Humanoid Robots Set to Dominate the Next Decade of AI Investment

CNBC reported Wednesday that investors and analysts are increasingly betting on humanoid robots as the next defining AI investment category. The machines could reshape manufacturing, healthcare and even domestic life within a decade, according to multiple market observers.

A Market on the Cusp of Explosive Growth

Barclays researcher Zornitza Todorova, head of thematic FICC research at the bank, told CNBC that the humanoid robot industry is now worth only $2 billion to $3 billion globally. She sees that figure climbing to $200 billion by 2035, describing the current moment as “the decade of the robot.” Wedbush analyst Dan Ives went further, telling CNBC the broader market could reach trillions of dollars within ten years.

The Barclays analysis frames humanoid robots as “automation 3.0.” The machines are designed to address structural labor shortages driven by ageing populations, urbanization and shifting worker preferences. They are already filling physically demanding roles that struggle to attract human workers, including assembly line tasks and heavy lifting in logistics.

Two Waves of Deployment Forecast

Also Read: AI Infrastructure Spending Surges as Tech Giants Race for Compute

Barclays maps out a two-phase rollout. The first wave, running through 2030, targets industrial sectors such as manufacturing, agriculture, construction and logistics. The second phase, beginning after 2030, points toward services-heavy industries including healthcare, elderly care, education and hospitality. Todorova emphasized that Western economies stand to gain most from that second wave, where the bulk of economic output is generated.

China’s Commanding Lead in Robotics

Also Read: Nvidia Bets Big on Physical AI as Chip Demand Broadens

China’s dominance in the sector is striking. The Barclays report found that China installed roughly 300,000 industrial robots last year against just 34,000 in the United States. It also accounted for 85% of humanoid robot deployments globally in the same period. Chinese manufacturers are producing units at approximately $50,000 each, roughly half the cost of Western rivals, giving the country a substantial competitive edge.

Robot density in China has risen 600% since 2016, reaching nearly 500 units per 10,000 workers.

Fund Managers Are Taking Notice

Jason Pidcock, who oversees the £2.75 billion Asian Income fund at Jupiter Asset Management, told CNBC the world will look fundamentally different within a decade. He expects humanoid robots to appear not just on factory floors and in military settings but inside private homes. SoftBank CEO Masayoshi Son separately told CNBC this week that physical AI and robotics represent his best candidate for the next trillion-dollar company.

Read Next: AI Spending Boom Drives Record Capital Expenditure Across Big Tech