Why was the prestigious German robot company bought by China? The strategy of the 'hidden champion' KUKA
How will the prestigious German industrial robot maker acquired by China's Midea compete in the era of humanoids?
Comparison of the world's 4 major industrial robots! Part 4: KUKA edition
This series provides a thorough explanation of the 'Big 4' that dominate the world's industrial robots—FANUC, Yaskawa Electric, ABB, and KUKA—one company at a time.
Part 4: KUKA (Germany/under Midea) — A prestigious name in welding and 'mixed-model factories.' Shifting its center of gravity to Asia.
In this 'Part 4,' we will cover KUKA, which is shifting its center of gravity to Asia under the Midea umbrella.
A single company born in Augsburg, Germany, reflects the shift in the center of gravity of global manufacturing.
Its name is KUKA.
Known for its orange industrial robot arms, KUKA has long been spoken of as one of the 'Big 4 industrial robot manufacturers,' alongside FANUC, Yaskawa Electric, and ABB.
However, if you view KUKA simply as a 'German industrial robot manufacturer,' you will miss its essence.
KUKA was not originally a robot company. It was founded in 1898 in Augsburg, a city in the southern German state of Bavaria, by Johann Josef Keller and Jakob Knappich. Its initial business was acetylene gas equipment for homes and streetlights.
From there, KUKA advanced into welding technology, then into car body manufacturing for automotive plants, and in 1973, it created the FAMULUS, a 6-axis electric industrial robot. Eventually, KUKA expanded its domain into welding lines for automotive plants, assembly lines, body-in-white, logistics automation, medical automation, digital twins, and AI control.
In other words, the history of KUKA is the very history of how German manufacturing has evolved from 'manual labor' to 'welding,' from 'dedicated machinery' to 'robots,' and from 'standalone equipment' to 'smart factories.'
But the story of this company becomes truly interesting after entering the 21st century.
In 2016, China's Midea Group acquired KUKA.
This was not merely a corporate acquisition. It was a symbolic event where German manufacturing technology and the massive Chinese market were joined.
From the German perspective, KUKA was a company representing Industry 4.0 and a national treasure-level firm possessing core technologies in industrial robots, automation, and smart factories. From the Chinese perspective, KUKA was a crucial piece for elevating Chinese manufacturing from the 'factory of the world' to 'automated, high-value-added manufacturing.'
Since then, KUKA has been delisted under Midea's umbrella and is expanding its strategy into the Chinese market, logistics, medical, automation, software, and AI.
Now, the global manufacturing industry is at an even greater turning point.
That is the era of humanoid robots and Physical AI.
Tesla Optimus, Figure AI, Unitree, UBTech, Agility Robotics, Boston Dynamics, and the rapid rise of Chinese players. It is beginning to be said all over the world that 'humanoid robots' will be the protagonists of the next industrial revolution.
So, how will KUKA compete in this era?
Will KUKA become a company that mass-produces humanoid robots themselves?
Or will it use the precision control, safety, factory integration, and system integration it cultivated in industrial robots as weapons to become a company that supports the 'backstage' of the humanoid era?
In this article, we will organize KUKA's founding, founders, history, business structure, global market share, current status, acquisition by Midea, 2025 financial results, KUKA AMP at NVIDIA GTC 2026, and future strategy for the humanoid era, from the perspective of comparing the four major industrial robot manufacturers.
Note: This article is the final revised version reflecting the latest trends based on information available as of June 25, 2026.
Table of Contents
Part 1: Who is KUKA? Essence, History, Acquisition, and Position Among the Big Four
1 | The Essence of KUKA is Not a 'Robot Manufacturer' but a 'Company That Runs Factories'
2 | Founded in 1898: KUKA Started with Acetylene Gas
3 | KUKA's DNA Lies in 'Welding'
4 | 1973, FAMULUS: The Moment KUKA Became a Robot Company
5 | Toward PC Control, Medical, Ultra-Large Robots, and Collaborative Robots
6 | The Acquisition of Swisslog: What KUKA's Expansion into Logistics and Healthcare Means
7 | Midea's Acquisition of KUKA: The Day a Symbol of German Manufacturing Entered Chinese Capital
8 | Is KUKA a German Company or a Chinese Company?
9 | KUKA's Position Among the Four Major Industrial Robot Manufacturers
10 | How Should We View KUKA's Global Market Share?
Part 2: KUKA's Current Position: Financials, Regions, and Markets
11 | KUKA Today: Revenue, Business Structure, and Key Sectors
12 | 2025 Financial Results and KUKA's Current Standing
13 | Revenue by Region and Domestic/Overseas Ratio: In 2025, Which Continents and Countries is KUKA Earning From?
14 | The Global Industrial Robot Market: China Has Become the Main Battlefield
Part 3: Issues in the Humanoid Era
15 | Is the Humanoid Robot Era a Threat to Industrial Robot Companies?
16 | Should KUKA Build Humanoids?
17 | The Relationship Between KUKA and Humanoids: The Real Goal Is Not 'Humanoids' but 'Mixed-Use Factories'
18 | KUKA Is Not 'Germany's Past,' but 'China's Manufacturing Present' and the 'Future of Physical AI'
Part 4: Physical AI Strategy and Technical Foundation
19 | KUKA AMP and Automation 2.0: The Core of KUKA's Future Strategy
20 | New CEO Schell and Softwareization: From a 'Machine Company' to a 'Physical AI Company'
21 | NVIDIA GTC 2026 and KUKA AMP: The Four Major Manufacturers Also Enter the Physical AI Arena
22 | Visual Components 5.1 and NVIDIA Halos: Safety and Simulation Foundations Advancing Around KUKA AMP
Part 5: Strengths, Weaknesses, and Competition
23 | KUKA's Strengths: Automotive, Welding, SI, and Global On-Site Capabilities
24 | KUKA's Weaknesses: Profit Margins, Price Competition, Dependence on China, and Brand Instability
Part 6: Future Strategy and Latest Developments
25 | Collaboration with Midea Group: A Verification Field Unique to KUKA
26 | KUKA's Future Strategy 1: Breaking Away from Automotive Dependence
27 | KUKA's Future Strategy 2: From Standalone Robots to a Software Company
28 | KUKA's Future Strategy 3: Becoming a Company That Implements Physical AI on the Factory Floor
29 | KUKA's Future Strategy 4: Winning in the Chinese Market Without Losing Western Trust
30 | Capital Restructuring of the Big 4 Industrial Robot Manufacturers: KUKA to Midea, ABB to SoftBank
31 | New Products and Large Orders for 2025: Heavy-Duty Palletizing and Friction Stir Welding for EV Batteries
32 | Implications for Japanese Companies: What Should We Learn from KUKA's Story?
Part 7: Conclusion
33 | Conclusion: KUKA Should Aim to Be the "King Behind the Scenes" in the Era of Humanoids
Part 1: Who is KUKA? Essence, History, Acquisition, and Position Among the Big 4
1 | The Essence of KUKA is Not a "Robot Manufacturer" but a "Company That Runs Factories"
There is something you must grasp first to understand KUKA.
KUKA is not a company that has only made robot arms.
Rather, the essence of KUKA is a company that designs "how to transport, assemble, weld, inspect, and mass-produce items within a factory."
If FANUC is the symbol of Japanese-style FA, integrating machine tools, CNC, servos, and robots, then Yaskawa Electric is the king of motion control and AC servos. ABB is a comprehensive automation company that globally bundles electrical equipment, control, automation, and robotics.
So, what is KUKA?
KUKA is a company strong in "making robots usable on-site," centered on automobile factories.
In an automobile body factory, hundreds of robots move simultaneously. Spot welding, arc welding, transport, assembly, bonding, painting, inspection, and inter-process transport. It is not enough for a single robot to be high-performance. It must transport the car body to the correct position, synchronize multiple robots, maintain takt time, guarantee quality, stop safely, and be able to recover immediately in the event of a failure.
What is questioned here is not just the performance of the robot alone.
It is the ability to design the entire factory.
It is the ability to create a system that does not stop on-site.
It is the ability to deeply penetrate the customer's manufacturing process.
KUKA became strong in exactly this area.
Therefore, when talking about KUKA robots, you must not look only at the "orange arms." Behind them lies a history of massive automation systems that include welding, body manufacturing, factory lines, logistics, medical care, digital twins, and AI control.
2 | Founded in 1898: KUKA Started with Acetylene Gas
KUKA's history begins in 1898.
The company was founded in Augsburg, Germany.
The founders were Johann Josef Keller and Jakob Knappich.
The company name KUKA is derived from the initials of 'Keller und Knappich Augsburg'. In today's sense, the name KUKA is well-established as a brand for a robotics company. However, it was originally an abbreviation combining the names of the two founders and the city of their founding, Augsburg.
The business at the time of founding was acetylene gas equipment.
At the end of the 19th century, urban lighting, household lighting, and factory lighting were critical infrastructure in Europe. Electric lighting was still in the process of becoming widespread, and acetylene gas was expected to be an inexpensive means of lighting. Keller and Knappich started their business to provide affordable lighting for homes and streetlights.
However, in the world of technology, new technology always pushes out the old.
As electric lighting spread rapidly, the price of acetylene gas fell, and demand changed. For an ordinary company, it would not have been strange to decline at this point.
But KUKA shifted its business from acetylene gas to welding.
Oxy-acetylene welding using acetylene was a key technology for joining metals. KUKA changed from a lighting company to a welding company.
This first transformation determined KUKA's fate.
KUKA went from being a company that sold light to a company that joined metal.
And from a company that joined metal, it became a company that built vehicle bodies.
Furthermore, from a company that built vehicle bodies, it became a company that operated factories with robots.
KUKA's history has been a history of adaptation to change from the very beginning.
3 | KUKA's DNA is in 'welding'
To understand KUKA's strength, one must understand welding.
In the robotics industry, welding is an extremely important application field. Especially in the automotive industry, it is necessary to join large quantities of steel plates and parts that make up a vehicle body. Welding technology, including spot welding, arc welding, laser welding, friction welding, and combinations with adhesives, has remained a core process in automotive factories.
KUKA entered this domain at an early stage.
From the 1920s onwards, KUKA began manufacturing large containers, vehicle superstructures, and municipal vehicles. In 1939, it is said to have developed Germany's first electric spot welding system. In 1956, it developed automatic welding systems for refrigerators and washing machines, and also provided multi-spot welding transfer lines for Volkswagen.
At this point, KUKA was already deeply involved in the 'automation of mass production factories'.
What is important here is that KUKA is not a company that started with robots alone.
Even before robots appeared, KUKA was thinking about how to join metal, how to move it, and how to mass-produce it within a factory.
Therefore, KUKA's robots were not just machines, but entities that were integrated into factory lines from the start.
This will also become important in the humanoid era.
This is because humanoid robots, too, are not useful if they are merely smart on their own. Only by connecting to everything—factory transport, inspection, assembly, picking, maintenance, MES, ERP, safety fences, AGVs, AMRs, and the flow of human workers—can they create value on the factory floor.
KUKA is a company that has spent many years honing this 'ability to integrate into the factory floor.'
4 | 1973, FAMULUS — The moment KUKA became a robot company
The symbol of KUKA's robot history is the 1973 FAMULUS.
FAMULUS is known as an industrial robot with six electric axes. With this robot, KUKA established its position as a pioneer in industrial robotics.
The 1970s was an era when industrial robots began to enter factories in earnest. In the United States, Unimate was introduced to automotive plants, while in Japan, Kawasaki Heavy Industries, Yaskawa Electric, and FANUC expanded their robot businesses. In Europe, KUKA developed its robot technology against the backdrop of welding and assembly in automotive factories.
The significance of FAMULUS is not simply that it 'made a 6-axis robot.'
It was a symbol of the shift from the era of dedicated machinery to the era of robots whose operations could be changed for general purposes.
Dedicated machines are strong at fixed tasks.
However, when the product changes, they need to be rebuilt.
Robots can handle multiple tasks by changing their programs.
In other words, they bring flexibility to the factory.
This flexibility was the very value of the robot.
KUKA captured this trend and linked its welding technology and factory line experience to robots. As a result, KUKA became a strong presence in robots for automotive factories and system integration.
5 | Toward PC control, medical care, ultra-large robots, and collaborative robots
KUKA continued to expand its technological domain even after the 1973 FAMULUS.
In 1996, it took a step toward PC-based robot control. Industrial robot control often relied on dedicated controllers, proprietary languages, and specialized environments. However, as the importance of software grew, making robot control more flexible became increasingly important.
In 1998, it delivered robots to the Audi factory in Changchun, China. This is an important event showing that KUKA had been entering the Chinese market from an early stage. Although KUKA is currently under the Midea umbrella, its connection with China did not suddenly begin after the acquisition. Since the end of the 20th century, KUKA had been developing the market alongside the growth of China's automotive industry.
In 2001, it also entered the medical field. KUKA robots were used in radiation therapy systems such as CyberKnife. This demonstrated that KUKA's precision control technology could be applied not only to automotive factories but also to fields requiring high precision and high reliability, such as medicine.
In 2007, the KR 1000 TITAN appeared. It is an ultra-large 6-axis robot with a payload exceeding 1,000 kg, which raised KUKA's profile in fields such as heavy-duty transport, casting, aerospace, and heavy industry.
In 2013, the LBR iiwa appeared.
The LBR iiwa is a product that symbolizes KUKA's collaborative robot strategy. Conventional industrial robots were machines that operated at high speeds and high power within safety fences. They were dangerous if humans approached, so robots and humans were spatially separated.
However, collaborative robots are different.
They work in the same space as people.
They adapt to human movements.
They detect force and contact.
They are suitable for high-mix low-volume production, research and development, medical care, laboratories, assembly, and light tasks.
The LBR iiwa was a crucial step for KUKA to move from being a 'giant automotive factory robot' company to a 'robot working in environments close to humans' company.
Herein lies the foreshadowing of the humanoid era.
KUKA is not a company that has put humanoid robots themselves at the forefront. However, it has many years of accumulated expertise in safety, force control, flexible programming, and work cell design for humans and robots to work in the same space.
This is precisely the knowledge required for the humanoid era.
6 | The acquisition of Swisslog—The significance of KUKA's expansion into logistics and healthcare
In 2014, KUKA acquired the Swiss company Swisslog.
This event is extremely important in KUKA's history.
This is because KUKA's business domain expanded from 'inside the factory' to 'logistics, warehouses, and hospitals'.
Swisslog is a company strong in warehouse automation, logistics automation, in-hospital logistics, medication management, and transport systems. It possessed future growth areas such as the expansion of e-commerce, labor-saving in hospitals, automation of logistics centers, and the advancement of pharmaceutical management.
For KUKA, Swisslog was not merely an acquisition target.
It was a bridge for KUKA to expand from an 'automotive factory robot company' to a 'company for the automation of social infrastructure as a whole'.
Logistics automation is also extremely important in the humanoid era.
One of the most promising fields for the initial introduction of humanoid robots is warehouses and logistics centers. The reason is clear. Logistics sites have many repetitive tasks performed by humans, such as walking, transporting, picking, shelving, inspection, sorting, and packing. On the other hand, there are many tasks that are difficult to handle with only completely fixed industrial robots.
In other words, logistics sites will become places where industrial robots, AMRs, conveyors, warehouse management systems, AI, and future humanoids coexist.
KUKA's ownership of Swisslog is an important strategic move for this future.
7 | Midea's acquisition of KUKA—The day a symbol of German manufacturing entered Chinese capital
In 2016, China's Midea Group acquired KUKA.
This acquisition sent a major shockwave through Germany and Europe at the time.
Midea is a leading Chinese home appliance manufacturer. It is a company with a global scale in air conditioners, refrigerators, washing machines, kitchen appliances, and more. Why would Midea buy a German industrial robot company?
The answer is the advancement of Chinese manufacturing.
For many years, China grew as the 'factory of the world.' Cheap labor, mass production, exports, and the concentration of supply chains—these were the strengths of Chinese manufacturing.
However, the situation changed in the 2010s.
Labor costs rose.
The population began to age and shrink.
Quality demands increased.
Advanced manufacturing became necessary for EVs, semiconductors, precision equipment, medical devices, and smart appliances.
Amidst US-China tensions, the autonomy of the manufacturing industry became a national strategy.
What China needed was not just cheap factories.
It needed automated factories.
It needed robotized factories.
It needed smart factories driven by data.
That is where the value of KUKA emerged.
KUKA possesses expertise in automotive factories, welding, robotics, logistics, and system integration. In other words, it held the 'core technology for manufacturing advancement' that China wanted.
On the other hand, KUKA also had its own challenges.
The European market was mature, and the automotive industry was subject to economic cycles. The growth center of the industrial robot market had shifted to Asia, particularly China. For KUKA to continue growing in the future, it needed deep access to the Chinese market.
Thus, Germany's KUKA and China's Midea joined forces.
This acquisition is not merely an international M&A deal.
It was a symbolic event demonstrating that the center of gravity of global manufacturing is shifting from Europe to Asia, from Germany to China, and from mature markets to growth markets.
8 | Is KUKA a German company or a Chinese company?
It is difficult to determine how to view KUKA after the Midea acquisition.
Its headquarters are in Augsburg, Germany.
It was founded in Germany.
Its technical culture is rooted in German manufacturing.
Its brand has also been recognized as a symbol of 'Made in Germany'.
However, its parent company is China's Midea Group.
In 2022, the squeeze-out of minority shareholders was completed, and KUKA was delisted under the control of the Midea Group. While this makes it easier for KUKA to pursue longer-term strategies, it also brings changes in terms of independence from capital markets and transparency.
So, is KUKA a German company or a Chinese company now?
The answer to this question is not simple.
KUKA is a hybrid company of German technology and Chinese capital.
It is a company born in Germany, possessing a German factory culture, and striving to grow within the Chinese market and with Chinese capital.
This structure is very modern.
This is because the future of industrial robot competition can no longer be discussed in terms of simple nationality. Japanese companies manufacture in China, Chinese companies acquire European technology, US AI companies use Taiwanese semiconductors and Japanese components, and German automakers compete in the Chinese EV market. Manufacturing is already a complex of capital, technology, markets, and supply chains, rather than being organized by nation-state.
KUKA is a symbol of this.
9 | KUKA's Position Among the Four Major Industrial Robot Manufacturers
In the industrial robot industry, the four major manufacturers have long been discussed.
FANUC.
Yaskawa Electric.
ABB.
KUKA.
Of course, today the competitive landscape has expanded significantly if we include Kawasaki Heavy Industries, Mitsubishi Electric, DENSO, NACHI-FUJIKOSHI, EPSON, Staubli, Universal Robots, Chinese companies like Estun, Efort, Siasun, and Inovance, as well as collaborative robot, AMR, and humanoid companies.
Even so, the term 'four major manufacturers' still has meaning.
This is because these four companies have created the history of industrial robots.
FANUC grew in tandem with Japan's machine tool industry. It vertically integrated CNC, servos, robots, and FA, and entered factories around the world with its yellow robots. Its strengths lie in high profitability, maintenance networks, reliability, and integration with CNC.
Yaskawa Electric is a motion control company. Based on AC servos, inverters, and motor control, it developed industrial robots under the MOTOMAN brand. It is strong in the fundamentals of 'how to move robot joints smoothly.'
ABB is a giant in electrical engineering and automation. It possesses power, control, robotics, and process automation, and enters a wide range of industries globally. It is strong not just in robots alone, but in the context of automation as a whole.
KUKA is a company of welding and automotive factories. It is strong in car body welding, assembly lines, turnkey systems, and system integration. It has a presence not just in robot arms, but in the design and delivery of entire factory lines.
When comparing these four companies, KUKA's characteristics become clear.
KUKA is the closest to the 'entire factory.'
And it is the most deeply involved in 'automotive factories.'
Furthermore, among the four major manufacturers, it is the company that most symbolically became 'Chinese-capitalized.'
This last point makes KUKA a special entity.
FANUC and Yaskawa Electric remain as Japanese companies. ABB is a European-based comprehensive automation company. Although KUKA originated in Germany, it has come under the umbrella of China's Midea Group.
Therefore, looking at KUKA is not just about looking at industrial robot technology.
It is also about observing the shift in global manufacturing hegemony.
10 | How should we view KUKA's global market share?
Caution is required when considering KUKA's global market share.
In the industrial robot industry, how market share is perceived changes depending on whether it includes shipment volume, revenue, applications, regions, robot types, or system business. Furthermore, since KUKA was delisted after being acquired by Midea, detailed external comparisons of individual robots have become more difficult than before.
Therefore, it is more accurate to understand KUKA's position within the industry rather than simply asserting, 'KUKA's global market share is X%.'
KUKA is a world-class industrial robot company, particularly strong in Europe, automotive applications, welding, and system integration. It has long been recognized as one of the 'Big Four' manufacturers.
Note that KUKA itself, in its March 2026 KUKA AMP announcement, explained that the cumulative number of KUKA Robotics units installed exceeds 550,000, placing it among the top two companies globally and in the top three in the Chinese market. This is KUKA's official explanation, which differs in nature from market share tables published annually by third-party organizations using consistent criteria. Therefore, in this article, we will position KUKA as a 'world-class, one of the Big Four manufacturers' without asserting a simple percentage.
However, the competitive environment has changed significantly in recent years.
First is the rise of Chinese manufacturers.
In the Chinese market, domestic Chinese manufacturers have already gained a larger share than foreign manufacturers. This is a major pressure not only for KUKA but also for FANUC, Yaskawa Electric, and ABB.
Second is the rise of collaborative robots.
Starting with Universal Robots, emerging companies from Taiwan, China, the US, and Europe have pioneered a market for robots that are easier to use. A customer base different from that of traditional large industrial robots is emerging.
Third is the expansion of AMRs and logistics robots.
In factory transport, warehouses, e-commerce, and hospital logistics, mobile robots are becoming as important as fixed robot arms.
Fourth is the emergence of humanoid companies.
Although still in the early stages of mass production and practical application, in the future, humanoid robots may compete with or complement industrial robots, collaborative robots, and AMRs in certain tasks.
In other words, when considering KUKA's share, the traditional 'market share of industrial robot arms' is no longer sufficient.
From now on,
share of factory automation,
share of logistics automation,
share of software infrastructure,
share of AI control platforms,
and on-site implementation capabilities in the Physical AI era,
these will become important.
In that sense, KUKA is attempting to shift from mere competition in unit volume share to competition in the integration of the entire factory.
Part 2: KUKA's Current Position — Financials, Regions, and Markets
11 | KUKA Today — Revenue, Business Structure, and Key Fields
KUKA today is not just a manufacturer of industrial robots.
Its main business areas include industrial robots, robot control, system integration, logistics automation, medical automation, digital solutions, AI, and digital twins.
In 2025, KUKA is a company with sales of approximately 3.897 billion euros, orders of approximately 4.157 billion euros, an EBIT of approximately 58.7 million euros, and approximately 14,500 employees.
In terms of sales scale, KUKA is a massive company, but it differs from the high-profit structure of companies like FANUC. Because KUKA handles not only individual robots but also many large-scale projects and system cases, its profit margins are easily affected by economic conditions and project profitability, even if sales are high.
KUKA's current primary areas can be broadly divided into five categories.
First is Robotics.
This is KUKA's core, including 6-axis robots, SCARA, Delta robots, collaborative robots, AMRs, robot controllers, and software. Applications are broad, ranging from automotive, EV, batteries, electronics, metal processing, resin processing, and consumer goods to medical and logistics.
Second is Systems.
This is the area where KUKA's identity is most apparent. It designs and delivers entire factories, such as automotive body-in-white, EV/battery production lines, assembly processes, and turnkey production facilities. KUKA is not just a company that sells robots, but also one that builds the factories themselves.
Third is Swisslog.
It handles automation outside the factory, such as warehouse automation, e-commerce logistics, hospital logistics, and pharmaceutical management. Logistics and medical care are extremely important areas in the future robot market.
Fourth is the China business.
By becoming part of the Midea Group, China has become more than just a sales destination for KUKA; it has become a massive hub for development, manufacturing, and sales. The Chinese market is the world's largest industrial robot market and is indispensable to KUKA's growth strategy.
Fifth is KUKA Digital.
This will become the most important area in the future. Simulation, digital twins, AI, data analysis, robot fleet control, and the softwareization of entire factories. KUKA is shifting from being a robot arm company to a company that operates factories with software.
12 | 2025 Financial Results and KUKA's Current Position
KUKA's 2025 financial results demonstrate both the company's challenges and its underlying strength.
In 2025, sales were 3.8972 billion euros, orders were 4.1573 billion euros, EBIT was 58.7 million euros, the EBIT margin was 1.5%, and there were 14,542 employees. Sales grew by 4.4% from the previous year's 3.7324 billion euros, and orders also increased by 1.9% from the previous year's 4.0780 billion euros. On the other hand, EBIT decreased by 23.3% from the previous year's 76.5 million euros, and the EBIT margin fell from 2.0% to 1.5%.
What is important here is the point that 'sales are recovering, but profit margins are still low.'
KUKA is less of a manufacturer of industrial robots alone and more of a company that combines robots, transport, process design, turnkey lines, logistics, medical care, and digital infrastructure. Therefore, it is easily influenced by the profitability of large projects, customer investment decisions, waves of automotive and EV investment, and regional economic conditions. In 2025, restructuring costs and the impact of project re-evaluations also weighed on earnings.
On the other hand, there are also positive factors.
Orders grew in China and Swisslog. The China business has become more than just a sales destination for KUKA; it has become the core of its growth. In an announcement in March 2026, KUKA explained that sales in its China business exceeded 1 billion euros for the first time. This means that the strategy of deeply embedding itself in the Chinese market under the Midea umbrella has begun to show in the numbers.
Also, R&D expenses in 2025 reached 213.2 million euros, the highest level ever. What KUKA is truly aiming for is not just an increase in sales of robot arms. Through iiQKA.OS2, iiQWorks, KUKA AMP, digital twins, AI, and its software/AI hub in Silicon Valley, it is aiming to capture the software infrastructure that sits on top of the robots.
In short, KUKA's 2025 financial results show challenges in profit margins in the short term.
However, in the medium to long term, they show that the transition to 'China,' 'Swisslog,' 'software,' 'AI,' and 'Physical AI' is progressing.
KUKA is not yet a finished winner.
Rather, it is a company currently in the midst of transformation.
13 | Regional Sales and Domestic/Overseas Ratio — In 2025, in which continents and countries is KUKA earning?
Let's confirm 'where KUKA is earning' using 2025 figures (as seen in the financial results section of this article, sales in 2025 were approximately 3.90 billion euros, and EBIT was approximately 0.59 billion euros).
Looking at KUKA's sales by region, they are distributed roughly one-third each among EMEA (Europe, Middle East, and Africa), the Americas, and Asia-Pacific. Its main production bases are in Germany, the United States, China, and Hungary, and its headquarters are in Augsburg, Germany.
In other words, KUKA is a typical European global company that earns the majority of its revenue overseas while maintaining its 'home' in Germany (Europe).
Furthermore, the shift in the composition in recent years is clear.
In 2024, while the Americas and Europe slowed down, Asia recorded an all-time high. And in 2025, sales from the China business exceeded 1 billion euros for the first time. This accounts for approximately one-quarter of KUKA's total (about 3.9 billion euros), meaning that China has grown into one of its largest markets by country. The strategy of deeply penetrating the Chinese market under the Midea umbrella is reflected in the regional figures.
The key points by country and continent can be summarized as follows.
Europe (Germany as the core): The historical home base and a foundational market for automotive and general industries
Asia-Pacific (China as the core): The largest growth region. China alone exceeded 1 billion euros for the first time
The Americas: Solid due to friction stir welding for EV batteries, etc., but currently in a slight adjustment phase
However, as a note of caution, KUKA has been delisted under Midea's ownership, so the disclosure of detailed regional sales ratios, as seen in listed companies, is limited. What is shown here is the composition within the scope that can be confirmed from KUKA's own annual reviews and financial results announcements.
Even so, the direction is clear. While maintaining its home in Europe, KUKA's center of gravity is steadily shifting toward Asia—especially China.
14 | The global industrial robot market—China has become the main battlefield
To talk about KUKA, one must look at the changes in the global industrial robot market.
In 2024, approximately 542,000 new industrial robots were installed worldwide. This is more than double the level of 10 years ago, and the state of annual installations exceeding 500,000 units continues.
Looking at it by region, Asia is overwhelmingly large.
Of the new installations in 2024, Asia accounted for approximately 74%. Europe accounted for 16%, and the Americas for 9%.
And the center of that is China.
In 2024, approximately 295,000 industrial robots were newly installed in China. This is 54% of the global total. In other words, more than half of the industrial robots newly installed in the world are going into China.
This has a very significant meaning.
The history of industrial robots began with advanced manufacturing in Japan, Europe, and the United States. However, currently, the largest installation market is China.
Even more importantly, the market share of Chinese manufacturers is growing rapidly within China. In 2024, it is said that Chinese manufacturers surpassed foreign manufacturers in the domestic Chinese market, reaching a 57% share.
This is both a tailwind and a threat to KUKA.
The tailwind is that China is the world's largest robot market. KUKA, under the Midea umbrella, can penetrate the Chinese market deeply.
The threat is that local Chinese manufacturers are rapidly gaining strength. Chinese companies are strong in price competition, delivery times, local support, government backing, parts procurement, and application development.
In other words, while KUKA has access to the world's largest market, it must also compete in the world's most rigorous competitive market.
This is where KUKA currently stands.
Part 3: Issues in the Humanoid Era
15 | Is the Humanoid Robot Era a Threat to Industrial Robot Companies?
Right now, the topic of conversation in the robotics industry has shifted to humanoids.
Tesla Optimus.
Figure AI.
Agility Robotics.
Boston Dynamics.
Unitree.
UBTech.
Agibot.
Fourier Intelligence.
And numerous humanoid companies in China.
These companies are envisioning a future where 'robots in the shape of humans enter human work environments as they are.'
So, are humanoid robots a threat to industrial robot companies like KUKA?
The answer is that it is half threat and half opportunity.
The reason it is a threat is clear.
Conventional industrial robots were machines that repeated set tasks at fixed locations with high speed and high precision. They are extremely strong in automotive factory welding, semiconductor-related transport, palletizing, painting, and machining.
However, human work environments are not fixed.
Walking through aisles.
Picking items from shelves.
Opening boxes.
Opening doors.
Climbing stairs.
Switching tools.
Using equipment designed for humans.
For these tasks, humanoids may be more suitable than fixed robotic arms.
If humanoids become lower in price and capable of general-purpose work, the very design of introducing conventional robots in some factories, warehouses, and logistics sites will change.
This is a threat to KUKA.
However, humanoids will not immediately replace industrial robots.
This is because what is most important in a factory is not 'looking like a human,' but 'operating stably, quickly, accurately, safely, cheaply, and without stopping.'
For welding, fixed robot arms are faster.
For transporting heavy parts, large industrial robots or AMRs are often more efficient.
For high-speed picking, specialized machines or delta robots are stronger.
For painting or machining, dedicated cells are more stable.
Humanoids are strong in versatility.
Industrial robots are strong in the productivity of specialized processes.
Therefore, it is highly likely that the factory of the future will not be one where 'humanoids replace everything,' but rather a form where industrial robots, collaborative robots, AMRs, specialized machinery, AI inspection, and humanoids are combined.
KUKA's way of fighting lies here as well.
16 | Should KUKA build humanoids?
So, should KUKA build humanoid robots in-house?
This is a very important question.
In conclusion, KUKA does not necessarily need to become a 'general-purpose humanoid manufacturer' like Tesla Optimus or Unitree.
Rather, the place where KUKA should truly compete is the 'on-site integration layer' that enables humanoids to be used in factories, warehouses, hospitals, and commercial facilities.
The development of humanoid robots requires the following elements.
High-performance actuators.
Lightweight structures.
Batteries.
Joint control.
Visual recognition.
Tactile sensation.
Walking control.
AI models.
Simulation.
Safety design.
Mass production supply chain.
Cost reduction.
On-site applications.
Of these, KUKA is strongest in the final part.
On-site applications.
Safety design.
Line integration.
Factory control.
Robot fleet management.
Digital twins.
Maintenance.
Training.
Implementation project management.
Many humanoid companies are strong in the robot body and AI demos. However, when they enter a real factory, other problems arise.
What about work standards?
What about safety certification?
How will they connect with existing equipment?
How will they coordinate with MES and WMS?
Who will restore operations in the event of a failure?
Can they operate 24 hours a day?
Where is the boundary of responsibility with human workers?
How many years is the return on investment?
Who will provide on-site training?
KUKA is strong in this domain.
Therefore, KUKA's future strategy lies not in building humanoids themselves, but in making robot groups, including humanoids, usable in factories.
17 | The relationship between KUKA and humanoids—the real goal is not 'humanoid' but 'mixed factories'
In discussions about humanoid robots, it is easy to fall into the topic of 'will humanoid robots take away human jobs?'
However, the reality of the manufacturing industry is more complex.
In the factory of the future, multiple robots will coexist.
High-speed welding is performed by stationary industrial robots.
Heavy material transport is handled by large robots and AMRs.
Small item picking is performed by delta robots or collaborative robots.
Inspection is a combination of AI cameras and robots.
Humanoids supplement the flexible tasks remaining in human work environments.
Humans remain for maintenance and exception handling.
In other words, the factory of the future is not a 'factory of only humanoids'.
It will be a mixed-use factory.
How to manage this mixed-use factory?
This is where KUKA's real battle lies.
KUKA possesses stationary robots, collaborative robots, AMRs, logistics automation, medical automation, and system integration. When humanoids are added to this, KUKA can stand in a position to integrate them all.
Humanoid companies build the main units.
KUKA puts them into the field.
Platforms like KUKA AMP connect AI, robots, equipment, and digital twins.
This is KUKA's realistic vision of the future.
18 | KUKA is not the 'past of Germany', but the 'present of Chinese manufacturing' and the 'future of Physical AI'
Looking at KUKA, the past, present, and future of manufacturing are connected as one.
The past is German manufacturing.
Founded in Augsburg, it progressed from acetylene gas to welding, from welding to automotive factories, and then to industrial robots. KUKA carries the history of German craftsmanship, mechanical engineering, welding technology, and car body manufacturing.
The present is Chinese manufacturing.
The world's largest industrial robot market is China, and KUKA, under the Midea Group, is located near its center. China is the world's main battlefield not only in the number of robots installed, but also in the rise of local manufacturers, EVs, batteries, home appliances, logistics, and humanoids.
The future is Physical AI.
AI understands the factory, robots move on the floor, digital twins verify in advance, and multiple robots coordinate. KUKA is moving toward this future with the term Automation 2.0.
KUKA is where these three overlap.
That is why KUKA is not just a 'German company bought by China'.
KUKA is the structural transformation of the industrial robot industry itself.
Part 4: Physical AI Strategy and Technical Foundation
19 | KUKA AMP and Automation 2.0 — The Core of KUKA's Future Strategy
The keyword indicating the direction KUKA intends to move in the future is Automation 2.0.
Conventional industrial robots were Automation 1.0.
Humans design the process.
Robot movements are programmed.
They move exactly as determined.
They stop if there is an abnormality.
Changing tasks requires redesigning and reprogramming.
This is a very powerful mechanism.
It is suitable for mass production, high precision, safety, and quality assurance.
However, modern manufacturing has changed.
Small-lot, high-mix production.
Short delivery times.
Frequent model changes.
Supply chain fluctuations.
Labor shortages.
Shortage of skilled workers.
Increasing complexity of logistics.
Expansion of new industries such as EVs, batteries, semiconductors, and medical equipment.
In such an environment, simply repeating predetermined tasks is not enough.
Robots need to recognize situations, AI needs to determine processes, pre-verification must be done through simulation, work cells need to change flexibly, and multiple robots must work in coordination.
This is Automation 2.0.
KUKA announced KUKA AMP at NVIDIA GTC, showing its stance toward moving to an automation foundation for the Physical AI era.
The essence of KUKA AMP is an intermediate layer that connects AI agents with robots and equipment in the physical world.
AI gives instructions like 'move this part to this location'.
Digital twins verify safety and operation.
Groups of robots share the work.
On-site equipment executes the tasks.
Data is returned and used for the next improvement.
If this flow is established, robots will move from being 'programmed machines' to 'automation systems that understand intent and act'.
This is where KUKA's future lies.
In the Physical AI era, which includes humanoids, KUKA is aiming to control not just the robots themselves, but the execution foundation on the factory floor.
20 | New CEO Schell and Softwareization—From a 'Machine Company' to a 'Physical AI Company'
When discussing KUKA's transformation, the change in management structure in 2025 cannot be overlooked.
In July 2025, Christoph Schell took office as the new CEO of KUKA. He is the successor to Peter Mohnen, who led the management for 13 years.
Schell's background symbolizes KUKA's direction.
Schell is a person who has served at HP, Philips, and most recently as Chief Commercial Officer (CCO) at Intel, and is well-versed in 3D printing, digital manufacturing, computing, AI, and software. He has lived in the United States for over 10 years and has extensive experience in Asia. In other words, he is more of an expert in software and global markets than a machine expert.
This selection itself indicates that KUKA has steered from being a 'company that makes machines' to a 'company that drives automation with software and AI'.
What KUKA under the Schell regime advocates is 'Making automation easier'.
At its core are the robot OS 'iiQKA.OS2' and the engineering foundation 'iiQWorks'. By bundling digital twins, offline programming, and virtual commissioning, it makes it easier for non-experts to introduce and operate robots. The goal is to enable even small and medium-sized enterprises to digitize their entire factories without depending on pre-installed hardware.
Furthermore, KUKA established software and AI hubs in Silicon Valley and welcomed prominent robotics talent. In 2025, R&D spending reached a record high of approximately 213 million euros, and sales are distributed almost equally across EMEA, the Americas, and Asia-Pacific.
A company that began with German welding is attempting to redefine itself once again, with software and AI at its core.
KUKA AMP is the culmination of that effort.
21 | NVIDIA GTC 2026 and KUKA AMP—The Four Major Manufacturers Enter the Physical AI Arena
NVIDIA GTC 2026 in March 2026 became a symbolic stage for KUKA.
Within NVIDIA's Physical AI strategy, KUKA announced KUKA AMP, formally known as the KUKA Automation Management Platform. This is a new automation management foundation that sits between AI agents and robots/equipment in the physical world.
The goal of KUKA AMP is not simply to manage robots remotely.
AI understands the intent of 'what needs to be achieved.'
Verify operations on a digital twin.
Coordinate robots, AMRs, work cells, equipment, and warehouse systems.
Collect execution data to use for subsequent improvements.
Operate safely and with reproducibility on the factory floor.
According to KUKA's explanation, AMP aims to be a common foundation for AI to understand, judge, and execute in the physical world through three layers: semantics, actions, and data. KUKA positions this as the transition from Automation 1.0 to Automation 2.0.
What should be noted here is that this is not a story of KUKA 'becoming a subcontractor for NVIDIA.'
NVIDIA is expanding its Physical AI computing foundation, including GPUs, simulation, Isaac, Omniverse, Cosmos, and GR00T. Meanwhile, KUKA possesses the robots on the floor, factory lines, warehouses, medical automation, and system integration.
In other words, the structure is that NVIDIA holds the 'computing foundation for AI and simulation,' while KUKA holds the 'implementation foundation for operation on the floor.'
In March 2026, NVIDIA explained that ABB Robotics, FANUC, KUKA, and Yaskawa Electric are integrating NVIDIA Omniverse libraries and the Isaac simulation framework into virtual commissioning. The combined global installed base of these four companies is said to exceed 2 million units.
This holds great significance for the industrial robot industry.
Until now, competition in the industrial robot industry has been fought over arm precision, payload, durability, control performance, maintenance networks, and price. However, in the Physical AI era, new axes of competition are being added: 'Can it learn through simulation?', 'Can it be verified with a digital twin?', 'Can AI generate tasks?', and 'Can robot fleets be integrated and managed?'
KUKA AMP is the core for KUKA to ensure it does not fall behind in this new axis of competition.
While attention is focused on flashy demonstrations of humanoid robots, KUKA is working behind the scenes in factories to determine how to operate robot fleets and how to connect AI to the shop floor.
22 | Visual Components 5.1 and NVIDIA Halos—The Safety and Simulation Foundation Advancing Around KUKA AMP
As a final note, there is one more recent development I would like to add.
It is that not only KUKA AMP itself, but the foundations for 'factory simulation' and 'robot safety' are rapidly being established around it.
In June 2026, Visual Components, a subsidiary of the KUKA Group, announced the new version of its factory simulation software, 'Visual Components 5.1.' This is a foundation for verifying complex factory environments where AMRs, AGVs, industrial robots, products, and people move simultaneously, all before implementation in a virtual space.
What is important is that this is not merely 3D layout confirmation.
Visual Components 5.1 can simulate factory environments where hundreds of AMRs, AGVs, robots, people, and products move at the same time. Through dynamic collision avoidance, more realistic physical behavior, and enhanced controller connectivity, it becomes easier to verify whether 'traffic jams will occur,' 'people and robots will interfere with each other,' 'the number of transport units is too high,' or 'PLC and robot control logic will work correctly' before actually installing the equipment.
This is perfectly aligned with the direction of KUKA AMP.
If KUKA AMP is an intermediate layer that connects AI agents to robots and equipment in the physical world, then Visual Components 5.1 is a virtual factory for testing whether those robot groups will truly function on-site.
Another latest trend is NVIDIA's 'Halos for Robotics.'
In June 2026, NVIDIA announced Halos for Robotics as a safety foundation for Physical AI and robotics. This is a full-stack foundation for robot safety that connects AI computing infrastructure, sensor connectivity, software, safety applications, and inspection/certification support into one.
What should be noted here is that NVIDIA is not building the robots themselves, but is coming to secure the foundation for robots to work safely near humans. For humanoids like Agility Robotics' Digit to enter factories, warehouses, and logistics sites, a path toward safety design and third-party certification becomes essential.
In other words, KUKA AMP, Visual Components 5.1, and NVIDIA Halos are not separate stories.
KUKA AMP connects AI to on-site robots.
Visual Components 5.1 verifies them in a virtual factory before implementation.
NVIDIA Halos establishes a safety architecture for humans and robots to coexist.
The real battle in the humanoid era will not be decided by videos of walking robots alone. In reality, comprehensive capabilities including pre-implementation simulation, safety certification, on-site operation, connection with existing equipment, and robot fleet management will be tested.
In this sense, the area KUKA should target has become increasingly clear.
It is not the front stage of humanoid robots, but the foundation for robots to work safely on-site.
KUKA is attempting to transform from a robot arm company into a company that designs entire factories digitally, operates them with AI, and manages them safely.
Part 5: Strengths, Weaknesses, and Competition
23 | KUKA's Strengths: Automotive, Welding, SI, and Global On-site Capability
KUKA has four major strengths.
First is its deep know-how in automotive factories.
KUKA has long grown alongside the automotive industry. It is deeply involved in critical processes of automotive factories, such as body welding, assembly, transport, body-in-white, and EV/battery processes.
Automotive factories have a high degree of difficulty for robot implementation. Safety, precision, quality, takt time, uptime, maintenance, startup, and global standardization are required. KUKA has been forged in these demanding environments.
Second is system integration capability.
KUKA has the ability to design and deliver not just individual robots, but entire factory lines. This is significant.
Selling a single robot is different from operating a factory. Factories involve jigs, transport, sensors, PLCs, MES, ERP, inspection equipment, human labor, and maintenance systems. Unless these are connected, robots do not create value on the shop floor.
KUKA possesses this 'connecting power'.
Third is its global customer base.
KUKA has bases in Europe, the Americas, China, and Asia, and serves customers in automotive, logistics, medical, and general industries. Industrial robots are not just sold and forgotten. Post-installation maintenance, training, parts supply, and local support are necessary. Global companies like KUKA are strong in this regard.
Fourth is the connection with Midea.
Midea is one of the world's leading home appliance manufacturers and owns a vast number of its own factories. For KUKA, the factories within the Midea Group can serve as massive sites to demonstrate automation technology. Home appliance factories, logistics, parts supply, quality inspection, and AI factory management—KUKA is in a position to hone its implementation skills using its parent company's facilities.
This is a characteristic that FANUC and Yaskawa Electric do not have.
24 | KUKA's Weaknesses: Profit Margins, Price Competition, Dependence on China, and Brand Instability
On the other hand, KUKA faces many challenges.
First is the issue of profit margins.
While KUKA has a large sales volume, its profit margins are not high. Large system projects and automotive projects generate high revenue, but profits are easily squeezed by design changes, launch delays, customer requirements, economic fluctuations, raw material costs, labor costs, and local support needs.
This differs from the high-profit model of companies like FANUC, which combines CNC, servos, robots, and maintenance.
Second is price competition with local Chinese manufacturers.
The Chinese market is huge, but price competition is fierce. Chinese manufacturers attack with local procurement, government support, close customer relationships, short delivery times, and low prices. While being under the Midea umbrella makes it easier for KUKA to enter the Chinese market, it becomes harder to compete solely as a high-end foreign brand.
Third is dependence on the automotive industry.
KUKA is strong in the automotive sector. However, the automotive industry is undergoing major changes due to the shift to EVs, the decline of internal combustion engines, supply chain restructuring, investment suppression, and regional diversification. If automotive manufacturers stop investing, KUKA's large-scale projects will also be affected.
Fourth is the instability of its brand as a German company.
KUKA was a symbol of German manufacturing. However, it is now under the umbrella of China's Midea. Depending on the customer, some may be cautious due to geopolitical risks, data management, supply chains, government procurement, and security concerns.
Especially in the US and European manufacturing sectors, how to view the influence of Chinese capital could become a point of contention in the future.
KUKA must strike a difficult balance: protecting its German technology brand while leveraging the strengths of Chinese capital.
Part 6: Future Strategy and Latest Developments
25 | Collaboration with Midea Group: A Verification Field Unique to KUKA
When considering KUKA's future strategy, the presence of Midea Group is extremely important.
Midea is a home appliance manufacturer with massive production sites. Air conditioners, refrigerators, washing machines, kitchen appliances, components, logistics, and sales networks. In other words, within the Midea Group, there are countless sites that need to be automated.
This becomes a massive verification field for KUKA.
Humanoids and Physical AI are meaningless if they only exist as demonstrations in a lab.
What is truly needed is whether they can be used in mass production factories.
Home appliance factories have many tasks suitable for humanoids and collaborative robots.
Transporting parts.
Placing them on inspection tables.
Handling cables.
Tightening screws.
Putting products into boxes.
Checking labels.
Sorting defective products.
Assisting workers.
Switching tools.
Supporting line changeovers.
In some cases, automating these with fully dedicated machines is not cost-effective. However, relying solely on humans leads to issues with labor shortages, quality variations, and training costs.
This is where AI, collaborative robots, AMRs, and humanoids come into play.
KUKA has the potential to verify Automation 2.0 using factories within the Midea Group. This is a major strength.
Tesla can test Optimus using its own EV factories.
Amazon can test logistics robots using its own warehouses.
Midea and KUKA can also test Physical AI using their own group's manufacturing sites.
This 'having one's own site' is becoming extremely important for robot companies.
Robots cannot become smart without field data.
AI cannot become strong without failure data from actual work.
Automation systems are only completed after they stop, are fixed, and are improved on-site.
The combination of KUKA and Midea is very strong in this regard.
26 | KUKA's Future Strategy 1: Breaking Away from Automotive Dependency
KUKA's primary future strategy is to break away from its dependency on the automotive industry.
Of course, the automotive industry will remain important. Demand for automation will continue in areas such as EVs, batteries, vehicle bodies, painting, components, and recycling. For KUKA, automotive factories will continue to be a vital source of revenue.
However, relying solely on the automotive industry is dangerous.
The automotive industry has large investment cycles. It is affected by fluctuations in EV demand, changes in regional sales, supply chain restructuring, shifts in battery technology, and regulations, tariffs, and subsidies in the US, China, and Europe.
Therefore, KUKA needs to expand into areas outside of automotive.
Promising areas include logistics, healthcare, food, electronics, batteries, general industry, and automation for small and medium-sized enterprises.
In particular, the presence of Swisslog is significant for logistics and healthcare.
In logistics, there is high demand for automation in e-commerce, warehousing, distribution, intra-manufacturing logistics, parts supply, and returns processing. In healthcare, labor-saving and safety are required for tasks such as medication management, specimen transport, sterilization, and inventory management within hospitals.
KUKA's expansion beyond automotive is not just market growth.
It is also about expanding the implementation domain for the era of humanoids.
27 | KUKA's Future Strategy 2: From Standalone Robots to a Software Company
The second future strategy is software transformation.
The value of industrial robots once lay in the machines themselves.
Sturdy arms.
High-precision reducers.
Powerful motors.
Stable controllers.
High uptime.
Of course, these are still important today.
However, future differentiation will shift toward software.
Can anyone program them easily?
Can tasks be automatically generated using AI?
Can they be pre-verified with digital twins?
Can multiple robots be managed in an integrated way?
Can they be maintained remotely?
Can data be analyzed for improvements?
Can they handle cybersecurity?
Can they connect with ERP, MES, and WMS?
These capabilities will determine the value of a robot company.
KUKA Digital, iiQKA.OS2, and KUKA AMP are moves in this direction.
For KUKA to become truly strong, it needs to do more than just sell orange robot arms; it must create a state where 'the entire factory runs on KUKA's software foundation'.
This is not easy.
This is because factories are filled with existing equipment.
FANUC, Yaskawa, ABB, Mitsubishi, Siemens, Rockwell, Omron, local Chinese equipment, old PLCs, and proprietary MES systems are all mixed together. Creating a closed world with only KUKA makes it difficult to use on the factory floor.
Therefore, KUKA must aim for an open and highly connected platform.
The winners of the humanoid era will not just be the robot hardware manufacturers.
The companies that control the OS connecting the robots will win.
KUKA is aiming to capture that position.
28 | KUKA's Future Strategy 3: Becoming a company that implements Physical AI in the field
The third future strategy is the field implementation of Physical AI.
Physical AI is a domain where AI not only perceives, judges, and acts in digital space, but also in the physical world. If generative AI handles text, images, videos, and code, Physical AI moves robots, factories, warehouses, cars, drones, medical equipment, and construction machinery.
What is important here is that AI alone cannot move the field.
Even if a large language model understands 'pick up the part and put it on the shelf,' for a robot to actually move, it requires grasping, posture, force control, collision avoidance, safety, path planning, and process management. Furthermore, it must be connected to on-site equipment, work standards, quality criteria, and maintenance systems.
KUKA can step into this space 'between AI and the field'.
AI companies build models.
Semiconductor companies build computing infrastructure.
Humanoid companies build the robot hardware.
KUKA makes it work in the factory.
This is a very important role.
Especially in manufacturing, there is a large gap between a demo and a mass production site. A robot walking at an exhibition is a different thing from working 8, 16, or 24 hours a day in a factory. The field is dirty, vibrates, changes temperature, has people passing by, parts shift, boxes get crushed, equipment is old, and the network is unstable.
To operate AI robots within this reality, field implementation capability is required.
KUKA can become that company.
29 | KUKA's Future Strategy 4: Winning in the Chinese market while maintaining trust in the West
The fourth future strategy is geopolitical balance.
KUKA is under the Midea umbrella. This is a strength in the Chinese market. However, in Western markets, it is also an element that must be handled with caution.
Automation in manufacturing is becoming more than just private equipment.
Semiconductors.
EVs.
Batteries.
Aerospace.
Medical.
Defense-related.
Critical infrastructure.
Data centers.
Communication equipment.
Energy equipment.
Robots and automation systems used in these factories can become targets of economic security. Where does the data go? Who manages the control software? Will the supply of parts stop? Is there a risk in remote maintenance? These questions are intensifying.
KUKA must maintain its German headquarters, European technology, and global maintenance network while making its relationship with Chinese capital transparent.
In this respect, KUKA is in a difficult position.
It cannot abandon the Chinese market.
However, it also cannot afford to lose the trust of the West.
For KUKA to continue to be a global company, it must maintain its credibility not as 'KUKA of Chinese capital,' but as a 'global automation company based on German technology.'
30 | Capital restructuring of the four major industrial robot manufacturers: KUKA to Midea, ABB to SoftBank
There is one more major perspective that should be added when discussing KUKA.
That is the point that the capital structure of the four major industrial robot manufacturers itself is beginning to change.
KUKA came under the umbrella of China's Midea Group in 2016, and the squeeze-out of minority shareholders was completed in 2022. In other words, the prestigious German industrial robot manufacturer was taken private under Chinese capital.
Furthermore, in October 2025, ABB agreed to sell its robotics business to SoftBank Group. The acquisition price is $5.375 billion. Subject to regulatory approval and other conditions, the deal is expected to close between mid- and late 2026. ABB Robotics is one of the four major industrial robot manufacturers and a major European player that has been widely involved in automotive, general industry, logistics, and electronics.
Lining up these developments, it is highly symbolic.
KUKA to China's Midea.
ABB Robotics to Japan's SoftBank.
FANUC and Yaskawa Electric remain as independent, publicly traded Japanese manufacturers.
In other words, out of the four major industrial robot manufacturers, two European companies are either entering or attempting to enter under the umbrella of massive capital.
Why is this happening?
The reason is that industrial robots have begun to change from a 'machinery industry' to an 'AI infrastructure industry.'
Traditional robot manufacturers were companies of machinery, motors, control devices, servos, reducers, teaching, and maintenance. However, future robot companies will require AI models, simulation, digital twins, cloud, edge AI, data, robot fleet management, and on-site OS.
This change will require massive investment.
Midea can use KUKA to advance the automation of Chinese manufacturing and the sophistication of its own factories. SoftBank can use ABB Robotics to connect AI robots, Physical AI, Skild AI, data centers, AI chips, and AI infrastructure concepts to the physical world.
In short, industrial robots are becoming the 'body of AI' rather than 'factory equipment.'
KUKA's acquisition by Midea was perceived in 2016 as an 'incident where China bought German technology.' However, looking back from 2026, it can be said that it was the beginning of a much larger trend.
The owners of industrial robots have begun to change.
The value of robots has begun to shift from hardware alone to AI, data, and platforms.
Factory automation has become a strategic domain for nations and massive capital.
In that sense, KUKA is not simply a 'German company bought by China.'
It was the first symbol of how the four major industrial robot manufacturers would be swept up in the capital restructuring of the AI era.
31 | New Products and Large Orders in 2025: Heavy-Duty Palletizing and Friction Stir Welding for EV Batteries
While pivoting toward software and AI, KUKA is also steadily achieving results in its original strength: 'moving heavy metal with precision.'
In 2025, KUKA introduced new palletizing robots, the 'KR FORTEC PA' and 'KR FORTEC ultra PA,' to its flagship heavy-duty handling series, the 'KR FORTEC.' This adds four models to the heavy-duty segment, with the top-tier model reaching a payload capacity of up to 800kg. These are designed for sites that require high-speed loading and unloading of heavy, large objects, ranging from beverage cases to construction materials.
And where KUKA's identity shines brightest is in orders for EV (electric vehicle) batteries.
KUKA has received large orders for friction stir welding (FSW) cells for the EV production of a major US automaker. Following 23 cells the previous year, it secured an additional order for 12 cells in 2025 to support increased production. In these cells, KR FORTEC robots join battery cases together and connect cooling water jackets to the battery cases.
Friction stir welding is a technology that joins metals by kneading them together using the frictional heat of a rotating tool, without melting the material. It is strong for joining aluminum and creates tighter seams than welding, making it suitable for EV battery cases that require both lightness and airtightness. On the other hand, because the force during processing is extremely high, robots with extremely high rigidity and path accuracy are required.
In other words, this is a story of KUKA's welding DNA and heavy-duty control technology living on in the most critical components of the EV era.
While humanoids garner attention, KUKA is steadily securing a modest but irreplaceable domain: 'Who will precisely join EV battery cases?'
This is precisely the way of fighting for the 'King Behind the Scenes' that this article has consistently described.
32 | Implications for Japanese Companies: What Should Be Learned from KUKA's Story?
KUKA's story is also important for Japanese companies.
Japan has strong robot and FA companies such as FANUC, Yaskawa Electric, Kawasaki Heavy Industries, Mitsubishi Electric, Omron, Denso, NACHI-FUJIKOSHI, and Shibaura Machine. Servos, motors, reducers, controls, machine tools, sensors, PLCs, and FA systems—Japan remains strong in the foundational technologies of industrial robots.
However, KUKA's history is also a warning.
Having strong technology is not enough.
If the center of gravity of the market shifts, the fate of a company will also change.
KUKA was a prestigious German company.
However, the growth market shifted to China, and the Chinese capital firm Midea acquired KUKA.
Japanese companies are facing the same question.
How will they compete in China, the world's largest robot market?
How will they respond to the price competition from local Chinese manufacturers?
In the humanoid era, what will industrial robot companies hold onto?
How will they incorporate AI, software, data, and digital twins?
Who will control the OS of the entire factory?
Future robot competition will not be decided solely by the precision of robot arms.
AI models.
Simulations.
On-site data.
Software infrastructure.
Deployment templates.
Maintenance networks.
Supply chains.
Price.
Applications.
And market access.
This will be an all-out war.
Amidst these changes, KUKA is incorporating Chinese capital and moving toward Physical AI.
Japanese companies must not view these developments as someone else's problem.
Part 7: Conclusion
33 | Conclusion: KUKA Should Aim to Be the 'King Behind the Scenes' in the Humanoid Era
As we have seen, KUKA is a company that should be understood by layering its founding history, acquisition history, 2025 financial results, NVIDIA GTC 2026, and the capital restructuring of the four major industrial robot manufacturers.
To summarize KUKA's future in one phrase, it is this.
KUKA does not need to be the king of the humanoid units themselves. KUKA should aim to be the 'king behind the scenes' that operates groups of robots, including humanoids, in factories.
In the humanoid era, many people will focus on the appearance of humanoid robots.
Walking.
Running.
Holding boxes.
Using tools.
Working like humans.
However, what is truly important on the industrial floor is what comes next.
Can that robot work in a factory every day?
Can it connect to existing equipment?
Can it stop safely?
Can it adapt to changes in tasks?
Can it guarantee quality?
Can it provide a return on investment?
Can it be maintained?
Can it work alongside humans?
The company that answers these questions will be the true winner of the humanoid era.
KUKA possesses the assets to achieve this.
Over 125 years of history.
Welding technology.
Know-how from automotive factories.
Technology as a pioneer of 6-axis robots.
Experience with collaborative robots.
Logistics and medical automation through Swisslog.
The massive manufacturing sites of the Midea Group.
Access to the Chinese market.
KUKA Digital.
KUKA AMP.
The shift to Automation 2.0.
Of course, there are many challenges.
Profit margins are not high.
Competition with Chinese manufacturers is intense.
There are also geopolitical risks.
Balancing the brand as a German company with Chinese capital is also difficult.
Even so, KUKA has a unique position.
FANUC is the yellow robot and a symbol of Japanese-style FA.
Yaskawa Electric is the king of motion control.
ABB is a giant of comprehensive automation.
KUKA is the orange robot company that connects German factory culture with the massive Chinese market.
And the KUKA of the future is moving toward becoming not just an industrial robot manufacturer, but a factory implementation company in the era of Physical AI.
The story of KUKA is not the past of industrial robots.
It is a story that shows where the manufacturing industry is headed from here on.
In an era where humanoid robots are attracting attention, the place KUKA should aim for is not the humanoid center stage, but the underlying foundation that drives the entire factory.
Robot arms, AMRs, collaborative robots, humanoids, AI, digital twins, logistics, healthcare, and factory lines.
A company that operates all of these on a single site.
That is where KUKA's future lies.
Reference Links and Sources
KUKA Official: KUKA unveils vision for Automation 2.0 as Physical AI reshapes global manufacturing
KUKA Official: KUKA and Midea growth plan / Squeeze-Out process initiated
NVIDIA Newsroom: NVIDIA and Global Robotics Leaders Take Physical AI to the Real World
SoftBank Group Official: Acquisition of ABB Ltd’s Robotics Business
KUKA Official: Visual Components 5.1 / Simulation for large-scale AMR, AGV, and robot operations
NVIDIA Official: Halos for Robotics / Full-stack safety foundation for Physical AI
KUKA Official: iiQKA.OS2 / Integrated OS for all KUKA robots
KUKA Official: 2025 Financial Results / Group Review 2025 (Revenue approx. 3.9 billion EUR, EBIT approx. 59 million EUR, regions EMEA/Americas/Asia-Pacific are roughly equal, China exceeds 1 billion EUR for the first time, major hubs in Germany, USA, China, Hungary)
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