The rise of humanoid robots is not just a trend: it’s a revolution fuelled by advancements in technology and increasing demand for automation. 

Here are the top trends in robotics startups that you should keep an eye on as we step into this exciting new era.

Humanoid tech goes mainstream

Remember when smartphones were a novelty? Well, humanoid robots are following a similar trajectory. Humanoid robots are set to dominate the market, with Goldman Sachs estimating their total addressable market will soar to $38 billion by 2035 – a staggering increase from previous estimates of just $6 billion. 

And what's encouraging is that they are becoming more affordable than ever. Last year, the cost for these advanced machines ranged from $50,000 to $250,000. Now, you can find models starting at around $30,000. 

This price drop makes humanoid robots more accessible than ever, comparable to some luxury vehicles.

Why humanoid robots?

You might wonder, "Why make robots look like us?" The answer is simple – our world is built for humans. Doors, tools, machines – they're all designed for our body type. 

Humanoid robots can slot right into this existing infrastructure. Plus, think about all the tasks human hands can do. Now imagine a robot that can do all that, but without coffee breaks or vacation days.

This human-centric design is precisely why humanoid robotics startups are attracting significant investment. Morgan Stanley analysts, along with other industry experts, think that the rise of humanoid robots makes sense because we have the most comprehensive data to train these robots. And that’s because they share our physique, and our environment is already "brownfielded" for humanoid integration.

Investment surge

The robotics sector is witnessing a significant uptick in investment, with startups raising approximately $6.4 billion in 2024 alone. This trend is expected to push total funding for the year close to $7.5 billion, surpassing last year's $6.9 billion. 

Notably, major players like Amazon founder Jeff Bezos are heavily investing in this space, co-leading rounds for companies like Physical Intelligence and Figure. This influx of capital indicates strong confidence in the future of humanoid robotics.

Another example is Sanctuary AI, a Vancouver-based artificial intelligence and robotics company creating general-purpose humanoid robots. It has attracted investment from corporate giants such as Accenture Ventures, Magna, Verizon, and Bell Canada. 

This influx of capital from diverse corporate investors is a strong indicator of the corporate players’ confidence in the future of humanoid robotics and their potential for widespread adoption.

Real-world applications

Humanoid robots are no longer confined to research labs: they are actively being tested and utilised in real-world settings. 

For instance, BMW recently piloted humanoid robots in their production line, successfully integrating them into tasks like fitting sheet metal parts for car chassis. 

Similarly, Agility Robotics has deployed its robots in warehouses, showcasing their potential to enhance efficiency in logistics and manufacturing.

Addressing labour shortages

With an aging population and significant labour shortages – especially in essential roles – humanoid robots are emerging as a viable solution. 

The US alone currently has 8.1 million job openings, yet only 6.8 million unemployed workers available to fill these positions. Humanoids can help bridge this gap by taking on tasks in warehouses, transportation, and retail sectors where human labour is increasingly scarce.

The age of AI-robotics collaboration

We are witnessing now some industry experts calling the "ChatGPT moment" for robotics, where advanced AI is merging with humanoid technology. This synergy allows robots to learn and adapt more effectively through observation and imitation, enhancing their ability to perform complex tasks and interact naturally with humans. Partnerships between AI firms and robotics startups are paving the way for groundbreaking innovations that could redefine how we think about automation.

For example, NVIDIA has partnered with Siemens to integrate its NVIDIA Isaac robotics platform into Siemens’ automation solutions. This collaboration focuses on enhancing industrial robots' capabilities through AI-driven functions, enabling them to autonomously perform complex tasks like picking and packing without prior training.

As we look forward to 2025, it’s clear that humanoid robots will play a pivotal role in shaping our world. 

What makes this moment exciting as well is that no one country or region appears to be completely dominant in this emerging sector. Some Western companies may lead in advanced AI software models, and Asia is likely to become the manufacturing hub for humanoid components because of its supply chain infrastructure and lower production costs.

As an early-stage robotics founder, this global distribution of expertise and resources makes it an incredibly exciting time. The lack of a clear market leader opens up opportunities for innovative startups to carve out their niche and potentially become frontrunners in this rapidly evolving field.

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