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The next big thing in robotics stocks?

We recently published a list The 8 Most Promising Robotics Stocks According to Hedge Funds. In this article, we'll take a look at where Tesla, Inc. (NASDAQ:TSLA) stands compared to other most promising robot stocks, according to hedge funds.

The robotics industry was once seen as a solution that would swallow up human jobs and replace them with machines. However, robotics is not about replacing humans, but rather about improving and automating human tasks to save time and improve task efficiency. The AI ​​boom has accelerated the adoption of automation in companies. Companies are relying on generative AI services, especially after the introduction of ChatGPT. Now, in addition to AI, we are also experiencing robotics, a revolutionary development. Hospitality, agriculture, professional cleaning, automotive, and medical are some of the largest industries using robots.

According to the International Federation of Robotics (IFR), sales of professional service robots increased by 30% worldwide in 2023. IFR's statistics department registered over 205,000 robotics units in 2023, with the Asia-Pacific region recording the highest sales worldwide. The Asia Pacific region accounted for 80% of global robotics sales, with nearly 162,284 units.

The transport and logistics service provider was one of the markets with the highest robotics sales in 2023. A total of around 113,000 units were built for the transport and logistics application class, which corresponds to an increase of 35% compared to the previous year. Demand in the robotics industry is driven by a shortage of skilled workers, according to the 2024 IFR report. Elon Musk has been in the headlines since the launch of his company's robotaxis. Robotaxis could fundamentally change robotic automation in outdoor environments.

Catering robots are another big thing in the robotics industry today. More than 54,000 units were sold in the hospitality industry in 2023, with mobile guidance, information and telepresence robots making up the majority of robotics units. Sales of agricultural robots stood at 20,000, while cleaning robots reported sales of 12,000 units, up 21% and 4%, respectively. Professional cleaning robots are mainly used for floor cleaning, accounting for almost 70% of the total units sold in 2023. Medicine remains another growth sector as medical robots increased 36% to nearly 6,100 units. Demand was highest for surgical and diagnostic robots, which grew by 14% and 25%, respectively, year-on-year.

The United States remains a leader among manufacturers of service and medical robots. Nearly 199 companies are based in the United States, 66% of which produce professional service robots, 27% consumer service robots, and 12% medical robots. China follows the US with 107 manufacturers of service and medical robots, while Germany ranks third with 83 companies. Earlier this year, Bill Gates pointed to several “cutting-edge robotics startups and labs” that excite him, including three companies focused on developing humanoids. One of them is Agility Robotics, which focuses on developing human-centered, multi-purpose robots for logistics work.

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