Robotics Market Forecast: Top Trends for Robotics in 2025

Where investment dollars are flowing

The robotics industry’s growth is also being fueled by substantial research and development investments.

Global advisory firm Benchmark International estimates that the global robotics market will grow at a compound annual growth rate of 15.1 percent to reach US$169.8 billion by 2032.

James Lambert, a leading expert on the economic impact of technology and director of economic consulting, Asia, at Oxford Economics, offers a retrospective analysis of the firm’s 2019 study How Robots Change the World:

“Our prediction of rapid robotics adoption in manufacturing was on target. The economic promise of productivity gains and long-term growth have attracted sustained investment.’

Industrial robotics, used in assembly and material handling, is also expanding. Analysis from Statista reveals that costs to deploy industrial robots have been declining over the last decade as new players increase competition and technology improves. The projected cost per robot in 2025 is as low as US$10,856, down from US$27,000 in 2017.

Companies leading the charge in this subsector include Swiss-Swedish ABB (OTC Pink:ABLZF), one of the world’s largest robotics companies, and FANUC (OTC Pink:FANUY), a Japanese-based robotics company.

Lambert also highlights the growth of collaborative robots (cobots) and the surprising pervasiveness of robots in service sector jobs: “The use of cobots…has expanded dramatically, with cobots operating alongside human workers in environments ranging from Amazon (NASDAQ:AMZN) warehouses to surgical suites.”

Amazon is expanding its robotics sector beyond warehouses with a pilot project for automated grocery stores.

The sales volume of collaborative robots (cobots) is projected to increase by 6,100 percent between 2025 and 2045, according to market research by IDTechEx. Packaging and palletizing are experiencing especially rapid growth in the food and beverage industry.

“AI-driven robots are increasingly visible, providing concierge services, delivering groceries, and caring for the elderly. Humanoid robots like Tesla’s (NASDAQ:TSLA) Optimus and SoftBank’s Pepper are blurring the line between tools and colleagues.”

NVIDIA (NASDAQ:NVDA), the leading provider of GPUs, is playing a crucial role in this robotic revolution. The company’s advanced chips are powering the next generation of robots, including Tesla’s Optimus bot and its autonomous robotaxi service.

At the GPU Technology Conference in March 2024, NVIDIA revealed its ambitious plans to accelerate the development of humanoid robots with the introduction of Project GR00T, a foundation model designed to enable robots to understand natural language, learn from human demonstrations and perform complex tasks.

NVIDIA also launched a powerful computer, Jetson Thor, equipped with advanced AI capabilities and designed for humanoid robots. Jetson Thor will reportedly hit the market in H2 2025.

“The ChatGPT moment for physical AI and robotics is around the corner,” Deepu Talla, NVIDIA’s vice-president of robotics, told the Financial Times in a report exploring NVIDIA’s pivot into robotics as competition in the semiconductor industry heats up.

Beyond NVIDIA, other companies are also making significant contributions to the robotics field. In April 2024, Boston Dynamics shared that the newest version of its advanced humanoid robot Atlas eventually be available for purchase. Boston Dynamics is further expanding its reach through its research partnership with the Toyota Research Institute. Hyundai, through its controlling stake in Boston Dynamics, offers indirect exposure to the private company.

Qualcomm (NASDAQ:QCOM) is another key enabler of the current generation of robotics, having played a pivotal role in the development of 5G technology, which has enabled a new level of performance and autonomy for robots. The Robotics RB5 platform is Qualcomm’s hardware and software development kit specifically designed for robots.

Robotics in healthcare

While still in early stages, robotic integration in healthcare is becoming more widespread. A Grandview Research report estimates the global market for medical service robots will grow at a compound annual growth rate of 16.5 percent between 2025 to 2030, reaching US$84.8 billion by 2028.

Expected to reach US$7.42 billion by 2030, surgical robotics is a burgeoning field, thanks to advancements in medical robot technology that enable procedure-specific tools and capabilities.

Surgical robots can enhance patient safety and, in some cases, reduce recovery times, ultimately improving surgery outcomes, especially for precision surgeries involving the heart, brain and spine, for example.

Progress in the field continues with a recent breakthrough by researchers from Johns Hopkins and Stanford Universities, who have developed robots capable of learning surgical procedures such as suturing by observing and mimicking actions in a video. This breakthrough, presented at the Conference on Robot Learning in Munich in September, marks the first time robots have been trained in this manner.

This rapid advancement in robotic surgery has attracted a growing number of companies developing innovative surgical systems. Intuitive Surgical (NASDAQ:ISRG) has been a pioneer in the field of robotic surgery. Best known for creating the da Vinci surgical system, the company’s tools were designed to allow surgeons to perform operations through smaller incisions.

Its newest iteration, the da Vinci 5, builds upon its groundbreaking lineup with enhanced tactile feedback and an upgraded 3D vision system. The system was granted FDA clearance in March of this year.

However, after years at the top of this niche industry, Intuitive Surgical is encountering competition from players like Medtronic (NYSE:MDT), who launched the Hugo RAS system in 2021 and began US clinical trials in May 2024 for hernia repair and gynecological procedures.

Additionally, newer market entrant Johnson & Johnson’s (NYSE:JNJ) medical devices subsidiary, JNJ MedTech, received investigational device exemption (IDE) approval from the US Food and Drug Administration (FDA) for its robotic surgical system OTTAVA on November 12 and can now begin trials.

Beyond general surgery, the robotic surgery field is expanding into specialized areas. For example, Procept BioRobotics (NASDAQ:PRCT), a medical technology company specializing in urology, announced FDA clearance of its HYDROS robotic system in August. HYDROS uses AI to help doctors perform personalized aquablation therapy. The company issued an offering of common stock on October 29 priced at US$91.00 per share, a strong indication of investor confidence in future prospects.

This trend towards specialization is also evident in orthopedic surgery, where robotic systems are being increasingly adopted for knee and hip replacements. Stryker (NYSE:SYK) and Smith & Nephew (NYSE:SNN) (S&N) are both key players here. Stryker has achieved widespread adoption of its early entrant, the MAKO system, for knee and hip replacements. S&N, while entering the market later with its handheld CORI system, affords surgeons greater flexibility and tactile feedback during procedures and offers a broader range of implant compatibility.

S&N’s newer system, the CORIOGRAPH Pre-Op Planning, complements the CORI for total hip arthroplasty by creating and importing a pre-operative plan to help guide surgeons during the procedure. The system received FDA clearance on December 19, 2024.

Johnson & Johnson is also positioning itself as a contender in this growing market with its DePuy Synthes VELYS Robotic-Assisted Solution, a system designed to enhance the precision and accuracy of knee replacement procedures by providing surgeons with real-time data and guidance during surgery. The system was showcased at 2024’s American Association of Hip and Knee Surgeons 2024 Annual Meeting in Dallas, and studies have suggested that the system may lead to lower knee-related healthcare costs within 90 days of surgery compared to other robotic-assisted technologies.

Robotics in defense technology

Governments worldwide are increasing their military spending, with the US Department of Defense investing heavily in autonomous systems and drone technology. The Replicator initiative, for instance, aims to deploy thousands of AI-powered unmanned aerial vehicles and robots, highlighting the growing importance of robotics in defense.

Palantir (NASDAQ:PLTR) and Anduril are two key players in this space, securing major contracts for data integration and autonomous systems development. Both companies are also involved in developing software integration architectures for the Army’s Robotic Combat Vehicle program. Their collaboration on AI-powered solutions for national security and Anduril’s research partnership with OpenAI further solidify their positions in the defense sector.

Another major player, AeroVironment (NASDAQ:AVAV), released a software update to its uncrewed aircraft systems with a visual navigation system that allows the drones to ‘see’ and understand their surroundings, even in challenging environments when GPS signals are jammed or unavailable.

Beyond defense applications, advancements in areas like autonomous navigation, sensor technology and data analysis have applications in space exploration, a transformative sector dominated by companies pushing the boundaries of space exploration with innovative technologies, such as reusable rockets and advanced navigation systems. SpaceX and Rocket Lab (NASDAQ:RKLB) are two key players in this space.

During SpaceX’s fifth test flight of its Starship, intended for lunar and Martian missions, on October 13, giant robotic arms were used to catch the reusable Super Heavy booster during the Mechazilla “chopstick” landing. Rocket Lab has at least three launches planned for 2025 and is a strong contender for a major contract to build and launch satellites for the Space Development Agency.

Other companies utilizing robotic technology to advance aerospace, satellite technology and Earth observation, such as Planet Labs (NYSE:PL), BlackSky (NYSE:BKSY), and Spire Global (NYSE:SPIR), have all experienced year-over-year growth.

Meanwhile, on the surface of Mars, NASA’s Perseverance rover is currently testing AI-powered software designed to autonomously identify rocks that may hold clues to the planet’s potential for past life. Government funding, which NASA relies on to fund the projects it contracts to private companies, is crucial to advancing space exploration. The proposed budget for NASA in 2025 is US$25.4 billion, two percent higher than last year’s budget.

And while NASA focuses on lunar exploration, Elon Musk — with a newfound influence on economic policy — has his sights on a more ambitious target: Mars. In September, Musk tweeted his plans to send two Starships to Mars in 2026 and 2028, the next two upcoming launch windows for Mars missions this decade.

Casey Dreier, Chief of Space Policy for The Planetary Society, raises questions about how Trump’s re-election could impact the space industry and NASA, potentially leading to increased uncertainty and changes in funding priorities.

“The reality of canceling (lunar programs), many of which have enjoyed rock-solid support from Congress over the past decade, will be no easy task, and it is unclear that the Trump Administration would want to pick a fight with members of its own party, particularly given the narrow advantage Republicans hold in both congressional chambers,” he wrote in an op-ed following the election results. “This is an area to watch closely.”

Investor takeaway

The robotics sector is undergoing a period of rapid change. Startups like Figure AI and Physical Intelligence have managed to secure backing from high-profile investors like Jeff Bezos and tech’s heaviest hitters NVIDIA, Microsoft and OpenAI.

The involvement of such high-profile investors and established tech giants underscores the growing recognition of the immense potential within the robotics industry. As this landscape continues to evolve, staying informed and adaptable will be essential for investors navigating the opportunities and challenges that lie ahead.