For the first time in 2024, Chinese robot suppliers outsold foreign manufacturers in China (57% vs. 43%)—up from 28% market share a decade ago.
The Market Shift
| Year | Chinese Suppliers | Foreign Suppliers |
|---|---|---|
| 2014 | 28% | 72% |
| 2024 | 57% | 43% |
Why This Matters
This isn’t merely a nationalistic preference. It’s a supply-side indicator that:
- Domestic manufacturers have achieved pragmatist-acceptable quality and reliability
- Total cost of ownership (including integration, support, spare parts) favors local suppliers
- The technology has commoditized enough that Chinese firms compete on whole-product completeness
The Chasm Signal
When local suppliers overtake global leaders in the world’s largest market, the technology has crossed from “exotic import for visionaries” to “standard infrastructure for pragmatists.”
China now represents the first market where Physical AI has definitively crossed into early-majority territory at national scale.
This analysis is part of a comprehensive report. Read the full analysis: Physical AI Is Crossing the Manufacturing Chasm on The Business Engineer.









