LIVE MARKETS-AI, humanoids and the next trillion-dollar tech race

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AI, HUMANOIDS AND THE NEXT TRILLION-DOLLAR TECH RACE

Humanoid robots are expected to become a major part of global industries, with Morgan Stanley analysts estimating a $5 trillion market and 1 billion humanoid robots by 2050.

China is in the "pole position" in the development and expansion of AI-enabled humanoid robots, giving it a distinct advantage in this emerging field, MS says.

"While it is far too soon to declare an end-state 'champion' in the race for agentic humanoid robot supremacy, if the United States wants to remain competitive in this critical area of applied AI we believe significant changes in manufacturing capability, education and national policies would need to occur", MS added in a note last week.

Unlike traditional industrial robots, humanoids are designed to work in dynamic environments and take on tasks in areas like healthcare, security, and household management.

According to BofA Global Research, advances in AI, motion control, and lower hardware costs are driving adoption. They estimate humanoid robot shipments will reach 1 million units annually by 2030 and 10 million by 2035.

BofA forecasts that by 2060, there will be three billion humanoid robots in use globally. This prediction is based on the idea that humanoid robots will replace 20% of workers in the industrial sector and 50% in the service sector.

Each robot is expected to replace 2.5 workers in the industrial sector and 1.5 workers in the service sector, it added in a note last week.

In March, Nvidia NVDA.O CEO Jensen Huang said he believes humanoid robots could become widely adopted in manufacturing facilities within the next five years.

Tech giants and startups alike are investing heavily, with some legacy auto manufacturers pivoting to humanoid robotics. Tesla, for example, is leveraging its expertise in AI, robotics, and energy storage to expand beyond electric vehicles.

The future of technology will see rapid advancements across AI, autonomous driving, Agentic AI, and automation, reshaping industries and consumer interactions. AI, autonomous driving, Agentic AI, and automation technologies are at the forefront of this transformation, offering significant opportunities for innovation and efficiency, Bernstein said in a note last week.

"These are sectors that investors should focus on as incubators for the next trillion-dollar company".

(Akriti Shah and Joel Jose)

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