PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930278
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930278
The global artificial intelligence (AI) robots market is witnessing exponential growth, driven by rapid advancements in artificial intelligence technologies, increasing automation across industries, and rising demand for intelligent machines capable of autonomous decision-making. According to Fortune Business Insights, the market was valued at USD 6.19 billion in 2025 and increased to USD 7.46 billion in 2026. It is projected to reach USD 60.68 billion by 2034, exhibiting a remarkable CAGR of 30.0% during the forecast period (2026-2034). North America dominated the global market with a share of 37.02% in 2025, supported by strong technological infrastructure and high investments in AI innovation.
Artificial intelligence robots integrate robotics with AI technologies such as machine learning, computer vision, and natural language processing. These robots are capable of perceiving their environment, learning from experience, and performing complex tasks autonomously. Initially limited to industrial automation, AI robots are now increasingly used in healthcare, logistics, retail, defense, and customer service applications.
Market Dynamics
Market Drivers
The rising demand for automation across manufacturing, logistics, and service industries is a major driver of market growth. Businesses are adopting AI robots to address labor shortages, rising operational costs, and productivity challenges. These robots can perform repetitive, hazardous, and high-precision tasks efficiently, allowing human workers to focus on value-added activities.
Technological advancements in machine learning, computer vision, and cloud-based AI platforms have significantly enhanced robot capabilities. The COVID-19 pandemic further accelerated adoption as organizations sought contactless solutions to maintain operations, reinforcing the long-term demand for AI robotics.
Market Restraints
Despite strong growth, the market faces challenges related to high deployment and maintenance costs. Advanced AI robots require significant upfront investment, making adoption difficult for small and medium-sized enterprises. Additionally, integration complexities with existing systems, workforce reskilling requirements, and regulatory concerns related to safety and data privacy act as restraints on market expansion.
Market Opportunities
The integration of IoT with AI robots presents significant growth opportunities. Connected robots can collect real-time data, communicate with other systems, and optimize operations dynamically. Smart manufacturing, smart cities, and intelligent logistics solutions are creating new application areas, particularly in emerging economies adopting digital transformation initiatives.
Market Trends
A key trend shaping the market is the growing adoption of collaborative robots (cobots) that safely work alongside humans. Cobots are gaining popularity in manufacturing and logistics due to their flexibility, safety features, and ease of deployment.
Another major trend is rapid innovation in AI technologies, including 5G-enabled connectivity, real-time data processing, and multimodal AI models, which enhance robot autonomy and responsiveness. These developments are expanding AI robot use cases from industrial automation to personal assistance and healthcare services.
By Component
The hardware segment dominates the market, accounting for 65.42% share in 2026, driven by rising demand for sensors, processors, and actuators. Meanwhile, the software segment is expected to grow at the fastest pace, registering a CAGR of 28.99% (2026-2034) due to increased adoption of intelligent algorithms and cloud-based AI platforms.
By Technology
Machine learning leads the market, capturing 48.93% share in 2026, owing to its ability to enable robots to learn, adapt, and improve performance. Natural language processing, computer vision, and context awareness technologies further enhance human-robot interaction and environmental understanding.
By Application
Industrial robots dominate with a 58.04% market share in 2026, supported by automation needs in manufacturing. Service robots are projected to grow at the highest CAGR of 28.02%, driven by expanding applications in healthcare, logistics, and hospitality.
By End User
The manufacturing sector leads the market with 40.48% share in 2026, while transportation & logistics is expected to register strong growth due to rising e-commerce and warehouse automation.
North America led the market with USD 2.30 billion in 2025 and USD 2.78 billion in 2026, supported by strong R&D investments and presence of key players such as Microsoft, NVIDIA, and ABB.
Asia Pacific emerged as the fastest-growing region, valued at USD 2.59 billion in 2026, with the highest CAGR of 29.50%, driven by China, Japan, and India.
Europe reached USD 1.59 billion in 2026, supported by automation initiatives in Germany, France, and the U.K.
South America and Middle East & Africa show steady growth as automation adoption increases.
Competitive Landscape
Major players include NVIDIA, ABB, Alphabet Inc., Boston Dynamics, Fanuc, SoftBank Group, and Hanson Robotics. These companies focus on innovation, partnerships, and AI platform development to strengthen market presence.
Conclusion
The global artificial intelligence robots market is poised for exceptional growth, expanding from USD 6.19 billion in 2025 to USD 60.68 billion by 2034. Strong demand for automation, rapid AI advancements, and expanding applications across industries are driving this growth. While high costs and integration challenges persist, increasing adoption of collaborative robots, IoT integration, and government-backed digital initiatives will support long-term expansion. With North America maintaining leadership and Asia Pacific emerging as the fastest-growing region, AI robots are set to play a transformative role in the future of global automation and intelligent systems.
Segmentation By Component
By Technology
By Application
By End User
By Region
Key Market Players Profiled in the Report NVIDIA Corporation (U.S.), ABB (Switzerland), Alphabet Inc. (U.S.), Boston Dynamics (U.S.), Brain Corporation (U.S.), Fanuc (Japan), Figure AI (U.S.), Hanson Robotics (China), SoftBank Group Corp (Japan), and UBTech Robotics (China).