New market research indicates that China’s industrial robot sales are projected to experience the first decline in five years due to low demand in the manufacturing industry.

The report attributed that decrease to the “obviously tightening demand” from the manufacturing sector, particularly in the automobile and renewable energy industries, as companies reduced fixed-asset investments due to increased pressure on profits.

The country’s overall industrial robot shipments for this year are projected to hit 300,000 units, a decline of 5 percent from 2023, as per the newest report from market consultancy Shenzhen Gaogong Industrial Institute (GGII).

The volume of industrial robot sales, which was lower than anticipated, represents the first decrease since 2020, as per GGII data. The institute had earlier predicted unprecedented sales of 320,000 units this year.

The growth in domestic demand for industrial robots has gradually diminished over recent years. Sales experienced a 54 percent increase in 2021, as China intensified its commitment to using industrial robots.

China has increased the deployment of industrial robots, along with various hardware and software, to enhance productivity, lower labor costs, and strengthen the global competitiveness of its manufacturing supply chain in recent years.

China recorded 470 robots per 10,000 workers in 2023, an increase from 402 units the previous year. According to a report released in November by the International Federation of Robotics, the country currently holds the third position regarding the ratio of robots to factory workers, following South Korea and Singapore.