Physical AI and robots could create trillion-dollar market by 2035, Barclays predicts

'Decade of the Robot' Paves Way for Trillion-Dollar Market, Barclays Says

The market for AI-powered robots and autonomous machines has the potential to balloon into a trillion-dollar opportunity by 2035, orders of magnitude bigger than it is now, according to a team of Barclays analysts. Autonomous vehicles, which are already relatively advanced, will lead the way, followed by drones and then more complicated general-purpose humanoid robots, the analysts wrote in a report Tuesday titled "The Decade of the Robot." "Advances in brains, brawn and batteries are pushing AI-enabled robotics to an inflection point, setting the investment agenda for the next decade," wrote the team led by Zornitsa Todorova, head of thematic fixed-income research at Barclays. The development of robotics and other real-world, "physical AI" marks a paradigm shift from digital-focused AI, one that lays the foundation for a "value chain" that will be more diverse and deeper than the first wave of AI products, they said. A new report from Barclays projects that in the next decade physical AI could grow to be a trillion-dollar market, with autonomous vehicles leading the way. Barclays Thematic FICC Research Team Director Zornitsa Todorova joins Ed Ludlow on "Bloomberg Tech." While China currently dominates humanoid and industrial robot deployment, the Barclays analysts identified close to 200 public issuers that could be involved in the theme over the next decade, including 100 with at least one corporate bond outstanding. "We see automakers emerging as potential major participants, alongside growing deployment of robotic systems across warehousing, logistics and retail," they wrote. Examples include Mercedes-Benz Group AG's use of Nvidia Corp.'s Omniverse to "virtually retool factories with minimal disruption" and Tesla Inc.'s focus on robots during its fourth-quarter earnings callBloomberg Terminal. The team highlighted the software and hardware underpinning the technology, including semiconductor and infrastructure providers such as Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and Nvidia Corp. They also flag "robotic hardware and motion systems that perform physical tasks," along with batteries, which "provide the energy backbone for these platforms," citing Chinese manufacturers like EVE Energy Co. and Contemporary Amperex Technology Co. The Barclays analysts also point to a group they call enablers, which are companies that either build full robots, like Tesla, or "shape the broader ecosystem" by developing technology, like Amazon.com Inc. A shift toward physical AI is already showing in large-scale logistics and retail operations at companies such as Amazon and Walmart Inc. They note Amazon has more than one million robots operating in its fulfillment network, "which is likely still only a fraction of the long-term potential."

Elon Musk's Trillionaire Goal Could Be Met With Optimus, Robotaxi As Barclays Predicts Trillion-Dollar Market For Physical AI - Tesla (NASDAQ:TSLA)

Analysts at English multinational bank Barclays predict that Physical AI, including Robots and Robotaxis could make up a $1 trillion market, in what could be a boost to Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk's trillionaire ambitions. A Trillion-Dollar Market For Physical AI According to a new research note released by analysts, accessed by Bloomberg on Tuesday, the physical AI sector could transform into a $1 trillion market by 2035. The report comes due to large-scale "advances in brains, brawn and batteries," which would push AI-enabled robotics to "an inflection point," Zornitsa Todorova, the head of thematic fixed-income research at the bank, said in the report. It's worth noting that industry experts suggest that Nvidia's Alpamayo technology could not only help automakers scale their autonomous driving ambitions, but also help with certain tasks in production and manufacturing sectors, which see applications of physical AI. Musk's Trillion-Dollar Pay PackageTesla's Focus On RoboticsOther Robotics Players Musk, during Tesla's earlier earnings call, also warned of potential competitors for the Optimus robot emerging from China. "I do think that by far, the biggest competition for humanoid robots will be from China," he said. The robot, according to Boston Dynamics, is capable of lifting objects weighing up to 110 lbs and can function smoothly in temperature ranges from -4° to 104° F. While the company also mentions that a task learned by a single Atlas unit could be replicated by the entire fleet. Benzinga Edge Rankings show that Tesla scores well on the Momentum metric and offers a favorable price trend in the Long Term. Price Action: TSLA slid 1.63% to $410.63 at Market close on Tuesday, but gained 0.80% to $413.92 during premarket trading on Wednesday. Check out more of Benzinga's Future Of Mobility coverage by following this link. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.