$10 Trillion Revenue Generated
Spinning bright red handkerchiefs and dancing to folk music, over a dozen human-like robots made a debut at China's largest stage during the annual Lunar New Year gala in January. The performance, viewed by more than a billion people, showcased the advancements in Chinese humanoid robots. Videos of these robots performing various tasks have gained popularity online, with state media highlighting their potential for economic growth.
Competition in the humanoid robot industry is intensifying, with Chinese companies vying against global frontrunners like Tesla. Major tech companies in the US and China, including Microsoft, Nvidia, Amazon, and Meta, are investing in humanoid technology. Elon Musk's Optimus humanoid project, which debuted in 2022, is projected to generate significant revenue.
Experts suggest that humanoid robots could become widely adopted consumer electronics in the future, similar to automobiles and cellphones. The global humanoid robot market is projected to reach $38 billion by 2035, with significant growth expected in both industrial and consumer sectors.
China aims to lead the growth in the humanoid robot industry, following its success in the electric vehicle market. The country is investing in developing humanoid robots to establish itself as a global tech powerhouse. Despite starting later than American rivals, Chinese firms are rapidly catching up, leveraging their supply chain optimization and cost-cutting capabilities.
Chinese companies, such as Unitree, UBTech, Agibot, Robotera, Fourier Intelligence, and XPeng, are actively involved in the humanoid robotics industry. While China dominates the supply chain, it still lags behind in certain key technologies. Efforts are being made to develop core technologies domestically and reduce reliance on foreign suppliers.
To enhance the quality and competitiveness of the domestic humanoid robotics industry, Chinese suppliers are collaborating with companies like Tesla. Lowering prices for humanoid robots is seen as a crucial step towards their commercialization and widespread adoption. Established electric vehicle manufacturers like BYD and XPeng are also venturing into the humanoid robot space.
As China faces a demographic crisis with a shrinking workforce, humanoid robots are seen as a potential solution to address labor shortages. The deployment of humanoid robots across various sectors could help alleviate the impact of the declining population.