This year, the embodied intelligence industry has been frequently mentioned in major policy documents.

From its first inclusion in the Government Work Report to its designation as one of the six future industries in the "15th Five-Year Plan" proposal,

Its strategic importance continues to rise, making it a focal point for investment promotion officials across the country.

From robotic dogs being walked on the streets to robots tightening screws in factories, Xpeng’s robot “IRON” has even been mistaken for a real person.

As embodied intelligence accelerates its implementation, investment promoters are closely watching the industry’s overall development trends.

01 A Trillion-Yuan Industry: The Year of Mass Production

Since the start of this year, embodied intelligence has officially entered its “Year of Mass Production.”

From high-level attention to corporate initiatives, from exhibition debuts to real-world applications, the industry is booming, creating a golden opportunity for investment promotion.

At the policy level, embodied intelligence has evolved from being briefly mentioned in the 14th Five-Year Plan to being included for the first time in this year’s Government Work Report, and has now been listed as one of the six key industries in the proposals for the 15th Five-Year Plan.

The strategic importance of the industry is increasingly evident, with various products continuously breaking into new markets.

Cities such as Beijing, Shanghai, Shenzhen, and Hangzhou have also rolled out dedicated policies, leveraging their local industrial foundations to explore differentiated development paths aimed at securing a first-mover advantage in the sector.

The industry’s momentum is directly reflected in market performance.

According to incomplete statistics from Qichacha, the number of embodied intelligence-related enterprises in China has approached one million, with leading companies such as Yushu Technology and Zhiyuan Robotics planning to go public in the second half of this year.

Wang Xingxing, founder of Yushu Technology, stated: “In the first half of the year, the domestic intelligent robotics industry grew by 50% to 100%.”

Some even predict that by 2026, the industry’s market size will exceed one trillion yuan.

Whether at robotics competitions, AI conferences, or the China International Import Expo, embodied intelligence is always present, becoming a focal point of discussion across various industries.

Xpeng’s robot “IRON,” with its highly lifelike appearance and fluid gait, has even been mistaken by many for a human actor, sparking widespread discussion.

On the streets of Shanghai, one can even see people walking robotic dogs; in industrial settings, robots are already capable of performing high-precision tasks such as material handling and tightening screws.

Today, China continues to make breakthroughs in key technologies such as general-purpose large models, complete humanoid robots, and multimodal perception, gradually shifting from “following” to “keeping pace” and even “leading.”

Cities like Shenzhen, Hangzhou, and Beijing—which possess computing power, talent, technology, and industrial foundations—have taken the lead in this field.

Driven by capital inflows, high-level attention, and corporate initiatives, investment momentum across the industry remains strong, and the outlines of an industrial chain are gradually taking shape.

For investment promotion, closely monitoring technology-driven enterprises and focusing on practical application needs are key to seizing this industrial opportunity.

02 Upstream and Downstream Sectors of the Industry Chain Are Gradually Maturing

Recently, many companies have initiated their IPO processes, signaling the capital market’s firm confidence in embodied intelligence.

This also indicates that all segments of the industrial chain are entering a new phase of development opportunities.

Let’s first examine the upstream and downstream segments of the industry chain. The upstream sector centers on large AI models, encompassing the three key elements of computing power, algorithms, and data. As application scenarios such as smart manufacturing, medical imaging, and financial trading continue to expand, demand for computing power is surging rapidly.

As key components determining the transmission precision of robots, harmonic and RV reducers are particularly crucial. Bearings, as their critical components, have become a core competitive factor in the embodied intelligence industry and are now gradually breaking the monopoly held by foreign companies.

In the midstream, humanoid robots and autonomous driving are the two core areas. Due to their high level of technological integration and significant market potential, they have become the focal point of competition among various parties.

In the downstream sector, industrial manufacturing will be the first application scenario where embodied intelligence achieves large-scale implementation. The urgent need for flexible production, highly structured work environments, and significant cost-effectiveness advantages in industrial manufacturing are driving the pressing demand for embodied intelligence applications.

China’s rapid rise in the embodied intelligence sector is largely attributable to the mature supply chains established in industries such as new energy vehicles.

The two technologies share common origins, and their industrial chains overlap significantly.

From high-power-density motors and various types of gearboxes to sensors and high-energy-density batteries, China has established large-scale supply capabilities domestically, enabling not only rapid product prototyping but also significant cost advantages.

For example, the “Made in the Yangtze River Delta” robots launched in the region have achieved 100% localization of core components, reduced the cost of the complete machine by approximately 40%, and seen shipment volumes far exceed expectations.

In contrast, the dissolution of the U.S.-based KSL team due to the lack of a domestic supply chain serves as a telling reflection of China’s unique advantages in this field.

As the only country in the world with a complete industrial sector, China can achieve closed-loop production across the entire supply chain, from rare earth materials to core components. This provides a solid foundation for the continuous innovation and rapid industrialization of embodied intelligence.

Currently, the embodied intelligence industry is developing rapidly, but we must also clearly recognize that certain risks and challenges exist in its development.

Technologies such as sensor product R&D require long-term accumulation and iterative development, while upstream and downstream players in the industrial chain must seize opportunities to achieve breakthroughs and innovate high-performance, highly reliable products.

03 Regional Investment Promotion: Pursuing a Differentiated Path

Currently, China’s embodied intelligence industry has formed a clear regional division of labor, with various regions leveraging their unique strengths to build differentiated advantages across different segments of the industrial chain.

Guangdong is the region where the humanoid robotics industry has risen most rapidly; it currently boasts several relatively mature complete robot products and leading enterprises, with the highest level of industrial chain completeness.

Among these, the local supply chain localization rate for leading embodied intelligence enterprises in Shenzhen can exceed 60%.

Not only do leading companies like Huawei and Tencent provide the “brain,” but top manufacturers of core components such as sensors, LiDAR, and vision systems have also gathered in Shenzhen.

Further bolstered by logistics capabilities that enable “products to reach Southeast Asia within 72 hours of leaving the factory,” the industrial agglomeration effect has made cost and cycle time advantages increasingly prominent.

In contrast to Guangdong’s industrial dynamism, Beijing and Shanghai have become fertile ground for nurturing humanoid robotics companies, leveraging advantages in R&D incubation and supportive policies.

Shanghai’s advantages are particularly pronounced: its automotive industry foundation enables nearly 40% of the robotics supply chain to achieve technology reuse. Robot manufacturers such as Fuliye and Zhiyuan Robotics can not only reduce deployment costs but also leverage mass-production experience and customer resources accumulated in the automotive sector to accelerate the large-scale application of humanoid robots.

Hangzhou, meanwhile, has charted a differentiated path centered on “the optimal body and the most powerful brain,” accelerating the development of a full-fledged humanoid robot industry ecosystem.

Local companies such as Yushu Technology and Cloud Deep have emerged as industry pioneers.

Meanwhile, regions such as Zhejiang and Jiangsu possess abundant component resources, with manufacturers of humanoid robot parts—including gearboxes, servo motors, and sensors—clustering to form a robust industrial chain that supports local efforts to develop the humanoid robot industry.

Although competition in the industry has reached a fever pitch, many agree that this is merely the beginning of a long-distance race.

In the future, companies must possess strong capabilities in algorithms, hardware, and commercialization, and develop unique competitive advantages to stand out among industry giants.

Currently, leading domestic startups secure funding in the range of 2 to 3 billion yuan, which still lags behind overseas giants—indicating significant room for growth and investment.

At present, multiple regions including Suzhou, Chengdu, Chongqing, and Qingdao are actively developing the embodied intelligence industry; therefore, closely aligning with corporate site selection logic is crucial.

The alignment of policy support and strategic positioning, the completeness of the industrial chain, the openness of application scenarios, talent resources, computing power, and data resources collectively form the core considerations for corporate establishment.

For example, Chongqing, with its rich manufacturing ecosystems in sectors such as automotive and electronics, has become one of the top destinations for industrial robot validation and application;

Hangzhou, leveraging private capital and university resources, has attracted a number of embodied intelligence innovation companies to establish themselves there;

Beijing, focusing on scientific research and technology development, has attracted a number of R&D-oriented enterprises by leveraging the Zhongguancun Industrial Park and university resources.

As various regions ramp up their efforts in embodied intelligence, they must build end-to-end competitiveness spanning “R&D—scenario validation—mass production” through policy guidance, resource sharing, and ecosystem co-creation.

In Conclusion

The embodied intelligence industry is entering a wave of development.

The current regional development landscape features a clear division of labor, and the future development of the industry will certainly not be a solitary effort by any single city.

For local investment promotion efforts, the true opportunity lies in recognizing their own strengths and implementing differentiated strategies.

Regions with strong industrial foundations should focus on developing core components, while cities with diverse application scenarios should prioritize opening up for application testing to attract businesses to set up operations.

Those who can effectively solve problems for enterprises, help them reduce costs, and accelerate commercialization will be the ones to truly seize opportunities in this trillion-dollar industry competition, moving from the industry’s “hotspot” to a solid industrial high ground.