Demographics are reshaping demand in China. By the end of 2024, China had more than 310 million people aged 60 or above, roughly 22 percent of the population. As households grow smaller, the need for childcare and eldercare service has surged.

　　China's eldercare robot market exceeded 30 billion yuan in 2024 and was expected to reach 50 billion yuan in 2025, according to a report released by Zero Power Intelligence Group, an industry research company in China.

　　"Only a handful of companies were developing intelligent companion robots for eldercare a few years ago," said Li. "Now the number of entrants is rising rapidly, and the industry is becoming increasingly vibrant."

　　Policy support is another propeller. The government encourages digital transformation of the domestic service sector, promoting the use of big data, AI and robotics to improve efficiency and expand service offerings.

　　In April 2025, China's Ministry of Commerce, together with eight other government departments, issued a policy document to support the upgrading of household service consumption.

　　The departments called for accelerating the digital transformation of the sector, including the use of big data and AI to build user profiles and deliver more targeted services, as well as leveraging emerging technologies such as robotics to expand application scenarios in household service.

　　"We have begun experimenting with digital platforms and pilot programs that link tech firms with domestic service providers," said Hu Jing, an official with Hefei's bureau of commerce.

　　Yet the promise of an AI-powered household still collides with practical limits, industry insiders have noted. Robots remain expensive, with a companion model like Xiaoli still costing around 10,000 yuan or more.