IFR: five trends will drive robot growth through 2025
Robot installations will grow quickly due to artificial intelligence, humanoid shapes, sustainable manufacturing, new business models, and labor shortages.
That is important because the increased use of robots has the potential to significantly reduce the impact of labor shortages in manufacturing, IFR said. That will happen when robots automate dirty, dull, dangerous or delicate tasks – such as visual quality inspection, hazardous painting, or heavy lifting—thus freeing up human workers to focus on more interesting and higher-value tasks.
To reach those goals, robots will grow through five trends in the new year, the report said:
1 – Artificial Intelligence. By leveraging diverse AI technologies, such as physical, analytical, and generative, robotics can perform a wide range of tasks more efficiently. Analytical AI enables robots to process and analyze the large amounts of data collected by their sensors. This helps to manage variability and unpredictability in the external environment, in “high mix/low-volume” production, and in public environments. Physical AI, which is created through the development of dedicated hardware and software that simulate real-world environments, allows robots to train themselves in virtual environments and operate by experience, rather than programming. And Generative AI projects aim to create a “ChatGPT moment” for Physical AI, allowing this AI-driven robotics simulation technology to advance in traditional industrial environments as well as in service robotics applications.
2 – Humanoids.
Robots in the shape of human bodies have received a lot of media attention, due to their vision where robots will become general-purpose tools that can load a dishwasher on their own and work on an assembly line elsewhere. Start-ups today are working on these humanoid general-purpose robots, with an eye toward new applications in logistics and warehousing. However, it remains to be seen whether humanoid robots can represent an economically viable and scalable business case for industrial applications, especially when compared to existing solutions. So for the time being, industrial manufacturers are still focused on humanoids performing single-purpose tasks only, with a focus on the automotive industry.
3 – Sustainability – Energy Efficiency.
Compliance with the UN's environmental sustainability goals and corresponding regulations around the world is becoming an important requirement for inclusion on supplier whitelists, and robots play a key role in helping manufacturers achieve these goals. In general, their ability to perform tasks with high precision reduces material waste and improves the output-input ratio of a manufacturing process. These automated systems ensure consistent quality, which is essential for products designed to have long lifespans and minimal maintenance. In the production of green energy technologies such as solar panels, batteries for electric cars or recycling equipment, robots are critical to cost-effective production. At the same time, robot technology is being improved to make the robots themselves more energy-efficient. For example, the lightweight construction of moving robot components reduces their energy consumption. Different levels of sleep mode put the hardware in an energy saving parking position. Advances in gripper technology use bionics to achieve high grip strength with almost no energy consumption.
4 – New Fields of Business.
The general manufacturing industry still has a lot of potential for robotic automation. But most manufacturing companies are small and medium-sized enterprises (SMEs), which means the adoption of industrial robots by SMEs is still hampered by high initial investment and total cost of ownership. To address that hurdle, Robot-as-a-Service (RaaS) business models allow enterprises to benefit from robotic automation with no fixed capital involved. Another option is using low-cost robotics to provide a “good enough” product for applications that have low requirements in terms of precision, payload, and service life. Powered by the those approaches, new customer segments beyond manufacturing include construction, laboratory automation, and warehousing.
5 – Addressing Labor Shortage.
The global manufacturing sector continues to suffer from labor shortages, according to the International Labour Organisation (ILO). One of the main drivers is demographic change, which is already burdening labor markets in leading economies such as the United States, Japan, China, the Republic of Korea, or Germany. Although the impact varies from country to country, the cumulative effect on the supply chain is a concern almost everywhere.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
The three companies say the deal will allow clients to both define ideal set-ups for new warehouses and to continuously enhance existing facilities with Mega, an Nvidia Omniverse blueprint for large-scale industrial digital twins. The strategy includes a digital twin powered by physical AI – AI models that embody principles and qualities of the physical world – to improve the performance of intelligent warehouses that operate with automated forklifts, smart cameras and automation and robotics solutions.
The partners’ approach will take advantage of digital twins to plan warehouses and train robots, they said. “Future warehouses will function like massive autonomous robots, orchestrating fleets of robots within them,” Jensen Huang, founder and CEO of Nvidia, said in a release. “By integrating Omniverse and Mega into their solutions, Kion and Accenture can dramatically accelerate the development of industrial AI and autonomy for the world’s distribution and logistics ecosystem.”
Kion said it will use Nvidia’s technology to provide digital twins of warehouses that allows facility operators to design the most efficient and safe warehouse configuration without interrupting operations for testing. That includes optimizing the number of robots, workers, and automation equipment. The digital twin provides a testing ground for all aspects of warehouse operations, including facility layouts, the behavior of robot fleets, and the optimal number of workers and intelligent vehicles, the company said.
In that approach, the digital twin doesn’t stop at simulating and testing configurations, but it also trains the warehouse robots to handle changing conditions such as demand, inventory fluctuation, and layout changes. Integrated with Kion’s warehouse management software (WMS), the digital twin assigns tasks like moving goods from buffer zones to storage locations to virtual robots. And powered by advanced AI, the virtual robots plan, execute, and refine these tasks in a continuous loop, simulating and ultimately optimizing real-world operations with infinite scenarios, Kion said.
Hackers are beginning to extend their computer attacks to ever-larger organizations in their hunt for greater criminal profits, which could drive an anticipated increase in credit risk and push insurers to charge more for their policies, according to the “2025 Cyber Outlook” from Moody’s Ratings.
In Moody’s forecast, cyber risk will intensify in 2025 as attackers switch tactics in response to better corporate cyber defenses and as advances in artificial intelligence increase the volume and sophistication of their strikes. Meanwhile, the incoming Trump administration will likely scale back cyber defense regulations in the US, while a new UN treaty on cyber crime will strengthen the global fight against this threat, the report said.
“Ransomware perpetrators are now targeting larger organizations in search of higher ransom demands, leading to greater credit impact. This shift is likely to increase the cyber risk for entities rated by Moody's and could lead to increased loss ratios for cyber insurers, impacting premium rates in the U.S.," Leroy Terrelonge, Moody’s Ratings Vice President and author of the Outlook report, said in a statement.
The warning comes just weeks after global supply chain software vendor Blue Yonder was hit by a ransomware attack that snarled many of its customers’ retail, labor, and transportation platforms in the midst of the winter holiday shopping surge.
That successful attack shows that while larger businesses tend to have more advanced cybersecurity defenses, their risk is not necessarily diminished. According to Moody’s, their networks are generally more complex, making it easier to overlook vulnerabilities, and when they have grown in size over time, they are more likely to have older systems that are more difficult to secure.
Another factor fueling the problem is Generative AI, which will will enable attackers to craft personalized, compelling messages that mimic legitimate communications from trusted entities, thus turbocharging the phishing attacks which aim to entice a user into clicking a malicious link.
Complex supply chains further compound the problem, since cybercriminals often find the easiest attack path is through third-party software suppliers that are typically not as well protected as large companies. And by compromising one supplier, they can attack a wide swath of that supplier's customers.
In the face of that rising threat, a new Republican administration will likely soften U.S. cyber regulations, Moody’s said. The administration will likely roll back cybersecurity mandates and potentially curtail the activities of the US Cybersecurity and Infrastructure Security Agency (CISA), thus heightening the risk of cyberattack.
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The new "Amazon Nova" AI tools can use basic prompts--like "a dinosaur sitting in a teacup"--to create outputs in text, images, or video.
Benefits for Amazon's customers--who include marketplace retailers and logistics services customers, as well as companies who use its Amazon Web Services (AWS) platform and the e-commerce shoppers who buy goods on the website--will include generative AI (Gen AI) solutions that offer real-world value, the company said.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.