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Once renowned for its electronic products, Shenzhen is swiftly reshaping its industrial identity with the robotics sector as its new crown jewel. With 51,100 robotics-related enterprises, the city has moved to the forefront of China’s robotics industry and is home to the highest number of such enterprises nationwide, Shenzhen Economic Daily reported.

The latest data show that China is home to 741,700 robotics-related companies, a number that has seen a consistent annual increase over the past decade, with growth rates ranging between 15% and 70%.

Last year alone, the country saw 179,100 new businesses in the robotics sector, a year-on-year increase of 29.03%. In the current year, 111,400 new registrations have been recorded, with 103,100 of these being registered in the first seven months.

Shenzhen’s robotics journey began as early as 2009 with the establishment of the Shenzhen Robotics Association, China’s first robotics association. The industry has been on an accelerated track since 2015, with a proliferation of robotics companies such as Yarbo in 2015, followed by the establishment of Pudu Technology Inc., AgileX Robotics, and Elephant Robotics in 2016.

The total industrial chain output value of Shenzhen’s robotics industry amounted to 179.7 billion yuan (US$25 billion) for 2023, an increase of 8.7% from the previous year’s 164.4 billion yuan, according to a white paper on the development of Shenzhen’s robotics industry released by the Shenzhen Robotics Association this April.

This robust growth rate represents a significant rebound from the 3.9% increase in 2022 and far outpaces the 3.3% growth rate of Shenzhen’s high-tech manufacturing industry’s added value, almost matching the growth rate of the city’s strategic emerging industry’s added value at 8.8%.

In the realm of innovation, Shenzhen’s robotics firms are leaving a strong imprint with 3,699 robotics-related patents. Companies like UBTECH, Pudu Technology, Silver Star Intelligence, Hai Robotics, and DJI are leading the charge in patent applications, underscoring the city’s prowess in robotics research and development.

The strength of Shenzhen’s robotics sector is also evident in financial markets. Four A-share listed companies in Shenzhen have robotics within their business scope. UBTECH also made a splash on the Hong Kong Stock Exchange late last year.

Wu Xianxing, chief analyst of financial engineering at TF Securities, commenting on the robotics boom, noted that since 2013, China has topped the world as the largest consumer market for industrial robots.

With the Chinese Government’s prioritization of humanoid robots as a key strategic emerging industry, rapid development is on the horizon. The potential market for humanoid robots is expected to expand into service and manufacturing sectors, Wu said.

Advisory company MarketsandMarkets forecast that the global market size for humanoid robots will reach US$1.8 billion in 2023 and a staggering US$13.8 billion by 2028.