Chinese firms are dominating the global robotics market, with humanoid robots taking center stage at the Chinese New Year celebrations in Hangzhou earlier this year. Germany’s Chancellor Friedrich Merz witnessed a live display of robots dancing, performing backflips, and boxing during his visit in February. On his return, Merz remarked that Germany was “simply no longer productive enough,” highlighting concerns about Europe’s competitiveness in robotics.

Hangzhou-based Unitree has emerged as a leading innovator, with China accounting for 87 percent of all humanoid robots delivered in 2025. While Unitree shipped more than 4,000 units, it remains behind Agibot, which sold over 5,000 units, according to Forbes. Despite relatively modest sales—just over 13,000 robots worldwide last year—investors continue to pour capital into the sector. Barclays research in January 2026 estimated that the global humanoid robotics market, currently valued at $2–3 billion, could reach $200 billion by 2035.

European startups face significant challenges in competing with their Chinese and American counterparts. Rodion Shishkov, founder of London-based construction technology firm All3, said European companies have far less access to capital. “Here in Europe I have to fight—literally, fight—for tens of millions of euros of investment, while a similarly-positioned company in the United States can obtain billions,” he said. Shishkov noted that functional non-humanoid robots, like those his company develops for construction, often receive less attention and funding than flashy humanoid models, despite being more practical in many applications.

Andrei Danescu, CEO of autonomous robotics and AI logistics startup Dexory, warned that Merz’s trip to China risked framing robotics competition as a “beauty contest,” focused on humanoid appearance rather than solving real-world problems. Danescu pointed to collaborative arms on factory floors, autonomous logistics vehicles in warehouses, and surgical assistants as examples of robots already transforming industries in Europe.

China’s sustained investment spans hardware, software, manufacturing integration, and full supply chains, making it difficult for other regions to catch up. Danescu called on European regulators to accelerate policies, clarify liability frameworks, and provide public funding to support strategic growth. “The AI Act is a start, but robotics needs its own focused attention—policy, funding, strategy,” he said.

Safety remains a major hurdle for integrating robots into existing workflows. Sam Baker, a former industrial robotics engineer turned venture investor, said there is a lack of clear standards for deploying robots alongside humans in construction and manufacturing. Some companies, such as BMW, are experimenting with humanoid robots in production lines in Leipzig, Germany, to explore their potential without committing fully to large-scale deployment.

Baker said Europe cannot achieve full independence from Chinese hardware supply chains, but sees opportunities in software, intelligence, and experimentation. “It is an excellent time to build a robotics business in Europe. There’s a lot of white space to be filled on the intelligence and data side,” he said, highlighting the scope for innovation despite hardware constraints.