The market for humanoid robots is poised to explode over the next decade - but there are already three major ways investors can start getting in on the trend, according to a new report from Barclays analysts.
Humanoids have become a fixation in the robotics field over the last few years. Advocates argue that they can eventually be integrated into environments traditionally designed for humans, performing work in factories, households and everything in between.
However, most of this technology is still in the early stages of development, according to experts. In 2026, just a few humanoids are set to be tested for use in U.S. households - a development that Ayanna Howard, a roboticist and senior member of the Institute of Electrical and Electronics Engineers (IEEE), described as the "holy grail" for robotics firms in an inteview with MarketWatch last month.
But Barclays analysts led by Zornitsa Todorova say the roughly $2 billion to $3 billion market for humanoids could gradually increase to as much as $25 billion by 2030. By 2035, the market could be worth $40 billion, according to the bank's base-case model - or $200 billion in a very optimistic scenario.
That should provide tailwinds for manufacturers of key robotic components, such as actuators or gears, according to Barclays. Morgan Stanley predicts that $2.5 trillion worth of motors alone will be required to meet the global robotics industry's needs by 2050.
"Many of these industrial players were not central to the firstwave of AI growth, which focused on model building and software," said Todorova in a Wednesday report. "A second wave - physical AI - brings an entirely new set of companies into the spotlight."
Citi analysts favor Schaeffler (XE:SHA0) $(SFFLY)$, which analysts on Tuesday said could provide at least 50% of the bills of materials needed for humanoids. The German firm has delivered prototype orders to 14 humanoid manufacturers and expects to convert some of them into revenue over the next two years, according to Citi. On Tuesday, it announced a deal to provide actuators to the British startup Humanoid.
"If Europe were to have a humanoid hardware champion, we believe Schaeffler could be that company," Citi analysts led by Ross MacDonald said in a Tuesday note to clients.
Beyond Schaeffler, Morgan Stanley analysts see opportunities for dozens of companies - from Intel $(INTC)$ and Texas Instruments $(TXN)$ to Samsung (KR:005930) and THK (JP:6481) - to help develop hardware for humanoids. Barclays notes that merger activity could ramp up over the next five years as involved firms look to strengthen supply chains and secure access to technology.
Advancements in humanoids should also benefit defense technology firms that make drone, autonomous vehicles and other advanced products, Barclays said. That's because similar technology, such as sensors or motors, can be applied for different purposes.
For example, chips made by Nvidia (NVDA) can be found in both driverless cars and drones. Lucid $(LCID)$ plans to power its self-driving software with the Thor platform, while AeroVironment $(AVAV)$ will use its predecessor in new electric vertical takeoff and landing (eVTOL) platforms.
"Progress in one domain accelerates the other," said Barclays. "Alegged battlefield robot or an exoskeleton suit relies on the same core technologies as a commercial humanoid, ruggedized for combat."
The robotics industry will also be highly dependent on critical minerals, and the 17 elements defined as rare earths. China is, by far, the biggest miner and producer of rare earths, exporting 62,585 metric tons in 2025, according to Reuters.
See more: Here's how to lower your risk when selecting rare-earth stocks to buy
"As physical AI adoption accelerates, demand for strategic minerals should surge - echoing the role of oil during the automotive boom," Barclays said, adding that higher demand will amplify the need to diversify supply chains beyond China.
In a recent report, Morgan Stanley championed three non-China rare earth stocks. Analysts there pointed to Australia's Lynas Rare Earth (LYSCF) and Iluka Resources (AU:ILU), as well as MP Materials (MP), which counts the U.S. Defense Department its largest shareholder.
There's also the option to invest directly in humanoid robotics companies, although many of them are private firms. Barclays pointed to 10 firms it said are the top humanoid developers.
That includes Tesla $(TSLA)$, which is developing the Optimus robot in conjunction with CEO Elon Musk's xAI, as well as Toyota Motor (JP:7203), which revealed its first humanoid robot in 2005. Boston Dynamics, a U.S.-based company owned by Hyundai Motor(KR:005380), is also one of Barclay's top picks.
Figure AI, a $39 billion humanoids startup, and 1xTechnologies, a Norwegian-American firm that plans to deliver its Neo home robot to U.S. customers later this year, also cracked the Barclays list.
Other recommendations include Chinese players: Fourier Intelligence, Engine AI, Ubtech (HK:9880), Unitree and Xpeng $(XPEV)$, which is best known for its electric cars.