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In the context of Industry 4.0, industrial robotics such as automated guided vehicles have drawn increased attention due to their automation capabilities and low cost. With the support of cognitive technologies for industrial Internet of Things (IoT), production processes can be significantly optimized and more intelligent manufacturing can be implemented for smart factories. In this paper, for advanced material handling, a cognitive industrial entity called context-aware cloud robotics (CACR) are introduced and analyzed. Compared with the one-time on-demand delivery, CACR is characterized by two features: (1) context-aware services and (2) effective load balancing. First, the system architecture, advantages, challenges, and applications for CACR are introduced. Then, fundamental functions for material handling are articulated, namely, decisionmaking mechanisms and cloud-enabled simultaneous localization and mapping. Finally, a CACR case study is performed to highlight its energy-efficient and cost-saving material handling capabilities. Simulations indicate the superiority of cognitive industrial IoT and show that using CACR for material handling can significantly improve energy efficiency and save cost.