduction in new distribution centers, both of which could reduce demand for robots.”

But he added that, judging by what we have heard in our member surveys and at recent events, optimism about growth is strong and could pick up in the second half of the year, as more companies are also gearing up for new automation projects.

Orders for both automotive and non-automotive robots declined

According to A3, North American companies purchased 31,159 robots in 2023, compared with 44,196 ordered in 2022 and 39,708 in 2021.

These 2023 robot orders are almost evenly split between automotive companies (15,723 robots sold) and non-automotive companies (15,436 robots sold). This means that compared to 2022, sales to automotive OEMs and automotive suppliers are down 34%, and sales to all other industries are down 25%.

According to the data, the strongest demand for robots among non-automotive companies is in the metals industry, followed by semiconductors and electronics/photonics; food and consumer goods; life sciences, pharmaceuticals and biomedical; plastics and rubber, etc.

While all of these industries saw an overall decline compared to 2022, automotive (both OEM and components) and the metals, electronics, plastics and “all other industries” categories grew 20% in the final three months of the year compared to the third quarter of 2023.

A3 said the "all other industries" category includes companies in sectors such as construction, hospitality and agriculture, where robotics technology is newer.

Optimistic about 2024

A3’s president noted: “While robot sales declined over the course of the year, 2023 ended with sales to automotive and non-automotive companies increasing quarter-over-quarter and becoming almost equal.”

Both are hopeful signs that more and more industries are becoming more comfortable with automation.

“While we expect automotive orders to rise again, there is no doubt that orders will increase across all non-automotive sectors as they recognize how robots can help them overcome their unique challenges.”