Global sales of industrial robots contracted by 5.8% in 2024, marking the second consecutive year of decline, according to new data from Interact Analysis. The slowdown followed a challenging 2023 and was driven by a combination of weaker manufacturing activity and falling unit prices. Europe experienced the sharpest regional drop, with an 8.1% contraction, and is expected to trail other regions in recovery pace over the next several years.
The report attributes the downturn to high interest rates in Western economies and muted demand in Asian markets, which collectively dampened investment in production capacity. Across industries, capital expenditure on automation projects was curtailed as manufacturers navigated tighter financing conditions and uncertain order volumes. Competitive pressures intensified within the robotics sector, with emerging brands often prioritizing market share over profitability, further eroding margins.
Asia-Pacific remains the dominant force in industrial robotics, benefiting from a dense vendor ecosystem and large-scale procurement that drives down average selling prices. Interact Analysis forecasts steady growth in APAC, supported by ongoing adoption of automation in manufacturing hubs. In contrast, the Europe, Middle East, and Africa (EMEA) region is projected to expand at a slower compound annual growth rate than both APAC and the Americas over the next five years, though it will retain its position as the second-largest market.
The Americas, while smaller in volume, are bolstered by U.S. reshoring initiatives and emerging opportunities in Latin America. These factors are expected to sustain demand despite broader economic headwinds. Sector-specific trends reveal that automotive manufacturing—historically a major consumer of industrial robots—faced notable weakness in 2024. General manufacturing segments such as electronics, metals, and plastics & rubber also saw reduced orders. By contrast, consumer-oriented industries including food & beverage and life sciences displayed greater resilience, maintaining investment in automation to meet evolving production needs.
“In 2024, the industrial robot market continued its decline from the 2023 slump,” said Samantha Mou, research analyst at Interact Analysis. “However, we anticipate a gradual recovery of the robotics market across all three major regions in 2025, with stronger growth expected in 2026.” Mou noted that sentiment in the Americas and Asia is beginning to improve, with early signs that the macroeconomy could slowly emerge from recession. “However, in Europe, recovery signs remain weak and our growth forecast for the EMEA region remains the lowest,” she added. “Despite this, we expect the broader manufacturing sector in Europe to benefit from the global economic cycle.”
From a technical perspective, the price compression observed in 2024 reflects both intensified vendor competition and maturing manufacturing processes for robot components. In APAC, economies of scale in actuator production, sensor integration, and control electronics have enabled lower-cost systems without compromising performance, a dynamic that has proven challenging for smaller European and American manufacturers to match. This cost advantage has reinforced APAC’s leadership position, particularly in high-volume applications such as electronics assembly and automotive body-in-white welding.
Meanwhile, in sectors like food processing and pharmaceutical packaging, demand is being driven by the need for precision, hygiene, and compliance with stringent safety standards. These applications often require specialized end-effectors, advanced machine vision, and adaptable programming interfaces, pushing innovation in collaborative robot designs and modular automation cells. Such developments are expected to play a role in the anticipated recovery, as manufacturers seek flexible systems that can be rapidly reconfigured for changing product lines.
The interplay between macroeconomic conditions, regional industrial policy, and technological evolution continues to shape the trajectory of the industrial robotics market. While 2024 underscored the vulnerability of capital equipment sales to global downturns, it also highlighted the sectors and regions capable of sustaining momentum through targeted investment and competitive differentiation.