China and Elon Musk contend over the potential $10 trillion market in robotics technology.
Whirlin' around in vibrant red kerchiefs and strutting their stuff to traditional tunes, nearly a dozen human-ish robots dazzled millions on China's biggest stage during the Lunar New Year gala in January. And let's face it, those bots showed us just how far Chinese humanoid robots have come.
Over the past couple of months, videos of China's humanoid robots performing mind-blowing tricks like rolling up on two wheels, executing stunning martial arts moves, and gracefully pirouetting have been all over the internet, often given a boost by state media as a potential driver of future economic growth.
The vast majority of these humanoids aren't ready for mass production just yet, but competition with Elon Musk's Tesla, a clear frontrunner in the field, is getting hotter than a spicy Sichuan hot pot. The potential for a "I, Robot" future, where machines take care of our homes and help out elderly folks, has attracted nearly every major tech company operating stateside, as well as in the Land of the Red Dragon.
Microsoft, Nvidia, and Amazon founder Jeff Bezos are backing American humanoid maker Figure AI, while Meta is planning on pouring a whole lot of cash into humanoids. Speaking of Musk, he hinted that the Optimus humanoid alone could generate a staggering $10 trillion in revenue.
According to Xi Ning, chair professor of robotics and automation at the University of Hong Kong, we might see humanoid robots make a significant impact on our daily lives within the next five to ten years. They could become as ubiquitous as automobiles and cellphones, with a market that's like the wild west – huge.
Goldman Sachs projected last year that the global humanoid robot market would be worth $38 billion by 2035. By 2025, they foresee around 250,000 humanoid units shipping, with consumers buying about one million units a year in about a decade.
Beijing is eager to capture the brass ring in that market, hoping to be seen as a global tech powerhouse and build on the momentum of recent Chinese achievements in the sector – such as AI startup DeepSeek's incredible reasoning model that stunned the entire world in January – especially as the U.S. tightens the reins on tech restrictions against Beijing.
Though China may have entered the robotics race a bit later than some American giants, like Tesla, Boston Dynamics, and Figure AI, experts say Chinese firms are swiftly closing the gap. These firms have an edge when it comes to supply-chain optimization and cost-cutting, amping up mass production and helping China rise to the top of the heap.
Fun fact: China already dominates the space for industrial robots, deploying more of them every year since 2021 than all other countries combined, according to the International Federation of Robotics, a Germany-based non-governmental organization.
But, remember, humanoids are a whole different kettle of fish compared to those industrial bots, featuring more advanced technology and performing more sophisticated tasks. The West still leads in certain key technologies, even while China dominates the supply chain. China needs to make some serious breakthroughs in "core technologies," such as processor chips, high-precision sensors, and robot operating systems, to reduce its reliance on foreign technology and catch up with the big dogs.
Chinese firms are actively working to do business with Tesla, sending component samples for review, improving them based on feedback, and eventually offering their improved versions to domestic manufacturers. This cycle of continuous advancement will help enhance the overall quality of China's domestic humanoid robotics industry.
Though technology gaps remain, Chinese companies have emerged as price disruptors in the up-and-coming industry. Shenzhen-based Engine AI released its PM01 model for just $12,175, and Unitree's G1 can do the splits and more for only $13,697. Lowering prices for humanoids could really help them become mainstream—and that could be a game-changer for an aging and shrinking Chinese population.
- The commercialization of humanoid robots in China is accelerating, with major tech companies like Microsoft, Nvidia, and Amazon founder Jeff Bezos investing in domestic humanoid makers, aiming to challenge Elon Musk's Tesla and become global leaders in this field.
- China's humanoid robots, such as those from Shenzhen-based Engine AI and Unitree, are gaining attention for their affordability, with prices as low as $12,175 and $13,697 respectively, making them more accessible to mainstream consumers and potentially revolutionizing the lives of an aging Chinese population.
- The journey towards a "I, Robot" future, where machines manage homes and assist elderly individuals, presents both opportunities and challenges. Chinese firms, despite their progress in areas like supply-chain optimization and cost-cutting, must make significant breakthroughs in core technologies like processor chips, high-precision sensors, and robot operating systems to reduce reliance on foreign technology and catch up with global tech leaders.
