Europe vs China: Is the EU losing the robotics race?

By Ahmet Taş | Wise News Press

HANGZHOU, CHINA — Chinese firms dominated 87% of the global humanoid robotics market in 2025, sparking fears among European leaders that the continent is losing its competitive edge in the next great technological frontier.

German Chancellor Friedrich Merz, following a February 2026 visit to Hangzhou, remarked that Germany is "no longer productive enough" after witnessing advanced humanoid robots perform complex tasks. While Europe holds historical strengths in engineering and automotive manufacturing, experts warn that a lack of capital and fragmented regulations are allowing China and the United States to pull ahead.

The rise of Chinese market dominance

Chinese companies like Unitree and Agibot have effectively taken control of the burgeoning sector. In 2025, Unitree alone sold over 4,000 units, second only to Agibot’s 5,000 sales. Although the total global market saw a modest 13,000 units shipped last year, the growth trajectory is explosive. Research from Barclays in January 2026 suggests that the humanoid robot market, currently valued at $2–3 billion, could skyrocket to $200 billion by 2035.

Funding hurdles and functional focus

European startups face a stark reality when it comes to financing. Rodion Shishkov, founder of the London-based construction tech firm All3, stated that the capital available in Europe is significantly lower than in the U.S. and China.

"A similarly positioned company in the United States could get billions of dollars with the same effort, while I have to fight—literally fight—for investments of tens of millions of euros here in Europe," Shishkov told EuroNews Next. He further criticized the industry's obsession with humanoid forms, arguing that "function" should precede "shape," noting that for specific tasks like excavating, specialized machinery is far more efficient than a humanoid robot.

Regulation as a strategic bottleneck

Beyond funding, the lack of standardized safety protocols remains a major obstacle for integrating robots into European workplaces. Sam Baker of Planet A noted that there is currently no written framework detailing how to safely deploy high-power robots alongside human workers in industrial settings.

Andrei Danescu, CEO of Dexory, warned that while Europe’s "AI Act" is a start, the robotics sector needs its own focused policy and public investment to match the strategic ambitions of global players. "We cannot regulate our way to competitiveness, but we can certainly regulate our way out of it," Danescu added, urging regulators to act with a sense of urgency.

Industrial pilots in Europe

Despite the challenges, some European industrial giants are beginning to experiment. BMW recently announced trials of humanoid robots at its Leipzig plant to assist with component development and production line integration. Analysts suggest that while China may have already won the hardware supply chain race, Europe still has a "white space" to fill in terms of intelligence, data, and specialized industrial software.

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