In the second half of 2024, the robotics sector is gradually replacing AI as the most sought-after market segment. Robots, with their ability to integrate both virtual and physical capabilities, serve as the ideal platform for AI technology to manifest in the real world, making them the ultimate solution for AI implementation.

Will Robotics Keep the Heat in 2025?

The Central Economic Work Conference recently set out to boost consumption and enhance investment efficiency by expanding domestic demand across various sectors. One key strategy is to actively develop the “first-launch economy,” defined as the economic benefits brought by the first-time introduction of new products, technologies, services, industries, and business models to the market. Robotics fits this definition perfectly as a prime example of the first-launch economy. China’s robotics industry boasts a complete supply chain, including core component and full-machine R&D and manufacturing capabilities, making it well-positioned for rapid growth.

However, several companies in the robotics supply chain have already experienced substantial stock price increases in 2024, and the sector index has seen a significant rise. With this background, the question remains: can the growth momentum continue? If humanoid robots represented the first phase of the robotics sector, quadruped robotic dogs are likely to lead the second phase, opening up new growth potential for the robotics industry.

Military: The First Application of Robotic Dogs

According to data from China Military Network, over 60 countries worldwide have equipped their military forces with more than 150 types of military robots, with robotic technology becoming a hotbed for global competition. Quadruped robotic dogs, leveraging AI algorithms, excel in navigating complex terrains, reconnaissance, and even combat roles. Compared to humanoid robots, quadruped robots are smaller, faster, and more cost-effective.

Research by Hengzhou Chengsi Team shows that the global military robotics market was valued at $17.85 billion in 2023 and is expected to grow to $32.24 billion by 2030, with a compound annual growth rate of 9.1%. According to Kaizhong Securities’ mechanical team, China is in a leading position in the quadruped robotic dog market, with sales expected to reach 394,800 units by 2031, representing nearly an eightfold increase from 2025.

Market expectations for this emerging segment are high. Construction Industrial (002265.SZ), a leader in this field, saw its market capitalization triple in December. The company showcased several robotic products, including multifunctional quadruped robots and small intelligent reconnaissance robots, at the Zhuhai Airshow. With its controlling shareholder being China North Industries Group Corporation, Construction Industrial enjoys a competitive advantage in the industry.

Other Applications

Beyond military uses, quadruped robotic dogs have various potential applications, including inspection, firefighting rescue, security patrols, and even home companionship. The future application scope is vast, and the market ceiling will continue to expand.

Several functional quadruped robots are already available in the market. For example, Zhongjian Technology (002779.SZ) launched the Lingrui P1 quadruped robot designed for inspection tasks. Yushu Technology’s Unitree B2 has been deployed in power inspection tasks at substations across China. Yunshen Technology, in partnership with Singapore’s EGP, developed the “SPock” quadruped robot for power tunnel inspections for the Singapore Energy Group. Xiaomi’s Cyberdog 2 and Yushu’s Go2 quadruped robots also offer features for home companionship. China is leading the world in the quadruped robot industry, with domestic companies poised to capture a significant share of the global market. The quadruped robotic dog sector is expected to experience explosive growth in the coming years.

Apart from Construction Industrial, here are some A-share companies involved in the quadruped robot sector:

1. Guomao Co., Ltd. (603915.SH) – A core supplier for Yunshen Technology’s quadruped robots, providing high-precision reducers that aid in the efficient operation of these robots.
2. Jiangsu Leili Co., Ltd. (300660.SZ) – The company has already developed brushless motors and gearboxes for service-oriented robotic dogs, with small-scale deliveries expected this year.
3. Shenhao Technology (300853.SZ) – The company has released quadruped robots that have been used in power inspection tasks. Their robots also made their debut in large-scale event security, showcasing strong potential in the public safety sector.
4. Dongmu Co., Ltd. (600114.SH) – Through its subsidiary, Dongmu Guangtai, the company owns a 22% stake in Shenzhen Xiaoxiang Company, which is researching and producing new joint motors for robots, including robotic dogs. These motors have advantages like small size and light weight, making them ideal for applications in flying cars, electric aircraft, drones, and industrial robots.
5. Zhongjian Technology (002779.SZ) – With plans for a major fundraising project, Zhongjian Technology is positioning itself to be a leader in the quadruped robot industry. Its joint venture, Jianmi, is expected to become a front-runner in manufacturing robotic dogs, with Xiaomi’s dog robots potentially securing power grid orders.
6. Zhaowei Electromechanical Co., Ltd. (003021.SZ) – A global leader in micro-drive systems, Zhaowei has signed a memorandum of understanding with Huawei for collaboration in robotics, with its products potentially used in the drive systems of robotic dogs and other robots.
7. Yutong Optical Co., Ltd. (300790.SZ) – The largest supplier of security camera lenses globally, Yutong is cooperating with Huawei in machine vision. Their lenses may be used in the vision systems of robotic dogs.
8. Hanwang Technology (002362.SZ) – The company’s bionic robotic dogs have already been showcased at the Beijing Security Expo. As a leader in AI security and voice technology, Hanwang has released its intelligent patrol robots, which operate 24/7 for high-efficiency automated inspection. Hanwang’s robots are expected to see significant growth in the security sector by 2025.
9. Wuzhou Xinchun (603667.SH) – A high-end bearing manufacturer that supplies global leading bearing companies. The precision bearings needed for the joints of robotic dogs to ensure flexibility and stability are produced by Wuzhou Xinchun.

Conclusion

With the quadruped robotic dog sector expected to take off, numerous companies in China are poised to lead the way, both domestically and internationally. The industry will likely see a dramatic expansion in the coming years, driven by military, security, inspection, and other diverse applications. A new wave of innovation is on the horizon for robotics, and companies within the sector are well-positioned to capitalize on this promising growth phase.