- China’s aggressive investments in automation technology, raises concerns about Germany’s competitive edge in the global marketplace.
- Germany must reassess its approach to automation and innovation to maintain its relevance in an increasingly competitive global economy.
China has overtaken Germany, now ranking third globally in robot density, as of 2023, with 470 industrial robots per 10,000 employees—indicative of more than double its density in 2019, according to International Federation of Robotics (IFR) report.
The shift underscores not only the rapid modernisation of China’s industrial capabilities but also the mounting challenges faced by Germany, Europe’s largest economy.
South Korea continues to lead the world with a remarkable density of 1,012 robots per 10,000 employees, followed by Singapore with 770 robots per 10,000 employees.
Intensified competition
Contrastingly, Germany’s robot density, now at 429 per 10,000 workers, demonstrates a more modest growth rate of 5 per cent since 2018. The stagnation, coupled with China’s aggressive investments in automation technology, raises concerns about Germany’s competitive edge in the global marketplace.
Germany has traditionally depended on its robust industrial base and strong export performance to drive economic growth. However, the effects of intensified competition from countries such as China are becoming increasingly pronounced.
The anticipated economic contraction for Germany in 2024, which marks the second consecutive year of downturn, positions it unfavourably among the Group of Seven wealthy democracies, further amplifying the urgency for strategic adaptations.
According to the report, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2 per cent, with Germany, Sweden, Denmark and Slovenia in the global top ten.
North America´s robot density is 197 units per 10,000 employees – up 4.2 per cent. The United States ranks eleventh in the world among the most automated countries in the manufacturing industry.
Asia has a robot density of 182 units per 10,000 persons employed in manufacturing – an increase of 7.6 per cent. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.