Is Europe losing the robotics race to China, and does it matter?
Chancellor’s China Visit Highlights Global Robotics Shift
During a February trip to Hangzhou, western China, Germany’s Chancellor Friedrich Merz observed humanoid robots performing feats such as dancing, executing backflips, and engaging in boxing displays. His remarks upon returning highlighted concerns about Germany’s declining industrial output, suggesting the nation is no longer meeting the productivity benchmarks needed to stay competitive in the robotics sector.
China’s Dominance in Humanoid Robotics
China’s leadership in the humanoid robotics market became evident during the Chinese New Year celebrations, where these robots took center stage. According to reports, Hangzhou-based Unitree has emerged as a key innovator in the field. However, the scale of the market remains modest, with only around 13,000 units sold globally in 2025. Unitree, while prominent, trails behind Agibot, which accounted for over 5,000 units, as noted by Forbes.
Investor Confidence and Market Projections
Despite the relatively small number of robots shipped, investor enthusiasm for the sector is growing. Barclays research from January 2026 projected that the global humanoid robotics market, currently valued at $2–3 billion, could surge to $200 billion by 2035. This optimism contrasts with the challenges Europe faces in keeping pace.
Europe’s Potential and Persistent Hurdles
Europe’s robotics industry is described as compact yet robust, with strengths in precision engineering and industrial automation. However, its growth appears to lag behind the rapid advancements in China. Rodion Shishkov, founder of London-based construction tech firm All3, pointed out that European startups struggle to secure funding compared to their counterparts in the U.S. and China. “Here in Europe, I have to literally fight for tens of millions of euros of investment while a similarly positioned company in the U.S. can secure billions with the same effort,” he explained.
“The question is not whether a robot walks on two legs, but whether it solves a real problem.”
Call for Policy and Strategic Focus
Andrei Danescu, CEO of Dexory, a European logistics and AI robotics startup, argued that Merz’s trip risked framing the technology race as a superficial competition. He emphasized that practical applications—such as collaborative arms in factories, autonomous warehouse vehicles, and surgical assistants—already demonstrate Europe’s industrial capabilities. Yet, he warned that Chinese investments in robotics are accelerating across all areas, from hardware to software. “This is not a moment for complacency, for bureaucratic stillness,” he added.
Danescu urged European regulators to prioritize clarity in standards, liability frameworks, and public funding to match the ambitions of other global leaders. “The AI Act is a start, but robotics needs its own focused attention—policy, funding, strategy. We cannot regulate our way to competitiveness, but we can certainly regulate our way out of it,” he said.
Integration Challenges in Construction
Sam Baker, a venture capitalist with experience in industrial robotics, noted that one of the biggest obstacles to adoption is integrating automation into established industries. In construction, for instance, robots must work alongside human workers, and safety remains a critical bottleneck. “Not many people are discussing this from both regulatory and standards perspectives,” Baker observed, highlighting the need for more comprehensive strategies to drive real-world impact.
