Chinese Lidar Giants Invest Heavily in Robotics, Fueling Global Supply Chain Dominance
China’s leading lidar sensor manufacturers, Hesai Group and RoboSense Technology, are significantly expanding their investments into the burgeoning robotics sector. This strategic move aims to establish new growth engines for the companies and further solidify China’s position as a pivotal player in the global robotics supply chain.
Hesai, already the world’s largest producer of lidar sensors for automotive applications, has announced plans to allocate 200 million yuan (approximately US$28.9 million) this year. This substantial investment will be dedicated to the design and manufacturing of critical components for robots, referred to by Hesai’s Chief Financial Officer Andrew Fan as the “eyes and muscles” of these advanced machines. This initiative follows Hesai’s reported strong financial performance for 2025.
Fan highlighted the current trajectory of the robotics industry, stating, “With the rapid development of large language models over the past two years, business leaders have reached a consensus that the robotics industry is on the cusp of truly entering the commercialisation phase.” He further emphasized Hesai’s commitment, adding, “We will make substantial investment this year to expand our robotics segment.” The company is slated to unveil its new robotics-focused technologies and products in April.
Lidar, an acronym for “light detection and ranging,” is a remote sensing method that uses pulsed laser light to measure distances to objects. In the context of autonomous vehicles, this technology enables the creation of highly accurate maps of the surrounding environment. For robots, lidar serves a similar, crucial function.
- Robotic Navigation and Perception: Lidar sensors are essential for robots to accurately assess their surroundings. They generate detailed three-dimensional maps, allowing robots to understand spatial relationships with various objects and navigate safely in complex environments. This capability is fundamental for applications ranging from industrial automation to logistics and service robots.
Meanwhile, RoboSense, another prominent Shenzhen-based lidar manufacturer, is also witnessing significant growth in its robotics business. CEO Mark Qiu expressed optimism, predicting “breakneck growth” for lidar sensors, driven by the advancements in physical artificial intelligence.
“Our robotics business delivered 303,000 units for the [past] year, ranking No 1 globally, with performance significantly exceeding expectations,” Qiu stated, following RoboSense’s announcement of its first-ever quarterly profit. He articulated the company’s ambitious vision: “Our ultimate vision is to make lidar a ubiquitous category, as essential and ever-present as the common camera.” RoboSense plans to leverage its proprietary chipsets to continuously offer “generational-lead” lidar sensors, further bolstering its robotics segment.
The intensified focus on robotics by these lidar manufacturers aligns with China’s broader national strategy to become a global leader in robotics, supported by a robust and comprehensive domestic supply chain. China has already established itself as the world’s largest market for industrial robots and is a frontrunner in the development of humanoid robots.
- Global Robotics Market Share:
- In 2024, China accounted for a commanding 54% of the world’s industrial robots.
- This translated to approximately 295,000 industrial robots installed in China, significantly outpacing Japan (44,500 units) and the United States (34,200 units).
Furthermore, industry projections indicate a substantial increase in the adoption of humanoid robots. Morgan Stanley forecasts that China’s humanoid robot sales are expected to more than double in the current year, reaching 28,000 units.
The critical role of China’s supply chain in the global robotics landscape was recently underscored by Jensen Huang, CEO of U.S. chip giant Nvidia. He acknowledged that the American robotics industry would need to rely on China’s supply chain due to its strengths in microelectronics, motors, rare earth materials, and magnets – all foundational elements for robotics manufacturing.
Analysts attribute the success of Chinese assemblers and automotive supply-chain vendors, particularly in areas like electric vehicle technology, to a combination of strong government support and a consumer base that readily embraces innovation.
Hesai’s financial performance reflects this positive trend. The company reported a net profit of 435.9 million yuan for 2025, a significant turnaround from a net loss of 102.4 million yuan in the previous year. This marks Hesai as the first lidar sensor maker for the automotive sector globally to achieve a full-year profit, largely driven by the surging demand from Chinese automakers for lidar technology crucial for developing self-driving capabilities. Hesai’s lidar deliveries in 2025 saw an impressive year-on-year increase of 223%, reaching 1.62 million units. The company, which supplies to the top 10 Chinese car manufacturers, intends to double its annual production capacity to 4 million units this year.
RoboSense also reported positive financial developments, posting a net profit of 103.7 million yuan for the fourth quarter of 2025, its first profitable quarter to date. For the full year, RoboSense’s net loss narrowed by 70% from 2024 to 146 million yuan.
In the robotaxi lidar market specifically, Hesai demonstrated clear dominance in 2024, securing a 61% share of the US$166 million market, according to Yole Group. RoboSense held a 12% share in the same segment. These figures highlight the competitive landscape and the significant market influence of these Chinese lidar innovators.
