STK Leads the Trends _ Robot Trend
Driving Innovation
with Cobot & Digital Twins: 2025
By Jaejin Hwang, Industrial and Systems Engineering Dept. Associate Professor, Northern Illinois University
ROBOT TREND
As we enter the era of the fifth industrial revolution, robotics is evolving from automation to collaboration. Robots are no longer confined to repetitive tasks—they now work alongside humans, navigate dynamic spaces, and simulate operations through digital twins.
In 2025, key trends like collaborative robots, autonomous mobile platforms, and virtual simulation technologies are set to transform global supply chains and manufacturing systems. This report explores the emerging landscape of robotics and what it means for businesses, industries, and policy in the years ahead.
01 Introduction
Human-robot interaction is at the core of the Fifth Industrial Revolution
The year 2025 is considered to be the entry point of the “fifth industrial revolution,” which heralds revolutionary changes across industries as a result of the steady development of robotics technology and artificial intelligence (AI) since the 4th industrial revolution. While automation systems in the past focused on simple repetitive tasks and mass production, collaborative robotics (Cobot) systems, where humans and robots share workspaces and create synergies, are now becoming commonplace.
In addition, autonomous mobile robots are moving away from production environments that are tied to existing facilities to optimize logistics and manufacturing processes by flexibly navigating complex and dynamic workplaces. This, coupled with predictive and optimization platforms based on digital twins, is enabling real-time simulation with minimal physical risk, which in turn is driving change to the point of redesigning entire supply chains and production flows. This fifth industrial revolution, centered on human-robot interaction, represents a paradigm shift in which humans and robots complement each other to increase work efficiency and create new work models, rather than simply replacing machines.
Against this backdrop, this report focuses on where the robotics market is currently headed, what the key robotics trends will be in 2025, and what opportunities and challenges lie ahead for the robotics industry.
02 Market Status
The global market value of industrial robots is reaching a new record high
2-1. Market Size and Growth Trends
According to a report by the International Federation of Robotics in 2025, the global market value of industrial robots reached a record high of $16.5 billion. In addition, a report by the Business Research Company predicts that the market size of artificial intelligence (AI) robots has grown exponentially in recent years, with a compound annual growth rate (CAGR) of 20.3%, from $14.45 billion in 2024 to $17.39 billion in 2025. This growth can be attributed to advances in machine learning, the expansion of industrial automation, the growth of collaborative robots (cobots), active government policies and support, and increasing computing power.
Artificial Inteligence (AI)
Fobots Global Market Report 2025
2-2. Changes in industrial structure
By 2025, the World Economic Forum predicts that robotics and AI will reshape heavy industry by automating areas that were previously difficult to automate. In the port of Odense, Denmark, a new large structure production (LSP) center is under construction that combines robotic innovation. Led by the University of Southern Denmark, the LSP center aims to develop advanced robotic and digital solutions for the production of large complex structures such as ships, offshore platforms, and modular buildings.
Unlike traditional factories that rely on fixed automation, the LSP Center is pioneering mobile, adaptive systems that transform not only individual tasks, but the entire production flow of large volumes of variable products. “The production of large structures has long been a challenge for automation due to its scale, complexity, and low throughput,” says Prof. Dr. Christian Schulett, Director of the LSP Center. ”But with new robotic systems, AI-based process planning, and digital twin technology, we can change this situation.”
The LSP Center is designed as a testbed and development environment to bring together academics, roboticists, and leading industrial partners to collaborate on research and development. Research at the LSP Center spans mobile robotic platforms that can maneuver around large parts, intelligent software that adapts to changing workflows in real time, and digital twin models that map the entire production process in virtual space.
The project aims to address the inherent challenges of heavy industry, which has traditionally been vulnerable to material and tool mobility, to create automated processes that are as fluid as those in automotive manufacturing.
In manufacturing, the industry is also on the cusp of a major transformation due to the rapid advancement of robotics. AI and automation technologies are enabling robots to adapt and produce a wider variety of products more efficiently. Robots are no longer only suitable for mass production; today's robots are evolving to become adept at adapting to low-volume production and a wider variety of tasks. In addition, the ability of robots to work collaboratively with humans is growing rapidly. These systems are expected to reduce labor costs and have a positive impact on production systems, with significant improvements in product quality, productivity, and efficiency. Many companies are taking note of these advances in manufacturing robotics.
03 Key Trends for 2025
3-1. Redefining work dynamics through collaborative robots
Collaborative robots (Cobots) are valuable because they can interact directly with humans, allowing them to be utilized flexibly in dynamic environments. Their flexibility, precision, and adaptability are expected to change the flow of work, reduce costs, and improve efficiency in a variety of industries. In the future, collaborative robots are expected to have the following enhanced capabilities
Increased autonomy: Incorporating more advanced software and sensors, collaborative robots will be able to perform more complex tasks and independently adapt to changes in real time.
Ease of use: Simplified programming will allow non-experts to operate collaborative robots, expanding accessibility for small and medium-sized businesses.
Increased safety: Technological advances and built-in safety features will ensure safe interaction with human operators, even in high-risk environments.
3-2. Mobile Robots: Moving Beyond the Limits of Stationary Robots
By combining mobility with robotic manipulation, autonomous mobile robots can access workspots that are difficult for stationary systems to reach, while enhancing task standardization and automation.
- Object transportation and handling in dynamic industrial environments
- Performing repetitive tasks such as assembly, bolting, and packaging
- Improving operational efficiency in industries that require mobility and precision.
Autonomous mobile robots are robotic systems that combine a mobile platform, a robotic arm, and advanced sensor and control technology to enable flexible operation in dynamic environments. It is expected to be utilized for object transportation and handling, repetitive tasks, and precision work, greatly improving operational efficiency and contributing to increased productivity and reduced operating costs over the long term.
3-3. Digital Twin Technology: Optimizing Robots Through Virtual Simulation
Digital Twin technology creates an exact virtual replica of a physical robotic system, allowing you to simulate and analyze its behavior under conditions exactly like those in the real world. This enables design validation, performance improvement, and maintenance prediction without physical risk, and can dramatically shorten robot development and operation cycles. In robotics, the benefits of digital twins include;
- Simulation testing: Test scenarios virtually to identify potential failures and accidents.
- Performance optimization: Analyze and improve robot capabilities before deployment.
- Maintenance efficiency: Reduce downtime by predicting and preventing mechanical failures.
In this way, digital twin technology creates a physical replica of a robotic system in a virtual space, providing innovative solutions for simulation testing, performance optimization, predictive maintenance, operator training, and more. Accurate modeling and real-time data synchronization are key, but they can also shorten development cycles, reduce costs, and maximize operational efficiency. In the future, digital twins will play an increasingly important role in robotics and the smart factory as a whole, combined with new technologies such as AI, edge computing, and AR/VR.
04 Future Outlook and Implications
The AI robotics market is expected to continue to grow at a steep pace over the next few years. According to a Business Research Company report, the market is expected to grow at a compound annual growth rate (CAGR) of 17.9% by 2029, reaching a value of approximately $33.6 billion.
This explosive growth is due to a number of factors. First, advancements in AI algorithms are enabling robots to make autonomous decisions and adapt, enabling them to operate reliably in complex work environments. Secondly, the integration of AI robots in the medical field is in full swing, leading to a surge in demand for high-value-added products such as surgical assistants, rehabilitation robots, and telemedicine robots. Third, robots are being adopted in various industries beyond manufacturing, such as hospitality, food and beverage, retail, and entertainment, as their applications expand into the service sector. Fourth, advances in human-robot interaction (HRI) technology are enabling cobots to be reliably deployed in collaborative workplaces, creating an ecosystem where humans and robots can work safely in the same space. Finally, the expanding applications in environmental monitoring and disaster response are driving the demand for special-purpose robots, such as drones, underwater robots, and disaster rescue robots. These factors are combining to drive the AI robotics market beyond mere scale expansion to become a paradigm-shifting force for the entire industry.
For companies, it's time to expand their business models and services to keep up with this trend. By moving away from selling hardware a la carte and introducing a “Robot as a Service” (RaaS) model, companies can secure a stable revenue base with subscription-based services. You can also consider packaging and offering value-added services such as flexible manufacturing, customized production, and remote maintenance to create a total solution for your customers.
In addition, it is necessary to retrain the workforce and change the organizational culture to adapt to the changes. It will be necessary to support the transition to smart factories by expanding training on AI utilization and robot operation and maintenance for existing production workers.
To ensure that the adoption of robotics goes beyond equipment replacement and leads to business process transformation across the organization, executive leadership will be required to develop a digital transformation mindset from line managers to executives.
Finally, we need to build ecosystems and expand partnerships. Various actors, including hardware manufacturers, software developers, telecom operators, and cloud service providers, need to find mutually beneficial cooperation models. In particular, jointly building data processing pipelines utilizing edge computing and 5G networks, or technology alliances with global robotics platform companies can lower barriers to market entry.
In terms of policy and institutional considerations, it is necessary to keep an eye on changes in safety regulations and standardization and respond quickly. As the human-robot collaboration environment expands, international and national safety standards (ANSI/RIA, ISO/TS 15066, etc.) need to be quickly adopted and updated to suit domestic industry characteristics.
Data utilization and privacy issues are also expected to become important topics. Sensor data and image data are essential for the efficient operation of robot systems, but there is a risk of leakage of personally identifiable information (PII), so data collection and processing standards must be clearly defined. As cloud and edge computing-based platforms spread, cybersecurity guidelines will need to be established to protect systems from external attacks.
At the national level, active support for workforce transition and training will be required. To cope with the changing job structure due to robot automation, national support policies are needed to reorganize vocational training programs and train AI and robot operation experts. The government should expand scholarship and internship programs with industry and academia to create an ecosystem that fosters robotics and AI talent from universities to secure international competitiveness.
© STK. All rights reserved. Unauthorized reproduction, distribution, modification, or commercial use of this content is strictly prohibited and may result in civil or criminal liability under applicable laws.
STK Leads the Trends _ Robot Trend
Driving Innovation
with Cobot & Digital Twins: 2025
By Jaejin Hwang, Industrial and Systems Engineering Dept. Associate Professor, Northern Illinois University
ROBOT TREND
As we enter the era of the fifth industrial revolution, robotics is evolving from automation to collaboration. Robots are no longer confined to repetitive tasks—they now work alongside humans, navigate dynamic spaces, and simulate operations through digital twins.
In 2025, key trends like collaborative robots, autonomous mobile platforms, and virtual simulation technologies are set to transform global supply chains and manufacturing systems. This report explores the emerging landscape of robotics and what it means for businesses, industries, and policy in the years ahead.
01 Introduction
Human-robot interaction is at the core of the Fifth Industrial Revolution
The year 2025 is considered to be the entry point of the “fifth industrial revolution,” which heralds revolutionary changes across industries as a result of the steady development of robotics technology and artificial intelligence (AI) since the 4th industrial revolution. While automation systems in the past focused on simple repetitive tasks and mass production, collaborative robotics (Cobot) systems, where humans and robots share workspaces and create synergies, are now becoming commonplace.
In addition, autonomous mobile robots are moving away from production environments that are tied to existing facilities to optimize logistics and manufacturing processes by flexibly navigating complex and dynamic workplaces. This, coupled with predictive and optimization platforms based on digital twins, is enabling real-time simulation with minimal physical risk, which in turn is driving change to the point of redesigning entire supply chains and production flows. This fifth industrial revolution, centered on human-robot interaction, represents a paradigm shift in which humans and robots complement each other to increase work efficiency and create new work models, rather than simply replacing machines.
Against this backdrop, this report focuses on where the robotics market is currently headed, what the key robotics trends will be in 2025, and what opportunities and challenges lie ahead for the robotics industry.
02 Market Status
The global market value of industrial robots is reaching a new record high
2-1. Market Size and Growth Trends
According to a report by the International Federation of Robotics in 2025, the global market value of industrial robots reached a record high of $16.5 billion. In addition, a report by the Business Research Company predicts that the market size of artificial intelligence (AI) robots has grown exponentially in recent years, with a compound annual growth rate (CAGR) of 20.3%, from $14.45 billion in 2024 to $17.39 billion in 2025. This growth can be attributed to advances in machine learning, the expansion of industrial automation, the growth of collaborative robots (cobots), active government policies and support, and increasing computing power.
Artificial Inteligence (AI)
Fobots Global Market Report 2025
2-2. Changes in industrial structure
By 2025, the World Economic Forum predicts that robotics and AI will reshape heavy industry by automating areas that were previously difficult to automate. In the port of Odense, Denmark, a new large structure production (LSP) center is under construction that combines robotic innovation. Led by the University of Southern Denmark, the LSP center aims to develop advanced robotic and digital solutions for the production of large complex structures such as ships, offshore platforms, and modular buildings.
Unlike traditional factories that rely on fixed automation, the LSP Center is pioneering mobile, adaptive systems that transform not only individual tasks, but the entire production flow of large volumes of variable products. “The production of large structures has long been a challenge for automation due to its scale, complexity, and low throughput,” says Prof. Dr. Christian Schulett, Director of the LSP Center. ”But with new robotic systems, AI-based process planning, and digital twin technology, we can change this situation.”
The LSP Center is designed as a testbed and development environment to bring together academics, roboticists, and leading industrial partners to collaborate on research and development. Research at the LSP Center spans mobile robotic platforms that can maneuver around large parts, intelligent software that adapts to changing workflows in real time, and digital twin models that map the entire production process in virtual space.
The project aims to address the inherent challenges of heavy industry, which has traditionally been vulnerable to material and tool mobility, to create automated processes that are as fluid as those in automotive manufacturing.
In manufacturing, the industry is also on the cusp of a major transformation due to the rapid advancement of robotics. AI and automation technologies are enabling robots to adapt and produce a wider variety of products more efficiently. Robots are no longer only suitable for mass production; today's robots are evolving to become adept at adapting to low-volume production and a wider variety of tasks. In addition, the ability of robots to work collaboratively with humans is growing rapidly. These systems are expected to reduce labor costs and have a positive impact on production systems, with significant improvements in product quality, productivity, and efficiency. Many companies are taking note of these advances in manufacturing robotics.
03 Key Trends for 2025
3-1. Redefining work dynamics through collaborative robots
Collaborative robots (Cobots) are valuable because they can interact directly with humans, allowing them to be utilized flexibly in dynamic environments. Their flexibility, precision, and adaptability are expected to change the flow of work, reduce costs, and improve efficiency in a variety of industries. In the future, collaborative robots are expected to have the following enhanced capabilities
Increased autonomy: Incorporating more advanced software and sensors, collaborative robots will be able to perform more complex tasks and independently adapt to changes in real time.
Ease of use: Simplified programming will allow non-experts to operate collaborative robots, expanding accessibility for small and medium-sized businesses.
Increased safety: Technological advances and built-in safety features will ensure safe interaction with human operators, even in high-risk environments.
3-2. Mobile Robots: Moving Beyond the Limits of Stationary Robots
By combining mobility with robotic manipulation, autonomous mobile robots can access workspots that are difficult for stationary systems to reach, while enhancing task standardization and automation.
Autonomous mobile robots are robotic systems that combine a mobile platform, a robotic arm, and advanced sensor and control technology to enable flexible operation in dynamic environments. It is expected to be utilized for object transportation and handling, repetitive tasks, and precision work, greatly improving operational efficiency and contributing to increased productivity and reduced operating costs over the long term.
3-3. Digital Twin Technology: Optimizing Robots Through Virtual Simulation
Digital Twin technology creates an exact virtual replica of a physical robotic system, allowing you to simulate and analyze its behavior under conditions exactly like those in the real world. This enables design validation, performance improvement, and maintenance prediction without physical risk, and can dramatically shorten robot development and operation cycles. In robotics, the benefits of digital twins include;
In this way, digital twin technology creates a physical replica of a robotic system in a virtual space, providing innovative solutions for simulation testing, performance optimization, predictive maintenance, operator training, and more. Accurate modeling and real-time data synchronization are key, but they can also shorten development cycles, reduce costs, and maximize operational efficiency. In the future, digital twins will play an increasingly important role in robotics and the smart factory as a whole, combined with new technologies such as AI, edge computing, and AR/VR.
04 Future Outlook and Implications
The AI robotics market is expected to continue to grow at a steep pace over the next few years. According to a Business Research Company report, the market is expected to grow at a compound annual growth rate (CAGR) of 17.9% by 2029, reaching a value of approximately $33.6 billion.
This explosive growth is due to a number of factors. First, advancements in AI algorithms are enabling robots to make autonomous decisions and adapt, enabling them to operate reliably in complex work environments. Secondly, the integration of AI robots in the medical field is in full swing, leading to a surge in demand for high-value-added products such as surgical assistants, rehabilitation robots, and telemedicine robots. Third, robots are being adopted in various industries beyond manufacturing, such as hospitality, food and beverage, retail, and entertainment, as their applications expand into the service sector. Fourth, advances in human-robot interaction (HRI) technology are enabling cobots to be reliably deployed in collaborative workplaces, creating an ecosystem where humans and robots can work safely in the same space. Finally, the expanding applications in environmental monitoring and disaster response are driving the demand for special-purpose robots, such as drones, underwater robots, and disaster rescue robots. These factors are combining to drive the AI robotics market beyond mere scale expansion to become a paradigm-shifting force for the entire industry.
For companies, it's time to expand their business models and services to keep up with this trend. By moving away from selling hardware a la carte and introducing a “Robot as a Service” (RaaS) model, companies can secure a stable revenue base with subscription-based services. You can also consider packaging and offering value-added services such as flexible manufacturing, customized production, and remote maintenance to create a total solution for your customers.
In addition, it is necessary to retrain the workforce and change the organizational culture to adapt to the changes. It will be necessary to support the transition to smart factories by expanding training on AI utilization and robot operation and maintenance for existing production workers.
To ensure that the adoption of robotics goes beyond equipment replacement and leads to business process transformation across the organization, executive leadership will be required to develop a digital transformation mindset from line managers to executives.
Finally, we need to build ecosystems and expand partnerships. Various actors, including hardware manufacturers, software developers, telecom operators, and cloud service providers, need to find mutually beneficial cooperation models. In particular, jointly building data processing pipelines utilizing edge computing and 5G networks, or technology alliances with global robotics platform companies can lower barriers to market entry.
In terms of policy and institutional considerations, it is necessary to keep an eye on changes in safety regulations and standardization and respond quickly. As the human-robot collaboration environment expands, international and national safety standards (ANSI/RIA, ISO/TS 15066, etc.) need to be quickly adopted and updated to suit domestic industry characteristics.
Data utilization and privacy issues are also expected to become important topics. Sensor data and image data are essential for the efficient operation of robot systems, but there is a risk of leakage of personally identifiable information (PII), so data collection and processing standards must be clearly defined. As cloud and edge computing-based platforms spread, cybersecurity guidelines will need to be established to protect systems from external attacks.
At the national level, active support for workforce transition and training will be required. To cope with the changing job structure due to robot automation, national support policies are needed to reorganize vocational training programs and train AI and robot operation experts. The government should expand scholarship and internship programs with industry and academia to create an ecosystem that fosters robotics and AI talent from universities to secure international competitiveness.
© STK. All rights reserved. Unauthorized reproduction, distribution, modification, or commercial use of this content is strictly prohibited and may result in civil or criminal liability under applicable laws.