Last quarter, we took a closer look at technical building equipment suppliers. In this edition of the Industrials sector report, we would like to focus on industrial automation, a sector that is characterized by its rapid technological progress and its central importance for increasing efficiency and modernizing production processes.

The German economy is currently facing various challenges. Despite a general slowdown in economic growth, influenced by high interest rates, military conflicts and internal structural adjustments, the industrial automation sector remains robust. Investments in innovative technologies such as artificial intelligence (AI), the Industrial Internet of Things (IIoT) and 5G technology are driving the sector forward. Government funding programmes for the digitalization and automation of industry and a growing awareness of intelligent manufacturing processes continue to support this trend.

Significant developments such as the implementation of collaborative robots (cobots) and the increasing spread of digital twins confirm the interest and willingness to invest in the market. Digital twins make it possible to virtually simulate and optimize real production processes, which leads to significant increases in efficiency and cost reductions. Prominent use cases such as the use of digital twins at Rolls Royce to improve engine efficiency and reliability underline the potential of this technology.
Overall, the dynamic development in industrial automation shows that, despite economic challenges, significant investments and technological innovations continue to be strongly represented. This speaks for the continued resilience and attractiveness of the industry in current and future markets. Investors are increasingly recognizing the importance of industrial automation as an essential component of efficient and future-oriented production strategies.

This edition of the Industrials sector report will give you a comprehensive overview of the status and prospects of industrial automation. We hope you enjoy reading it.

Our SektorReports are available in German language. If you have further questions regarding this topic, feel free to get in touch.