Information
Physical AI Emerges as the Next Major Industrial Growth Wave Barclays Research today released a new Impact Series report The Future of Work: AI Gets Physical, highlighting humanoid robots as the next frontier for
Original sourceAI Summary
Barclays predicts humanoid robots will revolutionize labor-intensive sectors. Global humanoid robotics market projected to reach $200 billion by 2035. Technological advancements are significantly reducing production costs. Europe has a competitive edge in robotics production and supply chain. Investment opportunities emerging in physical AI and component manufacturing.
Sentiment Rationale
The report highlights significant growth potential in the humanoid robotics sector, which could positively influence BCS’s investments in innovation and technology. Historical precedents show that early investments in emerging technologies often yield substantial financial returns; for instance, companies involved in early AI or robotics significantly enhanced their market value.
Trading Thesis
The humanoid robotics market is set to evolve over the next decade, with significant growth projections extending to 2035. Just as the adoption of AI transformed sectors over a prolonged period, the integration of humanoid robots will likely follow a similar trajectory.
Market-Moving
- Barclays predicts humanoid robots will revolutionize labor-intensive sectors.
- Global humanoid robotics market projected to reach $200 billion by 2035.
- Technological advancements are significantly reducing production costs.
Key Facts
- Barclays predicts humanoid robots will revolutionize labor-intensive sectors.
- Global humanoid robotics market projected to reach $200 billion by 2035.
- Technological advancements are significantly reducing production costs.
- Europe has a competitive edge in robotics production and supply chain.
- Investment opportunities emerging in physical AI and component manufacturing.
Companies Mentioned
- ABB (ABB)
- OTIS (OTIS)
- GD (GD)
Industry News
The article underscores a transformative shift in automation, which is relevant to BCS as it represents investment opportunities and market trends that could foster growth within its technological divisions.
Physical AI Emerges as the Next Major Industrial Growth Wave
Barclays Research today released a new Impact Series report The Future of Work: AI Gets Physical, highlighting humanoid robots as the next frontier for artificial intelligence. Designed in human form, these robots are moving from labs into real-world settings, with the potential to reshape sectors from manufacturing to healthcare.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260114100182/en/
Humanoid Robot
Breakthroughs in AI reasoning, actuator technology and battery systems have cut production costs 30-fold over the past decade, paving the way for commercial adoption. As ageing populations and labour shortages intensify, humanoids could take on repetitive, physically demanding tasks — augmenting rather than replacing human workers in labour-intensive industries.
Barclays Research estimates the global humanoid robotics market, currently $2–3 billion, could reach $200 billion by 2035 under the most optimistic scenarios. Europe may hold a competitive edge in the supply chain thanks to its expertise in precision engineering and automotive manufacturing, particularly in actuator systems, which account for around half of production costs. China is also emerging as a major force, accounting for the majority of new humanoid robot models and rapidly scaling its innovation and manufacturing footprint.
"Humanoid robots represent a structural shift in automation," said Zornitsa Todorova, Head of Thematic FICC Research Barclays. "As they move from concept to commercial reality, the implications for labour markets and industrial strategy are profound."
Barclays' Impact Series uses data-driven analysis to explore economic, demographic and disruptive changes affecting markets, sectors and society at large. The key findings of today's report include:
- Why now: Demographic pressures and labour shortages are creating demand for humanoids in manufacturing, logistics, healthcare and other sectors struggling to fill critical roles.
- The ‘three Bs': Advances in brains (software), brawn (physical motion capabilities), and batteries are driving cost declines. Actuators — the robotic "muscles" — are the largest cost component, accounting for roughly 50% of humanoid production costs.
- Industrial overlap: Humanoids share complexity with automotive manufacturing, offering Europe a natural advantage.
- Investment opportunity: As humanoid production scales, physical AI is emerging as the next major industrial theme — shifting value creation from software to hardware. This opens new upside for actuator makers, precision‑component suppliers and automation leaders who were largely absent from AI's first wave.
Read the full report here.
About Barclays
Our vision is to be the UK-centred leader in global finance. We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank. Through these five divisions, we are working together for a better financial future for our customers, clients and communities. For further information about Barclays, please visit our website home.barclays
View source version on businesswire.com: https://www.businesswire.com/news/home/20260114100182/en/
Claudia Gilbert-Allen
claudia.gilbertallen@barclays.com
+442077732064