AI is rapidly upgrading from “brain in a jar” to “brain in a body.” At the current rate of progress, McKinsey & Co. Inc. predicts that the physical AI robotics market could reach $370 billion in value by 2040. While the topic of robotics might bring C3PO and R2-D2 to mind for some, the vast applications of real-world systems are more grounded than “human-cyborg relations” and repairing starships mid-flight in a galaxy far, far away.
How Does TecEx Support Physical AI Deployments?
As an emerging tech industry, physical AI supply chains are still being established. When your AI is ready for the real world, TecEx assists robotics companies with robust and scalable end-to-end global deployment solutions:
What is Physical AI and Robotics?
In 2024, Jensen Huang predicted, “The next wave of AI is physical AI. AI that understands the laws of physics. AI that can work among us.”
Physical AI
Physical AI is the embodiment of AI in real-world machines, which allows it to simulate perception of its environment through sensor input, make decisions from these perceptions, and act upon them
Robotics
Robotics is the outcome of physical AI, ie, the software that transforms sensor input into real-world movement.
Sensor vs. Sensory Input
Physical AI relies on input from sensors such as cameras, machine vision, Inertial Measurement Units (IMUs), torque sensors, spatial learning, laser scanners, and LiDAR to process raw data points and simulate its perception of the environment. Humans rely on blended sensory input from up to 33 senses through sensory systems such as the eyes, ears, nose, taste buds, skin, and balance, which the brain processes with additional context from memories, emotions, experiences, and meaning to perceive the environment.
While physical AI includes humanoid and social robots, the industry also includes:
- Autonomous Mobile Robots (AMRs), which use spatial awareness and autonomous path planning to assist in warehouses, factory floors, or fulfillment centers.
- Autonomous Vehicles (AVs), which use advanced visual systems and LiDAR for self-driving capabilities.
- Industrial AI, such as multi-axis assembly arms, CNS units, and stationary machines, assists with complex fine-motor tasks.
Cobots, or collaborative robots, operate alongside and enhance human labor in shared workspaces.
Capgemini explains that for robotics and physical AI, “Highest-impact use cases include hazardous ops, micro-logistics, pick-and-place, and field inspection – alongside sector-specific applications such as dynamic assembly and eldercare.”
The physical AI revolution has brought unprecedented adaptability, advanced perception, autonomy, learning, and generalization capabilities, as well as natural-language understanding to the robotics industry. This is shifting robots from task-specific machines to autonomous, adaptive forms of Artificial Intelligence in the real world. However, the emerging industry must overcome supply chain constraints and significant import challenges to unlock global scalability and maintain its growth.
A robot’s anatomy is equally important to the final product. According to McKinsey & Co., actuators, sensing and perception systems, compute and control platforms, structural components, and battery modules account for up to 90% of unit costs.
Robotics Supply Chain Constraints
Emerging supplier ecosystems and a lack of standardization across the industry don’t quite align with the performance requirements of physical AI, creating supply chain bottlenecks, as some of the most advanced components, like actuators, have among the least-developed supplier ecosystems. Robots with advanced tactile capabilities require dozens of actuators.
Because China’s mature EV supply chain ecosystem largely overlaps with robotics supply requirements, it has a significant advantage over other markets in terms of scalability and affordability. In 2025, 54% of global industrial robots were manufactured and deployed in China. Additionally, 90% of global motor permanent magnet capacity is in China.
Component bottlenecks where supply is not yet scaled are likely to affect both OEMs sourcing robotics components and the deployment timelines for robotics adoption by enterprises.
Deployment Challenges for Physical AI
In addition to uncertain supply and timelines, the integration of hardware and software makes trade compliance for physical AI particularly complex.
Hardware often consists of advanced, controlled components alongside non-standard, often customized elements, meaning shipments must navigate dual-use regulations, export controls, and special licenses and permits. Software raises concerns about data security, cloud connectivity, and data flows amid the growth of data sovereignty frameworks.
IOR For Robotics
Imports into most countries require that a registered local entity be designated as the Importer of Record. Without a local entity or IOR service provider and compliance expertise, robotics companies typically will not be able to import their physical AI into new locations. A specialized technology IOR unlocks new destinations for physical AI, ensures thorough import compliance, and simplifies the entire shipping process.
For a market like America, where Form 5106 faces significant scrutiny, the CBP is cracking down on transshipments, and an IOR must meet stringent bond coverage and bank account requirements, it’s crucial to leverage a third-party IOR to ensure smooth customs clearance.
Image Credit: SRI International, CC BY-SA 3.0, via Wikimedia Commons
Physical AI may not yet serve as endearing robotic companions in intergalactic adventures, but it has come a long way since Shakey, the first prototype developed by the Stanford Research Institute 60 years ago. Where could robotics be in 60 years from now?
Emerging Opportunities for Robotics
With reshoring and re-industrialization trends growing in the US and Europe, industrial AI is poised to boost domestic production capabilities in these markets over the coming years. However, TecEx can assist with robotics and physical AI imports/exports across +200 locations.
Scale Your Physical AI Supply Chain
Physical AI is rapidly advancing towards autonomy and broad real-world use cases, where it could soon be working side by side with humans. However, for robotics to achieve global scalability, importers and exporters need to navigate extensive regulatory risks and partner with an experienced IOR.
With over 360 robotics shipments already completed, TecEx is your reliable partner for seamless global deployments of robotics and physical AI.
