Hot Stocks: The 3 Best Opportunities for Investing in Robotics
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13 Best Robotics Stocks To Buy Now
In this article, we discuss the 13 best robotics stocks to buy now. If you want to skip the detailed analysis of 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 was valued at $72.2 billion at the end of the previous year. The industry is projected to expand at a compound annual growth rate (CAGR) of 14.7% to reach $283.2 billion. Traditional industrial robots dominate with a 52% market share, while collaborative robots or cobots are the fastest-growing segment, designed to enhance precision and sophistication in task performance. The hardware segment accounts for 72% of the market, with software and services capturing the remaining 28%. Manufacturing leads industry applications, claiming 68% of the market share. Regionally, the Asia Pacific generates the most revenue at 46%, with China responsible for 50% of global installations in the region.
Robotics Industry's Growth Prospects
According to the International Federation of Robotics, the annual sales of industrial robots grew at an average rate of 7%, reaching 553,032 units. The global density of robots in manufacturing is 151 robots per 10,000 employees, with a stock of 3.91 million units. The IFR projects a 7% annual growth rate, leading to 718,000 annual robot installations over the next three years. Significant investments in the modernization of car manufacturing and other industrial facilities contribute to this demand. For further insights, you can check the Top 10 Industrial Robotics Companies in the World.
Moreover, the healthcare sector exhibits strong demand for industrial robots. The National Institute for Occupational Safety and Health (NIOSH) highlights that healthcare workers face the highest risks of on-the-job illnesses and injuries. With 6,000 robots performing a million surgeries annually, there is a growing reliance on robotics in healthcare. Additionally, building maintenance is another significant sector, with 2.38 million janitors and cleaners in the US and companies spending around $60 billion on these services. The risky nature of the job drives the demand for cleaning robots, with 19 million consumer robots sold annually, marking a 12% year-over-year increase.
The growth in the robotics industry is also driven by the global aging population. The United Nations (UN) projects that by mid-century, one in six people globally will be above the age of 65, compared to one in 11 currently. In Europe, this ratio is expected to be one in four. The population aged 80 and above is expected to triple from 143 million to 426 million. Japan is already addressing the aging population challenge by funding initiatives to fill a gap of 380,000 skilled employees by 2030.
Investment Opportunities in Robotics and Automation
Besides investing in top robotics stocks like Thermo Fisher Scientific Inc. (NYSE:TMO), Intuitive Surgical, Inc. (NASDAQ:ISRG), and Medtronic plc (NYSE:MDT), investors can also explore broad exposure through the 10 Best Robotics ETFs, such as the iShares Robotics and Artificial Intelligence Multisector ETF (NYSEARCA:IRBO). Launched in June 2018, this ETF has net assets of $488.2 million, 113 holdings, a management fee of 0.47%, and generated a 23.8% return over the past year, outperforming the S&P 500 Index. UiPath Inc. (NYSE:PATH) is also gaining attention as a cheap robotics stock, providing a platform for robotic process automation (RPA).
13 Best Robotics Stocks To Buy Now
A robotic arm assembling a complex circuit board, showcasing the industrial scale of operations.
Our Methodology
We have shortlisted the 13 best robotics stocks to buy now based on Insider Monkey’s database of 910 hedge funds. The list includes stocks that are either pure plays in robotics and automation or have substantial exposure through their core operations. The best stocks are ranked by the number of hedge funds holding a stake in them as of Q2.
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 an Illinois-based company specializing in tracking, visibility, and automation solutions for enterprises. The acquisition of Fetch Robotics in July 2021 has bolstered Zebra's position in the robotics industry, offering automation solutions for various sectors such as distribution, manufacturing, third-party logistics (3PL), and warehousing through its diverse range 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 Wisconsin-based company renowned as one of the world’s largest providers of industrial automation solutions. In May 2021, Rockwell Automation announced a strategic partnership with autonox Robotics to explore new manufacturing possibilities. Autonox Robotics boasts 300 models with manufacturing facilities in Germany and the USA.
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 Massachusetts-based company with a diverse portfolio, including autonomous robots, collaborative robots, and motion control software for robots. The acquisition of Mobile Industrial Robots (MiR) in 2018 and AutoGuide in 2019 marked Teradyne’s entry into the robotics industry. MiR produces autonomous mobile robots for transporting materials and goods, while AutoGuide offers high-payload AMRs 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 Michigan-based medical technology company. In 2013, Stryker acquired Mako Surgical, specializing in surgical robotic systems for orthopedic procedures. The Mako System features a 7-axis robotic arm, 3D CT planning software, and a navigation camera system, assisting in joint replacement surgeries like knee and hip replacements. Over 1 million procedures across 35 countries have been performed using Mako robotics since 2016.
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 Missouri-based company that expanded into robotic grippers and actuators through its acquisition of Aventics, adding collaborative robotics to its offerings. Currently, Emerson is finalizing an $8.2 billion acquisition of National Instruments Corporation (NASDAQ:NATI). The deal has received approval from both 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 California-based software company specializing in ingesting and analyzing data from robotic systems. Their software helps monitor performance, detect issues, and identify optimization opportunities. Splunk also provides tools to support DevOps workflows, enhancing deployment, testing, and release management for robotic software developers.
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 a Virginia-based diversified aerospace and defense company. The company developed XOS 2, a second-generation powered exoskeleton intended to enhance a soldier’s strength by transferring 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 an Illinois-based manufacturer of agricultural, construction, and forestry equipment. The acquisition of Bear Flag Robotics for $250 million in August 2021 accelerated the development of autonomy technology for Deere’s tractors. Deere offers advanced GPS and steering capabilities, enabling autonomous field operations and supporting agricultural productivity. Automation and robotics are pivotal to optimizing efficiency in the agriculture sector.
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 among the best robotics stocks to consider. Fuxin Intelligent
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Disclosure: None. 13 Best Robotics Stocks To Buy Now is originally published on Insider Monkey.
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