China has become one of the world’s largest market for industrial robots, driven by an increase in demand for automation in manufacturing, which is a critical strategy for the country’s future economic growth and global competitiveness.’ — Jeff Burnstein, A3

The new World Robotics report recorded 4,281,585 units operating in factories worldwide — an increase of 10%. Annual installations exceeded half a million units for the third consecutive year. By region, 70% of all newly deployed robots 2023 were installed in Asia, 17% in Europe and 10% in the Americas.
China’s rapid rise as a global leader in robotics and automation has transformed it from a low-cost labor hub into a powerhouse in robotics innovation. China is now the world’s largest industrial robot market. They installed nearly 290,000 industrial robots in 2022, representing 52% of global installations. In 2023, they maintained the numbers and installed 276,288 industrial robots, which is 51% of the global installations. This growth is fueled by significant government support and investments in AI, robotics, and manufacturing technologies, particularly in industries like automotive, electronics, and metalworking. With a robot density of 322 units per 10,000 employees, China has surpassed the U.S. and other developed nations. Ongoing investments in robotics R&D position China to further strengthen its leadership in the field.

The Chinese government’s strategic support through initiatives like “Made in China 2025” and significant financial backing has further accelerated the adoption of robotics, positioning the country at the forefront of global robotics advancements. China’s robotics industry has rapidly evolved from relying on foreign technologies to becoming a global innovator. Companies like Siasun, DJI, Geek+, Unitree Robotics, and Fourier Intelligence are leading advancements across sectors such as
→ industrial automation,
→ logistics, healthcare,
→ and humanoid robotics.

Siasun focuses on industrial and collaborative robots, while DJI expands into autonomous systems for logistics and safety. Geek+ excels in logistics automation with autonomous mobile robots (AMRs), and Unitree Robotics and Fourier Intelligence are advancing humanoid robots for tasks in unstructured environments.

Chinese robotics companies are moving beyond traditional robots to more sophisticated systems like cobots, AMRs, and intelligent warehousing solutions. Heavy investments in R&D are driving innovation in AI, machine learning, and sensor technology, supported by the government’s “Made in China 2025” strategy. These efforts are positioning China as a dominant player in global robotics, with companies gaining international market share through technological advancements and cost advantages.
China’s rise in robotics has outpaced traditional leaders like the U.S., installing nearly 290,000 industrial robots in 2022, compared to the U.S.’s 39,000.
Key factors driving China’s growth include its large manufacturing base, government incentives, lower costs, and a more flexible regulatory environment. Countries like Japan, South Korea, and Germany remain strong players, but face similar challenges as the U.S., such as high costs and regulatory complexities. China’s “Made in China 2025” initiative, coupled with heavy investment in AI-driven robotics, positions it as a dominant force in global robotics. However, challenges like market fragmentation, intellectual property concerns, and a shortage of skilled workers may impact its trajectory. Other countries, especially the U.S., risk falling behind if they don’t adopt similar long-term strategies.

To understand better the significance of the “Made in China 2025” strategy, below is a short summary of the main promises. The plan was launched by the Chinese government in 2015 with the goal of transforming China into a global manufacturing superpower. Here are the key aspects of this ambitious initiative:

➡️ Objectives and Timeline

The overarching aim of “Made in China 2025” is to comprehensively upgrade Chinese industry and make China dominant in global high-tech manufacturing. The plan outlines a three-step strategy:

1. By 2025: Join the ranks of major manufacturing countries
2. By 2035: Reach the middle level among world manufacturing powers
3. By 2049: Become the world’s leading manufacturing powerhouse

➡️Key Industries and Technologies

The plan focuses on developing 10 high-tech industries:

1. Next-generation information technology
2. High-end numerical control machinery and robotics
3. Aerospace and aviation equipment
4. Maritime engineering equipment and high-tech ships
5. Advanced rail transportation equipment
6. Energy-saving and new energy vehicles
7. Electrical equipment
8. New materials
9. Biomedicine and high-performance medical devices
10. Agricultural machinery and equipment

➡️Policy Measures

To achieve its goals, the Chinese government is implementing several policy measures:

• Providing direct subsidies and low-interest loans to domestic companies
• Encouraging foreign investment and acquisitions to gain access to advanced technology
• Reducing taxation rates for high-tech companies
• Increasing R&D funding and building research centers across China
• Setting specific targets for domestic content in core materials and components

➡️Implications and Concerns

The “Made in China 2025” strategy has raised concerns among China’s trading partners and global competitors:

• It aims to reduce China’s dependence on foreign technology and promote Chinese high-tech manufacturers in the global marketplace
• The plan sets specific targets for increasing the Chinese-domestic content of core materials to 40% by 2020 and 70% by 2025
• Some see it as a threat to global trade due to its state-led approach and potential for market distortions

➡️Regional Implementation

While “Made in China 2025” is a national strategy, its implementation takes into account regional differences:

• The plan recognizes the need for policies tailored to the different characteristics of China’s eastern, western, and northeastern regions
• Provinces like Jiangsu have released their own action plans with specific targets for increasing innovation, smart manufacturing, and high-tech industries

What’s next?

According to OECD the global growth will stabilize. Geopolitical tensions continue to be seen as significant risks and sources of uncertainty. Recent crises have heightened the political focus on boosting domestic production capabilities in key sectors. Automation is enabling manufacturers to relocate production to advanced economies while maintaining cost efficiency. Growth is expected to pick up in 2025 and persist through 2026 and 2027, with no signs of the long-term upward trend in robotics slowing down in the foreseeable future.

Want to learn more? Here are additional resources:

• IFR Robotics Market Report 2023
• F-Prime Capital: State of Robotics Market
• China Is Rapidly Becoming a Leading Innovator in Advanced Industries

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