If you’ve been following along – we’ve been sharing how we’ve been in the “Eye of the Robo Storm” not only in terms of old market maturation and cyclicality awaiting the pull-through from globalization of manufacturing, but new markets blossoming from major advancements in energy and AI bringing a massive upgrade cycle and new markets to robotics. Recent ROBO Global Robotics and Automation Index member additions, such as Doosan and Joby, have been making strides (detailed below).
GXO (ROBO) partners with Apptronik to develop and scale out humanoid robots in the logistics industry. We are about to witness a rapid evolutionary change of how humans and robots work together, and what is possible in new form factors. Some estimates point to a multitrillion-dollar market for humanoids by 2035.
“We’re excited to partner with Apptronik to develop their AI-enabled humanoid robot,” said Adrian Stoch, chief automation officer, GXO. “Apollo has great potential to add value throughout the distribution center, including the most labor-intensive operational processes. These kinds of robotics reduce repetitive work and improve safety while freeing associates to focus on higher-value-added activities.”
Joby (ROBO) announces FAA approval for its ElevateOS for both its own air taxi operations and licenses: “includes pilot tools, operations and schedule management software, a mobile-first rider app, and an intelligent matching engine.” Additionally, it shared more of the NYC and LA launch plans.
Most recently, on July 11, Joby achieved the milestone of the first forward flight of an EVTOL using hydrogen – going 523 miles with a converted model of its aircraft. Its stock rose +18% on the day of the news. This could enable regional, emissions-free flight between cities. Joby joined the ROBO index earlier this year at the Q1 rebalance. If you want to see the nitty-gritty technical details, check it out here.
On July 12, Doosan Robotics, an addition from the most recent Q2 rebalance to the ROBO Global Index, announced a strategic restructuring involving Doosan Bobcat. This move, part of Doosan Group’s reorganization into three pillars (Smart Machine, Advanced Materials, and Clean Energy), will see Doosan Robotics incorporate Doosan Bobcat as a subsidiary through a spin-off merger and share swap process, resulting in Doosan Bobcat’s delisting.
The restructuring aims to create a collective “smart machines” company, leveraging synergies between the two entities. This positions the combined entity to tackle new markets in professional services automation, including construction, agriculture, and logistics. By leveraging Doosan Bobcat’s established network and using its production facilities as test beds for developing new robotic solutions, Doosan Robotics aims to accelerate its growth in advanced markets and the professional service robot sector, positioning itself as a “Global Full-range Autonomous/Automated Solution Provider.”
Overall, the ROBO Global Robotics and Automation Index is expected to grow revenue exposure to the construction industry as these technologies converge and are used on-site, manufactured in prefab or modular builds. Below, we outline current ROBO Index members (as of Q3 2024) that have various exposure to the construction space.
3D Systems Expands in Middle East with Major Saudi Deal
3D Systems (NYSE:DDD), a member of the ROBO Global Robotics and Automation Index, announced a significant partnership in Saudi Arabia, marking a major step in the global expansion of additive manufacturing technology:
National Additive Manufacturing & Innovation Company (NAMI) in Saudi Arabia has purchased multiple 3D Systems’ printing technologies, including DMP Factory 500, DMP Flex 350 Dual, and SLS 380.This acquisition supports NAMI’s collaboration with Saudi Electricity Company (SEC), the largest energy producer and distributor in the Middle East and North Africa. The partnership aims to create a localized, digital supply chain for spare parts, reducing production time, storage requirements, and costs for SEC.
Our most recent commentary, “Assessing the Broad Robotics Landscape,” dives into our take on the opportunities and “non-obvious” plays into robotics, and why valuations and expectations have not caught up to the near-future robotic reality.
As with recent ROBO index additions beyond Doosan Robotics and Joby Aviation, 3D Systems’ expansion into new markets and geographies highlights the ongoing evolution and global reach of the robotics and automation sector.
For more news, information, and analysis, visit the Disruptive Technology Channel.