Key Points:
- The global industrial automation and control systems market is projected to reach $377.25 billion by 2030.
- Robots can increase productivity by up to 30% due to their ability to work continuously and without breaks.
- Intuitive Surgical, Teradyne, and Deere are three robotics stocks to consider for automation in 2024 and beyond.
Robotics stocks are becoming increasingly relevant as the global industrial automation and control systems market continues to grow. This market reached a valuation of $172.26 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 10.5% from 2023 to 2030. This growth can be attributed to the increased demand for automation and the ability of robots to significantly increase productivity.
Intuitive Surgical, headquartered in Sunnyvale, California, is a leading medical robotics maker that develops and manufactures robotic products designed for minimally invasive surgery. The company’s main product is the da Vinci Surgical System. The surgical robotics market reached a valuation of $8 billion in 2022 and is expected to grow at a CAGR of 16.4% from 2023 to 2032, reaching $36.37 billion in revenue. Intuitive Surgical is financially attractive with no debt and consistent profitability. Analysts rate the company’s shares as a consensus strong buy.
Teradyne, based in North Reading, Massachusetts, is an automatic semiconductor test equipment designer and manufacturer. The company is well-positioned to benefit from the increasing demand for automation in various industries. The global industrial robots market reached a valuation of $16.78 billion in 2022 and is projected to expand to $41.02 billion by 2030, with a CAGR of 12.3% from 2023. Teradyne has a robust, cash-rich balance sheet and excellent margins, making it an attractive option. Analysts rate the company’s shares as a consensus moderate buy.
Deere, headquartered in Moline, Illinois, is primarily known for manufacturing agricultural machinery. However, the company has been moving into the automation space by developing autonomous machinery for the farming industry. The global agricultural robots market reached $11.57 billion in 2022 and is expected to grow to over $48 billion by 2032. Deere has strong revenue growth, consistent profitability, and could benefit from the increasing demand for agricultural robots.
Overall, robotics stocks are an attractive investment option for those looking to capitalize on the growing automation industry. Intuitive Surgical, Teradyne, and Deere are three stocks to consider for automation in 2024 and beyond.