Global Embodied AI Systems Market Size (2023 – 2030)

The Global Embodied AI Systems Market was estimated to be worth USD 15.96 Billion in 2023 and is projected to reach a value of USD 59.18 Billion by 2030, growing at a steady CAGR of 17.8% during the forecast period 2023-2030.

Market Overview

Embodied AI systems are a type of artificial intelligence (AI) that tries to imitate human-like intelligence and behaviour by combining sensory, motor, and cognitive processes. They are meant to interact with the environment and people in a natural way, and they have the potential to change industries including healthcare, education, gaming, and robotics.

Embodied AI systems are composed of both hardware and software components. Sensors, actuators, and processors are common components of hardware, while algorithms let the system learn and adapt to its surroundings. Many reasons are driving market expansion, including rising demand for individualised healthcare services, the requirement for automation in numerous sectors, and the increasing acceptance of IoT and cloud-based technologies. Furthermore, because of the requirement for contactless and distant solutions, the COVID-19 pandemic has expedited the implementation of embodied AI systems in healthcare and other areas.

Embodied AI Systems Market Drivers

The need for Automation is boosting the growth of the market

The necessity for automation is one of the key drivers of the embodied AI systems industry. Automation has become an essential component in a wide range of industries, including manufacturing, logistics, healthcare, and retail. Embodied AI systems can assist in automating formerly manual processes, allowing human workers to focus on higher-level jobs that demand creativity and problem-solving abilities. Embodied AI systems can be used to automate operations like quality control, assembly, and inspection in the manufacturing industry. This can aid in increasing efficiency, decreasing mistakes, and improving product quality. Similarly, in the logistics industry, embodied AI systems can be used to optimize supply chain processes, improve delivery times, and reduce costs.

Advancements in AI Technology will drive the market growth

AI technology improvements are another major driver of the embodied AI systems industry. Significant gains in AI technology have occurred in recent years, including advances in natural language processing, computer vision, and machine learning. These breakthroughs have enabled the creation of more complex embodied AI systems that can detect, reason, and behave in the world in a more human-like manner. Advances in AI technology have also enabled the development of more customised and adaptable embodied AI systems. These systems may learn from their encounters with users and adjust to their preferences and demands over time. This can assist to generate more tailored and engaging experiences for users, whether they are interacting with embodied AI systems in the healthcare, education, or entertainment industry.

Embodied AI Systems Market Challenges

The issue of data bias may impede the growth of the market

Data bias is one of the most difficult difficulties confronting embodied AI systems. To learn and make judgments, embodied AI systems rely on massive volumes of data. This data, however, may be skewed, resulting in biased decision-making by the AI system. To solve this issue, it is critical that the data utilised to train embodied AI systems be varied and reflective of the community. Furthermore, developers must be aware of the possibility of bias in the system's algorithms and take efforts to prevent this prejudice.

Ethical Considerations may restrain the market growth

Ethical problems are another major challenge for embodied AI systems. Embodied AI systems have the potential to change many elements of society, including work, healthcare, privacy, and security. As a result, the ethical implications of their creation and usage must be considered. Embodied AI systems may be utilised in the employment market to automate operations traditionally performed by humans. Yet, ethical questions have been raised about the impact of such systems on employment and job displacement.

Impact of COVID-19 on the Embodied AI Systems Market

The COVID-19 pandemic has accelerated the demand for Embodied AI Systems as businesses and industries seek to automate tasks and create more personalized and interactive experiences in a world of remote work and social distancing. The pandemic has also highlighted the importance of AI-powered solutions in healthcare, education, and other critical industries, driving investment and innovation in embodied AI technology. However, the pandemic has also presented challenges such as disrupted supply chains, delayed research and development, and ethical concerns around the use of AI in a crisis.

EMBODIED AI SYSTEMS  MARKET REPORT COVERAGE:

Embodied AI Systems Market Segmentation

Embodied AI Systems Market Segmentation – By Application

• Healthcare

• Education

• Retail

• Gaming

• Others

Due to the rising need for AI-powered solutions that may improve patient care, minimise medical mistakes, and increase the efficiency of healthcare operations, the healthcare category is likely to have the greatest market share. Embodied AI systems can help healthcare workers by acting as therapeutic robots, personal assistants, or diagnostic instruments. The education industry is also predicted to increase dramatically as more AI-powered educational technologies and learning aids are used. Embodied AI systems may help teachers in the classroom, create tailored learning experiences for students, and improve education generally. Overall, the market segmentation by application reflects the diverse range of use cases for embodied AI systems and the potential for these systems to provide significant benefits in various industries.

Embodied AI Systems Market Segmentation – By Function

• Speech Recognition

• NLP

• Gesture Recognition

• Others

The sensing, perception, and gesture recognition function is predicted to have the largest market share since it is a fundamental component of embodied AI systems. Sensors, cameras, microphones, and other sensory inputs enable systems to comprehend and interpret the environment and human behaviour. This feature is critical for allowing technologies to connect with humans and complete activities in a natural and intuitive manner. The manipulation and grasping function are also projected to increase significantly since it allows embodied AI systems to manipulate items and execute activities that involve physical interaction with the environment. Another developing section is the social and emotional function, which enables embodied AI systems to understand and respond to human emotions and social cues.

Embodied AI Systems Market Segmentation – By Region

• North America

• Europe

• Asia-Pacific

• Middle & Africa

North America is estimated to have the largest market share by region during the forecast period since it is a major centre for technology research and development. Many companies and research organisations in the region are working on embodied AI systems, and there is a high demand from industries such as healthcare, education, and entertainment. Europe is a key market for embedded AI systems, with significant demand from areas such as healthcare, manufacturing, and agriculture. The Asia Pacific region is also likely to have significant development in the embodied AI systems market because to increased demand from industries like as healthcare, education, and manufacturing. Demand for contemporary technologies and services is being fuelled by the region's enormous population and rising middle class.

Key Players

The top key players in the embodied AI systems market include:

1. SoftBank Robotics

2. Hanson Robotics

3. Embodied, Inc.

4. Blue Frog Robotics

5. Pal Robotics

6. Toshiba

7. Sony

8. Honda Motor Co., Ltd.

9. Toyota Motor Corporation

10. Samsung Electronics

These firms are pioneers in creating and manufacturing embodied AI systems, and they are heavily spending in R&D to improve their capabilities and broaden their market reach. Moreover, they are collaborating with several businesses and organisations to install their systems and develop fresh applications for embodied AI technology.