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Great strides have been made in technology and artificial intelligence, making humanoid robots seem like a not-so-distant reality.
In a recent episode of Opening Bid, Citi Global Insights analysts Rob Garlick and Wenyan Fei discussed their research on the advancement of humanoid robots over the next 25 years.
Robots are hardly new, but there’s a number of new developments that are happening,” Garlick told Yahoo Finance Executive Editor Brian Sozzi, adding, “Artificial intelligence [is] probably the most important.”
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The study suggested that one of the most likely areas for humanoid robots to make significant progress is in home services. Robots that can complete chores, such as folding laundry or mowing the lawn, and those designed to help care for older adults are projected to experience significant growth. Other use cases include parcel delivery, construction, and food delivery.
“I think by 2050 we are looking at a $7 trillion market for humanoids,” Fei said.
Tesla’s (TSLA) Optimus is one prominent example of a humanoid robot in development, but dozens of other companies are also making significant advancements in this field. According to the analysts, there are “over 50 different humanoids in development.”
Despite clear growth opportunities in the home market, robots are more likely to be implemented in industrial settings and the workforce before they become accessible to the everyday person.
“The payback period for these humanoids could be very, very short and deep,” Garlick noted. He estimated businesses could see a payback period as short as 36 weeks for some of these robots, though he admitted that “it’s not clear the substitution rate that you should use [for humanoids to human employees].”
Actually ramping up production of humanoid robots poses another big financial barrier for companies looking to deploy the technology.
“To put them into production, it’s quite expensive, especially if you want to build the production line for them,” Fei said. “I think maybe Tesla Optimus is definitely one of the leaders for the market.”
Ultimately, how humanoid robots are integrated into everyday life will be up to those who have the capital to invest in the market.
To that end, Garlick and Fei offered some cautionary words for the advancement of robots in the near future.
“You’ve got to be careful around the fact that just because a humanoid can do something doesn’t mean that they should do something,” Garlick said.
