China Humanoid Robot Makers Face Shakeout, GGII Says

At least 15 per cent of China’s more than 150 humanoid robot makers are expected to go bankrupt or be absorbed through mergers within three years, according to a forecast by Chinese market research firm GGII, Seoul Economic Daily reported on Wednesday (Nov 4).

The forecast was presented by GGII general manager Zheng Liyao at the firm’s annual conference in Shenzhen, Guangdong, on Tuesday (Nov 3), and was reported by Chinese outlet Yicai a day later.

Zheng said that, squeezed by both funding and commercialisation pressures, the humanoid robot industry “will face its first major restructuring next year”.

Shipments rising, prices falling

Despite the expected shakeout, GGII projects that shipments of finished humanoid robots in China will exceed 50,000 units this year, nearly triple the 18,000 units shipped last year. The market is expected to top 10 billion yuan, about double the previous year’s size.

Prices of key components are falling. The average selling price of robot joint modules dropped about 30 per cent year-on-year in 2026, and further declines are expected next year, the report said.

Factory adoption has also fallen short of expectations. GGII said most humanoid robots remain limited to basic tasks and have not yet reached the stage of stable commercial use.

Funding slows

Investment into the sector is cooling. Data from ITjuzi cited in the report showed the number of funding deals in embodied intelligence fell 45 per cent last month to 33, from 60 the month before.

The amount raised fell 8.4 per cent to 10.105 billion yuan, from 11.028 billion yuan. Funding had already dropped about 40 per cent month-on-month in September, the report said.

What’s next

Regulators are also watching the AI boom more closely. On Tuesday (Nov 3), China’s National Development and Reform Commission said it would monitor the impact of AI on employment, while Xiao Yuanqi, deputy head of the National Financial Regulatory Administration, warned of overheating in AI investment, according to the report.

GGII expects the consolidation among humanoid robot makers to begin next year as the twin constraints of funding and commercialisation weigh on the industry.

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