Physical AI Market Outlook

What is Physical AI?

 

Physical AI is a technology in which artificial intelligence directly interacts with the real physical world, collecting data through sensors and IoT devices, and making real-time judgments and controls in robots or autonomous systems. Unlike existing digital AI (text, images, voice, etc.), physical AI is characterized by encompassing cognition, judgment, and behavior in real environments.

 

Market Growth Outlook

 

• Market Size and Growth Rate

 

o The global physical AI market is expected to grow from approximately USD 72.6 billion in 2024 to USD 166 billion in 2030, with an estimated compound annual growth rate (CAGR) of approximately 16.4%.

o Embedded AI (used in industrial automation, healthcare, autonomous driving, etc.) is expected to grow to approximately USD 45 billion by 2029.

o Demand is rapidly increasing in various industries such as robots and autonomous systems, smart factories, healthcare, logistics, and mobility.

 

• Key growth drivers

 

o Advancement of AI and robotics technology, edge computing, and high-performance semiconductor development

o Increasing demand for automation and maximizing efficiency in manufacturing, logistics, and healthcare

o Expanding adoption to address social issues such as the aging population and labor shortage

o Creation of new markets such as autonomous driving, smart cities, and smart homes.