The State of U.S. SMEs in the Robotics Industry
In 2025, robotics is no longer just about high-end industrial arms or futuristic humanoids. A quiet revolution is underway—one being led by small and mid-sized U.S. manufacturers who are finally gaining access to automation solutions that fit their scale and budget.
Historically, automation was the domain of global conglomerates. But that’s changing. As Robots-as-a-Service (RaaS) models and low-spec solutions reduce CapEx and complexity, small-to-mid-sized enterprises (SMEs) are stepping into the robotics era. And they're doing so not with flashy demos, but with measured, high-ROI deployments that solve persistent labor and efficiency challenges.
Marion Street Capital works with growth-stage companies that sit in this sweet spot—those generating between $1MM and $10MM in annual revenue, scaling sustainably with capital discipline. This segment of the market is often overlooked, but it’s here that we see some of the most pragmatic innovation and fastest feedback loops.
According to our latest report, The State of the Robotics Industry in 2025, the following trends are accelerating SME adoption:
AI-Powered Robotics: Smarter perception and autonomous learning are reducing the need for rigid programming.
Cobots and Human-Robot Collaboration: Collaborative robots are entering factories where safety, flexibility, and adaptability are essential.
Sustainability Targets: Robotics is enabling cleaner, more efficient production at a time when environmental mandates are tightening.
New Use Cases and Vertical Penetration: From retail to agriculture to healthcare, robotics is breaking out of the factory.
Labor Shortages: With 770,000+ unfilled roles in U.S. manufacturing and logistics, robots are stepping in to augment—not replace—human labor.
Consolidation & Maturity: Investors are shifting capital toward scalable platforms with proven models, opening new funding paths for serious founders.
Small manufacturers are no longer locked out of robotics innovation. In fact, many are becoming early adopters of flexible, AI-enhanced systems that give them a competitive edge.
This transformation is not just good for business—it’s good for the broader industrial base of the U.S. economy. We believe the next generation of category-defining robotics companies will be those who understand the SME customer deeply and build for their constraints.
Download the full report – The State of the Robotics Industry in 2025 – to dive into data and actionable insights shaping the automation landscape.