Market size and Overview
Rapid advancements in machine learning algorithms, surging demand for automation across industries, and acute labor shortages are the primary market drivers of the Artificial Intelligence (AI) Robots Market. Integration of AI-powered robotics in manufacturing lines and service sectors is accelerating market growth and driving digital transformation, while supportive government policies in major economies boost industry size. Technological collaborations and strategic alliances are unlocking new market opportunities in 2024 and 2025. These trends are expanding industry size across Asia-Pacific and North America. This market report offers critical insights into market dynamics shaping growth.
The Global Artificial Intelligence (AI) Robots Market size is estimated to be valued at USD 20.82 Bn in 2025 and is expected to reach USD 149.34 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 32.5% from 2025 to 2032.
Segment Categories Overview
Product type, application, and end-user form the core market segments in this Artificial Intelligence (AI) Robots Market Insights report, as per our market insights. The product type segment comprises industrial robots, service robots, and collaborative robots; industrial robots dominated revenue in 2024 with USD 6.5 Bn driven by AI-enabled predictive maintenance in automotive plants, while collaborative robots recorded the fastest growth, registering 45% deployment increase in SMEs by 2025 and improving their industry share in the SME segment. Application segments cover pick-and-place, welding, assembly, diagnostics, and cleaning; pick-and-place led demand, whereas diagnostic robots saw a 50% year-on-year surge by mid-2025. This delineation of market segments frames the market scope for stakeholders.
Market drivers
One of the most influential market drivers in the Artificial Intelligence (AI) Robots Market is the acute shortage of skilled labor amid escalating production demands. In 2024, global machinery sectors reported a 12% workforce deficit, prompting a 20% rise in robotics investments year-on-year, according to a 2024 industry insights survey. Additionally, governments in the U.S. and EU unveiled USD 2.3 Bn in grants for robotics R&D in early 2025, incentivizing AI integration across manufacturing and logistics. These supportive policies, combined with continuous algorithmic advancements, bolster market size projections and create substantial market opportunities, while also addressing market challenges and restraints related to operational efficiency and workforce upskilling.
Segment Analysis
This Artificial Intelligence (AI) Robots Market revenue analysis underscores the dominance and expansion of the product type segment. Industrial robots remain the leading sub-segment, delivering USD 8.3 Bn in revenue in 2024, driven by ABB’s AI-driven robotic arms that increased production uptime by 18%. Meanwhile, collaborative robots are the fastest-growing sub-segment, achieving a 55% revenue growth rate in H1 2025. Universal Robots’ deployment of cobots in over 600 SMEs boosted application scope in electronics assembly and quality inspection, showcasing the sub-segment’s market potential. This detailed market analysis underscores the segment’s dynamics and highlights significant market growth strategies for business growth.
Consumer Behaviour Insights
End-user preferences in 2024–2025 reveal three key behavioural shifts in the AI robots domain. First, a growing demand for customization led 65% of manufacturers surveyed in 2024 via our proprietary market research to request modular end-effectors and adaptive software, as per a Deloitte robotics survey on industry trends. Second, sustainability preferences have driven a 30% increase in adoption of energy-efficient AI robots, with buyers citing total cost of ownership reductions. Third, digital consumption habits are evolving: 70% of logistics firms now prefer cloud-based robot management platforms for remote monitoring and predictive maintenance, according to a Frost & Sullivan feedback report. These patterns inform Artificial Intelligence (AI) Robots Market trends and underline evolving buyer decision-making patterns.
Key Players
Key market players shaping the Artificial Intelligence (AI) Robots Market include ABB, AIBrain, Inc., Alphabet, Argo AI, LLC, Blue F., Boston Dynamics, Fanuc, KUKA, SoftBank Robotics, Yaskawa, Universal Robots, Epson Robots, Denso Wave, Kawasaki Heavy Industries Robotics, Mitsubishi Electric, Siemens, Intuitive Surgical, Hanson Robotics, Neato, and iRobot. In 2024, ABB launched a new AI-powered robotic arm that increased throughput by 15%, while AIBrain, Inc. expanded manufacturing capacity in APAC in early 2025 to meet surging demand. Alphabet’s robotics division acquired a vision system startup in late 2024, enhancing perception capabilities, and Blue F. partnered with a leading logistics provider in 2025 to deploy autonomous warehouse bots, driving accelerated market revenue growth.
Key Winning Strategies Adopted by Key Players
ABB implemented a digital twin platform in 2025 to simulate and optimize robotic workflows, reducing unplanned downtime by 25% and setting new market growth standards. In 2024, AIBrain, Inc. introduced its NeuroAI architecture for adaptive learning, increasing autonomous decision-making speed by 40%, a strategy that is not yet widely replicated. SoftBank Robotics debuted a subscription-based service model in mid-2025, enabling SMEs to access AI robots through operational expenditure budgets, boosting penetration by 30% in emerging markets. These differentiated approaches demonstrate business growth levers and offer learning opportunities for other players to enhance their competitive edge and Artificial Intelligence (AI) Robots Market share.
FAQs
1. Who are the dominant players in the Artificial Intelligence (AI) Robots Market?
Based on our research, ABB, Fanuc, KUKA, Yaskawa, and Boston Dynamics are among the dominant players, leveraging strong R&D pipelines and comprehensive service networks to secure large-scale deployments in automotive, electronics, and logistics sectors.
2. What will be the size of the Artificial Intelligence (AI) Robots Market in the coming years?
The Global Artificial Intelligence (AI) Robots Market is projected to grow from USD 20.82 Bn in 2025 to USD 145.25 Bn by 2032 at a 32% CAGR. Rising automation adoption and supportive policies will continue to expand overall market size.
3. Which end-user industry has the largest growth opportunity?
While manufacturing holds the largest revenue base, the healthcare sub-segment—including surgical robots and diagnostic assistants—demonstrates the fastest growth trajectory, with a 50% CAGR through 2025 driven by minimally invasive procedures and increased hospital automation budgets.
4. How will market development trends evolve over the next five years?
Key trends include deeper AI integration in collaborative robots, expanded cloud-based management platforms for remote operations, predictive maintenance services, and modular customization options. These developments will shape market dynamics and business growth strategies through 2032.
5. What is the nature of the competitive landscape and challenges in the Artificial Intelligence (AI) Robots Market?
The landscape features a mix of long-established industrial robotics giants and agile startups. Challenges include high initial CAPEX, interoperability complexities, regulatory compliance, and workforce upskilling. Differentiation through AI capabilities and service models is critical for competitive positioning.
6. What go-to-market strategies are commonly adopted in the Artificial Intelligence (AI) Robots Market?
Common strategies include strategic partnerships with system integrators, digital twin services for workflow optimization, subscription-based rental models, government-funded pilot projects, and localized manufacturing to reduce lead times and adapt solutions to regional regulatory requirements.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)