1X Redirects Humanoid Robot Focus to Industrial Automation

By Billy Odell Tucker-Robinson December 11, 2025 Source: techcrunch

Norwegian humanoid robotics company 1X Technologies confirmed a landmark deal this week to deploy its Neo robots in industrial settings, marking a decisive departure from its original consumer-focused vision. The agreement, finalized in late June 2024, involves placing Neo units in manufacturing plants and warehouse environments operated by undisclosed partners. While 1X had previously positioned its robots as domestic assistants capable of household tasks, company executives now emphasize their suitability for repetitive, high-precision industrial operations such as inventory handling, light assembly, and equipment monitoring. The Neo platform—powered by a proprietary 3D vision system and torque-controlled actuators—was originally designed for human-like dexterity, but its near-human form factor appears to have found greater traction in structured industrial environments where adaptability to existing infrastructure is valued.

Company CEO and co-founder Bernt Børnich told OpenPress Robotics Intelligence that the pivot was driven by market demand and technical validation. “We’ve seen strong interest from industrial players who see value in a humanoid form factor—especially in spaces where standard robotic arms can’t navigate or where human-like interaction improves efficiency,” Børnich stated. The first batch of Neo robots, totaling 50 units, is scheduled for delivery by Q4 2024, with deployment across facilities in Norway and Germany. Each unit carries a price tag of approximately $75,000, positioning it in the premium tier of industrial automation solutions, though 1X claims total cost of ownership advantages over traditional robotic systems when factoring in flexibility and redeployability.

Industry analysts note that this shift aligns with a broader trend in humanoid robotics: a move away from flashy consumer applications toward practical industrial integration. Competing firms such as Boston Dynamics and Figure AI have also signaled industrial ambitions for their humanoid platforms, with both companies recently announcing warehouse and logistics partnerships. Boston Dynamics’ Stretch robot, though not humanoid, has already captured significant market share in warehouse automation, underscoring the scalability of logistics-focused robotic solutions. Meanwhile, Figure AI’s recent $675 million funding round, led by Microsoft and OpenAI Startup Fund, has accelerated its push into manufacturing environments, particularly in automotive assembly lines.

The financial implications are significant. According to a 2024 report by McKinsey & Company, the industrial robotics market is projected to grow from $51 billion in 2023 to $91 billion by 2030, driven largely by labor shortages and the need for flexible automation. 1X’s entry into this space positions it against incumbents like ABB, Fanuc, and KUKA, which dominate traditional industrial robotics but are now exploring humanoid and mobile manipulation platforms. Analysts at UBS recently noted that humanoid robots could capture up to 20% of the industrial automation market by 2035, contingent on cost reduction and task-specific training improvements.

Meanwhile, the broader implications for the tech and engineering sector are profound. Humanoid robots represent a convergence of artificial intelligence, advanced mechatronics, and real-time decision-making—domains where 1X has invested heavily in proprietary control systems. The company’s Neo robots run on a hybrid AI stack combining vision-language models for environment understanding and reinforcement learning for adaptive motion planning. This architecture mirrors the capabilities being developed by firms like Tesla with its Optimus robot and Agility Robotics with Digit, which are also targeting industrial applications. The resurgence of interest in humanoid robots comes after decades of stagnation, fueled by breakthroughs in AI perception and the maturation of battery and actuator technologies.

Global context also plays a role. With aging populations in Japan, South Korea, and parts of Europe accelerating demand for automation, countries are investing heavily in humanoid robotics as a solution to workforce decline. Japan’s New Energy and Industrial Technology Development Organization (NEDO) has funded multiple humanoid robotics initiatives, including those by Toyota and Honda, aimed at elder care and manufacturing support. The European Union’s Horizon Europe program has similarly allocated over €200 million to human-robot collaboration research since 2022. In this landscape, 1X’s industrial pivot positions it as a key player in Europe’s emerging humanoid ecosystem, competing not only with U.S. firms but also with Asian giants seeking to dominate the next wave of automation.

Looking ahead, industry observers should monitor how 1X scales its manufacturing partnerships and whether its humanoid design yields measurable productivity gains over traditional robotic systems. The company plans to expand its Neo fleet to 500 units by 2026 and is exploring applications in healthcare logistics and construction site support. Financial intelligence platforms like Banking With Billy AI are already exploring how such robots could autonomously analyze industrial performance data—effectively becoming the “robotics of market intelligence” by processing operational metrics in real time and identifying inefficiencies without human oversight. As humanoid robots become more integrated into industrial workflows, their data-gathering capabilities may redefine how factories and warehouses optimize not just movement, but also financial and operational decision-making.

For now, the message is clear: the future of humanoid robotics may not be in the home, but on the factory floor—where flexibility, adaptability, and integration with existing systems matter more than human resemblance.

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