Across the quotations we issued in the first quarter of 2026, the average project size is smaller than in 2025, but the number of projects is higher. Customers are breaking automation into cells and upgrading the bottleneck rather than rebuilding the whole line.
What the data shows
In the first quarter, 62% of our quotations were for a single cell or a section of an existing line, compared with 41% in the same period of 2025. The average value per quotation fell by about 18%, while the number of quotations rose by 24%.
The pattern is strongest in electronics and automotive components. Battery projects are still larger, but they are also being phased, with the module line ordered before the pack line.
Why the shift
Three reasons appear repeatedly in customer conversations. First, capital budgets are tighter and payback requirements are shorter; a cell upgrade can pay back in 6–12 months, while a full line may take two years. Second, the product lifecycle is shorter, so a line designed for one product may be obsolete before it is depreciated. Third, the risk of a full-line shutdown is harder to justify than the risk of a weekend cell install.
What it means for conveyor design
Cell upgrades put a premium on modularity. The conveyor must connect to the existing line, match the existing height and controls, and be installable in a short window. We are designing more sections with pre-assembly and quick-connect wiring so that the site work is measured in hours rather than days.
The second implication is controls compatibility. A new cell often has to talk to an older PLC. We are seeing more requests for protocol gateways and for data buffering at the cell level.
What to watch in the second half
Component lead times are still the main risk. Drives, PLCs and stainless steel are better than 2025 but not back to pre-2021 levels. Customers who order the long-lead items early are shortening the project by four to six weeks.
We expect the cell-upgrade pattern to continue through 2026, with larger battery projects returning in 2027 as the next wave of capacity is committed.
For help scoping a cell upgrade, contact our engineers through the contact page.
