In the latest show of confidence in the humanoids sector, Morgan Stanley has projected that the market could generate up to US$5 trillion in annual revenue by 2050.
The global investment bank tipped that humanoids will primarily be deployed in commercial and industrial settings, with adoption beginning in the 2030s.
The bullish projection follows recent moves by leading tech companies, including Tesla’s Optimus project, Figure AI, and Agility Robotics, which are actively working to commercialise general-purpose humanoids. However, growing concern remains that without scaling up domestic manufacturing, the US may repeat past strategic missteps and risk ceding ground to China’s fast-advancing robotics sector.
In fact, according to Victoria Mio, head of greater China equities and portfolio manager at Janus Henderson, China is preparing to lead the next industrial revolution – and humanoid robots are at the centre of it.
In a piece penned for InvestorDaily, Mio said the country’s humanoid robot sector is moving rapidly from concept to reality, underpinned by serious capital, strong policy support and industrial deployment.
“The buzz around humanoid robots isn’t just market hype,” Mio said, noting that year-to-date, Chinese humanoid robot-related stocks have outperformed the broader equities market.
“This excitement stems from a shared belief among Chinese investors and industry players that humanoids may become the next widely adopted terminal device after smartphones and electric vehicles.”
The tipping point, she said, came this year, which marked the beginning of mass production in China.
“A comprehensive humanoids ecosystem is being built in China,” Mio said.
“Many Chinese companies have begun ramping up mass production and speeding up the training of humanoid robots, targeting both industrial and consumer use. These are not just prototypes in labs.”
Beijing has made robotics a national priority.
Namely, in January 2024, China’s Ministry of Industry and Information Technology released detailed guidelines for humanoid robot development. The goal: to become a global centre of excellence by 2029.
Already, more than 10 provinces and cities – including Shenzhen and Hangzhou – have integrated humanoid robotics into local economic development plans.
What’s particularly notable is the cross-sector convergence.
Suppliers from China’s electric vehicle boom – makers of servo motors, sensors, LiDAR, and AI chips – are pivoting to serve the humanoid robotics market.
This dual-use synergy is reinforcing industrial capability and cost efficiency, with some models now priced as low as US$16,000.
Though challenges remain – insufficient data collection, short battery life, low degrees-of-freedom and limited strength – Mio noted that iterative upgrades will push humanoids into more sectors over time.
Moreover, Mio noted that humanoid robots don’t just rely on AI, they help refine it, generating real-world, multi-modal data (vision, force, touch) that can train better AI models, making the algorithms more accurate and robust, forming a self-reinforcing cycle.
“This is why China’s AI developers – including those working on large language models (LLMs) like DeepSeek – see humanoid deployment as a key next step to enrich data pipelines and improve model performance,” she said.
Mio noted that overall, “the age of humanoid robots is arriving”.
“This is a strategic combination of deep tech with real hardware, strong policy backing, growing commercial interest and global relevance.
“Humanoid robots are not science fiction anymore. They are industrial reality, just in early form.”
