25. April 2025
Beckhoff Automation Sees Sharp Revenue Drop As Market Corrects
Beckhoff Automation, a German industrial automation provider, has reported a significant decline in revenue for the 2024 financial year. The company’s sales dropped by 33% compared to the previous year, reaching €1.17 billion (approximately $1.33 billion). This sharp decrease is attributed to a market correction following the boom from 2021 to 2023, during which Beckhoff experienced an impressive 80% cumulative growth.
The decline in sales has been accompanied by a slowdown in industrial robot sales in the United States, as reported by the Association for Advancing Automation (A3). Similarly, the International Federation of Robotics (IFR) warned in January 2025 that Germany’s robotics industry had lost its competitiveness. These trends suggest that the global market is facing challenges, and Beckhoff is not immune to these effects.
Hans Beckhoff, the owner and managing director of Beckhoff Automation, has stated that the company expects a recovery in the future. He emphasized that the current crisis can be seen as an opportunity for innovation and optimization. This sentiment is echoed by the company’s history, which has seen six previous crises over the past 45 years, all of which followed a similar pattern.
Beckhoff Automation is renowned for its technological achievements, including the PC-based control technology concept, the bus terminal, and the ultra-fast EtherCAT communication system that has become an international standard. The company also boasts the XTS and XPlanar product-transport systems and the MX-System as a pluggable system for control cabinet-free automation.
To strengthen its presence in the global market, Beckhoff Automation recently opened a new regional office in the greater Atlanta area. This move is expected to boost sales, support, and training capabilities in the region. With over 75 countries represented through its subsidiaries, representative offices, and distributors, Beckhoff aims to make targeted investments in its local market presence.
The company’s U.S. headquarters are located in Savage, Minnesota, and it plans to focus on building a stronger presence in this market. Additionally, Beckhoff is targeting growth markets and sustainable future markets, such as the energy supply sector, where it already supplies intelligent automation and measurement technology for energy distribution, transfer, and storage.
Geopolitical uncertainty has posed additional challenges for Beckhoff Automation this year, but the company remains optimistic about its prospects. Incoming orders are showing signs of recovery, and the company believes it has already bottomed out. To drive future growth, Beckhoff plans to continue focusing on continuous innovation and high-tech engineering.
The company’s research and development capabilities are bolstered by its 5,300 employees worldwide, including approximately 2,000 engineers. Beckhoff invests €80 million ($90.9 million U.S.) per year in R&D, which is expected to lay the foundation for future growth. The company is also committed to expanding its position as a global automation technology company and remains dedicated to its mission of evolving its portfolio with strong developments every year.
Beckhoff’s focus on continuous innovation and high-tech engineering is expected to play a crucial role in driving the company’s future success. The company’s investment in research and development, combined with its global presence and reputation for excellence, positions it well for growth in the years ahead. As Beckhoff’s managing director stated, “We are intent on further expanding our position as a global automation technology company… We remain dedicated to our mission of evolving our portfolio with strong developments every year and introducing revolutionary new technology every five to seven years.”
The company’s efforts to strengthen its presence in key markets, such as the energy supply sector, are also likely to drive growth. By targeting sustainable future markets, Beckhoff Automation is positioning itself for long-term success and cementing its reputation as a leader in industrial automation.
As the global market continues to evolve, Beckhoff Automation’s commitment to innovation and excellence will be crucial in driving its success. With its strong technological achievements, global reach, and dedication to continuous improvement, the company is well-positioned for growth in the years ahead.