Barclays analysts now see humanoid robots as the next wave of industrial automation. In a note, Zornitsa Todorova said the “next frontier” for AI is physical, with machines that can lift, move, and interact like humans. The firm projects a jump from a $2‑$3 billion market to $200 billion by 2035.

Humanoids blend mechanical strength with advanced AI, a mix the bank calls “brains, brawn and batteries.” 30‑fold cost cuts over the past decade have made units cheaper, yet actuators still drive about half of production expenses, posing a bottleneck for future growth.

Demand spikes from ageing populations, labor shortages, and workers seeking less repetitive work push industries—manufacturing, logistics, agriculture, healthcare, hospitality—to adopt humanoids that can perform human‑like interaction and dexterity. Europe’s deep manufacturing base gives it a structural edge in the supply chain for global efficiency today.

Barclays flags actuator makers, automation leaders, and precision component suppliers as the next big investment theme. As humanoids enter commercial expansion, analysts expect a surge in demand for high‑precision parts, battery tech, and AI‑driven control systems, reshaping supply chains worldwide for future growth and innovation.