China's Robot Industry Dominates Globally as Domestic Firms Surpass Foreign Rivals

China has solidified its position as the undisputed leader in the global robotics market, capturing a 54% share of all industrial robot installations and seeing its domestic manufacturers overtake foreign competitors for the first time. The surge underscores a major power shift in the high-tech manufacturing landscape, according to the new "World Robotics 2025" report from the International Federation of Robotics (IFR).

Global sales of industrial robots reached 542,000 units in 2024, the second-highest level in history and more than double the volume from a decade ago. It marked the fourth consecutive year that installations surpassed the half-million mark. "Annual installations of industrial robots are at the second-highest level in history, just 2% below the peak year 2022," said Takayuki Ito, President of the IFR. "The demand for industrial robots is skyrocketing as a wide range of industries are accelerating into a new era of digitization and automation."

In China, annual sales hit a new record of 295,000 units in 2024, driving the nation's total number of operational robots past the two million mark for the first time. Asia as a whole accounted for 74% of the global market, while Europe and the Americas saw their shares trail at 16% and 9%, respectively.

This commanding performance by China contrasts with a slowdown in other major markets, with sales declining in Europe and the Americas. The trend highlights not only China's scale but also its growing self-sufficiency in a critical technology sector, signaling intensified competition for international robotics companies.

Domestic Champions Rise in China

A pivotal development in 2024 was the ascent of China's domestic robot manufacturers, whose market share jumped to 57%. This represents a dramatic reversal from a decade ago, when local firms held just 28% of their home market. The milestone indicates that Chinese companies are now the primary suppliers for the country’s massive automation needs, leveraging their proximity and cost advantages to outpace established international brands from Japan and Europe. The IFR projects this growth to continue, with the potential for 10% average annual growth in China's manufacturing sector through 2028.

A Divergent Global Landscape

While China surged, other regions presented a mixed picture. Japan remained the world's second-largest market with 44,500 units sold, a slight 4% decrease from the previous year. South Korea, the fourth-largest market globally, saw sales fall by 3% to 30,600 units.

Meanwhile, India emerged as a bright spot, with robot installations climbing 7% to a record high of 9,100 units, moving it up one spot to sixth in global rankings. The automotive sector was the primary driver, accounting for 45% of demand. In contrast, Europe experienced an 8% decline to 85,000 units, though this was still the second-highest total on record for the region. The Americas also saw a 10% drop, with 50,100 units sold.

Five Trends Shaping the Industry

The IFR report identified five key trends that are set to redefine the robotics industry:

• AI Integration: The rise of "Physical AI" is enabling robots to interact more intelligently with the physical world. Generative AI is also finding new applications, such as creating simulated data to accelerate robot training.
• Sustainability and Efficiency: Robots are becoming crucial tools for achieving carbon neutrality goals. They help optimize energy use and reduce emissions, while nearshoring trends are driving demand for automated and efficient local supply chains.
• New Business Models: Robots-as-a-Service (RaaS) is lowering the barrier to entry for smaller companies by reducing upfront capital investment, a model particularly suited to the current economic climate.
• Addressing Labor Shortages: As demographic shifts and skills gaps persist globally, robots offer a flexible solution to fill labor vacuums in both developed and developing economies.
• Multi-Purpose Robots: A trend toward versatile service robots that can perform multiple tasks is gaining traction, lowering the total cost of ownership and expanding the potential applications for an even wider range of industries.

Cautious but Positive Outlook

Despite geopolitical tensions and trade disruptions impacting the global economy, the long-term outlook for the robotics industry remains positive. The Organisation for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF) forecast modest global economic growth of around 2.9% to 3.1% for 2025 and 2026.

Even with regional variations, the IFR projects that global robot sales will grow 6% in 2025 to 575,000 units and are on track to surpass the 700,000-unit mark by 2028. Looking further ahead, the industry is increasingly focused on humanoid robots, with dedicated events like the 2nd Hangzhou International Humanoid Robot and Robotics Technology Exhibition in 2026 signaling the next frontier of growth.