HCLTech's Vijayakumar: Physical AI Expected to Reach $1 Trillion Market by 2030

While recognizing that some current business sectors may experience deflation, he expressed that the new possibilities are “thrilling,” highlighting that HCLTech intends to expand its new service operations to $2.5 billion within the next two to three years.

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Artificial intelligence is reaching a crucial inflection point, igniting a new global investment cycle in technology, with nearly $3 trillion of capital expenditures currently underway, stated HCLTech CEO and MD C Vijayakumar at the World Economic Forum in Davos, Switzerland on Monday.

In discussing the event at WEF 2026, Vijayakumar highlighted a significant emerging trend: “physical AI” — the integration of robotics and artificial intelligence, enabling machines to perform complex real-world tasks with enhanced stability and contextual intelligence — an area he anticipates will develop into a trillion-dollar industry by 2030.

While recognizing that some current business sectors may experience deflation, he expressed that the new possibilities are “thrilling,” highlighting that HCLTech intends to expand its new service operations to $2.5 billion within the next two to three years.
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Emphasizing how the company is harnessing AI capabilities, Vijayakumar noted that 25–35% of coding and development tasks at HCLTech are now executed by AI. He further remarked that eventually, all initiatives will require AI integration.