Humanoid robots took center stage at a Chicago convention last week, performing dances and handshakes while highlighting a growing industry challenge: keeping these machines safe around humans. Recent viral incidents—a robot dancing uncontrollably at a restaurant, another kicking a child in China—reveal the risks as these machines become more common in workplaces.

Agility Robotics, an Oregon company with bots already working in an auto-parts factory behind protective barriers, plans to go public at a $2.5 billion valuation. The funding reflects investor confidence despite safety concerns that could derail adoption. These machines weigh up to 200 pounds and pose serious injury risks if they lose power and topple over.

Makers insist no one has been seriously hurt yet, but engineers like Michele Silva of Reynolds & Moore warn about crush hazards. Companies are pouring resources into electronics, sensors and engineering to address these dangers before wider deployment.

The sector's growth trajectory depends on solving safety issues. Morgan Stanley projects 1 billion humanoids globally by 2050, creating a $7.5 trillion market. Without reliable safety measures, that ambitious vision faces significant obstacles.