As Robots Become Increasingly Viable, Investor Opportunities Are Emerging In New Places

Robotics have long offered investors the promise of significant ROI. However, the industry is also one that has a long maturation cycle. 

In part, this is because bringing robotic solutions to real-world users has long hinged on the progress of adjacent technologies, including AI and sensors. Now, new breakthroughs in real-time localization, mapping, and intelligent interfaces are set to bring these solutions into the market across sectors, from healthcare to space exploration.

For this reason, the robotics industry is projected to surpass $50 billion in revenue by the end of this year, with its market expected to grow at an annual growth rate of 9.49%.

Within the space, service robotics are expected to be its most dominant segment, with collaborative robots – also known as cobots – anticipated to have a significant impact on investments in this space. 

Cobots, which are increasingly reaching mainstream businesses, operate alongside human workers in environments ranging from Amazon (AMZN) warehouses to surgical suites. They are commonly used for repetitive or ergonomically challenging tasks in order to improve productivity, and are designed to work alongside people in a shared workspace.

For investors considering this industry, the sales volumes of cobots alone are projected to increase by 6,100%, per market research by IDTechEx. Packaging and palletizing in particular are experiencing rapid growth.

According to James Lambert of global forecasting firm Oxford Economics, "AI-driven robots are increasingly visible, providing concierge services, delivering groceries, and caring for the elderly. Humanoid robots like Tesla's (TSLA) Optimus and SoftBank's Pepper are blurring the line between tools and colleagues.” 

NVIDIA (NVDA), the top provider of graphics processing units, is playing a crucial role here. Its advanced chips are powering the next generation of robots, including Tesla’s Optimus. 

At the same, these tech heavyweights are not the only key players when it comes to this space. 

When it comes to cobots, opportunities are increasingly emerging in new locations. Here are 3 of the places for investors to keep their eyes on.  

At first glance for cobots, take note of South Korea’s lead in robotics 

When it comes to technology, the U.S. and China typically capture the attention of investors and the mainstream public. For instance, in February of this year 102 humanoid robots in China demonstrated their ability to perform all manner of essential tasks, including walking and washing dishes, at a facility on the outskirts of Shanghai. 

Meanwhile, manufacturing companies in the U.S. have invested heavily in robotics, with the total installations of industrial robots up 12%. 

However, investors would be remiss to ignore South Korea as its leading contender, particularly when it comes to cobots. 

The reason starts with density. According to the International Federation of Robotics' World Robotics 2024 report, Korea ranks first when it comes to the density of industrial robots. A study by AltIndex.com also showed Korea leading the world, boasting 1,012 robot units per 10,000 employees. 

This has placed Korea in pole position for the future of cobots, with robots being more actively deployed alongside people, and greater insight then being provided into how to most effectively leverage these across industries.

Additionally, the South Korean government is heavily investing and advocating for the robotics industry, with plans to deploy one million robots by 2030. The newly opened Seoul Robot & AI Museum (RAIM), for instance, also underscores the nation's growing commitment to the robotics and artificial intelligence industries. 

Further, South Korea has become the first country in the world to replace more than 10% of its industrial workforce with robots. 

It's also important to consider the socioeconomic drivers behind this. While other countries may look to robots as a way to cut costs or boost efficiency, South Korea has a much more fundamental need: a collapsing birth rate means there is a critical need for robotic solutions that will prop up strategic industries and help to maintain the nation’s economy. 

Chul Wan Park, Vice President of the Korea Association of Robot Industry (KAR), explained, "As the country faces labor shortages due to low birth rates and rising costs, the increased adoption of industrial robots is crucial to maintaining our leadership in strategic industries."

We can already see this in action. At Factorial Seongsu in Seoul, Hyundai Motor Group's DAL-e Delivery robot autonomously delivers drinks and packages throughout the building, interfacing seamlessly with the smart infrastructure, including entrance gates and elevators, utilizing facial recognition technology to deliver its cargo.

Automating tasks with robots also helps prevent long-term health issues, prevent injuries, and the kind of work stoppages that happen when people get hurt. Having employees manage some of these risky jobs from a safe distance while cobots handle the physical side adds a layer of protection that hasn’t been possible before.

This urgent, underlying need is driving uptake and adoption faster in South Korea than anywhere else in the world, and as measures are taken to ensure safety, investors will increasingly take note. 

Government policy is now increasingly dictating competitive advantage with cobots 

When considering investments in winners and losers for cobots, public support for robotic initiatives also needs to be considered. Economies across the globe are increasingly supporting the industry; however, government development programs are pursuing variant strategies. 

Starting in the European Union, Horizon Europe is one of the EU's key innovation frameworks, with its €100 billion program carrying significant weight. It aims to boost Europe's competitiveness and strengthen the region's scientific base.

These efforts are needed, as according to statistics from IFR’s World Robotics the EU has a robot density of 219 units per 10,000 workers, or close to 80% less than in South Korea.

As an example of this support, RoboSAPIENS, which is supported by Horizon Europe and ISDI, is developing the underlying technologies that enable robots to fully autonomously adapt their controllers and configuration settings, while also ensuring trustworthiness.

These companies will also need help to develop regulations and laws to support their adoption. If robots are in public spaces, policies need to reflect this. 

While the U.S. tech industry is typically less reliant on government interventions, American robotics companies are actually pushing for a national robotics strategy. 

The goal here is to establish a federal office to act as a strategic champion for the integration of robotic technology in the U.S. 

Representatives of companies — including Tesla, Boston Dynamics and Agility Robotics — met with lawmakers on Capitol Hill in March of 2025 to "show off products and push for the United States to adopt policies that would boost American companies in a global race to develop the next generation of robots."

The move is a response to China making intelligent robots a national priority. The Association for Advanced Automation earlier suggested "tax incentives to help drive adoption, along with federally-funded training programs and funding for both academic research and commercial innovation." 

The constituents have argued that a new federal robotics office is necessary partly because of "the increasing global competition in space" as well as the "growing sophistication" of the technology.

We can also expect the robotics industry to integrate with everyday devices that go beyond computers and phones, to even household appliances. This can increase the risks of cyberattacks, as we seemingly connect more items to a network that remains increasingly vulnerable. 

According to Charlie Sander, cybersecurity expert and CEO of ManagedMethods, "The start of 2023 saw a 41% rise in the average number of weekly cyberattacks targeting IoT devices," with some reports indicating a 47% further increase in 2025.

It’s important to understand that attacks can range from stealing sensitive data, malicious software that impacts operations, and even physical safety risks, in which control of devices can be done remotely. 

Don't overlook the emerging innovators setting the agenda for cobots

While Amazon and tech goliaths often garner the headlines, including news of Amazon deploying over 1 million robotics, it is the startups that are setting the tone for the years ahead.

This past year startups in the industry raised $6.4 billion, tracking toward $7.5 billion for the year, exceeding 2023’s $6.9 billion. If we zoom in further, we can see the shifts in the industry that VCs and startups are making today. In particular, companies are responding to real demand by solving overlooked needs in specific sectors.

Kiwibot, for instance, is an example of a startup that has been substantially growing in the robotics space since it was founded in 2017 at UC Berkeley. Their visibility began by broadening robotics to younger consumers through partnering with universities to provide deliveries. They have also leaned into creative use cases, like rolling several autonomous robots into Times Square, New York, as part of a product marketing campaign for a health juice brand. They have since garnered the attention of investors, securing funding from firms including Kineo Finance and Bay Wharf Capital. The company recently rebranded to Robot.com.

Others are building in more technical areas. Corvus Robotics, backed by One Way Ventures, is focused on automating warehouse inventory. Allie is targeting gaps in manufacturing by building an AI tool that connects machines, cameras, and systems to monitor production from end to end. In logistics, startups like Transmetrics are using AI to solve common problems with routing, delivery timing, and planning. 

We're also seeing how advances in complementary areas of AI such as reinforcement learning and computer vision are strengthening the potential of robotic solutions, making self-driving vehicles and consumer-level robotics possible and pushing data collection to levels never seen before. 

JD Raimondi, Head of Data Science at Making Sense, said, "It’s likely this will turn into a couple of breakthroughs that will push the possibilities of automation even further. Even small improvements, like model efficiency, go to great lengths in devices that work not always attached to a battery or that need to carry their weight.” 

In the healthcare sector, Dutch company Loop Robots has recently launched in the U.S. to automate surface disinfection using robotic technology. This helps fight hospital-acquired infections while reducing the use of chemicals. 

Another example can be found with a collaboration between NTT DATA 9432 and Mitsubishi Chemical Corporation 4188. Here, the two companies have developed a smart robotics solution for automated facility inspections. The system uses a quadruped robot equipped with AI and active sensing technology to perform autonomous equipment monitoring and anomaly detection in manufacturing facilities, where the robot is able to navigate with AR markers and analyze highly subtle pipeline vibrations.

The future of the robotics industry is collaborative 

To realize the incredible potential of robots, these devices need to support the needs of users across industries. 

AI is helping to make this possible in previously impossible ways by giving robotics real-time access to data to make intelligent, autonomous decisions that let them work alongside humans. 

The fusion of AI and robotics is making this an industry that is a must-watch for the investment community.