Robotics stocks offer a high-potential frontier, considering the market is expected to grow over 11% between 2024 to 2028. It’s anticipated to eventually land on a total market volume of over $65 billion.
A leading robotic vacuum maker expects its market to rise from $12 billion in 2021 to $51 billion by 2028. Another robotic-assisted surgical pioneer’s market might triple in the next decade, owing to improvements and surgical applications. Additionally, a multinational industrial robotics business with hundreds of thousands of robots is launching collaborative robots that can safely work with humans.
These robotics stocks have distinct skills and confront unique challenges as they change industry standards and investor expectations.
iRobot (IRBT)
Robotic vacuum cleaners are often associated with the brand iRobot (NASDAQ:IRBT). This market is predicted to grow by 27% to around $51 billion in 2028, giving iRobot a huge addressable market.
The stock itself is not doing so well — it is down over 81% YTD thanks to a failed Amazon (NASDAQ:AMZN) merger. The tech giant was looking to purchase Roomba for $1.4 billion, but the European Commission’s regulatory hurdles caused the deal to fail.
Recent measures show iRobot is aiming to reverse its 14% Q4 2023 sales decrease and the loss of the Amazon deal. Roomba Combo Essential, reorganization and cost cuts are its newest initiatives.
iRobot is restructuring to stabilize and increase earnings. Strategic leadership transitions require new executives to fix problems. Financial worries exist since the company predicts a GAAP operating loss of $265-$285 million and a non-GAAP loss of $200 million in fiscal year 2023.
In addition, iRobot laid off 350 staff. After the Amazon deal collapsed, this was a cost-cutting measure to streamline operations. These events suggest change as iRobot struggles commercially and operationally. The company is stabilizing its finances and preparing for growth.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is one of the oldest pure-play robotics stocks to buy, thanks to its dominant position in robotic-assisted surgery.
With 11 million procedures, the company’s repute is unmatched. Still, there is space for growth. In developing fields like robots, I despise projections. However, Precedence Research estimates that the surgical robots industry would grow to $36 billion by 2032 from $8 billion in 2022.
The market will grow at a CAGR of 16.4% from 2023 to 2032, a nice number for ISRG investors to consider as they map the stock’s future success. ISRG itself is in a better position to exploit all this growth because of its aforementioned credibility and strong execution. The company recently announced solid Q4’23 results, surpassing Wall Street estimates consecutively for the fourth time. This was thanks to a return in the number of surgeries performed after the Covid-19 pandemic caused a delay in elective and non-urgent procedures.
Due to rising obesity eligibility, Intuitive Surgical has seen potential new markets for its robotic systems in other surgeries despite a drop in bariatric surgery demand (likely caused by new weight-loss drugs like Wegovy and Zepbound).
In 2024, Intuitive Surgical expects da Vinci surgical robot adoption to rise 13%–16%. Although lower than the 22% year-over-year rise in 2023, robotic-assisted surgery usage is still growing.
ABB (ABBNY)
With over 400,000 industrial robots deployed, ABB (OTCMKTS:ABBNY) concludes our list of the top robotics stocks to purchase.
After the Covid-19 epidemic impacted ABB’s revenue and orders, vehicle sales and industrial activity revived, preparing the business for a robust comeback. Stock rebound from epidemic lows shows investor confidence and market resiliency.
Company products are also evolving, including new GoFa cobots. ABB GoFa 10 and 12 cobots are new. Machine tending, welding and assembling are possible with these new versions’ 10 and 12 kilogram capacities and greater reaches. These cobots are safe, accurate and simple to operate, with tool center point (TCP) speeds up to two meters per second and 0.02-millimeter repeatability.
ABB showed its next-generation collaborative robotics for metal fabricators at FABTECH 2023. The presentation introduced precision welding and cutting cobot GoFa 12 to North America. Interactive lead-through techniques make programming simpler using the Easy Teach Device.
ABB’s Wizard simple programming tools and SafeMove robot safety monitoring app are available on GoFa cobots. Graphical command blocks, lead-through programming, safe speed limitations and stationary monitoring enable cobots to operate closely to people without physical safety barriers.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.