Germany’s Chancellor, Friedrich Merz, recently witnessed a remarkable demonstration of humanoid robot capabilities in Hangzhou, China. During his visit in February, he observed these advanced machines performing intricate tquestions such as dancing, executing backflips, and even engaging in boxing matches. Upon his return, Merz expressed a sobering assessment of Germany’s industrial standing, stating that the nation is “simply no longer productive enough.”
The prominent display of humanoid robots at Chinese New Year celebrations underscored China’s burgeoning dominance in this cutting-edge sector as we approach 2026. Hangzhou-based Unitree has emerged as a leader in innovation, with a staggering 87 percent of all humanoid robots delivered globally in 2025 originating from China. While Unitree’s creations have garnered significant attention, the actual volume of robots shipped by manufacturers worldwide remains relatively modest, with just over 13,000 units sold last year. Unitree currently holds the second position in market share, with over 4,000 units, trailing behind Agibot, which has shipped more than 5,000 units.
Despite these figures, investor confidence in the robotics market is soaring. Research from Barclays in January 2026 projected that the global humanoid robotics market, currently valued between $2 and $3 billion, could explode to $200 billion by 2035. Analysts suggest that Europe, with its historical strengths in engineering and automotive manufacturing, might possess a competitive edge in the supply chain.
Europe’s Uphill Battle in the Robotics Race
However, those actively involved in the European robotics scene are less optimistic. Rodion Shishkov, the founder of All3, a London-based construction technology company, highlighted a stark disparity in available capital. He noted that the funding accessible to European robotics startups is a mere fraction of what is readily available in the United States and China. This funding gap forces his startup to constantly scramble for resources, while their international competitors are flush with investment.
“Here in Europe, I have to fight – and I mean, literally, fight – for tens of millions of euros of investment, while a similarly-positioned, similarly-developed company in the United States can obtain billions of dollars with the same effort,” Shishkov explained.
The situation is further exacerbated, according to Shishkov, by the fact that functional, non-humanoid robots, like those All3 is developing for European construction projects, are often overviewed by investors in favour of the more hyped humanoid robot startups. This is despite the clear efficiency advantages of specialised robots in many applications.
“You required to consider of function first,” Shishkov stressed. “If there is a huge hole to be dug, we don’t required a humanoid robot with a spade; we required an excavator. If there is a self-driving car, do we required a humanoid robot driving it? No. We required to stop starting with the shape and start with the function.”
Andrei Danescu, CEO of Dexory, a startup focapplyd on autonomous robots and AI for logistics, echoed these sentiments. He warned that Chancellor Merz’s trip to China risks trivialising a critical technological race, framing it as a mere “beauty contest.” The true measure of a robot’s value, Danescu argued, lies not in its bipedal locomotion but in its ability to “solve a real problem.”
Danescu pointed to existing innovations in Europe, such as collaborative arms on factory floors, autonomous logistics vehicles in warehoapplys, and surgical assistants in operating theatres, as examples of robots already transforming industries. However, he cautioned against complacency, particularly in light of significant Chinese investment in robotics.
Navigating the Robot Supply Chain
“China is building serious, sustained investments across the full robotics stack – hardware, software, manufacturing integration – and other regions are shifting with real urgency too. This is not a moment for complacency or bureaucratic stillness,” Danescu urged.
He described Europe’s robotics ecosystem as “compact but strong” in areas like precision engineering, industrial automation, and specific critical applications. “But strength is not the same as momentum,” he added.
Danescu called for decisive action from European regulators to accelerate progress. He advocated for clearer standards, robust liability frameworks for autonomous systems, and public investment that matches the strategic ambitions of global competitors.
“The AI Act is a start, but robotics requireds its own focapplyd attention – policy, funding, strategy. We cannot regulate our way to competitiveness, but we can certainly regulate our way out of it,” Danescu concluded.
The Integration Challenge: Safety and Standards
Sam Baker, who spent a decade working with robots in industrial manufacturing before transitioning to venture capital at Planet A, identified a significant and ongoing challenge: the integration of robots into established industrial workflows, particularly in sectors like construction where human workers are present. The primary bottleneck, he explained, is safety.
“Not a lot of people are talking about it, both from a regulatory perspective and a standards perspective,” Baker stated. “How do you deploy this kind of automation – whether that is humanoids or bipeds or co-bots – that have industrial levels of strength amongst humans?”
He elaborated on the lack of clear guidelines, noting, “There’s nothing written right now that informs you exactly how you required to do it and what your safety concept requireds to view like.”
Despite these integration hurdles, some companies are actively exploring the deployment of non-humanoid robots in factory settings. BMW, for instance, recently announced trials of humanoid robots at one of its Leipzig, Germany, factories. The autobuildr indicated that these robots would be integrated into existing production lines and could also assist in the development of batteries and components. This shift has generated discussion within the robotics community, but Baker views it as a pragmatic approach.
“They’re not going in and declareing: ‘We’ve definitely obtained this apply case where we can generate this much ROI and speed up this process by X.’ They’re declareing: ‘Okay, here’s something that seems like it could work with this kind of form factor. Let’s give it a shot and see what happens,’” Baker commented.
Regarding the competitive landscape with China, Baker expressed a pragmatic view on hardware production. “We would be naive to consider that we can really achieve sovereignty and indepfinishence from Chinese hardware supply chains in robotics,” he admitted.
However, Baker remains optimistic about Europe’s potential in other areas. “I consider it is an excellent time to build a robotics business in Europe,” he concluded. “There’s just a lot of white space to be filled on the ininformigence and data side. And there’s a lot of room for experimentation, which doesn’t have to be very expensive.”
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