According to a recent report by Citi, the global landscape of robotics is set to transform significantly, with projections indicating that by 2035, there will be 1.3 billion robots equipped with artificial intelligence (AI), rising to 4 billion by 2050.
The report highlights three key categories of robots, with humanoids emerging as a particularly noteworthy segment. Designed to fit into human environments, humanoids are expected to first proliferate in industrial settings, such as manufacturing and warehouses, before becoming more common in households. By 2035, it is estimated that 13.3 million humanoids will be in use worldwide, increasing to 648 million by 2050.
Humanoids will benefit from advancements in AI, which will enhance their communication and autonomy, as well as their fine motor skills. For example, Elon Musk predicts that the Tesla humanoid robot, Optimus, may cost around $25,000, potentially recouping its investment in as little as 36 weeks based on the U.S. minimum wage.
The report also notes that humanoids could fill roles that are either hazardous or undesirable for humans, addressing labor shortages in certain sectors. Unlike human workers, robots do not change jobs or take vacations, presenting a stable solution to workforce challenges.
In the realm of autonomous vehicles, Waymo, a spin-off from Google, has already completed over 25 million miles with its self-driving cars, which currently perform 100,000 autonomous rides weekly.
Furthermore, the household robot market is the most developed segment, with a projected penetration rate of 20% in advanced economies by 2023. The emergence of AI and large language models is expected to further enhance product capabilities, with the market for robotic vacuum cleaners alone growing from $3.8 billion in 2018 to an estimated $7 billion in 2023, reflecting a 13% annual growth rate.