(MENAFN- GlobeNewsWire - Nasdaq) The Physical AI Market is accelerating as breakthroughs in robotics, computer vision, and edge AI enable smarter autonomous systems, with the U.S. segment rising from USD 1.52 billion in 2025E to USD 14.13 billion by 2033 amid strong innovation and growing automation adoption.

Austin, Dec. 05, 2025 (GLOBE NEWSWIRE) -- The Physical AI Market Size is valued at USD 5.23 Billion in 2025E and is expected to reach USD 49.73 Billion by 2033 and grow at a CAGR of 32.53% during the forecast period.

Rapid advancements in robotics, perception technologies, and AI capabilities that allow machines to sense, understand, and act in the real world while successfully fusing intellect with physical action are driving the rise of the physical AI market.

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The U.S. Physical AI Market size is USD 1.52 Billion in 2025E and is expected to reach USD 14.13 Billion by 2033, growing at a CAGR of 32.17% over the forecast period of 2026-2033.

Strong robotics innovation, cutting-edge AI research, and widespread automation in the industrial, logistics, healthcare, and defense sectors are driving the growth of the U.S. industry. Deployment of intelligent, autonomous physical systems is accelerated by large investments, encouraging government initiatives, and broad commercialization.

Segmentation Analysis:

By Component

In 2025, Hardware led the market with a share of 56.40% due to it forms the foundational layer of robotic and autonomous systems, including sensors, actuators, mobility units, AI chips, and integrated mechatronic assemblies. Software is the fastest-growing segment with a CAGR of 34.10% driven by accelerated integration of AI algorithms, real-time perception, control systems, and cloud robotics platforms.

By Technology

In 2025, Computer Vision led the market with a share of 45.02% due to it is fundamental for object detection, inspection, navigation, medical imaging, and environment mapping capabilities that nearly all physical AI systems depend on. Reinforcement Learning & Control Systems is the fastest-growing segment with a CAGR of 31.14% driven by the need for robots and autonomous machines that can learn, adapt, and self-optimize.

By Form Factor

In 2025, Industrial Robots led the market with a share of 36.12% due to their long-established role in manufacturing, automotive, electronics, and heavy engineering industries. Cobots is the fastest-growing segment with a CAGR of 35.12% as companies increasingly adopts human-robot collaboration to improve safety, flexibility, and efficiency on production floors.

By Deployment

In 2025, On-device led the market with a share of 51.24% due to it enables real-time processing, low-latency decision-making, and high reliability, which are essential for surgical robots, autonomous navigation, industrial manipulators, and safety-critical operations. Cloud-based AI is the fastest-growing segment with a CAGR of 38.61% driven by increasing reliance on cloud robotics platforms, federated learning, remote fleet management, and continuous AI model updates.

By Applications

In 2025, Manufacturing & Automotive led the market with a share of 45.20% due to extensive use of robots for assembly, welding, inspection, material handling, and production automation. Healthcare is the fastest-growing segment with a CAGR of 34.90% as hospitals rapidly adopt surgical robots, rehabilitation systems, patient-assistive robots, and AI-driven diagnostic platforms.

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Regional Insights:

The North America dominated the physical AI market in 2025E, with over 40.86% revenue share, due to early adoption of advanced robotics, strong AI capabilities, and high investment in automation across manufacturing, defense, healthcare, and logistics. The Asia Pacific region is expected to have the fastest-growing CAGR 33.51%, driven by rapid industrial automation, increasing labor costs, and rising demand for advanced robotics across manufacturing, logistics, automotive, and smart infrastructure.

Intelligent Robotics Adoption is Accelerating the Market Expansion Globally

The fast-growing use of intelligent robots and autonomous systems in the manufacturing, healthcare, logistics, defense, and service industries is a key factor propelling the growth of the physical AI industry. Businesses are moving toward robotic systems with sophisticated AI capabilities that can not only carry out mechanical tasks but also observe, evaluate, and react to real-world settings. Robots can now carry out intricate, unstructured, real-time tasks that are beyond the capabilities of traditional automation because to advancements in computer vision, multimodal AI, edge processing, and reinforcement learning.

Key Players:

• SoftBank Robotics Group
• ABB
• Toyota Motor Corporation
• FANUC
• KUKA AG
• Siemens
• Boston Dynamics
• Tesla
• NVIDIA
• Google DeepMind
• Agility Robotics
• Mech-Mind Robotics
• Hanson Robotics
• Universal Robots
• iRobot
• Intuitive Surgical
• Doosan Robotics
• Covariant
• Apptronik
• UBTech

Recent Developments:

• In January 2025, NVIDIA launched a robotics-focused compute stack including its new“Jetson Thor” AI-chip platform for humanoid robots positioning itself as a foundational infrastructure provider for physical AI.
• In March 2025, DeepMind unveiled two new robotics-oriented AI models Gemini Robotics and Gemini Robotics-ER enabling robots to perform vision-language-action tasks and adapt to new physical tasks without explicit training.

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Exclusive Sections of the Report (The USPs):

• Supply Chain & Manufacturing Performance Metrics – helps you understand production volumes, capacity utilization rates, and global import–export flow of AI hardware components to assess manufacturing efficiency and supply chain stability.
• Trade & Regulatory Compliance Indicators – helps you analyze tariff structures, safety certification levels, AI governance compliance, and environmental impact data to evaluate regulatory pressure across regions.
• Investment & Financial Attractiveness Index – helps you track funding activities, CAPEX trends, and ROI performance, enabling identification of high-growth opportunities in robotics and Physical AI development.
• Sustainability & Green Robotics Benchmarks – helps you measure adoption of energy-efficient processors, use of recyclable materials, and eco-certification compliance to understand the shift toward environmentally responsible Physical AI systems.
• Technology & Material Advancement Analysis – helps you uncover emerging trends in next-gen sensors, processors, and eco-friendly hardware design that are shaping the evolution of Physical AI solutions.

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CONTACT: Rohan Jadhav - Principal Consultant Phone: +1-315 636 4242 (US) | +44- 20 3290 5010 (UK)

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