AI in robotics – a trillion-dollar market is gaining momentum

The next generation of intelligent robots is leaving the laboratories and entering factories, warehouses, and everyday life.

The International Federation of Robotics (IFR) has presented a current position paper on this topic – and the figures speak for themselves: industry experts and analysts estimate the future market potential at several trillion dollars.

AI is fundamentally changing robotics.

Artificial intelligence is no longer merely an addition – it is becoming the central driver of modern robotics.

Takayuki Ito, President of the International Federation of Robotics, also makes this clear: “The integration of AI into robotics allows for improved capabilities, increased efficiency, and greater adaptability. This development transforms AI from a supporting technology into a powerful enabler, thus opening doors for wider use of robotics across all industries.”

The new IFR position paper “AI in Robotics” highlights trends, challenges and commercial applications of this development – ​​and provides a clear outlook for the coming years.

Which industries are leading the way?

Not all sectors are at the same stage. Three areas stand out for Artificial Intelligence and robotics currently stands out as a pioneer.

Logistics and warehousing are currently considered leading application areas. High investment readiness, growing demand, and comparatively controlled environments make this sector particularly attractive for the use of AI-supported robots. The spectrum of possible applications ranges from intralogistics to the entire supply chain.

Manufacturing and industrial automation are another key focus. Companies in the automotive, electronics, and pharmaceutical industries are increasingly relying on intelligent robotic systems to optimize production processes, reduce errors, and perform assembly tasks more precisely.

The service sector is also catching up. The ongoing labor shortage – noticeably worsened in many areas since the pandemic – is accelerating the use of robots in the service industry. Restaurants are already testing robot waiters and kitchen assistance systems. Experts see the future in hybrid models: robots take over repetitive tasks, while humans handle personal contact and complex interactions.

Robots learn in virtual worlds

A paradigm shift is emerging – away from programmed individual commands and towards self-learning systems. The terms "Physical AI" or "Embodied AI" encompass technologies that enable robots to train in virtual simulations of real-world environments and further develop their behavior based on their own experiences.

This development is attracting massive investments. In the US, Amazon, Tesla, and Nvidia have announced record sums. Venture capital is flowing into a growing ecosystem of specialized startups.

In Europe, ABB has signed an agreement to sell its robotics business to Japan's SoftBank Group – a deal that aims to combine the AI ​​expertise of both companies.

China is going a step further: The Ministry of Industry and Information Technology (MIIT) has officially declared "Embodied AI" a "future industry" and presented its own action plan to accelerate the sector. The technology is considered central to China's economic transformation.

Return on investment as a factor

For companies, the economic benefits are often the deciding factor. Compared to conventional automation solutions, AI-supported robotic systems frequently promise a faster return on investment – ​​through efficiency gains, lower error rates, and reduced maintenance costs.

It's a trillion-dollar market. Analysts predict that AI will achieve widespread market penetration in robotics applications within the next five to ten years.

The position paper “AI in Robotics” by the International Federation of Robotics is available for free download in English at ifr.org/papers/download.

Sierks Media / © Photo: Enchanted Tools, Unsplash