U.S. factories installed nearly 38,500 industrial robots in 2025, a 12% increase over the previous year and the third-highest annual figure ever recorded in the United States, according to new data from the International Federation of Robotics. That total pushed the U.S. past Japan into second place among the world's robot markets for the first time.

Japan fell to third after installations dropped 19% to 36,219 units. The gap between the two countries was narrow — roughly 2,300 robots — and a single year of reversal in either direction could restore Japan's position. IFR's data covers installations across manufacturing, not automotive alone, but the sector remains the largest robot user in both countries.

China stayed far ahead of every other market. Chinese factories installed 354,000 industrial robots in 2025, up 20% year over year, accounting for 59% of global installations. That concentration means worldwide automation trends now largely track Chinese capital spending.

South Korea held fourth place with 30,000 installations. Germany ranked fifth with fewer than 25,000 units, a reminder that Europe's largest machine-building economy continues to install robots at roughly half the U.S. rate.

Globally, factories installed more than 600,000 industrial robots for the first time in 2025, lifting the worldwide operational stock above 5 million robots.

"Industrial automation is progressing at high speed," said Jane Heffner, president of the International Federation of Robotics. "The new mark of five million robots operational in factories worldwide is more than double the number seven years ago."

The IFR forecasts global installations will rise another 9% to 655,000 units in 2026 and reach 806,000 annually by 2029. Those are forecasts, not confirmed orders, and the 2029 figure depends on sustained capital spending in China as well as recovery in Japan and Europe.

The organization expects three forces to keep driving automation investment: manufacturing relocation, labor shortages, and efforts by governments and OEMs to strengthen domestic supply chains. For U.S. automakers and their tier suppliers, all three apply directly — reshored component production, persistent skilled-labor gaps in plants, and procurement rules that favor localized sourcing all argue for more robots on the line.

Technology is also widening the addressable market. IFR cites advances in artificial intelligence, machine vision and sensing as expanding the range of tasks robots can take on, while easier programming and simpler system integration are cutting deployment costs. Lower integration cost matters most for small and mid-tier suppliers, historically the slowest to automate because each cell required bespoke engineering.

For plant managers and manufacturing engineers, the numbers frame a clear competitive picture. The U.S. is automating faster than Japan for the first time in decades, but it still installs about one robot for every nine that China installs. Germany, Europe's benchmark, is losing relative ground.

What to watch next: whether IFR's 655,000-unit forecast for 2026 holds through the next data release, whether Japan's 19% decline proves cyclical or structural, and whether U.S. installation growth accelerates as reshored battery and EV component plants reach full equipment-buying phase.