Embodied AI Ushers in a New Robotics Era: ABI Research Identifies Multi-Billion-Dollar Retrofit Market and Even Larger Greenfield Opportunity
NEW YORK, Nov. 11, 2025 /PRNewswire/ -- The integration of artificial intelligence (AI) into robotics is no longer a futuristic concept but a present-day reality poised for significant market expansion, according to global technology intelligence firm ABI Research. A new report, The Landscape of AI in Industrial and Collaborative Robotics, reveals that AI-augmented industrial and collaborative robots have achieved the technological maturity required for widespread adoption, presenting tangible ROI opportunities for manufacturers and logistics providers alike. This pivotal moment is set to unlock substantial new revenue streams, addressing complex, dynamic, and dexterous tasks previously unattainable with traditional automation.
"For years, the robotics industry has grappled with the 'sim-to-real' gap and the over-promising of nascent AI. Our deep dive into the technology's readiness confirms that robust algorithms, particularly in Dynamic Policy Adjustment (DPA) and emerging Robotics Foundation Models, are now capable of delivering on the promise of true adaptive automation," said George Chowdhury, Senior Analyst at ABI Research. "This isn't about incremental improvements; it's a paradigm shift where robots can finally adapt to the unpredictable real world, moving beyond rigid programming to genuinely intelligent, adaptive execution."
While existing static manufacturing processes continue to be served by traditional robotics, the significant growth potential lies in "under-automated" markets and workflows requiring sophisticated, heterogeneous dexterous manipulation. This includes specialized sectors such as life sciences, niche high-value manufacturing (e.g., semiconductor production), and the expansive logistics and warehousing industries, where the ability to handle variability is paramount.
ABI Research's latest taxonomy of physical AI technologies highlights key advancements reshaping robotics, including reinforcement learning, robot foundation models, large language model (LLM) interfaces for human-robot interaction (HRI), new SLAM and world models, agentic AI, Dynamic Policy Adjustment (DPA) platforms, and machine vision algorithms. The report assesses the maturity of these technologies and identifies leading innovators driving progress in each area.
Companies advancing DPA and adaptive automation include InBolt, T-Robotics, Apera, Cambrian AI, V-SIM, Summer Robotics, Robovision, and NVIDIA. In machine vision hardware and vertical AI-robotics solutions, notable players include SICK, Solomon3D, Cognex, Basler, Mech-Mind, Intel RealSense, Zebra, Nikon, OnRobot, Augmentus, and Universal Robots. Additionally, new robotics foundation models from Google DeepMind, Covariant, Intrinsic, Meta, Dexterity, Field AI, Skild AI, and Physical Intelligence signal a shift toward more capable and adaptable autonomous systems.
"The critical challenge now is translating this technical readiness into widespread commercial adoption," said Chowdhury. "Vendors must prioritize usability, transparency, and clear ROI metrics to overcome economic uncertainty and market skepticism. This report is an essential guide for enterprises looking to strategically invest in embodied and physical AI, offering the insights needed to identify lucrative applications, navigate integration complexities, and accelerate their automation journey in this transformative era."
These findings are from ABI Research's The Landscape of AI in Industrial and Collaborative Robotics presentation report. This report is part of the company's Industrial, Collaborative & Commercial Robotics research service, which includes research, data, and ABI Insights.
About ABI Research
ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
ABI Research是一家全球性的技术情报公司，拥有得天独厚的优势，充当终端市场公司和技术解决方案提供商之间的桥梁，通过提供独家研究和专业性指导，推动成功的技术实施和提供经证明可吸引和留住客户的战略，无缝连接这两大主体。
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