New study shows how Danish robot solutions can help the Czech industry bridge the labour gap

DEC 2025: – A new feasibility study commissioned by the Danish Embassy in Prague has identified a €31-55 million market opportunity for Danish automation technology in Czech manufacturing over the next three to five years, with Danish suppliers positioned to capture 8-12% of this growing segment. 

Labour Crisis Drives Automation Demand

The research, conducted by global automation platform HowToRobot, found that Czech manufacturers face unprecedented pressure to automate due to persistent labour shortages – 264,000 job vacancies nationwide – and rapidly rising labour costs that have increased 83% since 2016. These conditions create compelling demand for automation solutions that Czech SMEs have historically found too complex or expensive to implement. "Many Czech SMEs are using manual procedures in production, but are increasingly aware of the need to automate and its advantages," says Lars Gade Holm, Head of Trade at the Danish Embassy in Prague. "What we have found is that Danish robot technology is well positioned to address the SMEs’ challenges, offer solutions to become more competitive, and replace and automate work processes done by skilled workers that are not easily found in the Czech market."

Danish Solutions Match Czech Needs

The study identified ten priority automation applications – including material handling, welding, assembly, screwdriving, and machine tending – where Danish technological strengths directly match Czech manufacturing needs. A key differentiator is that many Danish solutions are designed as ready-made packages that Czech integrators can configure and deploy without extensive custom programming, making projects faster and more profitable to deliver. "The key advantage of many Danish solutions is that they're easily accessible for local integrators to deliver and configure," says Mikkel Viager, Principal Advisor at HowToRobot. "Integrators can deploy these solutions faster and more cost-effectively because they come as ready-made packages rather than requiring extensive programming. This makes projects more profitable for integrators and more affordable for end customers." These solutions also enable end-users to adapt to production change – such as introducing new products – without programming knowledge or constant external support, while modular designs allow incremental investment as businesses grow.

Partnership Model Key to Success

The study emphasizes that market success depends on partnerships with local Czech integrators who provide implementation expertise, local language support, and ongoing maintenance. The research identified 146+ Czech automation integrators operating across the ten priority applications, confirming sufficient local capacity for meaningful technology adoption. The target market includes 6,764 manufacturing SMEs with 10-249 employees across key sectors, including fabricated metal products, general engineering, plastics and rubber, and food and beverage. With Czech robot density having doubled from 101 to 207 units per 10,000 employees between 2016 and 2023, the country is rapidly approaching the EU average of 219 units. Even assuming conservative growth rates, Czech manufacturers will require between 1,223 and 2,197 additional automation systems over the next three to five years to maintain competitiveness.

Embassy Support for Market Entry

The Danish Embassy in Prague is developing concrete support packages to facilitate connections between Danish suppliers and Czech integrators, including market visits, matchmaking events, and technical presentations. "We want to bring Danish robot companies to present solutions to Czech integrators," says Gade Holm. "Danish robot technologies aren't always complete solutions – they're components or specialised systems that need local integration. That's why connecting with Czech partners is essential." The feasibility study analyzed market data from HowToRobot, the Czech Chamber of Commerce, Eurostat, and the International Federation of Robotics, supplemented by extensive interviews with Czech manufacturers, automation integrators, and Danish technology suppliers.

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