AXA WF Framlington Robotech
The robots are rising, so don't miss the next major global trend
What is robotics?
Robotics is defined as the application of technological progress and/or automation into society in forms that enable the improvement of efficiency, precision and safety in many areas.
A transforming market
The global market for robotics is expected to grow by at least 10% per year up to 2025.1 More than 3,700 companies, including over 200 listed ones, already have a presence in this sector. And, it is estimated that, by the same year, the annual economic impact of the robotics industry on the global economy in terms of cost reductions and productivity gains will be in the region of $14 -33bn.2
Advancing technology has seen robots become both smarter and cheaper just as the professional workforce in many parts of the world has begun to decline (e.g. China, Japan) and younger generations shun lower value-added labour. As a result, robotics is increasingly ubiquitous.
2 Source: BCG, BofA Merrill Lynch, 2015; this note is purely for illustrative purposes.
More intelligent and less expensive than traditional labour, so-called collaborative robots (co-bots) have been deployed to work alongside humans in an expanding number of sectors.
Robots no longer simply build cars – they are increasingly vocal backseat drivers and soon, it is expected they will move into the driver’s seat. This also applies to vehicles used in the logistics, goods transport and agricultural sectors.
Robotics-assisted surgery has many advantages for patients and hospitals, including more precise surgery, lower risk of infection and faster healing, helping revolutionise the healthcare sector.
Semi-conductors, software, connectors
As the robotics industry grows, so too will the demand for the hardware and software required to build them. Such components supply and control robots by providing the connectivity and intelligence needed to capture, analyse and respond to the significant quantity of information gathered.
Main risks for robotics equity investments
Risk of capital loss: Investment primarily in equities involves a risk of losing the capital invested.
Counterparty risk: Risk of bankruptcy, insolvency or failure of a compartment counterparty, which might lead to a default in either payment or delivery.
Source: AXA IM/Bloomberg. Companies are cited for illustrative purposes only and this does not constitute a recommendation to buy or sell.