Industrial robots are no longer reserved for large automotive manufacturers. With over 4.66 million units installed worldwide and annual installations exceeding 500,000 for the fourth consecutive year, warehouse robotics and factory automation have become standard infrastructure across industries. China leads on hardware volume; Europe is competing on integrated system design.

What Does the Global Industrial Robotics Market Look Like Today?

If you walk through a modern warehouse or factory today, you already see the transition. A few years ago, most people still imagined robots as expensive arms in cages, reserved for automotive giants and showpiece sites. Everyone else kept throwing people at the problem and accepted long walks, heavy lifting and error-prone processes as the cost of doing business.

That picture is now out of date. The installed base of industrial robots worldwide reached roughly 4.66 million units in 2024, up about 9% year-on-year, with annual installations above 500,000 for the fourth year in a row. China alone accounts for around half of recent installations and now supplies almost half of its own domestic robot market. The message is clear: the hardware volume game is being played, and China is very good at it.

How Are European and Chinese Players Competing in Warehouse Automation?

In Europe, we see a different strength emerging. If you look at companies like Exotec, which I met seven or eight years ago and have watched grow, the magic is not one robot; it is the full system, racking, mobile units, software, safety, service. They have deployed more than 10,000 Skypod robots and eliminated tens of millions of kilometres of walking for warehouse workers. On the other side, Chinese players like Geek+ have put over 30,000 mobile robots into the world, including thousands in Europe. When you talk to operators, they are not asking for humanoids; they are asking for predictable throughput, fast payback and a solution that can live in a brownfield site without shutting the warehouse for six months.

The strategic question for Europe is not "will robots come?", they are already here. The real question is: who designs the systems, the standards and the software that make a mixed fleet of European, Chinese and American machines safe, efficient and financeable?

What Industrial Automation Trends Should We Expect in 2026?

I expect 2026 to bring more demand for:

• Full-stack warehouse and factory solutions that combine racking, mobile robots, conveyors and execution software into one contract with guaranteed throughput and clear payback.
• Fleet-management "robot OS" platforms that orchestrate hundreds of heterogeneous robots on a site, handle safety and traffic rules, and plug cleanly into existing WMS, ERP and TMS systems.
• Retrofit automation kits for brownfield plants and mid-market 3PLs, installable in weeks, financed off opex savings, and designed to improve working conditions rather than replace entire workforces overnight.

I don't think Europe will win by trying to out-manufacture Chinese robot vendors. We have a better chance by owning the system design: how robots, humans, software and finance fit together on real sites. The companies that make robots boring, reliable infrastructure, and learn how to partner intelligently with Chinese hardware scale, are the ones I want to see more of in our dealflow.

Frequently Asked Questions

Q: What is driving the rapid growth of industrial robots in warehouses and factories?
A: Growth in warehouse robotics is driven by rising labor costs, the need for faster order fulfillment, and declining robot hardware prices. Annual global robot installations have exceeded 500,000 units for four consecutive years, making automation economically viable for a much broader range of businesses beyond large manufacturers.

Q: What is a "brownfield" automation deployment, and why does it matter?
A: A brownfield deployment refers to installing automation technology in an existing, operational facility rather than a purpose-built new site. It matters because most warehouses and factories in operation today were not designed for robots, meaning solutions that can be retrofitted quickly -- without shutting down operations -- are significantly more commercially attractive for mid-market operators and 3PLs.

Q: What is a fleet-management "robot OS," and which businesses need one?
A: A fleet-management robot operating system (robot OS) is a software layer that coordinates multiple robots from different manufacturers on a single site, managing traffic, safety rules, and integration with warehouse management systems (WMS) or ERP platforms. It is most relevant for large distribution centers or factories running mixed fleets of European, Chinese, and American robots that need to operate safely and efficiently within a unified workflow.

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