Cover Story: Humanoid Robots Are Poised to March Into the Real World

The robotics industry is anticipated to experience a significant milestone by 2025, paralleling major tech debuts like the iPhone's launch for smartphones or ChatGPT for AI, with the initiation of humanoid robots' mass production.[para. 1] This prediction arises from breakthroughs in both robotics hardware and software technologies and an increased readiness from manufacturers to upscale production.[para. 2] In China, the excitement around humanoid robots spiked during the Lunar New Year, where Unitree Robotics’ robots performed a traditional dance at the Spring Festival Gala, captivating over a billion viewers with their synchronized movements.[para. 3]

This performance fueled interest and investment in China's robotics and embodied intelligence sector. In early 2025, the sector reportedly saw 27 financing deals totaling 4.45 billion yuan ($614 million), almost reaching the total funding secured in all of 2024.[para. 4] Embodied intelligence, which focuses on humanoid robots capable of interacting with their environments in a human-like manner, has become a buzzword. These robots emphasize advanced motor coordination and cognitive abilities, signifying a shift from factory automation to robots handling complex human tasks.[para. 5]

Interest in humanoid robots surged following OpenAI’s ChatGPT 3.5 launch, with experts describing these robots as aligned with future visions.[para. 6] Several Chinese provinces have implemented incentive policies to support the AI and robotics sectors. For instance, Hangzhou offers up to 5 million yuan in rewards, Beijing has a 100-billion-yuan fund for startups, and Guangdong provides significant funding for robotics and AI companies.[para. 8] China, considered equal to the United States in terms of AI and robotics technology, has advantages in large-scale manufacturing and software optimization, crucial for industrializing humanoid robots.[para. 9]

Jin Hanmin from Lighthouse Capital predicts humanoid robots may become a market significantly larger than new energy vehicles, expecting individual households to eventually own two to three robots. The investment in embodied intelligence has ramped up, with companies scrambling for funding. As a result, top startups' valuations have increased rapidly, benefiting from the industry's "siphon effect."[para. 13] Leading companies like Galbot, Unitree, and Zhiyuan Robotics are valued at over $1 billion, with Unitree raising more than $200 million and delivering multiple units.[para. 15]

Key advances in technology include improved robotic motion control, allowing robots to perform complex actions. At the forefront is integrating AI models capable of understanding language and motion, crucial for robots interacting with their surroundings.[para. 24][para. 26] Companies like AgiBot have addressed data scarcity challenges by setting up data collection facilities, contributing large datasets crucial for developing robotic AI.[para. 31] The innovation landscape is bolstered by facilities like Shanghai, Beijing, and Shenzhen innovation centers providing data resources for startups.[para. 33]

Expectations for 2025 hinge on the mass production of humanoid robots, with industry giants like Tesla planning to manufacture thousands of units.[para. 38] In China, companies like UBTech Robotics and Zhiyuan Robotics have secured orders for hundreds of humanoid robots, aiming to increase production by the end of the year.[para. 39] The focus currently lies on refining robots' manual capabilities within factory settings to enhance their development.[para. 44]

However, the high cost of humanoid robots remains a barrier to their widespread adoption.[para. 48] Notably, pricing plays a vital role in the consumer market, prompting companies to optimize supply chains to lower costs, which could eventually bolster revenues significantly.[para. 54] The increasing demand is stimulating research and manufacturing investments, particularly within related upstream sectors, potentially creating an industry worth several hundred billion yuan.[para. 58] Chinese suppliers are rapidly gaining ground in producing key components like reducers, essential for robots' precise movements, though they still face competition from established Japanese competitors.[para. 62]