Physical AI, the convergence of artificial intelligence with robots that perceive, decide, and act in the real world, has reached the critical inflection point Geoffrey Moore identified as “crossing the chasm.”
The Evidence Is Structural
| Metric | Value | Significance |
|---|---|---|
| 2024 Installations | 542,000 units | Double from a decade ago |
| Operational Stock | 4.7 million robots | Global industrial base |
| General Industry Share | 53% | Overtook automotive (23%) |
| 2028 Forecast | 700,000+ annual | IFR projection |
The Sectoral Shift
For the first time, general industry now accounts for 53% of robot installations, overtaking the traditional automotive stronghold (23%). This sectoral diversification signals that robotics is no longer a technology enthusiast’s toy or an automotive-exclusive tool. It’s becoming industrial infrastructure.
The Strategic Question
The question isn’t whether Physical AI will achieve mainstream adoption. The question is who captures the value as the technology moves from high-variability visionary deployments to standardized pragmatic solutions.
This analysis is part of a comprehensive report. Read the full analysis: Physical AI Is Crossing the Manufacturing Chasm on The Business Engineer.









