The worldwide robotics industry is regaining momentum after years of stagnation. Susanne Bieller, Secretary General of the International Federation of Robotics (IFR), reports that the sector has reached its low point and is now trending upward. The IFR forecasts a six percent increase in new installations for 2025, reaching 575,000 units, with projections exceeding 700,000 by 2028. Growth is driven by persistent labor shortages and the shift toward reshoring and nearshoring, as companies relocate production to mitigate global supply chain risks.

China continues to dominate. Last year, it installed 295,000 new robots—54 percent of global volume—and the IFR anticipates annual growth of ten percent through 2028. A significant shift occurred: Chinese manufacturers now hold 57 percent of their domestic market, up from 47 percent the prior year and just 28 percent a decade ago. Bieller attributes this to their success in automating new industries and aggressive pricing, supported indirectly by state policies.

In contrast, Europe and Germany felt the automotive downturn more acutely. German installations fell five percent to 27,000 units, with automotive applications dropping 25 percent to 6,900. However, double-digit gains in metals, chemicals, plastics, and electronics cushioned the decline. The VDMA forecasts a ten percent revenue drop in German robotics and automation to 14.5 billion euros in 2025. Kuka, owned by China’s Midea Group, saw sales decline eight percent to 3.7 billion euros, while ABB’s robotics division reported an eight percent reduction, citing customer caution amid tariff uncertainty.

Long-term trends remain solid. The IFR highlights rising demand for collaborative robots and cost-effective solutions for small and medium enterprises. Chinese firms are expanding aggressively in Europe, establishing sales networks and accompanying their industrial clients opening local plants.

U.S. manufacturers should leverage this recovery through targeted global expansion. China offers niches in precision robotics and software integration; a compact team in Shanghai can secure partnerships and market intelligence. The U.S. benefits from domestic incentives for green automation, where American systems excel. Brazil presents strong potential in agtech and renewables, with low entry barriers and investor residency requiring minimal presence. A Midwest supplier that established a São Paulo outpost two years ago increased regional revenue by 18 percent through localized solutions.

The robotics market is globalizing rapidly. U.S. firms that diversify strategically—with market scouts and pilot deployments—will secure both growth and resilience. Quality, adaptability, and international partnerships will define leadership in the next phase of industrial automation.

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