
In the 71st edition of its flagship Equity Gilt Study, Barclays Research analysts explore a new era of automation driven by physical AI, as humanoid robots extend AI from digital tasks into the real economy.


In this

<p xmlns="http://www.w3.org/1999/xhtml" class="bwalignc">
<i xmlns="http://www.w3.org/1999/xhtml">In the 71st edition of its flagship Equity Gilt Study, Barclays Research analysts explore a new era of automation driven by physical AI, as humanoid robots extend AI from digital tasks into the real economy.</i>

</p><p xmlns="http://www.w3.org/1999/xhtml">
In this year's Equity Gilt Study, Barclays Research examines how physical AI will move beyond the digital realm and into the real economy, with humanoid robots set to reshape productivity, labour markets, geopolitics, and long-term asset returns. While equities delivered strong real returns in 2025, the report argues that the more important shift is structural, marked by higher capital investment, rising productivity, and a repricing of growth, inflation, and capital across regions and asset classes. At the centre of this shift is the emergence of humanoid robots.

</p><p xmlns="http://www.w3.org/1999/xhtml" id="news-body-cta">This press release features multimedia. View the full release here: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260519764488/en/" rel="nofollow">https://www.businesswire.com/news/home/20260519764488/en/</a></p><div xmlns="http://www.w3.org/1999/xhtml" id="bwbodyimg" style="width: 480px; float:left; padding-left:0px; padding-right:20px; padding-top:0px; padding-bottom:0px;"><img xmlns="http://www.w3.org/1999/xhtml" src="https://mms.businesswire.com/media/20260519764488/en/2809603/4/EGS_release.jpg" alt="Barclays EGS 2026"></img><p xmlns="http://www.w3.org/1999/xhtml" style="font-size:85%;">Barclays EGS 2026</p></div><p xmlns="http://www.w3.org/1999/xhtml">
"Humanoid robots represent the next frontier of AI, combining intelligence with physical capability," said Ajay Rajadhyaksha, Global Chairman of Research. "Their effect could extend well beyond technology, reshaping the structure of the global economy."

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">Humanoid robots: the next frontier of automation</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Automation is entering its third phase, according to Barclays Research analysts. Humanoid robots, enabled by advances in artificial intelligence, mobility, and battery systems, are designed to operate in human environments; use existing tools; and perform full jobs, rather than isolated tasks. As the costs of producing the robots decline and deployment accelerates, Barclays Research estimates the market for humanoids could reach $200 billion by 2035, reshaping labour supply, productivity, and investment opportunities across the global economy.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">China leads in robotics</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Barclays Research analysts find that China is already the centre of gravity for the global robotics economy. Supported by unmatched scale in manufacturing, deep supply chains, and state-backed industrial policy, China accounted for 85 percent of humanoid deployments in 2025 and controls many of the critical inputs needed to scale the technology. If current trends persist, Barclays Research estimates that robots could fill up to 60 percent of the workforce gap created by China's aging population by 2035, helping sustain economic growth and reinforcing robotics as a key pillar of its economic and geopolitical strength.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">How robotics will rewire economies</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Automation has long supported productivity growth, but its effect has largely been limited to specific tasks. Barclays Research analysts argue that humanoid robots extend automation not just to entire roles, but to those that until now could not be automated. Historically, strong productivity gains in sectors such as manufacturing coincided with a declining share of GDP, while more labour-intensive sectors expanded, a pattern known as the Baumol effect. By increasing the substitutability between labour and capital in tasks that have resisted automation, humanoids could ease these constraints and help shift that dynamic. Barclays Research also notes that more than 60 percent of employment in 2018 was in roles that did not exist in 1940, suggesting humanoids are likely to reshape, rather than reduce, the future of work.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">Will physical AI's displacement effects hurt asset prices?</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Barclays Research analysts argue that physical AI is not a zero-sum shock and that markets may be underestimating its positive effect. By expanding the production frontier, rather than simply redistributing income, humanoid robots strengthen the case for higher productivity, higher equilibrium real rates, stronger earnings growth, and improved long-term asset returns. While adoption will reshape labour income and shift sectoral winners and losers, the overall effect is likely to be positive for growth and markets.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">Notes to editors:</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Barclays Equity Gilt Study is a flagship annual publication that combines market-leading macro analysis with a unique multi-asset dataset spanning over 100 years. It provides uniquely rich data and commentary on long-term asset returns in the UK and US. Data for the UK goes back to 1899, while the US data, provided by the Center for Research in Security Prices at the University of Chicago, runs from 1925.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">About Barclays Investment Bank</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Barclays Investment Bank helps money managers, financial institutions, governments, supranational organisations and corporate clients manage their funding, investing, financing, and strategic and risk management needs. It is comprised of the Investment Banking, Global Markets and Research businesses.

</p><p xmlns="http://www.w3.org/1999/xhtml">
As a leader in global finance, with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading global investment bank and a strong, specialist US consumer bank, Barclays aims to provide a better financial future for our customers, clients and communities. <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.barclays.com%2Fib&amp;esheet=54538393&amp;newsitemid=20260519764488&amp;lan=en-US&amp;anchor=www.barclays.com%2Fib&amp;index=1&amp;md5=011499eeeab09c2531d5d4c7ef5a6bcc" shape="rect">www.barclays.com/ib</a>

</p><p xmlns="http://www.w3.org/1999/xhtml"><img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260519764488r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img><span xmlns="http://www.w3.org/1999/xhtml" class="bwct31415"></span></p><p xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink"><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-phrase">View source version on businesswire.com: </span><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-link"><a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260519764488/en/" rel="nofollow">https://www.businesswire.com/news/home/20260519764488/en/</a></span></p><p xmlns="http://www.w3.org/1999/xhtml">
Press Contact
<br xmlns="http://www.w3.org/1999/xhtml"></br>Claudia Gilbert-Allen
<br xmlns="http://www.w3.org/1999/xhtml"></br><a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:claudia.gilbertallen@barclays.com" shape="rect">claudia.gilbertallen@barclays.com 
</a><br xmlns="http://www.w3.org/1999/xhtml"></br>+442077732064

</p>

Barclays Research Expects Humanoid Robots to Fundamentally Reshape the Real Economy

Barclays Study Reveals Growth Potential of Humanoid Robotics Market

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>In the 71st edition of its flagship Equity Gilt Study, Barclays Research analysts explore a new era of automation driven by physical AI, as humanoid robots extend AI from digital tasks into the real economy.


In this</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Barclays&#039; latest Equity Gilt Study predicts that humanoid robots will significantly reshape productivity and labor markets. The market for humanoid robots could reach $200 billion by 2035, potentially leading to increased investment opportunities and enhanced long-term asset returns.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Barclays&#039; study highlights the impact of humanoid robots on economies.</li><li>Increasing automation is projected to reshape labor markets and productivity.</li><li>The humanoid robotics market may reach $200 billion by 2035.</li><li>China dominates humanoid robot deployment and production capacity.</li><li>Humanoid robots could improve long-term asset returns and economic growth.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Barclays PLC (BCS)</strong>: As the issuer of the study, implications for BCS&#039;s research services are significant.</li><li><strong>NVIDIA Corp (NVDA)</strong>: NVIDIA&#039;s AI technologies may benefit from humanoid robot advancements.</li><li><strong>iRobot Corp (IRBT)</strong>: iRobot could face increased competition from new humanoid robots.</li></ul>
  </section>

  <section data-block="category">
    <h3>Research Analysis</h3>
    <p>This article falls under &#039;Research Analysis,&#039; as it provides insights into future economic trends based on technological advancements, specifically humanoid robotics, which could significantly impact various markets and investment strategies.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Increased productivity from humanoid robots may benefit BCS&#039;s market valuation.</li><li>The estimated $200 billion humanoid robotics market may attract more investment.</li><li>China&#039;s dominance in robotics could have competitive implications for BCS.</li><li>The long-term asset return potential of humanoid robots could enhance equities globally.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Barclays predicts the humanoid robotics market to reach $200 billion by 2035.</li><li>China accounted for 85% of humanoid deployments in 2025.</li><li>Humanoid robots may fill 60% of labor gaps in China by 2035.</li><li>The study predicts stronger earnings growth due to automation.</li><li>Production costs for humanoid robots are expected to decline.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Investing in BCS could be advantageous as humanoid robotics develops, driving growth over the next decade.</p>
  </section>
</section>


<p xmlns="http://www.w3.org/1999/xhtml" class="bwalignc">
<i xmlns="http://www.w3.org/1999/xhtml">In the 71st edition of its flagship Equity Gilt Study, Barclays Research analysts explore a new era of automation driven by physical AI, as humanoid robots extend AI from digital tasks into the real economy.</i>

</p><p xmlns="http://www.w3.org/1999/xhtml">
In this year's Equity Gilt Study, Barclays Research examines how physical AI will move beyond the digital realm and into the real economy, with humanoid robots set to reshape productivity, labour markets, geopolitics, and long-term asset returns. While equities delivered strong real returns in 2025, the report argues that the more important shift is structural, marked by higher capital investment, rising productivity, and a repricing of growth, inflation, and capital across regions and asset classes. At the centre of this shift is the emergence of humanoid robots.

</p><p xmlns="http://www.w3.org/1999/xhtml" id="news-body-cta">This press release features multimedia. View the full release here: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260519764488/en/" rel="nofollow">https://www.businesswire.com/news/home/20260519764488/en/</a></p><div xmlns="http://www.w3.org/1999/xhtml" id="bwbodyimg" style="width: 480px; float:left; padding-left:0px; padding-right:20px; padding-top:0px; padding-bottom:0px;"><img xmlns="http://www.w3.org/1999/xhtml" src="https://mms.businesswire.com/media/20260519764488/en/2809603/4/EGS_release.jpg" alt="Barclays EGS 2026"></img><p xmlns="http://www.w3.org/1999/xhtml" style="font-size:85%;">Barclays EGS 2026</p></div><p xmlns="http://www.w3.org/1999/xhtml">
"Humanoid robots represent the next frontier of AI, combining intelligence with physical capability," said Ajay Rajadhyaksha, Global Chairman of Research. "Their effect could extend well beyond technology, reshaping the structure of the global economy."

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">Humanoid robots: the next frontier of automation</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Automation is entering its third phase, according to Barclays Research analysts. Humanoid robots, enabled by advances in artificial intelligence, mobility, and battery systems, are designed to operate in human environments; use existing tools; and perform full jobs, rather than isolated tasks. As the costs of producing the robots decline and deployment accelerates, Barclays Research estimates the market for humanoids could reach $200 billion by 2035, reshaping labour supply, productivity, and investment opportunities across the global economy.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">China leads in robotics</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Barclays Research analysts find that China is already the centre of gravity for the global robotics economy. Supported by unmatched scale in manufacturing, deep supply chains, and state-backed industrial policy, China accounted for 85 percent of humanoid deployments in 2025 and controls many of the critical inputs needed to scale the technology. If current trends persist, Barclays Research estimates that robots could fill up to 60 percent of the workforce gap created by China's aging population by 2035, helping sustain economic growth and reinforcing robotics as a key pillar of its economic and geopolitical strength.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">How robotics will rewire economies</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Automation has long supported productivity growth, but its effect has largely been limited to specific tasks. Barclays Research analysts argue that humanoid robots extend automation not just to entire roles, but to those that until now could not be automated. Historically, strong productivity gains in sectors such as manufacturing coincided with a declining share of GDP, while more labour-intensive sectors expanded, a pattern known as the Baumol effect. By increasing the substitutability between labour and capital in tasks that have resisted automation, humanoids could ease these constraints and help shift that dynamic. Barclays Research also notes that more than 60 percent of employment in 2018 was in roles that did not exist in 1940, suggesting humanoids are likely to reshape, rather than reduce, the future of work.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">Will physical AI's displacement effects hurt asset prices?</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Barclays Research analysts argue that physical AI is not a zero-sum shock and that markets may be underestimating its positive effect. By expanding the production frontier, rather than simply redistributing income, humanoid robots strengthen the case for higher productivity, higher equilibrium real rates, stronger earnings growth, and improved long-term asset returns. While adoption will reshape labour income and shift sectoral winners and losers, the overall effect is likely to be positive for growth and markets.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">Notes to editors:</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Barclays Equity Gilt Study is a flagship annual publication that combines market-leading macro analysis with a unique multi-asset dataset spanning over 100 years. It provides uniquely rich data and commentary on long-term asset returns in the UK and US. Data for the UK goes back to 1899, while the US data, provided by the Center for Research in Security Prices at the University of Chicago, runs from 1925.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">About Barclays Investment Bank</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Barclays Investment Bank helps money managers, financial institutions, governments, supranational organisations and corporate clients manage their funding, investing, financing, and strategic and risk management needs. It is comprised of the Investment Banking, Global Markets and Research businesses.

</p><p xmlns="http://www.w3.org/1999/xhtml">
As a leader in global finance, with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading global investment bank and a strong, specialist US consumer bank, Barclays aims to provide a better financial future for our customers, clients and communities. <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.barclays.com%2Fib&amp;esheet=54538393&amp;newsitemid=20260519764488&amp;lan=en-US&amp;anchor=www.barclays.com%2Fib&amp;index=1&amp;md5=011499eeeab09c2531d5d4c7ef5a6bcc" shape="rect">www.barclays.com/ib</a>

</p><p xmlns="http://www.w3.org/1999/xhtml"><img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260519764488r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img><span xmlns="http://www.w3.org/1999/xhtml" class="bwct31415"></span></p><p xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink"><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-phrase">View source version on businesswire.com: </span><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-link"><a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260519764488/en/" rel="nofollow">https://www.businesswire.com/news/home/20260519764488/en/</a></span></p><p xmlns="http://www.w3.org/1999/xhtml">
Press Contact
<br xmlns="http://www.w3.org/1999/xhtml"></br>Claudia Gilbert-Allen
<br xmlns="http://www.w3.org/1999/xhtml"></br><a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:claudia.gilbertallen@barclays.com" shape="rect">claudia.gilbertallen@barclays.com 
</a><br xmlns="http://www.w3.org/1999/xhtml"></br>+442077732064

</p>

Barclays' latest Equity Gilt Study predicts that humanoid robots will significantly reshape productivity and labor markets. The market for humanoid robots could reach $200 billion by 2035, potentially leading to increased investment opportunities and enhanced long-term asset returns.

Barclays Research Expects Humanoid Robots to Fundamentally Reshape the Real Economy

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Research Analysis

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