Nocountryforoldrobots:

HowcanEuropeleapovertheroboticstechfrontier?

11June2025

AllianzResearch

AllianzResearch

2

Content

4

ExecutiveSummary

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Europeremainsasolidplayer,butChinaisracingaheadtoofast

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DevelopandimplementaEuropeanroboticsroadmap

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Enhanceaccesstocapitalforroboticsstart-upsandresearch

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ScaleupinnovationfromresearchtomarketandintegrateAI

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Investinworkforceupskillingandeducation

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Streamlineregulatoryframeworkstofosterinnovationandadoption

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11June2025

Executive

Summary

AnoKuhanathan

HeadofCorporateResearch

ano.kuhanathan@

GuillaumeDejean

SeniorSectorAdvisor

guillaume.dejean

@

MariaLatorre

SectorAdvisor,B2B

maria.latorre

@

EuropehasbeenastrongforceinroboticsbutitisstartingtofallbehindChinaandtheUS.Roboticsinvestmentgrewbyalmost+230%over2019-2024andthemarketispoisedtooutpaceUSD100bnby2030.Chinahasbecomethelargest

consumerofrobotsbyfar,accountingfor51%oftotalannualinstallationsof

industrialrobots,anditsroboticindustryisgrowingsteadily.TheroboticsindustryinEuropeisatriskofdisruptionfromincumbentssupportedbystrongindustrialpolicies,andnewplayersemergingfromthetechecosystemamidtheAIfrenzy.Asroboticscoulddeliverincreasedproductivity,helptoaddressEurope’s

demographicchallengesandprotectitsindustrialsovereignty,theregionshouldactnowtoavoidfollowingthefateoftheautoindustry,leaningonfivelevers:

1.DevelopandimplementaEuropeanroboticsroadmap.Europeneedsa

strategicplanandaclearoperationalvisiontorampupitsroboticssector.We

suggestthatsuchplanshouldfocusonbuildingroboticschampionstofirstservedomesticsectorsthatare(i)lessrobotized,(ii)faceproductivityorrecurrent

laborshortageissuesandare(iii)difficulttooffshoreand/orstrategic.Namely,

transportationandlogistics,hospitality,agrifood,construction,healthcare,

aerospaceanddefense.Europeshouldalsoavoidchasingroboticsapplicationsinwhichitisalreadyfallingbehindtoomuch(i.e.humanoids,autonomousvehicles).

2.Enhanceaccesstocapitalforroboticsstart-ups.Europeshouldfurther

developalegalandbusinessframeworktoincreasethecriticalsizeoftheventurecapitalmarket,whosefundingcapacitiesarecomplementarytopublicand

privateefforts.Thecapital-intensivenatureoftheroboticsindustry,whichisevenmorepronouncedfordevelopingnewAI-empoweredsmartrobots,meansthatEuropecannotoverlookanyfundingchannel.TheUScurrentlyattractsseven

timesmoreVCinvestmentsinAIcomparedtoEurope,whichcouldweighonEurope’sinnovativecapabilitiesandleadtoatechnologylag.

3.Scaleupinnovationfromresearchtomarket.Europe’sweaknessliesinits

marketfragmentationandlackofcooperationtopromoteprivateinvestment.Inthiscontext,itneedstosupporttheconstructionofregionalchampionsand/or

promoteinvestmentpoolingtoplayaprominentroleintheongoingtechnologyraceforAIleadership.Increasingcollaborationandbusinesspartnershipvia

incubatorprogramsbetweenengineeringschoolsandtheprivatesectorwill

helptodevelopaninnovativeecosystematreducedcost.Atthepubliclevel,werecommendincreasingtheseven-yearhorizonbudgetfor2028-2034byatleast5%(overEUR100bn)whilesettingupaminimalinvestmentprovisiondedicatedtotheroboticsindustry(5-10%).

4.Investinworkforceupskillingandeducation.AsignificantnumberofEUfirmsreportdifficultiesinfindingemployeeswiththenecessaryskillstoimplement

digitaltechnologies,includingrobotics.Thisshortageisparticularlyacuteinindustrialsectors,wherethelackoftechnicaloperators,roboticstechniciansandsystemsintegratorsstallsthedeploymentofadvancedtechnologiesonfactoryfloors.Compoundingtheissue,theshareofEUenterprisesproviding

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trainingtotheiremployeesdeclinedfrom71%in2015tojust67%in2020.A

comprehensiveupskillingagendaisessential.Frontlineworkersneedtraining

tooperatecollaborativerobotssafely,interpretinterfacefeedbackandperformbasicmaintenance.Techniciansshouldbeproficientinrobotprogramming,PLClogic,sensoralignmentanddiagnostics.Atthestrategiclevel,engineersmustbecapableofplanningroboticworkflowsandintegratingsystemswithenterprisesoftware.Expandingvocationaltrainingwithupdatedcurricula,incentivizing

companiestoinvestinemployeereskillingandestablishingaunified“Robot

SkillsFramework”acrosstheEUarecriticalstepstoaligntheworkforcewiththedemandsofmodern(automated)manufacturing.

5.Streamlineregulatoryframeworkstofosterinnovationandadoption.The

EUmustbalanceitsleadershipinAIregulationwiththeneedtofosterinnovation,particularlyinrobotics.WhiletheAIAct,effectivesinceAugust2024,setsa

harmonizedlegalframeworkbycategorizingAIsystemsbyrisk,itsstrictrules

riskslowinginnovationanddeterringinvestment,especiallyforSMEs.Robotics,closelylinkedtoAI,facesaddedregulatorycomplexityduetooverlappingsafetyrulesanddynamicriskclassifications.Toaddressthis,theEUshouldharmonizeregulations,create“regulatorysandboxes”fortesting,promoteinternational

collaborationandadoptadaptive,risk-basedapproachesthatevolvewithtechnologyandsupportsector-specificinnovation.

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Europeremainsasolidplayer,

butChinaisracingaheadtoofast

Theglobalroboticsindustryhasevolvedintoakey

pillaroftechnologicaladvancement,influencingsectorsrangingfrommanufacturingandlogisticstohealthcare,agricultureandconsumerelectronics.Theroboticssectorhasbeenwitnessingrobustglobalgrowth,withavolumeofstockandinstallationsthathasalmostquadrupledin

thelastdecade(Figure1),underpinnedbyadvancementsinAI,sensors,connectivityandcomputingpower,settingthestageforitsincreasinginfluenceacrossnearlyall

facetsoftheglobaleconomy.Historically,Japanhasbeenadominantforceintheroboticsspace,particularlyintheproductionofindustrialrobotics,withcompaniessuch

asFANUC,YaskawaandKawasakileadinginnovations.SouthKoreaandtheUShavealsoplayedcriticalroles,theformerwithitshighlyautomatedmanufacturing

systemsandthelatterwithstrongleadershipinartificialintelligence(AI)androboticsintegration,particularly

throughcompanieslikeBostonDynamics,NVIDIAandemergingstartups.However,inrecentyears,Chinahasrapidlyemergedasacentralplayer,drivenbymassivestateinvestment,anexpandingdomesticmarketand

aggressiveacquisitionofforeignroboticstechnology,

rapidlyscalingitscapabilitiesinbothhardwareand

AI-drivenrobotics.Indeed,besidesitssubstantialrole

inproduction,Chinahasbecomethelargestconsumerofrobotsbyfar,accountingfor51%oftotalannual

installationsofindustrialrobots(seeFigure2).China’ssurgingrolehasmadetheAPACregionaccountfor72%ofannualinstallationsofindustrialrobotsintheworld,followedbyEurope(17%)andNorthAmerica(11%).

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Figure1:Evolutionofannualinstallationsofindustrialrobotsandoperationalstockofindustrialrobotsglobally(inthousands)

4500

4000

3500

OperationalstockofindustrialrobotsAnnualinstallationsofindustrialrobots

3000

2500

2000

1500

1000

500

0

20132014201520162017201820192020202120222023

Sources:InternationalFederationofRobotics(IFR),AllianzResearch

Figure2:Annualinstallationsofindustrialrobots,15largestmarkets,inthousandunits

Thailand

UnitedKingdomCanada

Taiwan

TurkiyeSpainMexico

France India ItalyGermany

Rep.Korea

UnitedStates

Japan

China

050100150200250300

Sources:WorldRobotics2024,InternationalFederationofRobotics(IFR),AllianzResearch

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Europemaintainsaconvincingbutmorespecialized

positionintheroboticsindustry.CountrieslikeGermany,SwitzerlandandSwedenarehometosomeoftheworld’sleadingcompaniesthatproduceprecisionengineering

andautomation,suchasKUKA(nowChinese-owned),

ABBRobotics(Switzerland)andUniversalRobots(from

Denmark,focusedoncollaborativerobots).Bydemand

orutilization,Germany,ItalyandFrancearetheleadingcountriesintheregion,witharound45,000unitsinstalledlastyear.TheEuropeanroboticsmarketischaracterizedbyhighstandardsofsafety,qualityandintegration,

particularlyinautomotive,medicalandservicerobotics.WhileEuropemaynotrivalthescaleofproductionseeninAsia,itcontinuestoleadinadvancedmanufacturingandR&D-drivenroboticsapplications.

Inthepastdecade,Chinahasemergedasthe

undisputedgloballeaderinboththeproductionand

adoptionofindustrialrobots.Backedbystrongstate-

drivenindustrialpolicy,massiveinvestmentsinautomationandaclearstrategicvision,Chinahasrapidlyscaled

itsroboticscapabilitiesacrosssectors,particularlyin

electronics,automotiveandlogistics.Thecountryisnownotonlytheworld’slargestmarketforindustrialrobots

butalsoafast-growingmanufacturingbaseforroboticstechnologyitself,drivenbyapowerfulcombination

ofdomesticdemandandnationalself-reliancegoals.

Overthepasttwodecades,Chinapositionedindustrial

roboticsatthecoreofitsnationaldevelopmentstrategy.Thisdeliberateintegrationofautomationhasnotonly

enhancedproductivitybutalsoaddresseddemographicchallengesandshiftedtheglobalmanufacturing

landscape.China’sjourneyintoindustrialautomation

beganearnestlyintheearly2000s,coincidingwithits

rapidindustrializationphase.Recognizingthepotential

ofroboticstoelevatemanufacturingcapabilities,the

governmentlaunchedpoliciestoencourageautomationadoption.The“MadeinChina2025”initiative,launchedin2015,markedasignificantmilestone,aimingtoupgradethemanufacturingsectorbypromotingadvanced

technologies,includingrobotics.Thispolicysetclear

targetsforrobotdensityandencourageddomestic

productionofkeycomponentstoreducerelianceon

foreigntechnology.Localgovernmentscomplementednationaleffortsbyofferingsubsidiesandincentives

tomanufacturersadoptingautomation.Forinstance,thecityofDongguanlaunchedthe“MachineReplaces

Human”program,investingbillionstosupportcompaniestransitioningtoautomatedprocesses.Suchinitiatives

facilitatedtheearlyandwidespreadintegrationofrobotsacrossvariousindustries.China’sroboticspushwasalso

motivatedbyitsdemographicshifts,characterizedbya

decliningbirthrateandanagingpopulation,whichposedsignificantchallengestoitslabor-intensivemanufacturingmodel.Theshrinkingworking-agepopulationledtolaborshortagesandincreasedwages,andautomationemergedasastrategicresponsetotheseissues.Bydeploying

robots,Chinaaimedtomaintainhighproductionlevels.

Industriessuchaselectronics,automotiveandtextilessawsignificantautomation,reducingdependencyonmanuallabor.Thisshiftnotonlyaddressedlaborshortagesbut

alsoimprovedproductquality,consistencyandpricecompetitivityamidrisingwagecosts–essentialforcompetinginglobalmarkets.

Today’sgapbetweenChinaandEuropeisnotjust

abouthowmanyrobotsaredeployed;it’sabout

vision,momentumandlong-termpositioninginthe

globalindustriallandscape.WhencomparedtoChina,

Europeappearstobefallingbehind.Whilecountries

likeGermany,SwedenandItalyhavestrongrobotics

traditionsandadvancedautomationinspecificindustries,thecontinentasawholelackstheunified,large-scale

pushseeninChina.Fragmentedmarkets,slowerpolicy

alignmentandmorecautiousinvestmentapproaches

havehinderedthespeedandscaleofroboticsadoption.Furthermore,Europeanmanufacturerstendtoapproachautomationincrementally,oftenconstrainedbyregulatorycomplexitiesandagingindustrialinfrastructure.Asa

result,Europeriskslosingitstechnologicaledge,not

becauseofalackofinnovation,butduetoalackof

urgencyandcohesivestrategy.WhileChinatreatsroboticsasapillarofitsfutureeconomicmodel,Europestilltendstoseeitasatoolforincrementalimprovement.Toavoid

roboticsfollowingthefateoftheautomotiveindustry,Europeneedstoactnow.Inthefollowingsections,weoutlinethefiveleversforpolicymakersandbusinessleaderstoprioritize.

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#1:Developandimplement

aEuropeanroboticsroadmap

WithEuropecontinuingtofallbehindtheUSand

Chinainroboticsandindustrialautomation,theneed

foracoordinated,forward-lookingroboticsroadmap

hasbecomeincreasinglyurgent.Sucharoadmap

wouldservenotonlyasastrategicvision,butalsoasa

practicalframeworktoalignstakeholdersacrossresearch,industryandpolicy.Byclearlyidentifyingprioritysectors,investmentneedsandinnovationtargets,Europecould

focusitsresourcesmoreeffectivelyandaccelerate

theadoptionofroboticstechnologieswheretheyare

mostneeded,particularlyinlabor-scarceindustrieslike

agriculture,constructionandmanufacturing.Without

aunifieddirection,fragmentednationalinitiativesand

inconsistentsupportmechanismsriskundermining

Europe’sindustrialcompetitivenessandtechnological

sovereignty.Awell-craftedroadmapwouldprovidethe

long-termclarityandconfidenceneededtomobilizepublic

andprivateinvestment,fostercross-bordercollaborationandensurethatEuropedoesnotremainafollowerin

thenextindustrialrevolution,butratheremergesasaproactive,innovativeforce.

Supportingtheroboticssectorisnotonlyamatterof

technologicalprogress;itisastrategicnecessityfor

maintainingEurope’seconomiccompetitivenessand

socialcohesioninthefaceofdemographicdecline.AsEuropefacesprofounddemographicchallenges,markedbyanagingpopulationandincreasinglyfragmented

migrationpoliciesthatvaryfromonecountrytoanother,roboticsandautomationcouldofferacompellingand

scalablesolutiontomitigatethegrowingworkforcegap.Demographicdynamicsarecontributingtopersistentandgrowinglaborshortagesinlabor-intensivesectorssuch

asagriculture,logistics,constructionandelderlycare.

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Bycomplementinghumanlaborratherthanreplacing

it,roboticscanhelpsustainproductivitylevels,reduce

dependenceonvolatilemigrationflowsandsupportthe

long-termresilienceofEurope’sindustrialbase.Moreover,roboticscouldalsohelpcompaniesimproveprofitability,makingthemmorecompetitive.Intheagrifoodsector,

forexample,personnelcostsaccountforupto60%of

totalfixedexpenses.Inthiscontext,adoptingautomationwouldnotonlyaddresslaborshortagesbutalsounlock

significantcostsavings,helpingtopreservetheeconomicviabilityoffarming.Autonomousmachinesforfarm-site

inspection,precisionplanting,harvesting,livestockfeedingandsurveillancearebecomingareality,thankstothe

incorporationofreal-timeperceptiontoolsandmachine

learning,especiallyincountriessuchastheNetherlands,Germany,Denmark,SwedenandFinland.However,the

transitiontofullyautonomousmachinesisstillfarfrom

complete.Similarly,inconstruction(whichheavilyrelies

oninboundmigrantlabor),robotictechnologiescould

beadoptedacrossalmosttheentiresector,helpingto

delivermeasurableproductivitygains.Retail,asector

withoneofthelowestlevelsofmargins,canalsogreatlybenefitfromrobotics.Byautomatingtaskslikerestocking,inventorychecksandcheckout,retailerscancutcosts,

boostefficiencyandfreeupstaffforhigher-valueroles,

helpingimproveprofitabilityinanincreasinglycompetitivelandscape.

TheadoptionofAIisessentialtounlockingthenext

waveofcross-sectorproductivitygainsthrough

automationoftasks(seeFigure3).AsAIcontinues

totransformroboticsfromsimpletaskperformersinto

intelligentsystemscapableofadaptingtodynamic

environments,itsintegrationbecomesastrategic

necessity,notjustatechnologicalupgrade.Inothersectorslikelogistics,healthcareandhospitalitywhereautomationisstillinearlystages,AI-poweredroboticsoffersthe

potentialtodramaticallystreamlineoperations,reducelabordependencyandenhancedecision-making.For

instance,AI-enableddiagnostictoolsandsurgicalrobotscanhelpaddresshealthcareworkforceshortages,whilepredictivealgorithmsandautonomousmobilerobots

couldoptimizesupplychainsinavolatileglobalmarket.Transportation,asectorthatisvitalforallothersectors,couldalsobetransformedbyAIandrobotics,which

canboostefficiency,reducecostsandimprovesafety.Fromautonomousvehiclesanddronestosmartlogisticsandtrafficmanagement,thesetechnologiesstreamlineoperationsandoptimizehowgoodsandpeoplemove,enhancingproductivityacrosstheindustry.

Table1:Sectorallaborintensity*anditseffectonprofitability

Laborintensity

Personnelcostasa

%offixedcosts

LTMAvgEBITDA

Margin(%)

Services

High

13.7

Construction

High

8.8

Retail

High

4.8

Textile

High

9.1

Agrifood

High

10.1

Transportation

Mid-high

11.8

HouseholdEquipment

Mid-high

8.5

IT&Software

Medium

9.2

Computer&Telecom

Medium

8.6

Electronics

Medium

8.7

Phamaceuticals

Medium

17.1

TransportEquipment

Medium

9.5

Machinery

Mid-low

10.4

Pulp&Paper

Mid-low

6.1

Automotive

Mid-low

7.5

Metals&Mining

Low

11.8

Energy

Low

17.0

Chemicals

Low

10.1

Sources:LSEGDatastream,AllianzResearch

*Note:Low=capitalandtechnologyintensive,heavymachinery,automated/Mid-low=morecapital-intensive,requiringfewerworkersrelativetooutput/Medium=balancedmixoflaborandcapital/technology/Mid-high=moderatelylabor-intensivebutalsorelyingonsomemachineryorautomation/High=sectorsrequiringalargenumberofworkersperunitofoutput,ofteninvolvingmanualorskilledlabor.

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Figure3:AIgrowthimpactchannels–ThroughwhichchannelsdoyouexpectAItohavethemostsignificantpositiveimpactonglobalGDPgrowth?

5%

19%

KnowledgetransferbetweencountriesIncreasedmarketefficiency

24%

32%

41%

49%

Reallocationoflabourtonewtypesofwork CreationofnewmarketsIncreasedAI-relatedinvestmentWorkeraugmentation

62%

Fasterinnovation

68%

Automationoftasks

0%10%20%30%40%50%60%70%80%

Sources:ChiefEconomistsSurvey(April2025),AllianzResearch

Figure4:AIcontributiontoindustrygrossadded-valueby2035

31%28%

Manufacturing

27%

26% 25%25%24%

Agriculture,Forestry&Fishing Wholesale&Retail Transportation&Storage FinancialservicesAccommodation&FoodservicesUtilities

20%20%19%

Information&CommunicationProfessionalservices

17%

17%

16%

16%9%

Publicservices HealthcareSocialservices

Arts,Entertainment&RecreationConstructionEducation

0%10%20%30%40%

Sources:Accenture,AllianzResearch

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Auto–fromautomationtoautonomy

Theautomotivesectorhasbeenleadingroboticinvestmentforyears.Theautomotiveindustryplaysapivotalroleindrivingglobalrobotdensity,accountingforasignificantshareofindustrialrobotinstallationsworldwide.Asahighlyautomated

sector,carmanufacturingrequiresprecision,efficiencyandscale,makingitaleadingadopterofrobotics.Accordingto

theInternationalFederationofRobotics(IFR),theautomotivesectoristhemostautomatizedsectoramidmanufacturing

industries,aheadofelectronicsandmachinery,andrepresentedroughlyathirdofglobalindustrialrobotinstallationsin

theUSandEurope,almost60%inCanadaand70%inMexicoasof2022.InEurope,thisinfluenceisespeciallypronounced.CountrieslikeGermany–whichhasthehighestrobotdensityinEurope(429per10,000employeesin2024)–butalso

EasternEuropeneighborslikeCzechRepublic,HungarywhosemanufacturingindustryandmorespecificallyautomotivehasaprominenteconomicweightdisplaythehighestroboticdensityinEurope.MajorautomakerslikeVolkswagen,BMWandMercedes-Benzheavilyinvestinroboticsforwelding,paintingandassemblyoperations.Theautomotivesector’spushforinnovation,productivityandelectricvehicle(EV)transformationcontinuestoaccelerateautomationandboostEurope’sroboticsfootprint.

Figure5:Globalrobotdensityperindustrybreakdown(numberofrobotsper10,000employees,2023)

Automotive

Electronics

Metal&Machinery

Plastics&Chemicals

Food&Beverage

1100

800

700

600

1290

0200400600800100012001400

Sources:IFR(WorldRoboticsReport2024),AllianzResearch

Figure6:Robotdensityintomanufacturingsectorvs.manufacturingshareofGDP

1200

Robotdensity(per10,000employees)

1000

800

600

400

200

0

Korea,Rep.

Singapore

Switzerland

Denmark

Sweden

Japan

Germany

China

Taiwan

US

Slovenia

Netherlands

Czechia

Canada

ItalyAustria

FranceFinlandSlovakRep.

SpainBelgium

0510152025303540

Manufacturingweight(as%ofGDP)

Sources:IFR,Worldbank,AllianzResearch

12

Amulti-facetedtechnologyshifttoapprehendandleverage.AIisinfusingsteadilyintoEurope’sautomotivesector.In

recentyears,specifictechnologieshavebeenintegratedintonewmodelstoenhancepredictionandcontrolsystems.

Amidnewsolutions,wecanlistAI-poweredvoiceassistantsenablingnaturallanguagecontrolofin-carfunctions,butalsoconversationalAItoolsofferingreal-timevoiceinteractionandsmartnavigation.Thelargediffusionofassistancesystem

solutions(ADAS)andsensorcamerasintonewcarsisalsoadirectconsequenceofthetechnologyshiftcurrentlyunderwayacrosstheentireindustry.TheseinnovationsallowOEMstoimprovecustomerengagementandsafety,AIproviderstoscaletheirmodelsintoembeddedsystemsanduserstobenefitfrommoreintuitive,adaptivemobilityexperiences.Europe’sstrongautomotivebaseandgrowingAIecosystemofferfertilegroundforacceleratingadoption,thoughchallengesremainin

regulationandinfrastructure.

ApplicationDescription

ROIpotential

AI

Area

Table2:Globalrobotdensityperindustrybreakdown(numberofrobotsper10,000employees,2023)

AutonomousDriving

AIpowersperception,decision-making,andcontrolsystemsinself-drivingvehicles.

Newrevenuestream

AI-DrivenDesignandSimulation

Digitalsupporttospeedupvehicledesign

Conceptiontimecutting

SmartManufacturing(Industry4.0)

Processoptimizationthroughproductionplanning,defectdetectionandroboticautomationsolutions.

Generalcostcutting

DemandandSupplyChainForecasting

Enhanceinventory,logistics,andsourcingtasks.

Generalcostcutting

AIinMarketingandSales

Targetedads,pricingoptimization,andpredictivecustomerinsights.

Profitabilityboost

PredictiveMaintenance

Collectingdatatopredict/preventvehicle/machinefailures.

Improvingsalesconversion

In-VehicleAIAssistants

Improvinguserexperienceviapersonalizationsolutionsandpermanentliveclientservices

Improvingbrandloyaulty

ConnectedVehicleDataMonetization

Monetizationofreal-timedrivingdata.

Newrevenuestream

Source:AllianzResearch

Lookingahead,theautosectorwillneedtobeselectiveandsmartinitsindustrialchoices,favoringAImonetizationoverautonomousvehicles.Autonomousvehiclesareexpectedtomakeonlyaslowentryintotheglobalautomarket,especiallyinEuropewheremarketshareisexpectedtoremainlessthan0.5%ofnewsalesbythenextdecade.Amidmultiplechallenges,fromaprofitabilitysqueezetotheloomingbanonfossil-fueledvehiclesin2035,EuropeanOEMshavelittleincentiveto

focusonthissegment,moresobecauseofthehighR&DcostandthewidetechnologygapwithcompetitorsintheUSand

China.However,AI-poweredrobotscouldhelpaddresstheprofitabilityissuebyoptimizingproductionandmaintenance

costs,reducingtheleadtimestolaunchnewmodels,improvingsalesconversionratesandcustomerjourneys.ThedramaticincreaseofdatacollectionbycarmakersviatheirAI-embeddedsystems,inquantitybutalsoinquality,alsooffershuge

businessopportunities,allowingcarmakerstoanticipatetheirclients’futureneeds.TheDataActthatwillbeofficialinEuropenextSeptemberwillintroduceafirstregulatorystepintermsoftransferanduseofdatageneratedbycars,clarifyingthe

effectivebusinessframeworkforOEMs.

Figure7:Estimatedsalesofautonomousvehiclesby2034

1600000

1400000

1200000

1000000

800000

600000

400000

200000

0

Estimatedsales%shareoflightvehiclessales(RHS)

5.0%

1.5%

0.2%

EuropeUSAChina

6%

5%

4%

3%

2%

1%

0%

Sources:S&PMobility,AllianzResearch

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#2:Enhanceaccesstocapitalfor

roboticsstart-upsandresearch

Oneofthemostsignificantbarrierstotechnologicaladvancement,particularlyinroboticsandAI,isthe

sheerscaleofinvestmentrequiredtodriveinnovation.

Developingcutting-edgehardware,intelligentsystems

andmachinesandscalableapplicationsdemands

sustainedfunding,world-classinfrastructureandahighrisktolerance.ThisisoneofthemainreasonswhyEuropeisfallingbehindglobalcompetitorsliketheUSandChina,whichhavemaderoboticsastrategicprioritybackedbymassivepublicandprivateinvestment.WhileEuropean

researchinstitutionsremainstrong,thecontinentlacksthecoordinatedfinancialpushneededtoturnprototypesintocommercialbreakthroughs.Investmentsindatacenters,forexample,mas