China Cements Lead as World’s Largest Robot Market

China deployed a record 354,000 industrial robots in 2025, accounting for roughly 59 percent of all installations worldwide and reinforcing its position as the world’s largest market for factory automation, the International Federation of Robotics (IFR) said Thursday.

The figure released in the IFR’s World Robotics 2026 report marked a 20 percent increase over 2024 and came in nearly 60,000 units above the previous annual record, according to Xinhua, which reported the findings from Berlin. Nearly three out of every five industrial robots installed globally last year were deployed in China.

Context: A Decade of Deliberate Policy

China’s dominance in robotics is neither accidental nor new. The country first became the world’s largest market for industrial robots by annual installations in 2013 and has held the position ever since. What is changing is the strategic weight behind the numbers.

In May 2026, the IFR noted that China’s manufacturing industry already operates a stock of around 2 million units — roughly 4.5 times more than the global number two, Japan. The country’s 15th Five-Year Plan (2026–2030) places robotics at the heart of its modern industrial system, shifting focus from traditional automation toward high-end, intelligent robotics integrated with artificial intelligence.

“China’s success in modernising its industrial system is based on its national robotics strategy, which was initiated ten years ago,” IFR President Jane Heffner said, according to Global Times. She added that the updated strategy aims to concentrate AI research on physical applications, “with robots being the main drivers of economic growth.”

Where the Robots Are Going

Demand was concentrated in three sectors. The electrical and electronics industry installed 96,400 units in 2025, up 16 percent year-on-year and accounting for 27 percent of China’s total — the single largest customer market. The automotive sector installed 78,900 units, up 38 percent and reaching a record high, while the metal and machinery industry rose 44 percent to 78,700 units, China Daily reported.

The automotive surge is notable: it suggests sustained investment in electric-vehicle production and advanced manufacturing capacity, even as global auto demand faces headwinds.

From Buyer to Builder

Perhaps the most strategically significant shift lies in who is supplying the robots. Installations by domestic Chinese suppliers rose 15 percent in 2025 to 195,000 units, giving them a 55 percent share of the domestic market. Foreign suppliers, by contrast, grew 27 percent. More than half of the robots installed in China have come from Chinese brands since 2024, the IFR said.

The trajectory is striking. Local suppliers held roughly 30 percent of China’s domestic installations in 2020 and 57 percent in 2024, before settling at 55 percent last year even as total volumes climbed. In specific industries, Chinese makers are even more dominant: they supply 59 percent of the robots used in China’s electronics industry and hold an 85 percent domestic market share in metal and machinery.

That shift carries global consequences. China is transitioning from the world’s largest customer of foreign robotics firms such as FANUC, ABB, KUKA, and Yaskawa into a major competitor — a change that reshapes pricing and market share across the industry.

Why Growth Is Likely to Continue

The IFR forecasts that China’s market is “far from saturated,” with average annual growth of 5 to 10 percent likely through 2029. Demographic change and resulting labor shortages are expected to keep driving demand, as automation helps manufacturers make production more resilient to a shrinking workforce.

Policy reinforces the trend. China’s 15th Five-Year Plan emphasizes technological self-reliance and the modernization of traditional industries, and names embodied intelligence — AI embedded in physical machines — among new economic growth points. The IFR said China’s robotics industry is moving toward becoming an innovator in “physical AI” and a developer of intelligent industrial robots.

The Humanoid Caveat

For all the attention paid to humanoid robots — showcased at Lunar New Year broadcasts and a Beijing half-marathon — the IFR cautions that real-world deployment remains limited to demonstrators and pilot projects. Mass adoption of general-purpose humanoid factory workers is not expected in the near or medium term, with commercialization seen toward the end of the plan period.

Critics point to the principle that “form follows function”: the human body may not suit repetitive, high-precision manufacturing tasks. Traditional industrial robots, with fewer joints tailored to specific jobs, generally outperform humanoids in speed, reliability, and millimetre-level precision. Wide adoption of AI paired with conventional industrial robots is the more immediate prospect, expected over the next five to ten years.

Geopolitical Crosswinds

The milestone lands amid a complex trade environment. A US–China trade truce extension was reported around the same time as the report’s release, coinciding with a state visit by Xi Jinping to the United States.

At the same time, Washington has moved to restrict Chinese robotics. Earlier in 2026, the US Federal Communications Commission added foreign-produced advanced robotic devices to its Covered List, limiting their authorization, importation, and sale in the United States — a potential headwind for Chinese robot makers’ overseas expansion. The IFR separately reported that US installations rose 11 percent in 2025 to 38,000 units, roughly one-tenth of China’s volume.

What to Watch

Three questions will define the next phase. First, whether China’s local supplier share resumes its climb after dipping from 57 percent to 55 percent in 2025 despite rising volumes. Second, how Chinese robot makers fare abroad as US restrictions take effect and trade tensions persist. And third, whether embodied AI moves from demonstration to deployment — a test China has staked out as central to its industrial ambitions.

For now, the numbers tell a clear story: China is not only the world’s biggest buyer of industrial robots. It is increasingly the one building them.