Industrial robots are nothing new. They’ve been boosting efficiency for many years — especially in the automotive and warehousing industries. And with the rapid evolution of technology, collaborative robots — “cobots”— that work alongside humans have become increasingly important to help manufacturers and other supply chain stakeholders maintain a competitive edge.
But another type of robot is gaining steam for various purposes across industries: humanoid robots.
Predictions for significant growth
According to technology research and advisory company Technavio, the global humanoid robot market is forecast to grow by an estimated $59.18 billion from 2025-2029 — a CAGR of 70.4% for that period. In addition to trends in “healthcare, product launches, and the entertainment industry” that are fueling demand, the firm says manufacturers are also stepping into the fray.
“Demand for enhanced visibility and flexibility in industrial operations is driving market growth, with a trend towards growing demand of humanoid robot owing to emergence of smart manufacturing,” Technavio explains.
However, the firm also cites “ethical concerns” as a significant challenge to adoption.
“Employment displacement and privacy concerns are two primary ethical concerns that could limit market expansion,” Technavio says. “The accurate collection and use of data, as well as accountability and liability, are other significant ethical challenges that must be addressed. These factors may pose risks to the market’s growth.”
Although it doesn’t specifically address humanoid robots, the Industrial Robotics Global Industry Report 2025 also predicts rapid growth.
“Industrial robots are integral to modern manufacturing, enabling faster production times, consistent quality, and reduced operational costs,” a summary of the report says. “They are essential for applications in industries such as automotive, electronics, food and beverage, and metal fabrication.”
The report cites several key factors fueling their rapid adoption:
- Expanding manufacturing sector: “As production levels increase across industries, manufacturers are investing in industrial robots to enhance efficiency and meet growing demand. This trend is particularly evident in the automotive, electronics, and logistics sectors, where robots play a critical role in maintaining high production volumes and consistent quality.”
- Advancements in robotic technologies: “Innovations in AI, machine learning, and IoT (Internet of Things) integration are enabling the development of smarter, more autonomous robots. … The integration of these advanced technologies is making industrial robots more versatile and efficient, increasing their appeal to a wider range of industries.”
- Increasing investments in automation: “Companies are recognizing the benefits of automation in reducing operational costs, improving productivity, and maintaining competitiveness. As labor costs rise and the availability of skilled labor decreases in some regions, the adoption of industrial robots becomes a strategic imperative for many manufacturers. …”
Top robotic trends for 2025
In late January, the International Federation of Robotics (IFR) released its report on global robotics trends for this year, noting that the global market value of industrial robot installations had hit a record US$16.5 billion.
Saying that a number of “technological innovations, market forces and new fields of business” will drive future demand, IFR listed five top trends predicted to influence the global market:
- Physical, analytic, and generative AI
- Single purpose humanoids
- Sustainability and energy consumption
- New fields of business and customer segments
- Robots addressing labor shortage
1. Physical, analytical, generative AI
IFR says the use of AI in robotics is growing and that the application of different types of AI means the robots can perform a wider range of tasks more efficiently.
“Analytical AI enables robots to process and analyze large amounts of data collected by their sensors,” IFR says. “This helps to manage variability and unpredictability in the external environment, in ‘high-mix/low-volume’ production as well as in public environments.”
The organization noted that recently, robot and chip manufacturers have been focused on Physical AI development by investing in “dedicated hardware and software that simulate real-world environments.” In these virtual environments, the robots can then train themselves based on experience, instead of programming.
“These Generative AI projects aim to create a ‘ChatGPT moment’ for Physical AI,” IFR says. “This AI-driven robotics simulation technology will advance in traditional industrial environments as well as in service robotics applications.”
2. Single-purpose humanoids
IFR acknowledges that humanoid robots have increasingly been in the media due to a vision for them to act as “general-purpose tools that can load a dishwasher on their own and work on an assembly line elsewhere.”
However, the organization says that instead of focusing on humanoids for general-purpose use, industrial manufacturers are eyeing them for “single-purpose tasks only.”
“Most of these projects are being carried out in the automotive industry, which has played a key role in pioneering robot applications throughout the history of industrial robotics, as well as in the warehousing sector,” IFR says. “From today’s perspective, however, it remains to be seen whether humanoid robots can represent an economically viable and scalable business case for industrial applications, especially when compared to existing solutions.”
“Nevertheless, there are many applications that could inherently benefit from the humanoid form and therefore offer market potential for robotics e.g. in logistics and warehousing,” the organization added.
3. Sustainability and energy consumption
Noting the need for suppliers to comply with the UN’s environmental sustainability goals and related regulations if they want to be included on supplier whitelists, IFR says robots play a key role in this context.
“In general, their ability to perform tasks with high precision reduces material waste and improves the output-input ratio of a manufacturing process,” the organization explains.
In addition to these and other benefits related to production, IFR says robot technology is improving so robots themselves are more energy efficient.
4. New fields of business and customer segments
IFR says that since most manufacturing companies are small and medium-sized enterprises (SMEs), the price of robots can be a barrier to adoption — but Robot-as-a-Service (RaaS) offerings can help.
With this business model, SMEs can “benefit from robotic automation with no fixed capital involved.”
“RaaS providers specializing in specific industries or applications can offer sophisticated solutions quickly,” IFR says. “In addition, low-cost robotics offers solutions for potential customers that find a high-performance robot to be oversized for their needs. Many applications have low requirements in terms of precision, payload, and service life. Low-cost robotics addresses this new ‘good enough’ segment.”
In addition to manufacturing, the organization says new customer segments include construction, laboratory automation, and warehousing.
“Demand across all industries is being driven by the fact that recent crises have led to political awareness of domestic production capacity in strategically important branches,” IFR explains. “Automation allows manufacturers to nearshore production without sacrificing cost efficiency.”
5. Robots addressing labor shortage
Citing the International Labour Organisation (ILO), IFR says labor shortages persist in the global manufacturing sector.
“One of the main drivers is demographic change, which is already burdening labor markets in leading economies such as the United States, Japan, China, the Republic of Korea, or Germany,” IFR explains. “Although the impact varies from country to country, the cumulative effect on the supply chain is a concern almost everywhere.”
In this context, robotics is viewed as an answer to not only address labor shortages — but to also take care of “dirty, dull, dangerous or delicate tasks,” giving human workers freedom to focus on “more interesting and higher-value tasks.”
“Robots perform tedious tasks such as visual quality inspection, hazardous painting or heavy lifting,” IFR says. “Technological innovations in robotics such as ease of use, collaborative robots or mobile manipulators help to fill gaps when and where needed.”
