Global Physical AI and robotics development

The technological landscape is shifting toward ‘physical AI,’ which integrates artificial intelligence with robotics and machinery to allow systems to perceive and act within the physical world. While software-based AI has dominated recent trends, the market for ‘embodied AI’ is projected to grow from $4.4 billion in 2025 to over $23 billion by 2030.

In South Korea, government investment in Physical AI is projected to increase by 162.9% to 462.2 billion KRW next year, though it currently represents less than 5% of the total AI budget. During a National Assembly audit, concerns were raised regarding China’s dominance in the humanoid robot sector, as Chinese companies held the top six positions in global production last year. Experts suggest South Korea could leverage existing manufacturing infrastructure in the Daegu-Gyeongbuk region to develop a practical industrial robot ecosystem.

On a global scale, major corporations are preparing for deployment, such as Hyundai’s plan to use Boston Dynamics’ Atlas humanoid robots in automotive plants starting in 2028. Additionally, 60% of executives believe physical AI will enable robotics in previously inaccessible sectors, a trend partially driven by global labor shortages.