Is Europe losing the robotics race to China, and does it matter?
Is Europe losing the robotics race to China, and does it matter?
During a visit to Hangzhou, western China, in February 2026, German Chancellor Friedrich Merz witnessed a striking demonstration of advanced robotics—humanoid machines performing dance routines, backflips, and even boxing at the Chinese New Year celebrations. This event highlighted China’s growing influence in the sector, with local firms leading the way in innovation. Unitree, a Hangzhou-based company, emerged as a standout player, showcasing its humanoid robots as a symbol of China’s dominance in the field.
Merz’s remarks upon returning to Europe expressed concern about Germany’s declining productivity in the industry. While Unitree’s humanoid robots captured significant media attention, the overall volume of global shipments remained relatively low. In 2025, just over 13,000 humanoid robots were sold worldwide, with Unitree accounting for nearly 4,000 units—placing it second behind Agibot’s 5,168 deliveries, according to Forbes.
Europe’s Strengths and Funding Challenges
Despite the hype around humanoid robots, experts suggest Europe retains a competitive edge in certain areas of robotics. Its historical expertise in precision engineering and industrial automation provides a foundation for specialized applications. However, this strength is not matched by the financial momentum seen in the US and China. Rodion Shishkov, founder of London-based construction tech firm All3, noted that European startups struggle to secure investment compared to their global counterparts.
“Here in Europe I have to fight—literally—tens of millions of euros for investment, while a similar company in the US can get billions with the same effort,” Shishkov told Euronews Next.
Shishkov emphasized that non-humanoid robots, which his firm develops for European construction, often receive less funding than humanoid projects. He argued that focusing on function, rather than form, is crucial for efficiency. “If you need an excavator to dig a hole, why invest in a humanoid robot with a spade? Or use a humanoid to drive a self-driving car when a simpler solution exists?” he questioned.
Strategic Investment and Policy Needs
Andrei Danescu, CEO of Dexory, a European logistics robot startup, criticized Merz’s trip for framing the robotics race as a “beauty contest.” He stressed that the real focus should be on solving practical problems. “The question isn’t whether a robot walks on two legs—it’s whether it delivers results,” Danescu said.
He pointed to existing applications in Europe, such as collaborative factory arms, warehouse automation, and surgical assistants, as evidence of the continent’s potential. Yet, Danescu warned that sustained progress requires more than current efforts. “China is investing heavily across the entire robotics stack—hardware, software, and manufacturing. Other regions are also accelerating, so complacency is dangerous,” he added.
“The AI Act is a start, but robotics needs its own targeted policies, funding, and strategy. We can’t rely on regulation alone to build competitiveness,” Danescu said.
Integration Barriers in Industry
Sam Baker, a venture capitalist with experience in industrial robotics, highlighted another hurdle: integrating automation into traditional sectors. He noted that safety concerns remain a critical bottleneck, especially in construction, where robots must work alongside human laborers. “Few discussions address how to deploy these systems effectively—both in terms of standards and regulatory frameworks,” Baker observed.
While the global humanoid robotics market is projected to grow from $2-3 billion to $200 billion by 2035, Europe’s ability to capitalize on this expansion hinges on overcoming structural challenges. With less capital and slower policy responses, European firms risk falling behind unless they adapt swiftly to the evolving landscape.
