The robotics industry is experiencing significant growth, particularly with the introduction of humanoid robots available in retail environments.
Currently, the United States remains the forefront nation in this sector, showcasing remarkable innovations such as Boston Dynamics’ Atlas humanoid robot and the Stretch logistics robot. However, China’s technological advancements and robot production capabilities are quickly evolving, positioning the country as a formidable competitor to the U.S.
According to a report from analytics firm SemiAnalysis, China’s domestic robot manufacturers gained a 30% market share by 2020, with projections indicating this could rise to 50% by March 2025. This shift is marked by a transition from low-end robot manufacturing to higher-value, sophisticated products, exemplified by the Unitree G1, which is celebrated for its advanced technological features.
A significant driving force behind the growth of China’s robotics industry is the support from the Chinese government, coupled with robust manufacturing capabilities and strategic investments. The government recognizes robotics as a key focus area within its national agenda, promoting investment through initiatives like the “Made in China 2025” plan. Notably, substantial investments have been directed toward the development of humanoid robots, seen as essential for stimulating economic growth.
China’s established position as “the world’s factory” provides an advantage, combining advanced mass production techniques with a substantial industrial base that enhances cost efficiency and production speed. For example, the cost to manufacture a Universal Robot UR5e in the U.S. is 2.2 times greater than in China.
Additionally, many Chinese manufacturers are focusing on the integration of key components, with companies like ESTUN achieving a remarkable 95% in-house production rate. This capability significantly accelerates product development and enhances flexibility. Furthermore, Chinese firms hold a dominant share in the global market for essential components, such as batteries.
The domestic competition in China’s robotics market is intense, which drives rapid development and innovation among companies. Shenzhen-based DJI serves as a notable instance, having optimized its manufacturing and supply chain processes to gain a competitive edge.
China’s robotics sector has also demonstrated resilience and adaptability, particularly during the Covid-19 pandemic, which prompted manufacturers to accelerate automation efforts to address labor shortages.
On the other hand, while the U.S. continues to lead the robotics industry, its dominance is gradually diminishing. SemiAnalysis notes that the U.S. economy’s pivot towards digital innovation and the service sector has led to a decline in manufacturing capabilities. Many American manufacturers have shifted their production overseas to achieve lower costs, thereby diminishing domestic production capacity.
In contrast to China’s long-term strategic initiatives, the U.S. lacks a cohesive approach to robotics. Major American companies such as FANUC, ABB, Yaskawa Electric, and KUKA are investing less in next-generation robotic research and development compared to their Chinese counterparts. For instance, China’s Siasun has acquired a vocational training institution in Germany to enhance its workforce and gain access to advanced technologies.
SemiAnalysis highlights that the development of “general-purpose robots,” capable of executing various tasks in different environments, represents the “holy grail” of modern robotics. Nations that successfully create such technologies stand to gain significant advantages. Acknowledging its slower progress in the robotics field, the U.S. is facing calls for collaboration among government, industry, and research institutions to bolster its competitive stance. To effectively counteract China’s advancements in the robotics sector, the U.S. must establish a coherent national strategy, revitalize domestic manufacturing, strengthen supply chains, and enhance investment in research and development initiatives.
