From e-commerce to manufacturing floors, and hospitals to security, robotics fortified its foundation in 2020 as the pandemic crippled the global economy. The shortage of skilled labor in manufacturing industries and the constant infection threat have restricted the number of laborers on the work floor. This is constantly forcing owners to increase automation, which in turn is boosting the robotics space.
Rapid Automation Drives Robotics Space
A prime driver to the robotics markets is the reduction in the cost of operation and high return on investment. These bots have low penetration in domestic use due to their high price but are being widely used in professional services. Professional service robots have high computational power, are sophisticated, and can operate without much of human administration. These service bots have found increasing adoption in hospitals, public spaces like parks and parking lots, airports, and in dangerous and hazardous environments.
According to a ReportLinker
report, the global robotics market is expected to rise from $76.6 billion in 2020 to $176.8 billion by 2025, a whopping 18.2% CAGR in the forecasted period. And the report also states that shortage in the workforce and increasing automation to counter the skill gap will be driving industrial robots usage. Moreover, in the industrial space, especially the manufacturing landscape, collaborative robots (cobots) are being largely adopted. These cobots have easy-to-use programmable software that can work cohesively with the workforce and contribute to a variety of repetitive, menial tasks while a human worker completes more complex and thought-intensive tasks.
Additionally, disruptive innovation in the robotics space has led to the creation and up-gradation of applications that include drones, automated or unmanned guided vehicles (AGVs), agricultural robots, inspection robots, humanoid robots, robotic kitchen, laundry robots, remotely operated vehicles (ROVs), telepresence robots, surgical robots, cleaning robots and more. The combination of artificial intelligence and human intelligence has been helping man and machine work alongside in various fields, and it impacts the labor market but cannot completely replace the workforce.
In fact, one can even say that robotics is one of the most advanced disruptive innovations in technology, which is transforming life and work practices by increasing efficiency and safety levels and delivering enhanced services. It is bridging the gap between the digital and physical world by connecting autonomous devices and cognitive artifacts that can interact seamlessly.
What’s more? This year Consumer Electronic Show (CES) 2021 also witnessed some impressive robots, especially cleaning bots that can sanitize places without human administration.
5 Stocks to Buy
The robotics space is expected to witness significant growth and given the favorable conditions, we have shortlisted five stocks that can return well on investment.
NVIDIA Corporation ( NVDA Quick Quote NVDA - Free Report) operates as a visual computing company. The company is using artificial intelligence to enable breakthroughs in robotics that solve real-world problems in industries like manufacturing, logistics, healthcare, and more.
The company’s expected earnings growth rate for the current year is 35.6% compared with the Zacks
Semiconductor - General industry’s projected earnings growth of 18.4%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 15.8% upward over the past 60 days. NVIDIA flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Flex Ltd. ( FLEX Quick Quote FLEX - Free Report) provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers. The company’s expected earnings growth rate for the current year is 17.1% compared with the Zacks Electronics - Miscellaneous Products industry’s projected earnings growth of 14.6%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 14.3% upward over the past 90 days. Flex holds a Zacks Rank #2 (Buy). KLA Corporation ( KLAC Quick Quote KLAC - Free Report) designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries. The company’s expected earnings growth rate for the current year is 30.1% compared with the Zacks Electronics - Miscellaneous Products industry’s projected earnings growth of 14.6%. The Zacks Consensus Estimate for this Zacks Rank #2 company’s current-year earnings has been revised 0.2% upward over the past 60 days. Cognex Corporation ( CGNX Quick Quote CGNX - Free Report) provides machine vision products that capture and analyze visual information in order to automate manufacturing and distribution tasks. The company is known to offer bionic eyes for robots. The company’s expected earnings growth rate for the current year is 40% compared with the Zacks Electronics - Testing Equipment industry’s projected earnings growth of 22.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 3.7% upward over the past 60 days. Cognex holds a Zacks Rank #2. Brooks Automation, Inc. ( BRKS Quick Quote BRKS - Free Report) provides manufacturing automation solutions to the semiconductor industry. Its products include atmospheric and vacuum robots, robotic modules, and tool automation systems that offer precision handling and clean wafer environments; and automated cleaning and inspection systems for wafer carriers, reticle pod cleaners, and stockers. The company’s expected earnings growth rate for the current year is 37.9% compared with the Zacks Electronics - Manufacturing Machinery industry’s projected earnings growth of 32.3%. The Zacks Consensus Estimate for this Zacks Rank #2 company’s current-year earnings has been revised 2.6% upward over the past 60 days. Zacks' Top Picks to Cash in on Artificial Intelligence
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