The humanoid robot sector is at a transformative juncture, driven by rapid advancements in artificial intelligence and robotics. This dynamic field is not only growing in size but also in complexity and influence across various industries.

Humanoid robots: A new era of industry integration

Humanoid robots, characterised by their human-like form and advanced capabilities, are becoming indispensable tools in industries ranging from healthcare to manufacturing. Their ability to perform tasks with high precision and autonomy is reshaping traditional workflows and opening new avenues for innovation.

This is particularly evident in sectors where human-like interaction and adaptability are crucial, such as healthcare and education. For instance, robots like PEPPER and NAO are enhancing patient care and educational outcomes by providing emotional support and interactive learning experiences.

Technological advancements driving the sector

The integration of AI into humanoid robots has been a game-changer, enabling these machines to perform complex tasks that require cognitive abilities and decision-making skills. The use of Large Language Models (LLMs) and Visual-Language Models (VLMs) has significantly enhanced the cognitive and interactive capabilities of these robots.

Also Read: How to revolutionise the banking and finance industry with Robotic Process Automation

Our research indicates that advancements in AI and sensor technology are pivotal in making humanoid robots more autonomous and versatile, allowing them to adapt to and learn from their environments.

Market dynamics and investment opportunities

From a venture capitalist’s perspective, the humanoid robot market presents a compelling investment opportunity. The sector is witnessing substantial growth, with Asia leading the way in adoption and development.

Significant investments from countries like Japan, South Korea, and China are driving innovation and setting the stage for global market leadership. According to our research, the humanoid robot market is estimated to be worth approximately US$3-5 billion as of 2024, with projections indicating even greater expansion in the coming years.

The humanoid robotics sector has already attracted significant investment, demonstrating strong confidence from both strategic and venture capital investors.

Notable funding highlights include:

• Figure: Raised US$675 million in a Series B round from prominent investors including OpenAI, Nvidia, Microsoft, Bezos Expeditions, and Samsung Ventures. This funding underscores the market’s potential and the confidence major tech players have in the sector’s growth.
• Sanctuary AI: Secured investment led by Accenture Ventures, contributing to its approximate valuation of US$300 million. Sanctuary AI’s focus on creating versatile, autonomous humanoid robots is driving significant interest.
• UBTECH: Achieved a valuation of US$10 billion following its IPO on the Hong Kong Stock Exchange. UBTECH’s focus on integrating advanced AI and robotics for consumer and industrial applications is a key driver of its market valuation.
• 1X: Raised US$100 million in a Series B round led by EQT Ventures, highlighting the ongoing investment in innovative robotics companies aiming to enhance efficiency and safety in various environments.
• Boston Dynamics: Known for its advanced mobility and balance capabilities, Boston Dynamics was acquired by Hyundai for approximately US$1.1 billion, demonstrating the strategic importance of robotics in industrial applications.
• Agility Robotics: Raised US$170 million in a Series B round to further develop its Digit robot, which is designed for package delivery and logistics.

These investments highlight the strong momentum within the humanoid robotics sector and the substantial financial backing that key players are receiving to drive innovation and market growth.

Opportunities for startups and industries in Southeast Asia and Taiwan

The wave of humanoid robotics and the influx of investments present a unique and timely opportunity for startups and industries in Southeast Asia and Taiwan. These regions are rapidly becoming hotbeds for technological innovation and entrepreneurship, supported by strong governmental policies, a thriving startup ecosystem, and significant investments in tech infrastructure.

Also Read: AI revolution: Balancing human empathy and robotic efficiency in customer service

For Southeast Asia, the adoption of humanoid robots can drive productivity and efficiency across various industries, from manufacturing to service sectors. Countries like Singapore, Malaysia, and Thailand are well-positioned to leverage these technologies to enhance their industrial capabilities and competitiveness on a global scale.

Additionally, the region’s young, tech-savvy population and growing consumer market make it an attractive ground for developing and deploying humanoid robotic solutions. Looking over to Taiwan, with its robust semiconductor industry and strong technological base, plays a crucial role in the development and manufacturing of advanced robotics components.

Synergies and collaborative potential

The collaborative potential between Southeast Asia and Taiwan is immense.

By combining Taiwan’s technological expertise with Southeast Asia’s diverse market needs and dynamic startup environment, there is a significant opportunity to drive innovation and create scalable solutions. Joint ventures, research partnerships, and cross-border investments can catalyse the development of humanoid robots, making the region a global leader in this transformative field.

At Hive Ventures, we are committed to supporting these synergies and fostering collaborations that leverage the strengths of both regions. By bridging the gap between technology and market application, we can accelerate the adoption of humanoid robots and unlock new opportunities for startups and industries across Southeast Asia and Taiwan.

Future outlook: A vision for 2035

Looking ahead, the next decade will be crucial for the humanoid robot industry. Achieving economies of scale and reducing prices to the US$20,000 – 150,000 level will be key to driving mass adoption.

At Hive Ventures, we believe that by 2035, the humanoid robot market could generate substantial revenue, with applications expanding into consumer markets and beyond.

The integration of generative AI technologies will further enhance the cognitive capabilities of these robots, making them indispensable companions and helpers in various settings.

Final thoughts

The humanoid robot sector holds immense promise, with the potential to revolutionise industries and enhance human-machine collaboration. As venture capitalists and industry observers, we are excited about the opportunities and advancements in this space.

Our research at Hive Ventures underscores the transformative potential of humanoid robots and the critical role they will play in shaping the future of technology and industry. We are committed to supporting and investing in this innovative sector, anticipating a future where humanoid robots become a ubiquitous part of our daily lives.

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Indonesia has emerged as a significant force in the global business scene in recent times, establishing itself as a prominent player not only within ASEAN but also on a broader scale, driven by a population exceeding 270 million and a rapidly expanding middle class. Supported by a government committed to fostering entrepreneurial endeavours, the region’s business environment is undergoing notable changes. Programmes like the 1000 Startup Digital Initiative and Indonesia Investment Fund demonstrate this commitment by setting ambitious goals to stimulate the establishment of new digital ventures.

Aligning with this growth trajectory witnessed by the regional tech startup landscape, Echelon X was recently held last May 15-16 at the Singapore EXPO, offering attendees access to a wide array of benefits. This includes access to valuable market insights, growth initiatives, a marketplace for digital solutions, programs facilitating market entry, enhanced brand reputation and visibility, and an opportunity for dynamic innovators from the region to come together, interact, and foster collaboration.

Also read: Uncovering the secret behind Fonos’s unprecedented growth

Joining the many up-and-coming and established companies from across the global tech ecosystem in Echelon X is Telkomsel Ventures. Most notably, Telkomsel Ventures spearheaded a roundtable discussion on “Collaborative Innovation Models: Strategies for Effective Corporate-Startup Partnerships” which was attended by over 100 companies and organisations including WeWork, Invest Hong Kong, Vinova, TAPPI Global, and ArmourZero, among many others. Additionally, Mia Melinda, Telkomsel Ventures’ CEO, delivered a talk entitled, “Driving Impact: Corporate Venture Capital and the Future of Tech Innovation in Indonesia,” during a fireside chat moderated by Devina Mardiputri of e27.

Being the corporate venture arm of Telkomsel, Telkomsel Ventures invests in promising startups, helping them grow by leveraging Telkomsel’s extensive ecosystem, resources, and expertise. Complimenting their forecast on future trends, Telkomsel Ventures relies on visionary founders to reveal what lies ahead. Through the productive discussions, Telkomsel shared key insights regarding the important emerging trends in the region.

Indonesia’s burgeoning venture capital landscape

The financing landscape in Indonesia is diverse, mirroring the country’s rich diversity. Venture capital plays a prominent role, offering not just financial support but also strategic guidance and access to valuable networks essential for business expansion.

Both global giants like Sequoia Capital and local players such as East Ventures have made significant investments in promising Indonesian startups, covering a wide range of sectors from fintech to eCommerce.

Despite facing recent challenges following a boom in global venture capital funding in 2021 – 2022, Indonesia remains a beacon of hope in the regional venture capital scene. Favourable market conditions helped sustain VC deal values in Indonesia in 2022, holding steady compared to global markets which experienced declines of 20% to 40%. Moreover, there was a notable increase in deal volumes, particularly in early-stage opportunities, indicating growing investor interest. Another positive aspect is the diverse mix of international and local investors participating in the Indonesian VC market, with locally focused investors gaining a stronger foothold in recent years.

Exciting innovations in and out of Indonesia that venture builders are looking to support

Venture builders, also known as venture studios, company builders, or startup studios, are specialised entities that transform disruptive ideas into groundbreaking startups with commercial potential. While the concept of a venture builder is relatively novel, the idea of corporate spin-offs and the commercialisation of industry intellectual properties has been practised for a long time. For young start-ups, venture builders are seen as having lower risk and requiring less commitment. They are more adaptable and willing to pivot and reallocate resources among various projects, attracting entrepreneurs who wish to gain broader exposure to entrepreneurship rather than dedicating themselves to a single venture.

Also read: Leveraging technology to create uniquely human experiences

Within Indonesia and the neighbouring regions, exciting opportunities have arisen from budding new ventures born out of new innovations. Southeast Asia’s technology startups are projected to achieve an impressive valuation of $1 trillion by 2025, a significant increase from $340 billion in 2020. Indonesia, the region’s largest e-commerce market, holds nearly half of the market share. 

Sharing about the hottest industry trends and development initiatives within Indonesia supported by Telkomsel Ventures, Mia Melinda emphasised, “For Telkomsel Ventures, we focus on aligning with our corporate needs through three pillars: digital lifestyles, digital enablement, and emerging technology. Although Telkomsel is a telecommunications company, we aim to provide more than just connectivity by offering additional value to our customers.”

Melinda added, “According to a global consultant’s recent survey, post-COVID, executives now prioritise building new businesses, with artificial intelligence being the top focus, followed by sustainability, and direct-to-consumer (D2C) strategies. While D2C saw a peak during the pandemic due to the need to maintain customer connections, it now ranks third in priority after AI and sustainability.”

Upcoming opportunities and challenges for Indonesia’s tech ecosystem

Foreseeing a captivating outlook for the region and Indonesia’s tech ecosystem, global tech giants have flocked to the region in search of new business opportunities. For instance, Microsoft has recently unveiled plans to invest US$1.7 billion over the next four years to enhance cloud and AI infrastructure in Indonesia. This investment will also include AI training opportunities for 840,000 individuals and support for the expanding developer community in the country. Nevertheless, there are also challenges that should be considered further to develop the technology-driven industries and venture capital community.

Sharing her thoughts on these topics, Mia Melinda expressed, “In terms of challenges, investing in innovations comes with a high degree of uncertainty, requiring thorough risk assessments and mitigations. Traditional methods, which rely on predicting the probability of risks in various criteria, often fall short when dealing with the unpredictable nature of new ventures. We need to embrace plural scenarios and conditional situations, acknowledging our limited knowledge and the inherent uncertainty in investment decisions.

Also read: Fostering inclusion: AI’s role in SEA’s education sector

Furthermore, the governance process in corporate venture capital can be lengthy and complex. However, founders who seek strategic synergy with corporations are often willing to navigate this process, understanding the long-term benefits of having robust governance in place as their businesses grow and scale.  To help bolster our impacts in the tech landscape in the country, we also aim to foster better cultural integration between corporations and startups, promoting collaboration and positive cultural assimilation within the company.”

To learn more about Telkomsel Ventures and its projects, please visit its website: www.telkomsel.vc

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This article is produced by the e27 team, sponsored by Telkomsel Ventures

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