REPORT
Issue • Q3 2026
Why Physical AI Matters Now
The convergence of AI with robots, drones, autonomous vehicles, and smart machinery that perceive, reason, and act in the real world.
Explosive Growth
$371.7B → $2.4T
2025 → 2032 (30.6% CAGR)
Executive Summary
- $50 Trillion Disruption: Poised to transform global manufacturing and logistics, unlocking massive new economic value.
- Explosive Growth Ahead: Market projected to grow from $371.7B (2025) to $2.4T (2032) at a 30.6% CAGR.
- Redefining Collaboration: Human–machine partnerships will reshape productivity and innovation.
- Risk of Inaction: Organizations ignoring this shift risk obsolescence.
- Strategic Imperatives: Action plans for businesses, policymakers, and workforces to harness this transformation.
- Societal Impact: Beyond technology—Physical AI will touch nurses, teachers, farmers, delivery workers, and everyday lives.
Why This Matters To You
Not just another technology: If AI was bullets, Physical AI is the atom bomb — world-altering, with consequences we can’t ignore.
Your life, Your Work
This isn’t confined to labs; it’s coming to reshape jobs, industries, and communities.
Responsibility is Non-negotiable
Will this tech lift millions, or leave them behind?
Our Pledge
- Not Alarmists — but we take risks seriously.
- Not Pessimists — we’re fiercely hopeful.
- Always Urgent — because silence is not an option.
- Authenticity First: Research supported by AI, but recommendations are human-driven and peer-reviewed.
Authors & Contributors
Authors
- BERND MATTNER, AUTOSAR Advisory, CEO of Fry Bern Gmbh
- MARCUS PALETI, Founder /CEO of Laureti Group
Contributors
- JONATHAN BERRY, The Viscount Camrose, Member of the House of Lords, Shadow AI Minister for Science, Innovation and Technology, UK
- DR. GÜNTER REICHART, Spokesperson and Initiator of AUTOSAR, Former VP at BMW
- Lead Researcher — SUB KUCHI
- Executive Secretary at World Technology Congress