• • • AI • • • Physical AI has already proven value, but until
recently it has lacked the scale needed to be transformative. That is changing rapidly. Advances in autonomy and intelligence are enabling robots to operate without oversight, accelerating deployment and lowering barriers to adoption. For many businesses that began their AI and
robotics journey in recent years, 2026 will mark a shift from testing and small pilots to full execution where these systems become embedded into everyday operations.
The year of the adaptive
digital twin Warehouse intelligence is evolving at speed. Digital twin technology is gaining momentum as a tool for simulation, optimisation and real-time decision making support. The digital twin market in logistics alone is forecast to grow at a compound annual growth rate well above 25 per cent between 2025 and 2035, moving from an estimated USD 1.9 billion in 2025 to USD 18.7 billion by 2035. In 2026, digital twins will increasingly play a
role in live operations rather than solely in planning. These are not the classical, construction twins where you scan once, build and never update. We’re talking about daily evolving and optimising twins that enable scenario simulation and continuous adaptation. When connected with autonomous robots this combination provides a simple way to optimise warehouse
layouts and perfect workflows. Operators can model changes virtually before they occur on the warehouse floor, reducing risk and increasing responsiveness. This tightening of virtual and physical operations will also increase precision. Robots will be able to navigate complex environmentsand identify optimal storage configurations at sub centimetre-level accuracy, improving space utilisation and lowering operational errors.
Facing the challenge:
Opportunities for 2026 The year ahead will be transformative for AI, robotics and supply chain resilience technology. There are immense challenges facing manufacturers and global logistics networks, but there are also unique and incredible opportunities. Organisations that embrace AI and automation with purpose will build capabilities that help them grow as market conditions continue to evolve and change at a rapid pace.
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ELECTRICAL ENGINEERING • FEBRUARY2026 19
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