Humanoid Robots in Spotlight: The Dawn of Physical AI Era

A New Frontier in Robotics and Artificial Intelligence

The robotics landscape is undergoing a seismic shift as humanoid robots emerge as pivotal players in the evolution of artificial intelligence, with industry leaders heralding 2025 as the year of "physical AI." Nvidia CEO Jensen Huang captivated audiences at CES 2025 in Las Vegas, appearing alongside a humanoid robot he personally trained, declaring that a "ChatGPT moment for robotics" is imminent. He predicts that soon, "everything that moves will be a robot," signaling a future where humanoid robots seamlessly integrate into both industrial and everyday life. Global giants like Hyundai and Tesla are pouring resources into humanoid robot development, unveiling cutting-edge models at CES 2025. This article, drawing from an in-depth analysis in DBR (DongA Business Review) Issue 410, explores why humanoid robots are gaining traction, their potential as AI-native devices, and the challenges they must overcome to achieve widespread commercialization.

The concept of "physical artificial intelligence" marks a leap beyond linguistic reasoning, enabling AI to comprehend spatial and geometric realities, thanks to breakthroughs in graphics processing units (GPUs). These advancements allow for massive computations at reduced costs, empowering AI to influence the physical world in unprecedented ways. Nvidia is spearheading this revolution with its "World Foundation Model" (WFM), a technology capable of predicting future states in virtual environments and generating videos grounded in physical laws. Their Cosmos platform, built on WFM, aims to accelerate AI development for robotics, autonomous driving, and industrial applications, positioning humanoid robots as the bridge between digital intelligence and tangible action.

Humanoid robots are increasingly viewed as the ultimate "AI-native devices," purpose-built for the AI era. Much like computers drove the internet revolution and smartphones fueled the mobile era, these robots could redefine how we interact with technology. In past technological shifts, devices and interfaces paved the way for transformative applications like email and booking systems. Today, while AI applications like ChatGPT lead the charge, the absence of dedicated AI hardware has left a gap. Efforts to fill this void, such as the Rabbit R1 unveiled at CES 2024 as an "AI assistant in your hand," have faltered. Despite selling 50,000 units in pre-orders, Rabbit R1 faced criticism for underdelivering on functionality and failing to differentiate itself from smartphones. This vacuum has thrust humanoid robots into the spotlight, with experts suggesting they could become the game-changing hardware of the AI age. Tesla CEO Elon Musk boldly claims that humanoid robots will be "the greatest consumer device in history," envisioning a future where households own multiple units.

Yet, the path to this rosy future is fraught with hurdles, as humanoid robots must first prove their practical value. The journey of robot vacuum cleaners offers a compelling parallel. For years, the "robot vacuum cleaner paradox" persisted in the consumer electronics industry: despite widespread adoption, these devices struggled to claim more than 10% of the vacuum market because they couldn’t fully replace traditional cleaners. Early models, introduced in the 2000s, languished in obscurity until the 2020s, when brands like Roborock disrupted the status quo. By focusing solely on enhancing robot vacuum performance with superior suction, multi-sensor navigation, and advanced technology, Roborock proved that such devices could replace traditional vacuums in 99% of scenarios, turning skepticism into market dominance. At CES 2025, Roborock’s booth drew crowds eager to see a new model featuring a robotic arm, underscoring the power of innovation in driving adoption.

Humanoid robots face a similar challenge of demonstrating real-world utility. Though development began in the early 2000s, their commercial breakthrough has been elusive due to unclear applications. However, recent strides in industrial settings are shifting the narrative. Robotics startup Figure AI has made waves by deploying its humanoid robots on BMW’s production lines, where they handle tasks like transporting parts, assembling components, and conducting inspections. This success highlights their potential in manufacturing, where precision and efficiency are paramount. With advancements in agent AI software, sensors, and motor technology expected to accelerate in 2025, experts anticipate a "tipping point" for general-purpose humanoid robots, bringing their widespread use closer than ever.

Beyond factories, humanoid robots hold promise for diverse consumer applications, from elderly care to education and hospitality. Tesla’s Optimus, set for limited production in 2025, aims to tackle both industrial and household tasks, while Boston Dynamics’ electric Atlas excels in complex, autonomous operations. These developments suggest a future where humanoid robots not only perform labor but also engage socially, evolving into companions and assistants. However, scaling this vision requires overcoming steep barriers. Manufacturing costs remain high, estimated at $30,000 to $150,000 per unit in 2024, per Goldman Sachs Research, posing a challenge for consumer markets. Safety, reliability, and user acceptance are equally critical; robots must be intuitive and trustworthy in homes. Technical prowess also needs to advance to handle the unpredictable demands of daily life, such as cooking or caregiving.

Market projections underscore the stakes. Analysts forecast the humanoid robot market could reach $38 billion by 2035, with 1.4 million units shipped, driven by demand in Asia-Pacific, particularly China, where companies like UBTECH Robotics and Huawei are investing heavily. In the U.S., initiatives like the National Robotics Initiative fuel innovation. These trends point to a robust growth trajectory, with a compound annual growth rate of 15.57% projected through 2034, when the market could hit $6.72 billion. As costs decline and capabilities expand, humanoid robots could mirror the robot vacuum’s arc, transitioning from niche tools to household staples.

The spotlight on humanoid robots reflects a broader technological inflection point. As physical AI blurs the line between digital and real-world interaction, these machines stand poised to reshape industries and homes alike. Their success hinges on proving utility, much like their vacuum predecessors, but the stakes are higher and the potential rewards vast. With 2025 marking a pivotal year, the robotics industry is on the cusp of a transformation that could redefine our relationship with technology for generations.