The study involved four major activities in estimating the current size of the embodied AI market. Exhaustive secondary research collected information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation techniques were used to estimate the market size of segments and subsegments.
Secondary Research
The secondary research process has referred to various secondary sources to identify and collect necessary information for this study.
The secondary sources include annual reports, press releases, and investor presentations of companies; white papers; journals and certified publications; and articles from recognized authors, websites, directories, and databases. Secondary research was conducted to obtain critical information about the industry’s supply chain, the market’s value chain, the total pool of key players, market segmentation according to the industry trends (to the bottom-most level), regional markets, and key developments from market- and technology-oriented perspectives. The secondary data was collected and analyzed to determine the overall market size, further validated by primary research.
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the embodied AI market through secondary research. Several primary interviews were conducted with experts from the demand and supply sides across four major regions: North America, Europe, the Asia Pacific, and the RoW. This primary data was collected through questionnaires, emails, and telephone interviews.
Note: Other designations include technology heads, media analysts, sales managers, marketing managers, and product managers.
The three tiers of the companies are based on their total revenues as of 2024 ? Tier 1: >USD 1 billion, Tier 2: USD 500 million–1 billion, and Tier 3: USD 500 million.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, top-down and bottom-up approaches and several data triangulation methods were used to estimate and forecast the overall market segments and subsegments listed in this report. Key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of annual and financial reports of the top market players and extensive interviews for key insights (quantitative and qualitative) with industry experts (CEOs, VPs, directors, and marketing executives).
All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the parameters affecting the markets covered in this research study were accounted for, viewed in detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Bottom-Up Approach
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Identifying key countries contributing to the majority share of the embodied AI market in the region
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Analyzing major manufacturers of embodied AI, studying their portfolios, and understanding different types
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Analyzing trends pertaining to the use of embodied AI in different kinds of verticals
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Identifying and evaluating percentage splits by vertical for each region
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Evaluating the spending on embodied AI offerings for each segment
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Tracking the ongoing and upcoming developments in the market, such as investments, R&D activities, product/service launches, collaborations, and partnerships, and forecasting the market based on these developments and other critical parameters
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Carrying out multiple discussions with key opinion leaders to understand different types of embodied AI trends in the market, thereby analyzing the breakup of the scope of work carried out by major companies
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All estimates at each stage were confirmed through discussions with key opinion leaders, including corporate executives (CXOs), directors, sales heads, and industry experts from MarketsandMarkets.
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Arriving at the market estimates by analyzing the revenues of companies generated and then combining them to get the market estimate
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Segmenting the overall market into various other market segments
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Verifying and cross-checking the estimate at every level, from discussions with key opinion leaders such as CXOs, directors, and operations managers, and finally with the domain experts at MarketsandMarkets
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Studying various paid and unpaid sources of information, such as annual reports, press releases, white papers, and databases
Top-Down Approach
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Focusing initially on the top-line investments and expenditures being made in the ecosystem of the embodied AI market, further splitting the key market areas based on product type, level of embodiment, vertical, and region, and listing the key developments
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Identifying all leading players in the embodied AI market based on product type, level of embodiment, and vertical through secondary research and fully verifying them through a brief discussion with industry experts
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Identifying the product offerings of each player and their contribution toward the embodied AI market
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Understanding the company’s business units offering embodied AI products considered under the study
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Aggregating companies’ revenue and extrapolating to the global embodied AI market size (USD Million)
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Discussing splits with industry experts to validate the information and identify key growth pockets across all key segments.
Embodied AI Market : Top-Down and Bottom-Up Approach
Data Triangulation
After arriving at the overall market size, the market was split into several segments and subsegments using the market size estimation processes explained above. Data triangulation and market breakdown procedures were employed to complete the entire market engineering process and determine the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from the demand and supply sides in the embodied AI market.
Market Definition
Embodied AI is a segment of artificial intelligence where intelligent systems are embedded in physical entities, such as robots, autonomous vehicles, or assistive machines, allowing them to perform context-aware tasks through real-world interaction. The embodied AI market encompasses various product types, such as humanoid, mobile, industrial, service, and collaborative robots (cobots), exoskeletons, autonomous systems (including drones, vehicles, and AGVs), and smart appliances. These systems are categorized across three levels of embodiment based on their cognitive and interactive complexity, from basic rule-based machines to highly adaptive agents capable of complex reasoning and multi-modal interaction.
Key Stakeholders
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Government bodies and policymakers
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Industry organizations, forums, alliances, and associations
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Market research and consulting firms
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Raw material suppliers and distributors
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Research institutes and organizations
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Traders and suppliers
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Raw material suppliers
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Original equipment manufacturers (OEMS)
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OEM technology solution providers
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Technology, service, and solution providers
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Intellectual property (IP) core and licensing providers
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Suppliers and distributors
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Forums, alliances, and associations
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Technology investors
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Research institutes and organizations
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Analysts and strategic business planners
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Market research and consulting firms
Report Objectives
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To describe and forecast the embodied AI market by product type, level of embodiment, vertical, and region
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To forecast the embodied AI market by product type in terms of volume
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To provide the market size estimation for North America, Europe, the Asia Pacific, and the Rest of the World (RoW), along with their respective country-level market sizes, in terms of value
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To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing market growth
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To analyze the value chain, ecosystem, case studies, patent scenario, trade scenario, technologies, and pricing; identify key conferences and events; study key stakeholders & buying criteria; conduct Porter’s Five Forces analysis on the market; determine the investment & funding scenario; study regulations affecting the market: and explore the impact of the 2025 US tariffs on embodied AI
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To strategically analyze micromarkets with regard to individual growth trends, prospects, and contributions to the total market
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To analyze opportunities for stakeholders by identifying high-growth segments of the market
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To strategically profile the key players, comprehensively analyze their market positions in terms of ranking and core competencies2, and provide a competitive market landscape
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To analyze strategic approaches, such as product launches, expansions, and partnerships, in the embodied AI market
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To analyze the impact of the macroeconomic outlook for each region
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Regional Analysis:
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Further country-wise breakdown for the embodied AI market
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Further breakdown of the embodied AI market in industry-specific segments
Company Information:
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Detailed analysis and profiling of additional market players (up to five)
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Growth opportunities and latent adjacency in Embodied AI Market