Automation is gaining momentum in this fast-paced business environment due to the enhanced efficiency that robots offer. Industrial and service robots are witnessing rapid adoption as these are helping businesses in production scale expansion and operational cost reduction simultaneously.
Intelligent robots developed by integrating AI and ML tools is becoming mainstream in a number of major sectors including industrial, automotive, electronics, healthcare, and food & beverages.
Notably, the popularity and adoption of robots is on a high in the retail sector due to the growing demand for automated warehouses and fulfillment centers globally. Retailers are tackling labor shortages and wage issues by deploying robots, thereby gaining a competitive edge.
The global robotics market holds immense growth potential. Per the Research and Markets forecast, this market is expected to witness a CAGR of 25% between 2019 and 2024.
Spending on Robotics Set to Increase
According to an IDC report, spending on robotics systems and drones worldwide is pegged at $115.7 billion for 2019 and is likely to hit $210.3 billion by 2022 at a CAGR of 20.2%.
The report anticipates the robotics system segment to be the larger of the two categories over the same time frame, witnessing a CAGR of 18.9%.
Additionally, Statista projects spending on robotics categories in 2020 — Industrial, Commercial, Military and Personal — at $16.4 billion, $10.8 billion, $11.21 billion and $4.5 billion, respectively.
Moreover, for 2025, spending is pegged at $24.4 billion, $17 billion, 16.5 billion and $9 billion, respectively.
The above-mentioned growth factors have been alluring enough to attract several companies from different fields including Amazon (AMZN - Free Report) and Honeywell (HON - Free Report) , among others.
Let’s delve deeper to find out which robotic stocks are well-poised to benefit from this significant growth opportunity.
Robotic Stocks in Focus
Books Automation (BRKS - Free Report) is a provider of automation, vacuum, and instrumentation solutions. It especially caters to the automation requirements in the semiconductor manufacturing markets. The company is best known for its industry leading vacuum robots and atmospheric robotics modules which act as semiconductor wafer handling robots.
Notably, these robots are well equipped to handle wafers of all sizes, thin or bonded wafers, and specialized wafer carriers. Further, these robots aid in proactive monitoring and upgrading the equipment productivity.
Currently, the stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ReWalk Robotics (RWLK - Free Report) is known for its innovative solutions in the medical science space. The company’s ReWalk is a wearable robotic exoskeleton, which is first of its kind to receive FDA clearance for personal and rehabilitation use in the United States.
The exoskeleton helps patients with spinal cord injury to stand, walk, turn, climb and descend stairs as it provides hip and knee motion and support to them. The growing demand for ReWalk is expected to boost this Zacks rank #2 stock’s growth prospects in the healthcare sector.
Amazon which is the dominant player in the e-commerce space is making every effort to strengthen its retail capabilities with robotics. This Zacks Rank #3 (Hold) stock recently acquired robotics startup Canvas Technology which is best known for its fully autonomous cart systems that are of great use in fulfillment centers as they aid in shifting goods around warehouses.
Further, its buyout of robotics company Kiva Systems is a major positive. The acquisition aided Amazon in introducing two new kinds of robots for its fulfillment centers — Xanthus and Pegasus. Further, the company’s strengthening robotics arm, Amazon Robotics, and increasing number of its robotics buildings globally (currently stands at 26) are tailwinds.
Additionally, Amazon is revamping robotics initiatives on the back of its cloud capabilities. Its robotic development service called AWS RoboMaker is based on Robot Operating System.
iRobot (IRBT - Free Report) is one of the leading manufacturers of robots worldwide. The company’s offerings in the consumer sector includes robotic brands such as Roomba, Scooba, Braava, Mirra and Looj. The company is also benefiting from the growing demand for its innovative home-robotic products like Roomba e5 and i7/i7+ Roomba.
Further, this Zacks Rank #3 stock’s latest acquisition of Root Robotics is likely to strengthen its educational robot product offerings. Moreover, its Sales On Demand Corporation and Robopolis SAS buyouts are aiding the company in expanding international presence.
Recently, the company introduced robotic unloader that leverages AI technology for unloading a wide range of packages from truck trailers and shipping containers at distribution centers.
Notably, Honeywell carries a Zacks Rank #2.
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