China’s humanoid robot sector has become a global powerhouse, with 90% of all units sold globally in 2025 originating from the country. This dominance is driven by a combination of policy support, a mature supply chain, and breakthroughs in AI and hardware. Lian Jye Su, a tech analyst at Omdia, noted that China’s lead stems from a combination of policy support, public investment, mature supply chain, and advancements made in AI software and hardware.
China’s Dominance in Production and the Gap in Commercial Demand
At the 2026 World Robot Conference in Beijing, companies like Unitree and Agibot showcased robots capable of sorting parcels, packing mobile phones, and performing logistics tasks. Unitree, China’s largest humanoid maker, sold 5,500 units in 2025, while Agibot sold 5,168, far outpacing U.S. rivals like Tesla, which struggled to meet its 5,000-unit production target for the same year. However, these figures mask a deeper issue: most deployments remain confined to exhibitions, showrooms, and limited industrial trials.
Morgan Stanley’s research underscores the mismatch between supply and demand. The economics are tough: humanoid robots remain expensive to produce, fragile in operation, and dependent on highly structured environments to function,
said Samm Sacks of the New America think tank.
Corporate and Government Buyers: Limited but Growing Adoption
However, these cases are exceptions.
Government procurement has also played a role. Morgan Stanley noted that many of the 2 billion yuan ($295 million) in 2025 orders came from state-owned enterprises for use in power plants, data centers, and entertainment. However, these contracts do not signal broad commercial demand. The use cases of these robots are still so limited,
said Chibo Tang of Gobi Partners, a venture capital firm investing in robotics startups. Without the demand and without that scale from the market, these companies are not able to really go into mass production.
The Road Ahead: Scaling Production vs. Meeting Market Needs
The industry faces a critical crossroads. While Chinese companies have scaled production rapidly, they must now address functional limitations and pricing to attract broader adoption. Lian Jye Su of Omdia emphasized that the Chinese humanoid robotics vendors are using more and more local components in their robotics design, which helps with cost efficiency, supply chain security, and driving local innovation.
Yet, even with these advancements, the sector’s growth hinges on solving practical challenges like battery life, adaptability in unstructured environments, and reducing costs.
The government’s role remains pivotal. In 2025, the National Development and Reform Commission warned of a potential bubble in the sector, citing redundant products and duplicated investment. This caution reflects concerns that the industry’s rapid expansion may outpace real-world demand.
Looking ahead, the industry’s next major test will be 2026, when companies like Unitree and Agibot aim to transition from showcasing robots to deploying them at scale. Morgan Stanley’s Sheng Zhong called the year a critical year as humanoid integrators strive to reach commercialisation and build up their ecosystems.
For now, the question of who is buying China’s humanoid robots remains unanswered, but the answer will determine whether the sector’s hype translates into lasting success.
