From Automation 1.0 to Physical AI: KUKA Group builds on its strengths to drive global leadership and future growth
With this evolution in its technology stack the company known for its profound manufacturing expertise will be adding intent-based capabilities and physical AI across robotics, system integration, warehouse management, healthcare automation and simulation. Intent-based systems translate a user’s desired outcome into automated decisions and actions, allowing technology to figure out how to achieve a goal rather than requiring humans to specify every step. KUKA is repositioning itself to expand its global leadership role in the age of Physical AI, or what KUKA refers to as ‘Automation 2.0’.
In the here and now of traditional rule-based automation, the so-called ‘Automation 1.0’, markets are more competitive than ever: some long-standing automation customers in the automotive and other vertical industries are reducing investments significantly, and customer demand and manufacturing footprints are shifting internationally. “As we move toward Automation 2.0 and Physical AI, Automation 1.0 remains essential – for KUKA and for the entire industry. Proven, rule-based automation continues to deliver the stability and productivity our customers rely on, especially in high volume and safety critical environments. We’re not replacing it. We’re expanding it with intent-based and AI driven capabilities. Automation 1.0 remains as the backbone, while Automation 2.0 adds new flexibility. KUKA will continue to be a key player in both”, Christoph Schell says.
At the same time the technology disruption and potential for future growth is attracting investments from an increasing number of new and existing robotic and automation system suppliers. In this complex environment, the strategic repositioning is already reflected in the company’s performance. KUKA Group recorded profitable revenue growth of 4 percent in 2025 and increased order intake.
KUKA Group accelerates innovation with record R&D spend and a billion euro milestone in China
KUKA Group began laying the groundwork last year after the new CEO Christoph Schell took office. “We are consistently advancing our strategic direction. Our growth categories – intelligent automation, and software and AI defined infrastructure – are developing dynamically and form a capable foundation to enable long-term success. Our modular production platforms lead the way”, says Schell, and resumes: “Looking ahead, we expect a decade of profound technological transformation. Cost-out initiatives, Software and AI, as well as shifts in geographical importance are becoming decisive drivers of future success of the KUKA Group”, says the technology executive.
In 2025, KUKA Group invested a record €213 million in research and development. That is the highest amount in the company’s history. The company is more globally balanced than ever, with last year’s revenue evenly split, at around one third each, across EMEA (Europe, the Middle East and Africa), the Americas, and Asia-Pacific.
China remains the world’s largest robotics market, accounting for more than 50 percent of global demand. In this highly competitive environment, KUKA has further strengthened its market position and is now ranked among the top two players. For the first time in the company’s history, revenue from the China business exceeded the €1 billion threshold, underscoring the growing strategic importance of the region.
Global expansion with innovation hubs and integrated automation solutions across Asia
In parallel, the company continues to expand its global footprint, most recently with one of many new training, research, and application centers in central Vietnam, developed in partnership with the University of Danang. In India, one of the fastest growing automation markets globally, KUKA Group continues to systematically expand its market presence to participate in the country’s strong medium to long-term industrial growth.
In the United States, KUKA has established a software and AI center of excellence in Silicon Valley. The team is headed by Marc Fleischmann and includes Melonee Wise, an award‑winning robotics pioneer, who is now working with the global automation group and presented KUKA AMP during NVIDIA GTC.
For customers, this means a single automation solution partner capable of integrating hardware, software, and digital solutions – from industrial and mobile robotics to simulation, shuttles, cranes, warehouse systems, and healthcare automation – offering customers seamless, end-to-end automation that is easier to deploy, scale, and operate worldwide. The company also operates entire production plants and automated contract manufacturing facilities on behalf of customers, and, depending on the industry, offers Robots-as-a-Service models. CEO Schell commented: “We are among the very few global end-to-end industrial automation solution providers.”
