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Low-cost Chinese robots likely to flood the market

Low-cost Chinese robots likely to flood the market

The competition between Chinese and American companies in the humanoid robot industry is heating up.

While China hasn’t always been seen as a major player in robotics, its rapid progress has caught many competitors off guard. Even Germany has recognized the growing influence of Chinese robots, and Taiwanese suppliers have privately expressed concerns about the intense competition.

Germany has acknowledged the growing threat from Chinese robotics companies. Frank Konrad, head of VDMA’s robotics and automation department, said that many Chinese firms, having established a strong presence in their home market, are now turning to Europe.

These Chinese companies are offering 20 to 30% lower prices, and in some cases up to 50% cheaper, than their European counterparts. Furthermore, they’re also incorporating advanced technologies like image processing and AI into their robots, making it even harder for European industry leaders to compete.

Global makers to expand in the cobot market

Collaborative robots (cobots) are becoming more popular than traditional industrial robots. The International Federation of Robotics predicts that over 600,000 new robots will be installed in 2024, and cobots will account for more than 10% of this total. This growth has sparked intense competition among major robotics companies.

Companies that entered the collaborative robot market early have faced difficulties. They had to spend a lot of time and resources educating customers about the benefits of these robots.

Now that the market is finally taking off, they’re facing stiff competition from a growing number of rivals. There are now at least 30 different brands of cobots available worldwide.

In addition to European giants like KUKA and ABB, traditional Japanese industrial robot makers, such as Fanuc, Yaskawa, Denso, and Kawasaki, are now major players in the cobot market. After dipping their toes in the water, these Japanese companies are aggressively expanding their presence by leveraging their expertise in industrial robots. They’ve addressed previous shortcomings in collaborative robot technology and are now posing a serious challenge to existing competitors.

Taiwanese suppliers are facing even tougher competition from Chinese robotics companies. The low prices Chinese manufacturers offer are putting immense pressure on Taiwanese businesses. Some reports indicate that a single Chinese company is shipping almost as many robots as the entire Taiwanese industry combined.

Chinese makers also interested in humanoid robots

Recently, Nvidia CEO Jensen Huang has expressed strong optimism about humanoid robots, suggesting they could be the next “holy grail” of robotics. While opinions vary on whether these robots will be commercially available and launched by 2025, as stated by Tesla CEO Elon Musk, it is believed that price will be a critical factor in their success. China has already demonstrated its ability to drive down costs in collaborative robots and electric vehicles.

Industry experts have noticed that Chinese robot manufacturers are good at cutting costs. Some robots are sold for as little as NT$200,000 (US$6,110). While there are worries about their quality, some suppliers who have tested these robots say they’re not as bad as expected, especially for tasks that don’t require extreme precision or speed.

The humanoid robot market will likely follow a similar path as the electric vehicle market, with China dominating on price. However, creating truly humanoid robots is still difficult because they have many moving parts – up to 40 joints – making them much more complex than robotic arms.


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