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Humanoid Robots: A $7 Trillion Opportunity in 25 Years

AInvestWednesday, Dec 4, 2024 6:39 pm ET
4min read


Humanoid robots, once the stuff of science fiction, are poised to revolutionize industries and create a $7 trillion market in the next 25 years, according to analysts at Citi Global Insights. This transformative potential is driven by advancements in artificial intelligence (AI), robotics, and materials science, which enable these machines to adapt to diverse environments and tasks.

At the heart of this growth lies the rapid progress in AI, which is enabling humanoid robots to learn, adapt, and perform increasingly complex tasks. End-to-end AI models and improved robot components are key factors driving the growth of the humanoid robot market. A report by Goldman Sachs Research estimates that the total addressable market for humanoid robots could reach $38 billion by 2035, with shipments growing fourfold to 1.4 million units.

The increasing adoption of 5G technology is another significant factor enhancing the capabilities of humanoid robots. Faster and more stable connectivity enables real-time data processing and communication, allowing robots to respond quickly to their environment and coordinate with other robots. This low-latency communication is crucial for precise control and coordination of multiple robots working together, further expanding the potential applications of humanoid robots.

Improvements in materials science and manufacturing techniques are also reducing the cost of producing humanoid robots, making them more accessible to businesses and consumers. According to Goldman Sachs Research, the manufacturing cost of humanoid robots has dropped significantly, from a range of $50,000 to $250,000 per unit last year to between $30,000 and $150,000 now. This reduction is mainly due to cheaper components, more supply chain options, and improved designs and manufacturing techniques. The cost reduction is expected to continue, potentially speeding up the timeline to factory applications by a year and to consumer applications by two to four years.



Improvements in energy storage and efficiency are also pivotal for humanoid robots, as they directly impact longevity and functionality. Enhanced energy storage and efficiency can extend robot operation time, reduce recharging downtime, and lower overall operational costs. This makes humanoid robots more practical and affordable for both industrial and consumer applications, thereby boosting market growth and adoption.

While the potential of humanoid robots is vast, there are also challenges and risks to consider. High-precision component manufacturing, AI and software development for manipulation and interaction, and the need for high-precision grinding machines that limit production scalability are some of the hurdles that need to be addressed. Nevertheless, the long-term potential of humanoid robots, driven by advancements in AI and robotics, could eventually surpass that of electric vehicles (EVs) and other emerging technologies.



In conclusion, the humanoid robot market is set to experience exponential growth in the coming decades, driven by advancements in AI, robotics, and materials science. With a projected market size of $7 trillion by 2047, investors and businesses should take note of the significant opportunities that lie ahead. However, it is essential to remain aware of the challenges and risks associated with humanoid robot development and deployment, ensuring a balanced and strategic approach to capitalizing on this transformative technology.

As the world continues to evolve, so too will the role of humanoid robots in our daily lives. By embracing innovation and addressing the challenges that lie ahead, we can unlock the full potential of this revolutionary technology and create a more efficient, sustainable, and interconnected future.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.