China is the largest market for industrial robots, with more than half of the global total based there. According to The Wall Street Journal, factors such as an aging population, cost advantages, vast market size, and strong policy support are fueling China's rapid growth in robotics, gradually narrowing the gap with global leaders. Despite this progress, the industry is still dominated by the "Big Four"—Japan's Fanuc and Yaskawa, Switzerland's ABB, and Germany's KUKA.
As The Paper and China Daily report, the Chinese government has implemented various policies to strengthen its domestic robotics industry, to become a global hub for innovation and advanced manufacturing by 2025. Backed by China's enormous internal market, these initiatives are positioning local companies to increasingly compete on par with international leaders.
Data from Canada's MIR Databank shows that in the first half of 2024, Chinese companies captured more than half of China’s industrial robot market, up from about 36% in 2022. Firms like Shenzhen's Inovance, Nanjing's Estun Automation, and Shenyang's Siasun Robotics are closing the gap with Japanese and European competitors, especially in the fast-growing collaborative robot (cobot) sector.
According to People.cn, industrial robots are now deployed across 60 major sectors and 168 subsectors of China’s economy, making it the world’s largest industrial robot market for 10 consecutive years. In 2022, China produced 443,000 units, a 20% increase year-over-year, with over half of global installations occurring in the country. The International Federation of Robotics reports that China installed around 290,000 units in 2022, marking a 5% rise from the previous year.
In China, the battery and solar industries drive demand for automation equipment, accounting for 15% and 25% of the total, respectively. However, recent overcapacity in these sectors has slowed the growth of automation factories.
Morgan Stanley reported a 10% drop in operating profits for seven Japanese automation equipment companies in the second quarter of 2024. However, there are signs of recovery, with some firms seeing an increase in orders. Fanuc, for instance, reported a 14% rise in second-quarter orders compared to the first quarter.
As reported by iiMedia Research, 21st Century Business Herald, and Jiemian News, China’s cobot market has grown rapidly in recent years but still struggles to bridge the technology gap, especially in core technologies. Many domestic firms rely on price competition, leading to aggressive price wars. In contrast, Japanese and European companies continue to dominate the high-end sector, with advanced systems like Fanuc’s CNC technology—often considered the “brain” of the machine—making it difficult for Chinese firms to gain traction in the premium market.
Additionally, some companies have struggled to adapt to market shifts, with slow product iteration causing significant drops in shipments. Meanwhile, leaders like JAKA Robotics have used their technological expertise and market expansion to maintain strong shipment volumes and market share in industrial applications. As competition heats up, many small and medium-sized companies are being squeezed out, pushing the market into an elimination phase and worsening overcapacity issues.
China’s vast market can accommodate both domestic and international players. Despite the government’s efforts to drive technological upgrades through the fourteenth five-year plan and the robotics+ action plan, short-term challenges remain due to the global economic slowdown, trade tensions, and slower technological development and product iteration among Chinese firms. Addressing these issues will require gradually boosting market demand and enhancing high-end manufacturing capabilities.
