In this article, we discuss the 13 best robotics stocks to buy now. If you want to skip our discussion on the robotics industry, you can go directly to the 5 Best Robotics Stocks To Buy Now.
According to Precedence Research, the size of the robotics industry stood at $72.2 billion at the end of 2022. The industry is predicted to expand at a compound annual growth rate (CAGR) of 14.7% from 2022 to 2032 to reach a size of $283.2 billion. Based on the product type of robots, traditional industrial robots dominate the market with a 52% market share in 2022. Meanwhile, collaborative robots or cobots are the fastest-growing product segment as they are designed to help people perform their tasks with a better level of precision and sophistication. In terms of components, the hardware segment accounts for 72% of the market share. The remaining 28% of the market share is captured by software and services segments. When it comes to specific industry applications, manufacturing takes the lead, accounting for a substantial 68% of the market’s top-line share. In terms of geography, the Asia Pacific region generates the most revenue, with a share of 46% in 2022. Within the Asia Pacific region, China leads as it has a track record of being responsible for 50% of all global installations taking place in the region over the years.
Robotics Industry’s Growth Prospects
According to the International Federation of Robotics, unit sales of industrial robots compounded at an average annual rate of 7% from 2017 to 2022. Meanwhile, annual unit sales of robots increased by 5% YoY to reach 553,032 in 2022. Overall, in the manufacturing industry, the global density of robots stood at 151 robots per 10,000 employees, and the stock of industrial robots stood at 3.91 million. The IFR anticipates a 7% annual average growth rate in the next three years, which would result in annual installations of 718,000 units by 2026. One of the reasons for the strong demand for industrial robots is significant investments in car manufacturing facilities and the overall modernization of industrial facilities across various sectors. You can also check out the Top 10 Industrial Robotics Companies in the World here, which play pivotal roles in this dynamic industry.
According to Mordor Intelligence, there is a strong demand for industrial robots in the healthcare sector as well. As per the National Institute for Occupational Safety and Health (NIOSH), the most hazardous jobs in the US are performed by employees in the healthcare sector, exposing workers to the highest rates of on-the-job illnesses and non-fatal injuries. According to estimates, there are already 6,000 robots worldwide that are performing one million surgeries annually. Another sector that is a strong end-market for the robotics industry is the building maintenance industry. As per the US Bureau of Labor, there are 2.38 million janitors and cleaners employed across the US, and companies spend around $60 billion annually on these services. This amount does not include the insurance payouts, which are substantial as well due to the risky nature of the job. The heightened risk factor is one of the primary reasons for a stronger demand for cleaning robots. Cleaning robots have already made significant headways in the consumer segment. Around 19 million robots that performed domestic tasks were sold during 2022, marking an impressive year-over-year (YoY) increase of 12% in the largest consumer robot category.
The healthy growth outlook of the robotics industry can also be attributed to the global aging population, as the need for robots is expected to rise due to their increased requirement in assistance living and domestic healthcare services. According to the United Nations (UN), every sixth person in the world will be above the age of 65 by the middle of this century as opposed to one in 11 people currently. Meanwhile, in Europe, one in every fourth person could be older than 65 by 2050. The number of population above the age of 80 is anticipated to triple from 143 million in 2019 to 426 million in 2050. The Japanese government is already embracing the impact of an aging population and a shortage of skilled staff as it has announced funding to make up for a gap of 380,000 skilled employees by 2025.
Investment Opportunities in Robotics and Automation
In addition to investing in the best robotics stocks, such as Thermo Fisher Scientific Inc. (NYSE:TMO), Intuitive Surgical, Inc. (NASDAQ:ISRG), and Medtronic plc (NYSE:MDT), investors can also gain broad exposure to themes of robotics and automation by investing in the 10 Best Robotics ETFs such as iShares Robotics and Artificial Intelligence Multisector ETF (NYSEARCA:IRBO). The ETF launched in June 2018 has net assets of $488.2 million and a total of 113 holdings. The ETF has a management fee of 0.47% and generated a return of 23.8% in the last year. It also outperformed the S&P 500 Index, which yielded a return of 18.7% during the same period. Furthermore, UiPath Inc. (NYSE:PATH) is also amongst the cheap robotics stocks attracting investor attention currently. The New York-based software company founded in 2005 can be regarded as one of the best automation stocks as it provides a platform for robotic process automation (RPA).
A robotic arm in the process of assembling a complex circuit board – showing the industrial scale the company operates at. Editorial photo for a financial news article. 8k. –ar 16:9
Our Methodology
We have shortlisted the 13 best robotics stocks to buy now based on Insider Monkey’s database of 910 hedge funds. While there are many stocks that provide limited exposure to the robotics industry, we have shortlisted only those stocks that are either pure plays on the robotics or automation theme or provide substantial exposure to the industry through their core operations. The best robotics stocks have been ranked in ascending order of the number of hedge funds holding a stake in them as of Q2 2023.
13 Best Robotics Stocks To Buy Now
13. Zebra Technologies Corporation (NASDAQ:ZBRA)
Number of Hedge Fund Holders: 30
Value of Hedge Fund Holdings: $330,740,310
Market Capitalization: $11.50 billion
Zebra Technologies Corporation (NASDAQ:ZBRA) is a Lincolnshire, Illinois-based company that specializes in tracking, visibility, and automation solutions for enterprises. The company acquired Fetch Robotics in July 2021 to progress further in the robotics industry. Fetch Robotics provides robotics automation solutions for distribution, manufacturing, third-party logistics (3PL), and warehousing through its diverse offering of autonomous mobile robots (AMRs).
12. Rockwell Automation, Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 32
Value of Hedge Fund Holdings: $481,072,880
Market Capitalization: $32.05 billion
Rockwell Automation, Inc. (NYSE:ROK) is a Milwaukee, Wisconsin-based company that is considered one of the world’s largest providers of industrial automation solutions. In May 2023, Rockwell Automation, Inc. (NYSE:ROK) announced a strategic partnership with autonox Robotics that would aid in exploring new manufacturing possibilities. autonox Robotics has a presence in Germany and the USA through its manufacturing facilities and has a strong portfolio of more than 300 models.
11. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 41
Value of Hedge Fund Holdings: $1,053,770,000
Market Capitalization: $14.76 billion
Teradyne, Inc. (NASDAQ:TER) is a Boston, Massachusetts-based company that has a diverse portfolio of autonomous robots, collaborative robots, and motion control software for robots. The corporation entered the robotics industry by acquiring Mobile Industrial Robots (MiR) in 2018 and AutoGuide in 2019. MiR makes autonomous mobile robots (AMRs) used for transporting materials and goods in factories and warehouses, while AutoGuide offers high-payload AMRs along with related software and controls.
10. Stryker Corporation (NYSE:SYK)
Number of Hedge Fund Holders: 46
Value of Hedge Fund Holdings: $2,423,646,200
Market Capitalization: $103.89 billion
Stryker Corporation (NYSE:SYK) is a Kalamazoo, Michigan-based medical technologies company. In 2013, Stryker Corporation (NYSE:SYK) acquired Mako Surgical, which specializes in the production of surgical robotic systems for orthopedic procedures. The Mako System consists of a 7-axis robotic arm, 3D CT planning software, and a navigation camera system. It is used for joint replacement surgeries like knee and hip replacements to assist surgeons with precision implant placement. Since 2008, over 1 million procedures across 35 countries worldwide have been performed using Mako robotics.
9. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 49
Value of Hedge Fund Holdings: $1,779,620,100
Market Capitalization: $56.06 billion
Emerson Electric Co. (NYSE:EMR) is a St. Louis, Missouri-based company that expanded into robotic grippers and actuators through its acquisition of Aventics, adding collaborative robotics solutions to its offerings. Currently, Emerson Electric Co. (NYSE:EMR) is in the process of completing an $8.2 billion acquisition of National Instruments Corporation (NASDAQ:NATI). The deal has received the go-ahead from China and the European Union.
8. Splunk Inc. (NASDAQ:SPLK)
Number of Hedge Fund Holders: 50
Value of Hedge Fund Holdings: $1,507,300,100
Market Capitalization: $24.55 billion
Splunk Inc. (NASDAQ:SPLK) is a San Francisco, California-based software company. The company’s software can ingest and analyze data from robotic systems to monitor performance, detect issues, and identify optimization opportunities. Splunk Inc. (NASDAQ:SPLK) also provides monitoring and analytics tools to support DevOps workflows. These tools can help robotic software developers improve deployment, testing, and release management.
7. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 56
Value of Hedge Fund Holdings: $1,320,352,400
Market Capitalization: $105.18 billion
RTX Corporation (NYSE:RTX) is an Arlington County, Virginia-based diversified aerospace and defense company. RTX Corporation (NYSE:RTX) has developed a collaborative robot in the form of XOS 2, which is a second-generation powered exoskeleton developed for military use. It is intended to augment a soldier’s strength by shifting the weight of heavy loads to the exoskeleton structure.
6. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 56
Value of Hedge Fund Holdings: $3,206,728,100
Market Capitalization: $110.71 billion
Deere & Company (NYSE:DE) is a Moline, Illinois-based manufacturer of agricultural, construction, and forestry equipment. The company acquired Bear Flag Robotics for $250 million in August 2021 to accelerate the autonomy technology for its tractors. Deere & Company (NYSE:DE) offers advanced GPS and steering capabilities on its equipment to enable autonomous field operations. The company views automation and robotics as crucial to support the productivity needs of the agriculture industry while optimizing efficiency.
In addition to Deere & Company (NYSE:DE), Thermo Fisher Scientific Inc. (NYSE:TMO), Intuitive Surgical, Inc. (NASDAQ:ISRG), and Medtronic plc (NYSE:MDT) are also some of the best robotics stocks to buy now.
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Disclosure: None. 13 Best Robotics Stocks To Buy Now is originally published on Insider Monkey.
