The race in robotics is heating up, and while China dominates in hardware manufacturing—with 87% of humanoid robots produced there in 2025—Europe faces a significant challenge in keeping pace. Recent displays of advanced humanoid robots in China, like those showcased to German Chancellor Friedrich Merz, highlight the gap in productivity and innovation. This isn’t just about aesthetics; it’s about economic competitiveness and the future of automation.
The Scale of the Challenge
Currently, the global humanoid robotics market is valued at $2–3 billion, with projections reaching $200 billion by 2035. Despite this growth, only 13,000 humanoid robots were sold last year, with Unitree and Agibot leading in shipments. The real issue isn’t just the number of robots but the disparity in investment: European startups struggle to secure funding compared to their US and Chinese counterparts. As Rodion Shishkov, founder of All3, puts it, “I have to fight for tens of millions of euros, while a similar company in the US can get billions with the same effort.”
This imbalance extends beyond capital availability. Functional robots—those designed for specific tasks rather than humanoid forms—receive less funding despite being more efficient in many applications. The focus on humanoid designs risks prioritizing spectacle over practicality.
Beyond Humanoids: Function First
Andrei Danescu, CEO of Dexory, warns against framing the robotics race as a “beauty contest.” The key isn’t whether a robot walks on two legs but whether it solves real-world problems. Collaborative arms in factories, autonomous logistics vehicles, and surgical assistants are already transforming industries in Europe, yet these advancements are overshadowed by the hype around humanoid robots.
China’s sustained investment across the entire robotics stack—hardware, software, and manufacturing—demands urgent action from Europe. Complacency is not an option.
The Supply Chain and Regulatory Hurdles
Europe maintains strength in precision engineering and industrial automation, but momentum is critical. One major bottleneck is safety: integrating robots into established workflows, particularly in industries like construction, requires clear regulatory frameworks and safety standards that currently don’t exist.
Sam Baker, an investor at Planet A, notes that “there’s nothing written right now that tells you exactly how you need to do it and what your safety concept needs to look like.” Companies like BMW are cautiously experimenting with humanoid robots in production lines, but these trials are exploratory rather than driven by proven ROI.
The Path Forward
The reality is that Europe has likely lost the battle for hardware independence from China. However, opportunities remain in the intelligence and data side of robotics. Building a robotics business in Europe now means filling the “white space” in software, AI, and experimentation, which can be done without excessive costs.
European regulators must prioritize speed-enablement, clarify standards, and provide public investment that matches the strategic ambition of global competitors. The AI Act is a start, but robotics requires focused attention—policy, funding, and a clear strategy. Failure to act decisively risks falling further behind in this critical technological race.
The question is not whether a robot walks on two legs, it’s whether it solves a real problem. Europe must focus on function over form to remain competitive.
