Are humanoid robots ready for the real world?
Insight’s Amiya Johar assesses the prospects of the emerging humanoid robot industry.
Once confined to science fiction, companies are now racing to bring robots into homes, warehouses, hospitals, retail stores and beyond.
As the tech world toys with the promise of humanoid robotics, the question remains: are we anywhere near practical, widespread adoption?
Robots, everywhere
Headlines this year would suggest an inflection point.
In July, Chinese robotics company Unitree unveiled the R1, a 25KG humanoid robot with multimodal AI capabilities for voice and image recognition, at a starting price of $5,900.
In an industry where most humanoid machines cost tens of thousands of dollars, the R1’s price tag was seen as a pivotal moment.
Chinese tech giants including Honor and Huawei are also in the humanoid robotics race, utilising in-house AI and strategic partnerships to accelerate the development of intelligent machines and bring them from labs to homes and factories.
Meanwhile, Nvidia has a collaboration with automation and robotics company Hexagon to develop the Aeon humanoid robot for industrial deployments.
Earlier this year Saurabh Daga, disruptive tech analyst at GlobalData, noted the “surging momentum” in the sector is very much real; these developments “demonstrate rapid advances in AI, perception, and cost efficiency”, he said.
According to Daga, demand for humanoid robots is at an all-time high as global labour shortages, ageing demographics, and investments into the sector demonstrate growing “confidence in real-world humanoid deployments”.
Indeed, a 2025 report by research company STIQ revealed more than 50 developers globally are actively or semi-actively pursuing humanoid form factors.
To that end, use cases are becoming clearer. In healthcare, humanoid deployment is already underway. “Diligent Robotics’ Moxi humanoid is already streamlining logistics and support in over 30 US hospitals,” said Daga.
In hospitality and retail, humanoid robots are already offering basic concierge and translation services.
Andrew Kiguel, CEO of Realbotix, shared an optimistic outlook that “within 10 years, we will be interacting with humanoid robots in hotels, retail stores, hospitals, and schools”.
AI Acceleration
While a bold vision, the STIQ report warns of the “disjointed humanoid trap”, which explains a mismatch between robot form and function where impressive appearances mask limited capabilities. Overcoming this will require not just better AI, but development in hardware, humanoid sensory perception and emotional engagement.
Recent AI breakthroughs have undoubtedly bolstered robotics’ long-held ambitions. However, Kiguel believes this technology is only half of the equation, noting recent innovations “have been software based and none have focused on making the hardware or humanoid robots more accessible to humans”.
Daga agrees that humanoid robots may not be ready for mass-market adoption just yet. For now, they remain expensive, complex and mostly confined to pilot programmes or industrial deployments.
STIQ estimates that for the market to grow beyond simple pilots or hundreds of units per vendor, at least $5 billion in supply chain investment will be needed to bring the base cost of a humanoid robot down to under $10,000.
Data privacy, cybersecurity, and ethical design are also looming concerns, especially in sensitive environments like healthcare or education.
While the waters ahead remain murky, one thing is clear: the humanoid robotics sector is looking set for take-off.
Within 10 years, we will be interacting with humanoid robots in hotels, retail stores, hospitals, and schools
Andrew Kiguel, CEO, Realbotix