VDMA: Machine Vision Navigating Through Uncertain Times
April 18, 2024 | VDMAEstimated reading time: 2 minutes
For over a decade, the European machine vision industry has reported steady growth, with turnover increasing by an average of 9 percent annually between 2012 and 2022. Despite a temporary setback in 2020 (minus 4 percent) due to the Covid-19 pandemic, the industry rebounded strongly in 2021 (plus 17 percent) and 2022 (plus 11 percent). "The European machine vision industry has demonstrated exceptional growth over the last decade and remains a very attractive industry." says Mark Williamson, Chairman of the Board of the VDMA Machine Vision division during the VISION / VDMA CEO Roundtable. "Unfortunately, due to the current economic and geo-political situation we were unable to repeat this in 2023 and while we are starting to see improvements, it’s unlikely to see growth until late 2024.”
Based on the latest VDMA statistics, the European machine vision industry experienced a 7 percent decrease in sales during 2023. For this year, VDMA Machine Vision anticipates a continued downturn, projecting a further 3 percent decline in sales for the current year.
2023: weak economy and decline in exports
The weakened global economy, coupled with crises such as the war in Ukraine, contributed to a tough year for the European machine vision industry. The demand in Europe fell by 3 percent. Export-oriented companies were particularly affected, with demand for European machine vision dropping by 21 percent in Asia and 18 percent in North America.
German machine vision industry: turnover twice as high as in 2013
According to the latest VDMA annual market survey, the German machine vision industry showed strong growth, doubling turnover from 1.6 billion euros in 2013 to 3.2 billion euros in 2023, despite a decline in sales of 7 percent in 2023.
Turnaround expected in autumn, along with VISION 2024
Looking ahead, the industry faces uncertainties with many customers being hesitant to invest amidst prevailing uncertainty. Order backlogs have been shrinking, new orders have been postponed and business expectations again worsened in November and December 2023, leading VDMA Machine Vision to publish a negative forecast for the first time in over a decade. However, the industry's diversified customer base has helped mitigate the impact of declining sales compared to other sectors. Many industries and many visionary products rely on computer / machine vision.
Longer-term outlook remains positive
Despite short-term challenges, the longer-term outlook for machine vision remains positive. As a key technology in the global automation race, machine vision finds applications not only in traditional industrial sectors but also in non-manufacturing industries, driving improvements in quality, cost-effectiveness, competitiveness, autonomy, and safety standards.
With the emergence of new AI-technologies and -approaches, the market potential for image processing continues to grow, with VDMA Machine Vision anticipating a shift in trends by the fourth quarter of 2024.
The industry eagerly anticipates VISION 2024, expecting further impetus from the world-leading trade fair for machine vision technology. While challenges persist, the European machine vision industry remains committed to innovation and long-term growth.
Suggested Items
Nordson Reports Q2 Fiscal 2024 Results, Updates Annual Guidance
05/21/2024 | BUSINESS WIRENordson Corporation reported results for the fiscal second quarter ended April 30, 2024. Sales were $651 million, comparable to the prior year’s second quarter sales of $650 million.
Murata Obtains ISO 26262 Certification for Functional Safety in Automotive Applications
05/21/2024 | MurataMurata Manufacturing Co., Ltd., obtained the ISO 26262 development process certification for Functional Safety* Automotive ISO 26262 from the German third-party certifier SGS-TÜV Saar GmbH on February 13, 2024.
SEMICON Europa 2024 Call for Abstracts Opens
05/21/2024 | SEMISEMI Europe announced the opening of the Call for Abstracts for SEMICON Europa 2024, to be held November 12-15 at Messe München in Munich, Germany. Selected speakers will share their expertise at the Advanced Packaging Conference (APC), Fab Management Forum (FMF), MEMS & Imaging Sensors Summit and during presentations on the show floor.
American Standard Circuits/ASC Sunstone Circuits Showcase Cutting-edge Technology at PCB East 2024
05/21/2024 | American Standard CircuitsAmerican Standard Circuits (ASC) and ASC Sunstone Circuits are excited to announce their participation in PCB East 2024, a premier event for the printed circuit board and electronics design industry. The event will take place from June 4-6, 2024, at the Boxboro Regency Hotel and Conference Center in Boxborough, MA.
India PC Market Grew 2.6% YoY in 1Q2024 with 3.07 Million Units Shipped
05/20/2024 | IDCAccording to recent data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, India’s traditional PC market (inclusive of desktops, notebooks, and workstations) shipped 3.07 million units in 1Q2024, up 2.6% year-over-year (YoY).