At first glance, the humanoid robotics arena appears dominated by technology giants specializing in artificial intelligence, computer vision, and advanced software. However, beneath the exterior casing lies a substantial reliance on traditional heavy industry.
Every limb and manipulator requires motors, gearboxes, bearings, and sensors—components that European manufacturers have refined over decades. While German research into complete humanoid systems remains in its nascent stages, the region’s industrial suppliers are already highly advanced in producing the specialized parts these machines require.
This dynamic raises a strategic question: must Europe build complete humanoid robots to capture value from a potential market boom, or can conventional industrial firms reposition themselves as critical suppliers to a new robotics sector? The risk remains that this value creation could migrate entirely to China or the United States.
Europe Largely Absent from Finished Machine Production
China currently commands a dominant lead in unit deliveries, having surpassed the United States. Europe plays a negligible role in the production of finished humanoid units. Yet, German companies stand to profit significantly from the sector’s expansion through an unconventional strategy: supplying the core components rather than assembling the final product.
According to a specialist report by the Fraunhofer Institute for Manufacturing Engineering and Automation (IPA), this component-focused approach may be particularly viable for Germany. “In principle, the potential along the German and European supply chain is very large,” states Vincent Bezold, head of the Automated Manufacturing Systems business segment at IPA and author of the study.
Conducted in collaboration with consultancy P3, the analysis highlights that suppliers already possess the expertise and production infrastructure for the high-precision components humanoids urgently require. Recent benchmarks suggest these European parts hold a distinct durability advantage over Chinese equivalents. IPA projects the addressable market could reach approximately $30 billion by 2030.
China Commands Global Delivery Volumes
Data from research firm Smart Analytics Global (SAG), published in August 2026, indicates that roughly 19,100 humanoid robots were delivered in the first half of 2026. An overwhelming 97 percent originated from China. Full-year 2026 projections estimate 60,000 units, scaling to half a million annually by 2030.
SAG reports that China is currently winning the race to develop AI-powered humanoids. Shanghai-area firm Agibot alone has delivered 8,400 units, while U.S. competitors such as Tesla, Figure AI, and Agility Robotics trail in volume. However, the number of robots in commercially productive deployment remains low. Mass production has not yet been achieved, and the market is far from consolidated.
With strong state backing, Chinese industry is aggressively accelerating deployment into manufacturing, logistics, and warehousing—sectors where tasks are clearly defined and productivity metrics are easily optimized. SAG cautions, however, that the leap from “demonstration capability” to “reliable industrial operation” has yet to be bridged.
Mechanical Complexity Demands Precision Engineering
Behind every AI-driven robot lies a foundation of classic mechanical engineering. Before software can orchestrate movement, the hardware must be mechanically sound. While conventional industrial robots operate with roughly seven joints, humanoids require more than 40. Each joint integrates a motor, gearbox, bearing, and sensor.
As Chinese firms like Agibot ship thousands of units, several manufacturers of these critical components are based in Germany. Gearboxes, motors, sensors, and grippers fall squarely within the traditional portfolio of German and European automotive suppliers, including Schaeffler, Bosch, Schunk, Wittenstein, and Neugart.
China produces these components domestically, but with significantly shorter operational lifespans. “They don’t happen to run a half marathon as a PR stunt by chance. They do it because they wouldn’t withstand a full marathon,” explains Sebastian Reitelshöfer, head of robotics research at the University of Erlangen–Nuremberg, in an interview with ARD-Finanzredaktion.
Reitelshöfer notes that components in Chinese flagship models may only endure “one or two weeks” under heavy load. By contrast, European designs derived from the automotive sector offer far greater longevity. However, Bezold warns that supply chains tend to localize around the original equipment manufacturers. “As a large proportion of humanoids currently comes from China, corresponding supplier structures are likely to form there as well, just as they did in Germany around the automotive industry,” he estimates. Significant gaps remain in specialized component supply.
Closing the Competitiveness Gap in Key Components
In August, Schaeffler unveiled a novel gearbox engineered specifically for humanoid applications, a development featured in the Fraunhofer IPA white paper. The Herzogenaurach-based automotive supplier specializes in drive technology. Its new strain-wave gear—a high-precision gearbox variant—is designed to transmit movement with maximum accuracy and power density within minimal installation space, meeting core requirements for humanoid joints.
A revised production process promises to reduce manufacturing costs by over 25 percent and material consumption by more than 75 percent, enhancing cost competitiveness. “The re-shaped strain wave gear is another example of how we are industrially advancing core robotics components and preparing them for high-volume series production,” says David Kehr, President of Humanoid Robotics at Schaeffler. The company aims to deliver solutions “designed for quality, cost-effectiveness and scalability,” with series production slated for mid-2027.
At the Hannover Messe in April 2026, Schaeffler received the Hermes Award for its humanoid robot joint development, underscoring its pivotal role as a component supplier. The award recognized the actuator platform used in shoulder, elbow, and knee joints—components accounting for roughly 50 percent of a humanoid’s total cost, representing a central lever for competitiveness. Schaeffler is not merely selling a part; it is seeking to define a segment of the robot’s core architecture.
German Collaboration on Dexterous Manipulation
The potential scope of this component strategy is illustrated by a June 2026 partnership between Bosch and Schunk. The two firms are co-developing a robot hand designed for integration across diverse humanoid platforms, moving beyond individual actuators to deliver a complete, critical subsystem.
Schunk contributes two decades of gripping technology expertise, while Bosch provides precision mechanics, electronics, software, and future series manufacturing capacity. “Robot hands are a key component in advancing humanoid robotics in production and enabling more flexible and precise work than with conventional gripping systems,” stated Mathias Pillin, Chief Technology Officer at Robert Bosch GmbH, at the announcement.
The hand is vital for industrial deployment: it must handle varied workpieces, modulate force precisely, and operate reliably over extended cycles. Compatibility across multiple robot platforms is a key design goal. Hands also rank among the hardware elements most heavily influencing a humanoid’s total cost.
Component Supply Does Not Equal Industrial Control
A robust components business, however, does not constitute a sovereign robotics industry. The central question is how much value creation remains in Europe if Chinese or U.S. firms control the platforms, software stacks, and customer relationships.
For Fraunhofer IPA and P3, the critical issue is not solely whether Europe produces a complete humanoid, but where the industrial value chain takes root. This is the core competency of European suppliers, who could secure substantial margins by integrating early into this market.
From Bezold’s perspective, “access to manufacturers of humanoid robots” is the primary bottleneck, as few such manufacturers exist in Europe, and even fewer robots are built there. “That makes it harder for European suppliers to become part of the relevant value chains at an early stage.”
The report asserts that hardware maturity is as decisive as software for the economic viability, scalability, and industrial impact of humanoids. IPA and P3 identify an opportunity for European suppliers and call for coordinated action across industry, policy, and research. “Suppliers who engage early with actuators, gearboxes, batteries, dexterous hands, and lightweight structures can help shape future reference architectures and secure long-term positions in emerging supply chains,” the study concludes. IPA deems the opportunity tangible if action is immediate, criticizing funding policies that focus exclusively on AI.
The humanoid robots that eventually populate factories need not originate from a single European plant. Europe may instead be embedded within their joints, hands, and drive systems.
Standard-Setting Will Determine Long-Term Leverage
Whether this evolves into an independent industrial strength or relegates Europe to a tier-one supplier for Chinese and U.S. platforms remains undecided. The decisive factor will be who not only delivers components but also defines the standards and architectures of the next robot generation.
In its study “Humanoid Robotics 2040,” Germany’s mechanical engineering association VDMA argues that the entire production and supply chain must be anchored in Europe. The study, published in April 2026, anticipates a mass market emerging over the coming years, with annual sales potentially reaching millions by 2042.
To shape these markets, VDMA contends Europe requires “far more capital, stronger support for start-ups, and bolder industrial steps.” Bezold concurs: “We ourselves need more manufacturers of humanoid robots in Europe.” The association recommends treating humanoid robotics as a strategic priority and engaging the supply chain as early as possible. “That also means telling users that they should not be afraid to back projects even if the precise outcome is not entirely clear at the beginning,” Bezold explains.