A robot dog manufactured by Boston Dynamics, deployed by the U.S. Secret Service, patrols the grounds at President-elect Donald Trump's Mar-a-Lago resort on Nov. 15, 2024 in Palm Beach, Fla. AFP-Yonhap

Samsung Electronics, LG Electronics and Hyundai Motor are targeting the robotics sector as their next major cash cow amid growing demand for smart factories and automated manufacturing facilities, according to data and industry officials on Sunday.

They are strategically focusing on developing more advanced humanoid robots designed to replace human labor on major production lines.

Samsung Electronics recently expanded its stake in Rainbow Robotics to 35 percent, becoming the largest shareholder of the Korean robotics startup. The company's core strength lies in its key technologies to develop humanoid robots.

The move aims to boost Samsung's foothold in developing more state-of-the-art humanoid robots powered by the firm's artificial intelligence (AI) and software expertise.

In 2021, Samsung Electronics Executive Chairman Lee Jae-yong also unveiled its group-wide vision to invest 240 trillion won ($163 billion) in emerging industrial areas, such as robots and AI.

Hyundai Motor Group is also at the forefront of the humanoid robot market, expanding its presence after acquiring Boston Dynamics in 2021.

The Korean carmaker hopes to utilize the U.S.-based robotics design firm for advanced mobility. Hyundai Motor also unveiled its first-ever wearable robot, X-ble Shoulder, for commercial purposes. It was developed to maximize industrial efficiency and build safer work environments.

Humanoid robots are on display at the headquarters of Rainbow Robotics in Daejeon, Oct. 2, 2024. Korea Times photo by Jung Da-bin

The robot will be deployed to production lines of the group's two car affiliates — Hyundai Motor and Kia. Starting next year, the company also plans to expand the robot's usage and sales channels to manufacturing players in areas such as construction, shipbuilding and aviation.

"Global tech firms will expand their investment in the lucrative robotics business, as demand for robots that will replace the human workforce is widely expected to rise amid aging population and low birthrate," an official from a tech firm said.

According to data from market researcher Global Information, the global industrial robot market will be worth $88.55 billion by 2030, which is more than twice the amount from 2021, when the figure reached $32.32 billion.

Other global carmakers, such as Tesla, are also intensifying its rivalry against Hyundai Motor with plans to sell its Optimus humanoid robots in 2026, about four years after the firm unveiled its prototype.

"The (impact of such developments) is that the production cost for humanoid robots will fall to a reasonable level," another official from the local tech industry said.

LG Electronics is also betting big on the commercial robot business, making it the firm's next key growth area. The company has showcased diverse commercial robots for the past few years. In 2017, LG Electronics deployed self-driving airport guide robots at Incheon International Airport.

Last year, the company also acquired a stake in Bear Robotics, a Silicon Valley-based startup developing AI-powered autonomous service robots, for $60 million.