Robotics: AI and Cloud Computing Are Unlocking The Potential of Robotics

Robotics
AI and cloud computing are unlocking the

potential of robotics
MarketLine Theme Report
Report Code: ML00026-049

Published: February 2022
| Contents
Executive summary ...................................................................................................................................................... 4
Players .......................................................................................................................................................................... 5
Technology briefing ...................................................................................................................................................... 6

Defining a robot ........................................................................................................................................................... 6
From automata to modern robotics ............................................................................................................................ 6
Robot ethics and the socio-economic impact of automation ...................................................................................... 7
Types of robots ............................................................................................................................................................ 8
Trends ........................................................................................................................................................................ 10
Technology trends .......................................................................................................................................................... 10
Macroeconomic trends .................................................................................................................................................. 14
Regulatory trends .......................................................................................................................................................... 16
Industry analysis ......................................................................................................................................................... 17

Market size and growth forecasts ................................................................................................................................. 17
Patent trends ................................................................................................................................................................. 20
Mergers and acquisitions ............................................................................................................................................... 21
Timeline.......................................................................................................................................................................... 24
Value chain ................................................................................................................................................................. 25

Robot manufacturing ..................................................................................................................................................... 26
Caged industrial robots .............................................................................................................................................. 26
Industrial co-bots ....................................................................................................................................................... 27
Logistics robots (excluding drones) ........................................................................................................................... 28
Medical robots ........................................................................................................................................................... 29
Exoskeletons .............................................................................................................................................................. 32
Consumer robots ....................................................................................................................................................... 33
Drones ........................................................................................................................................................................ 35
Inspection, cleaning, and maintenance robots .......................................................................................................... 38
Field robots ................................................................................................................................................................ 40
Defense and security robots (excluding drones) ....................................................................................................... 41
Hardware components .................................................................................................................................................. 43
Precision mechanical parts ........................................................................................................................................ 43
Semiconductors ......................................................................................................................................................... 43
Software components .................................................................................................................................................... 46
Robotic intelligence ................................................................................................................................................... 46
Robotics as a service ...................................................................................................................................................... 48
Cloud robotics ............................................................................................................................................................ 48
Companies .................................................................................................................................................................. 49
Robotics | February 2022
Sector scorecards........................................................................................................................................................ 53
Industrial automation sector scorecard ......................................................................................................................... 53
Who’s who ................................................................................................................................................................. 53
Thematic screen ......................................................................................................................................................... 54
Valuation screen ........................................................................................................................................................ 55
Risk screen ................................................................................................................................................................. 56
Consumer electronics sector scorecard .......................................................................................................................... 57
Who’s who ................................................................................................................................................................. 57
Thematic screen ......................................................................................................................................................... 58
Valuation screen ........................................................................................................................................................ 59
Risk screen ................................................................................................................................................................. 60
Glossary ...................................................................................................................................................................... 61
Further reading........................................................................................................................................................... 63
| Our thematic research methodology ....................................................................................................................... 64
| Contact Us ............................................................................................................................................................... 67
© MarketLine 2019. This product is licensed and is not to be photocopied.

Executive summary
AI and cloud computing are unlocking the potential of robotics Inside
Robotics has a long history, but only recently have conditions aligned to unlock its ▪ Players
full potential. Those conditions are technological, economic, and demographic: ▪ Technology briefing
▪ The use of cloud computing and AI enables robots to collaborate and access ▪ Trends
huge amounts of data uninterruptedly. ▪ Industry analysis
▪ Automation is key to improving productivity. As countries and companies ▪ Value chain
attempt to recover from the pandemic, interest in robotics will increase. ▪ Companies
▪ Societies are using robots to care for the elderly and address shortages in the ▪ Sector scorecards
workforce.
▪ Glossary
Double-digit growth is expected in the next decade ▪ Further reading
Robotics is a fast-growing industry. According to GlobalData forecasts, it was worth
▪ Thematic methodology
$45bn in 2020, and by 2030, it will have grown at a compound annual growth rate
(CAGR) of 29% to $568bn. GlobalData expects every segment of the robotics market
to grow over the next decade. Industrial robots will function as a growth driver as ________________________________
innovation in the segment will spill over to other areas.
Will the robots of the future look like us?

Science fiction often speculates about robots that are virtually indistinguishable
from humans. Yet, the most popular consumer robot is still a vacuum cleaner
Related reports
shaped like a disc. In factories and warehouses, human staff work alongside robots ▪ Artificial Intelligence
that are incredibly good at performing repetitive and dangerous tasks but do not ▪ Cybersecurity
look or behave like humans. AI will allow robots to identify human emotions, and
▪ Cloud Computing
the field of soft robotics is developing robots from materials similar to those found
▪ The Future of Work
in living organisms. There is a chance that one day life will imitate art and robots
and people will look alike. If and when that happens, societies will face an ethical ▪ Drones
conundrum: what rights to give to non-human creatures that look like us? ▪ Internet of Things
▪ Autonomous Vehicles
The leaders
The leaders in key segments of the robotics value chain are shown below.
________________________________
Robot manufacturing
▪ Industrial robots: ABB, FANUC, Kawasaki, Midea (KUKA), Rockwell Automation,
Teradyne, Yaskawa.
▪ Service robots: ABB, Cyberdyne, Denso, Intuitive Surgical, iRobot, Northrop Report type
Grumman, Yuneec.
▪ Single theme
Hardware components ▪ Multi-theme
▪ Precision mechanical parts: Harmonic Drive, Omron, TE Connectivity,
▪ Sector Scorecard
Nabtesco, Keyence, Honeywell.
▪ Semiconductors: Softbank (Arm), NXP, Broadcom, Qualcomm, Intel, Infineon,
Ambarella, Samsung Electronics.
Software components
▪ Robotic intelligence: ABB, Cognex, Microsoft, Rockwell Automation, Google,
Amazon.
Robotics as a service
▪ Cloud robotics: Amazon, Preferred Networks, FANUC, C2RO, Midea (KUKA),
Cisco.

Players
The table below identifies some of the leading companies in robotics and categorizes their position in the value chain.
Who are the leading players in the robotics theme, and where do they sit in the value chain?
Robotics value chain Leaders Challengers

Harmonic Drive Omron Estun Automation Rockwell Automation
Precision TE Connectivity Nabtesco HollySys TDK
mechanical parts
Keyence Honeywell Teledyne Maxon
Hardware components Softbank (Arm) NXP Alibaba Marvell

Broadcom Qualcomm AMS MediaTek
Semiconductors Intel Infineon TDK Renesas
Ambarella Samsung Electronics Rohm Silicon Labs
ABB Cognex IBM HollySys

Robotic
Software components intelligence
Microsoft Rockwell Automation ROS-Industrial (open source)Nuance
Google Amazon Brain Corp Prophesee
ABB Yaskawa Omron Estun Automation

Caged industrial
FANUC Midea (KUKA) Seiko Epson Nachi-Fujikoshi
robots
Kawasaki Stellantis (Comau) Daihen Siasun Robotics
Mitsubishi Motors Festo Denso
Franka Emika ABB Kawasaki Siasun Robotics

Industrial co-bots Robotiq FANUC Fujitsu AUBO Robotics
Midea (KUKA) Teradyne (Universal Robots) Hitachi Hon Hai (Foxconn)
Hahn Group (Rethink Robotics) Yaskawa Festo
Logistics robots
Amazon Vecna Aethon Locus Robotics
(excluding Alibaba Clearpath InVia Robotics 6 River Systems
drones) ABB Toyota Tharsus GreyOrange
Ocado I Am Robotics
Intuitive Surgical Cyberdyne Siemens Healthineers Monteris Medical

Medical robots Medtronic Zimmer Biomet Titan Medical Vicarious Surgical
Johnson & Johnson Stryker Stereotaxis Paro
Zora Robotics Focal Meditech Omnicell Techmetics Robotics
Lockheed Martin Parker Hannifin Hyundai Motor Otto Bock

Exoskeletons ReWalk Robotics Cyberdyne SuitX Myomo
Ekso Bionics Honda Robotics Bionik Laboratories Stellantis (Comau)
Robot manufacturing
iRobot Hyundai Motor Toyota Vorwerk (Neato Robotics)
Dyson Honda Rokid Five Elements Robotics
Consumer robots Softbank Sony Zora Robotics
UBtech
Yuneec Autel Robotics Uvify Trimble

DJI Parrot Hubsan Ehang
Drones
Amazon Flytrex Delair
Northrop Grumman Lockheed Martin
Inspection, John Deere (Bear Robotics) ExRobotics Flyability ANYbotics

cleaning, and Seegrid KOKS Gecko Robotics Q-BOT
maintenance
Baker Hughes (Waygate) Softbank Neurala
robots
Abundant Robotics John Deere Rowbot

Agrobot EcoRobotix Small Robot Company
Field robots American Robotics Rabbit Tractors Soft Robotics
Defense and ABB Thales Group Aardvark Tactical Kongsberg Maritime

security robots Northrop Grumman BAE Systems
(excluding
drones)
Lockheed Martin Maxar Technologies
Amazon Preferred Networks GE Digital Rapyuta

Robotics as a service Cloud robotics FANUC C2RO Tend.AI Festo
Midea (KUKA) Cisco Huawei Noos
Source: GlobalData

Technology briefing
Joseph Engelberger, an American engineer and pioneer in the field of industrial robotics, reportedly said, “I can't define
a robot, but I know one when I see one.”
Art and popular culture tend to represent robots as a mechanical version of humans themselves. Even though today’s
robots take various shapes, the components that make a robot have similarities with the functions performed by the
different parts of the human body. After all, one of robotics’ primary functions is to replace the work of humans when
that work is repetitive, hazardous, or requires a level of precision that is better achieved by a machine.
Defining a robot
GlobalData defines a robot as a machine capable of carrying out a complex series of actions (typically programmed by a
computer) automatically and repeatedly. Robotics is the branch of technology that deals with the design, construction,
operation, and application of robots.
What makes a robot?

There are six essential elements to a robot
Structure Manipulator Controller Sensor system End effector Power source
The body or The locomotion The brain Sensors provide The tool that is All robots
frame can be of system that system that information connected to the require power.
any shape and determines the processes about the end of the robot's DC is the most
size. It provides robot's sensory environment to arm and that common type,
the structure of movement. information and the brain system interacts with the but robots can
the robot. tells the robot which then environment. also run on
what determines how batteries. Solar
movements to the robot will powered robots
perform. move. are growing in
importance.
Source: GlobalData
From automata to modern robotics

Robots as we know them are a 20th-century creation. However, the idea of automata or mechanical devices built to
replace human labor on physical tasks is much older. Examples go as far back as ancient Egypt, Greece, and the Roman
Empire. The first known case is from Egypt in around 3,000 B.C., when human figurines were built into water clocks to
automatically strike the hour bells.
In 400 B.C., Greek philosopher and mathematician Archytas of Tarentum invented a wooden pigeon that could fly.
Archytas is also the inventor of the pulley and the screw. Robotics’ roots are intertwined with the origins of mechanics
and automation.
Greek texts on automation were translated into Arabic in the medieval era, giving rise to Arabic mechanical engineering.
Arab engineers developed new types of gears and valves that led to the emergence of automata more complex than
what existed in ancient Egypt.
The next stage of progress in automation happened in Europe during the Renaissance, when artists created robot
dancers and musicians. In 1738, Jacques de Vaucanson, a French artist and inventor, built a flute-playing robot. At this

point in Europe, robots were mainly used for entertainment, but automata soon found their way into the world of labor
and were a crucial factor in the first Industrial Revolution. Mill machinery, water pumps, and, of course, the steam engine
all involved a degree of automation.
While automata have been around for millennia, the word “robot” first appeared in 1921, in Karel Capek’s science-fiction
play R.U.R. (Rossumovi Univerzální Roboti or Rossum's Universal Robots). “Robot” comes from the Czech word “robota”
which means “forced labor.”
The play describes a world where human-like machines made of synthetic organic matter replace humans in the
workplace. The robots become displeased with their situation, start a revolution, and kill the entire human race.
Following on from Capek’s pivotal work, literature and cinema have addressed the topic of human replacement, and
sometimes destruction, by robots numerous times in the last 100 years, from Blade Runner and Terminator to WALL-E.
Fascination with and suspicion of robots in the 20th century coincided with great leaps forward in the evolution of
robotics, coupled with the emergence of modern computing. What distinguishes millennia-old automata from modern
robots is intelligence. Modern robots can perform physical tasks autonomously, as all automata can, but they can also
sense the environment in which they operate and make their own decisions.
The first modern robot was built in the 1960s by the Stanford Research Institute (SRI) in the US. It was named “Shakey”
by the SRI due to its wobbly movements and could analyze commands and break them down into basic parts by itself.
While other robots would require instruction on each step of a larger task, Shakey could complete all the steps involved
in a task after receiving just one multi-step command.
Robot ethics and the socio-economic impact of automation

As robots became more sophisticated and omnipresent, they entered the human subconscious, and robot ethics became
an important branch of technology philosophy. Robot ethicists study the integration of robotics in society.
Two decades before Shakey, in 1942, Isaac Asimov established the famous Three Laws of Robotics in the science-fiction
short story Runaround. The first law is that a robot shall not harm a human or, by inaction, allow a human to come to
harm. The second law is that a robot shall obey any instruction given to it by a human, and the third law is that a robot
shall avoid actions or situations that could cause it to come to harm itself. The three laws have survived the test of time
and are often evoked in discussions about the role of robotics in society or even what rules should govern the circulation
of autonomous vehicles.
Society’s suspicion of robots does not come only from the sci-fi-promoted myth that machines will one day annihilate
us. Concerns are growing that robots might substantially reduce both human employment opportunities and the quality
of employment. This is not a new concern. In the 19th century, the Luddites destroyed machines used to make textiles
for fear that their skills would become obsolete and machinery would overtake their craft.
The Industrial Revolution showed that fear of new technologies could be overstated. As machines made some manual
tasks obsolete, many new machine-operating and machine-maintenance jobs emerged. However, the concerns of 21st
century Luddites are not unfounded. A study by Daron Acemoglu and Pascual Restrepo, published in the Journal of
Political Economy in 2020, found that a single industrial robot typically replaces six human workers. According to the
research, one additional robot per 1,000 workers in the US reduces the employment-to-population ratio by 0.2
percentage points and wages by 0.4%.
As robotics spreads to more industrial and service sectors, one of the most important tasks ahead for policymakers will
be to harness the economic benefits that robotics can bring while minimizing the negative social impacts.

Types of robots
Jacques de Vaucanson would probably not recognize that most of today’s robots are related to the flute-playing
automaton he built in the 18th century. The same can probably be said about factory workers 100 years later or Egyptians
in 3,000 B.C. And yet, today’s robots exist to fill the same role that automata have filled for the last 5,000 years. That is,
for entertainment or to replace humans in repetitive or strenuous tasks. Industrial robots fall into the latter category.
Service robots include machines built to help humans with work or chores at home and robots designed to entertain.
Robotics taxonomy
There are two main types of robots: industrial and service robots
Industrial robots Service robots
Caged Industrial co-

industrial bots
robots
Logistics Exoskeletons Inspection, Field robots

robots cleaning, and
maintenance
robots
Medical Consumer Drones Defense and

robots robots security
robots
.
Surgical Care robots Automated Personal Consumer Commercial Military Unmanned Unmanned Unmanned
robots home robots drones drones drones surface ground underwater
robots vessels vehicles vehicles
Source: GlobalData
Industrial and service robots are the two main categories within robotics.
Industrial robots
Industrial robots are typically used in factories to automate parts of the manufacturing process and can be split into two
sub-categories.
▪ Caged industrial robots: Industrial robots that work in a cage to avoid the risk of injury to humans.
▪ Co-bots: Robots designed to work alongside humans on specific tasks.
Service robots
Service robots assist humans at work in non-industrial settings or in the home. They can be split into eight main sub-
categories and a myriad of use cases:
▪ Logistics robots: Autonomous devices capable of transporting goods with limited human assistance, e.g., warehouse
robots and delivery robots. In this report, delivery drones are considered under commercial drones.
▪ Medical robots: Robots used in the medical sciences, including surgical robots and personal care robots. There are
two sub-types of medical robots:
o Surgical robots: Remote manipulators used in keyhole surgery.
o Care robots: Robots that help care for patients in a hospital, a care home, or a private home by lifting
them and providing medicine at the correct time.
▪ Exoskeletons: Wearable mobile machines, that allow for limb movement with increased strength and endurance.
The main use cases are in healthcare, defense, and manufacturing.

▪ Consumer robots: Robots primarily used for household chores (such as cleaning) or education and entertainment.
There are two sub-types of consumer robots:
o Automated home robots: Robots that can undertake household chores such as cleaning and mowing
the lawn.
o Personal robots: Robots that interact with humans and are used for playing and entertainment.
Typically, voice- or touch-activated, or controlled by a mobile device (e.g., a tablet).
▪ Drones: Unmanned aerial vehicles (UAVs). There are three sub-types of drones:
o Consumer drones: A UAV designed for the mass market.
o Commercial drones: A UAV used for business purposes such a delivery, a factory inspection,
agricultural spraying, or aerial photography.
o Military drones: A UAV used by the military for reconnaissance or as a delivery system for weapons.
▪ Inspection, cleaning, and maintenance robots: Robots used for inspection (e.g., sewer systems), cleaning, and
maintenance.
▪ Field robots: Mobile robots that operate in dynamic, unstructured environments. They are mainly used in
agriculture.
▪ Defense and security robots: Mobile robots used for security, law enforcement, military, and defense purposes. In
this report, military drones and exoskeletons are considered in their dedicated categories.
o USVs: Unmanned surface vessels.
o UGVs: Unmanned ground vehicles.
o UUVs: Unmanned underwater vehicles, including remotely operated vehicles (ROVs).

Trends
The main trends shaping the robotics theme over the next 12 to 24 months are shown below. We classify these trends
into three categories: technology trends, macroeconomic trends, and regulatory trends.
Technology trends
The table below highlights the key technology trends impacting the robotics theme.
Trend What’s happening?

Artificial intelligence AI technologies, most notably machine learning, are integral to the development of
(AI) intelligent industrial robots, which can anticipate and adapt to certain situations based on
the interpretation of data derived from an array of sensors (e.g., 3D cameras, ultrasound
transmitters, force sensors, and obstacle detectors). Further advances are needed in
certain AI technologies, including computer vision, conversational platforms, and context-
aware computing, to take industrial automation and industrial robotics to the next level.
These developments will not happen overnight, and the limitations of the current
generation of intelligent robots show how far there is still to go. That said, the foundations
are in place, and advances will be made over the coming years. Moreover, investors are
pouring funds into AI start-ups, such as Covariant and Realtime Robotics, which aim to
make robots more intelligent, independent, and better able to function in unstructured
environments.
Neuromorphic processors (chips that emulate the structure of the human brain) will
become an important part of the next generation of robots. They are trained using basic
libraries of relevant data and then taught to think for themselves by processing sensory
inputs. Eventually, these chips will use their acquired skills to perform assigned duties using
associations and probabilities. IBM and Intel currently lead in neuromorphic chip
development but face competition from well-established players, such as Qualcomm, HPE,
and Samsung Electronics, and well-funded start-ups, like Graphcore and Cambricon. There
are dozens of start-ups in this space as it is a prestigious area that investors are keen to
have in their portfolios.
See Artificial Intelligence.
Edge computing Although much in robotics can be done from the cloud, security and latency issues mean
that many robots have to be able to process real-time data about their operational
environments and respond immediately. There is no time to go back and forth to the cloud
to check data and receive intelligence and instructions. Due to lower latency, edge
computing has the potential to improve the performance of robots while, at the same time,
improving security, as the edge is safer than the cloud. Edge computing will make
cyberattacks more difficult when combined with robotics’ self-contained “sense-decide-
act” firmware loops.


Cybersecurity One of the major challenges to the widespread implementation of robots is the threat of
cyberattacks. Robots, especially those that are internet-connected, are highly vulnerable
to hacking. Leaving them unprotected may allow unauthorized access to key applications
and systems, which in turn may lead to loss, theft, destruction, or inappropriate use of
sensitive information. Hackers can even gain control of robots and compromise robotic
functions to produce defective final products and cause production downtime. The
perpetual cybersecurity risks associated with connected robots are compelling robot
manufacturers to focus on security at the design and development stages and invest in
effective security solutions.
The latest industrial cybersecurity management solutions address the risks associated with
industrial automation equipment, applications, and plants. These solutions enable
enterprises to comply with industry-specific cybersecurity regulations, such as the North
American Electric Reliability Corporation Critical Infrastructure Protection (NERC CIP).
Organizations can combine IT and operational technology (OT) security efforts and
maximize the potential of all corporate cybersecurity resources by including these
cybersecurity management solutions in their security strategy.
See Cybersecurity.
Industrial Internet Industrial machines and processes have been monitored in real-time for decades, with
technologies like supervisory control and data acquisition (SCADA) having been in
existence since the 1970s. However, the Industrial Internet implies a greater degree of
interconnection between systems and assumes that the monitoring and control data will
flow beyond the boundaries of the factory to be consumed and managed by cloud-based
services. While there is much excitement about the factory of the future and Industry 4.0,
existing factories, machines, and processes represent the primary opportunity for the
Industrial Internet. The biggest short-term gains will come from retrofitting advanced
communications and management functionality to today’s industrial infrastructure. Giving
industrial machinery manufacturers the ability to access real-time performance data
should allow them to offer new services and support new business models like preemptive
maintenance or RaaS. While vendors like Cisco provide connectivity solutions, more savvy
manufacturers are connecting their products to deliver better service to clients.
See Industrial Internet.
Cloud robotics Advances in AI have enabled the development of robots, allowing them to become highly
complex products rather than the stand-alone, fixed-function machines they used to be.
This, in turn, has increased the number of roles that robots can perform. Central to this
development has been cloud computing, which allows sensing, computation, and memory
to be managed more rapidly, securely, and at scale. The leaders in cloud robotics are those
companies able to combine infrastructure and AI capabilities, namely Amazon, Google,
IBM, and Microsoft. As well as enabling AI implementation, the use of cloud within robotics
has the potential to change the way that the technology is consumed. The robotics as a
service (RaaS) market includes products that integrate cloud-based management and
analytics services with physical robots. The leading robot manufacturers have
implemented cloud connectivity, enabling robots to be monitored, managed, and
maintained remotely. This, in turn, has made it possible for suppliers to support a
consumption-based as-a-service model. RaaS is closely tied to the Industrial Internet,
which is driving advances in automation.
See Cloud Computing.


Robotics centers of A robotics CoE is responsible for developing and implementing robotic solutions that are
excellence (CoEs) efficient, productive, and responsive to the needs of industries. These solutions should
ensure that a company realizes its automation goals. In simple terms, the CoE gathers,
assesses, and manages the information that eases the deployment of robotic solutions. To
achieve all this, a robotics CoE needs the right mix of people, including a sponsor, a lead, a
project manager, business analysts, architects, developers, and controllers, in addition to
a strong governance model. A CoE is established to maintain existing organizational
dynamics and sustain current and future initiatives to implement robotics. It serves as a
platform to nurture and develop skills and expertise pertaining to robotics. Organizations
initially look to build a centralized CoE before moving to a decentralized structure. In an
industry like healthcare, precision is vital, as patients’ lives are at stake. Several medical
facilities in the US have established robotic surgery CoEs to ensure patient safety and care
quality standards are met.
Open process Traditionally, robotic components such as controllers were only compatible with products
automation (OPA) made by the same company. So, for example, Siemens controllers would only work with
Siemens products and ABB controllers with ABB products. Various organizations are
striving to break free from these limitations and establish an open system that would make
robotic components universally compatible. These efforts have led to the development of
OPA. The advent of OPA will make process controls more interoperable. It allows
technology vendors to work collaboratively with various organizations to produce
standard, secure, and open architecture that can ease robotic integration, giving rise to
vendor-neutral solutions.
ExxonMobil launched the initiative that aimed to build a prototype capable of transforming
into a commercially viable OPA system. It can be achieved by developing a distributed,
modular, and standards-based architecture for robotic components with extensible
systems that can accommodate changes. The system should be regularly maintained to
incorporate modifications.
OPA has still to gain traction, but once it acquires wider acceptance from technology
vendors and end-users alike, it could transform automation with a versatility that would
suit the needs of a variety of industries.
Lightweight design and The robots of the 2020s will be smaller and lighter. This will make them more flexible,
doing less with more easier to deploy, and more cost-efficient. The trend towards lightweight design applies to
both the bodies and the brains of robots. Several companies are investing in optimized
operation systems, software, and programming. Academia is also developing solutions for
some of the most complex problems, such as trajectory simplification, which aims to make
robots better at navigating their environment. Research into trajectory simplification
balances the need for robots to make correct decisions even when information is scarce.
The benefits of research into how to do more with less will be felt throughout the next
decade.
Customizable robots Although robots have become prevalent across different industries, designing and
modelling a robot is tedious, cumbersome, and expensive. Moreover, accommodating a
minor change or modification at a later stage can further prolong this process. In response,
manufacturers are attempting to create robot prototypes that can be customized. For
example, start-up Elephant Robotics developed a low-cost and intelligent robotic arm with
six degrees of freedom that can be adapted to multiple scenarios and applications. In
addition, at $10,000 per unit at the time of writing, the device designed by Elephant
Robotics costs less than any existing robotic arm in the market. Breakthroughs such as this
will expand the use cases for robotics. As the demand for tailored robotic solutions gains
momentum, it may be that customizable robots are the future of automation.


Soft and self-healing Soft robots are made of soft materials or polymers instead of conventional metal. These
robots materials give robots organic characteristics, replicating the way muscles work. Research
is ongoing on enabling them to self-repair, which would make them more flexible and
adaptable. At the moment, self-healing robots are still in their infancy, but research is likely
to improve the technology. Currently, that research is mainly going into improving
materials and devising ways for different materials to be compatible to avoid any chemical
reaction. There are multiple potential use cases in healthcare, manufacturing, and defense
and security. Researchers at Cambridge University in the UK are currently working on
developing self-healing materials. They are using machine learning to potentially create
the next generation of soft robotics.
Source: GlobalData

Macroeconomic trends
The table below highlights the key macroeconomic trends impacting the robotics theme.

China China’s global economic and industrial impact is obvious. Despite being the first country hit by
COVID-19, it remained the world’s biggest car manufacturer in 2020. More than 33% of global
semiconductor production is consumed by China, as is 38% of the industrial robot market. In
addition, it is the world’s largest consumer of key raw materials such as copper, sand for
construction, lithium, cobalt, and rare-earth elements. Under the Made in China 2025 plan,
the country aims to be on a par with the US, Japan, and South Korea in such strategic industries
as semiconductors, robots, batteries, and (most critically of all) supplant them in AI. On the
latter, it has the advantage of the world’s richest and most scalable data sets for its algorithms
to work on and state backing for the R&D efforts of its AI national champions, which include
Baidu, Alibaba, Tencent, and iFlytek.
At root, trade disputes between the US and China are about US (and indeed European and
Japanese) objections to the Chinese mercantilist system behind Made in China 2025. There is
no chance that President Xi’s regime will dismantle this structure. Therefore, US chip
companies that rely on the huge Chinese domestic market for the bulk of their future earnings
will have to work within the Chinese system while recognizing that their Chinese customers
aim to become their competitors. At the same time, the Belt and Road Initiative promises to
reshape critical value chains, supply lines, and endpoint markets, despite some countries
having over-borrowed from China to fund Chinese-built ports and high-speed railways.
In robotics, China's native robot companies are still no match for the likes of FANUC. However,
Midea's acquisition of Germany's KUKA gave China control of a leading industrial robot
company.
See China Tech.
Japan Robots already dominate Japan’s factories where its industrial robot makers – FANUC,
Kawasaki, and Yaskawa – are world leaders. Japan has the world’s third-highest industrial
robot density, after Singapore and South Korea, according to the International Federation of
Robotics (IFR). Increasingly, robots are permeating Japan’s services industry, not least in caring
for the elderly. The nation showcased its robotics capabilities at the 2020 Tokyo Olympics,
postponed to 2021 due to COVID-19. The country aims to highlight its technical prowess and
open major export markets in the process. Japan is also the world’s largest manufacturer of
precision mechanical parts for robots, with leading Japanese robotic component
manufacturers including Harmonic Drive, Keyence, Nabtesco, Nachi Fujikoshi, Omron, and
Nippon Ceramic. Along with South Korea, Japan is ahead of other countries in terms of the
acceptance of robots in everyday life, particularly in terms of adopting service and domestic
robots for health and social care. Japan is also at the forefront of the adoption of social,
personal, and therapeutic robotics.
See Japan Tech.


Europe The EU seems to be waking up to the risk of being left behind technologically. Reports emerged
in 2021 that the EU Commission is developing a plan to rival China’s Belt and Road Initiative.
The plan does not have a name yet but is rumored to include significant technological
investment.
Germany leads the rest of Europe in both the production and adoption of robots. Germany’s
factories have the highest robot density in Europe. KUKA, the only European player among the
leading industrial robots companies, is headquartered in Bavaria, one of Germany’s richest
and most industrialized states. However, as a region, Europe’s robotics companies struggle to
compete with those of Japan and the US. Europe also risks being overtaken by China. Indeed,
KUKA has been owned by China’s Midea since 2016.
One factor that might trigger a robotics revolution in Europe is demographics. Just like in Japan
and South Korea, Europe’s population is aging, and some of the most promising robotics start-
ups are emerging in the care robots segment. One example is Kompaï Robotics, a French
company that developed a multifunctional robot to assist vulnerable people. It was unveiled
in 2021 and can be used in both retirement homes and hospitals.
The future of work Robotics is impacting work by both changing production lines and, in some cases, replacing
human workers. Robot technologies such as co-bots and logistics robots are coming together
to turn factories into advanced engineering labs where assembly line processes and
components are constantly analyzed, streamlined, and improved. The leaders in this kind of
factory of the future are the industrial robot leaders (FANUC, KUKA, ABB, and Yaskawa), in
partnership with technology providers like Cisco, Hitachi, Rockwell Automation, Huawei, and
Japanese AI start-up Preferred Networks.
Unions, policymakers, and social scientists are increasingly concerned that automation, of
which robotics is an important component, will lead to increased unemployment. Each
industrial robot can replace several human workers, so these worries do not seem unfounded.
In Japan’s care homes, robots reduce the need for night shift nurses, liberating some workers
from working unsociable hours and addressing a staffing shortage in this sector. In cases such
as this, the impact of robots has been positive. Freeing human workers from doing dangerous,
repetitive, or unsociable work is a positive development, particularly if the economy can create
higher-value jobs for those workers that robots have replaced. It is not yet clear that that will
always be the case.
According to the IFR, South Korea has the second-highest density of robot workers globally,
second only to Singapore and ahead of Japan and Germany. South Korea also had the world’s
lowest fertility rate in 2020, with Japan and Germany not far behind. Thus, if automation
presents risks to labor, robotics can also help address future shortages in the workforce.
See The Future of Work.
Industry Robotics remains disproportionally reliant on the automotive industry. According to IFR data
diversification published in 2020, 60% of all industrial robots in 2019 were deployed in automotive factories.
However, other industries increasingly use robots too. Robotics orders from electronics,
machinery, plastic, chemical products, and food processing companies have increased. The
widening of the robotics market will favor all stakeholders, including car manufacturers, as it
is likely to lead to more innovation. Diversification also makes all players involved in the
robotics value chain more resilient, as they become less dependent on a single industry.
Source: GlobalData

Regulatory trends
The table below highlights the key regulatory trends impacting the robotics theme.

Drones Regulatory challenges are one of the reasons why some of the use cases for drones have
struggled to take off. The most significant case is that of Amazon’s drone delivery plans. Even
though the company has not abandoned plans to use drones to bring orders to customers’
doorsteps, it fell behind UPS and Alphabet in getting approval from the US regulator to
perform test flights. In the UK, the company is reportedly scaling back its plans. The UK
regulator initially fast-tracked approval for Amazon’s drone delivery tests. However, research
revealed that Amazon could not build delivery drones lighter than 27 kgs, the point at which
the UK regulator no longer considers a device to be a small drone.
Global players face the challenge of navigating a very fragmented regulatory landscape. Very
few countries have a laissez-faire approach to drones. Among those, only Turkey, Sweden, and
Argentina are significant markets. Drones present specific regulatory challenges within
robotics. Their low cost and ease of use make them attractive for criminal activities ranging
from illegal surveillance to drug smuggling or terrorism. Drones are regularly used to smuggle
contraband (including drugs and weapons) into prisons, and their use on a larger scale by drug
cartels and dissident organizations will inevitably increase. In addition to the regulation and
management of drones, the authorities must also be able to intercept and capture or disable
rogue drones.
See Drones.
China’s regulatory As robots become more AI-driven, so the datasets required to drive AI engines become
landscape increasingly important. China has the edge in generating these datasets because it has a richer
trove of industrial data than any other country. In addition, its cybersecurity laws require all
such data to be processed inside its borders. China’s Data Security Law (DSL) has been in the
works for years but will only be enforced from September 2021. From that point, transferring
data to locations outside China’s borders will become more difficult, and breaching the law
will come with severe penalties. The final version of the DSL includes a new national core data
category for data that concerns "national security, the lifelines of the national economy, are
important to people's livelihood, and important to the public interest." The Chinese
government seems to have deliberately left the exact scope of the data categories included
intentionally broad and vague to allow for flexible interpretation. As a result, we can expect
that non-Chinese companies will find it more challenging to operate in China. The beneficiaries
of the law will be domestic robotics companies.
See China Tech.
Ethics The more widespread use of AI raises complex ethical issues, the relevance of which will only
increase as the technology’s influence in areas like medicine, finance, and the law becomes
more pervasive. As the AI industry matures, a vital area of focus will be ensuring that human
biases and prejudices are not passed on to AI systems through data, algorithms, and
interaction. Also crucial will be to ensure that the economic benefits derived from AI are
shared across society, rather than deepening pre-existing inequalities. AI has become central
to robotics, bringing with it some of the ethical dilemmas that AI faces in other areas. In the
future, soft robotics will generate human-like machines that, combined with AI, could create
robots that can feel pain or stress. This will raise questions about the rights and well-being of
machines.
Source: GlobalData

Industry analysis
The robotics industry can be split into two main areas: industrial robots and service robots. Each can be sub-divided into
additional categories, with service robots a particularly fragmented category. This section analyzes the overall industry's
performance, forecasts its performance in the next decade, and highlights the key differences in performance between
its different segments.
Market size and growth forecasts

According to GlobalData forecasts, the robotics industry was worth $45.3bn in 2020. By 2030, it will have grown at a
CAGR of 29% to $568bn. Annual growth rates will peak at 37% in 2024.
Sales of industrial robots hit $14.6bn in 2020, equivalent to 32% of the total robotics market. By 2030, this segment will
be worth $352bn, having grown at a CAGR of 38% between 2020 and 2030.
At $30.7bn in 2020, the service robot market was larger than the industrial robots sector. However, the industrial robots
market will grow faster over the next decade.
The robotics industry will grow at a CAGR of 29% between 2020 and 2030
Industrial robots will be the main growth driver throughout the decade
Service and industrial robots revenue, 2020-2030 ($bn)

600
400
Revenue ($bn)
Service robots
200 Industrial robots
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Source: GlobalData
Industrial robots will be the growth engine of robotics

Industrial robots will drive growth in robotics in the 2020s, and the innovation coming from applications in manufacturing
will spill over to areas such as logistics and healthcare.
Several factors will contribute to the growth of the industrial robot market. For manufacturers, automation is still the
fastest way to improve productivity. The greater cost-efficiency of robots will be another important factor. Industrial
robots start-ups, such as Elephant Robotics, are developing cheaper units. In addition, robots will become smarter but
also more lightweight. Finally, the widespread adoption of cloud computing will give industrial robots continuous access
to data and improve the interaction between robots on the factory floor, further enhancing performance and
contributing to the segment’s growth.

The industrial robotics market will be worth $352bn by 2030

The segment will record a CAGR of 38% between 2020 and 2030
Global industrial robots revenue, 2020-2030 ($bn)

400 352.1
300 271.2
204.8
Revenue ($bn)
200 152.3
111.7
100 81.2
58.5
27.1 39.8
14.6 18.6
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Source: GlobalData
Service robots will grow at a 22% CAGR in the coming decade

Service robots are a varied field, and the growth drivers in each of its sub-segments reflect that variety. Some of the
trends that explain the growth in industrial robots apply to service robots too. Robots that are more efficient and have
more lightweight designs will increasingly persuade consumers and services sectors that adoption is worth it.
GlobalData research indicates that not all sub-segments in service robots will grow at the same pace. For example, the
exoskeleton market will grow at an almost 50% CAGR between 2020 and 2030, while more established areas such as
defense and security robots will experience more moderate growth (a CAGR of 8% between 2020 and 2030).
The service robots market will be worth $216bn in 2030

The CAGR will be 22% between 2020 and 2030
Global service robots revenue, 2020-2030 ($bn)

216.0
200 181.3
150.9
Revenue ($bn)
126.4
104.2
100 87.2
71.6
55.2
34.3 42.9
30.7
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Source: GlobalData
An increasingly varied landscape

Exoskeletons, industrial robots, and consumer robots will be the fastest-growing robotics segments between 2020 and
2030. Exoskeletons are expected to grow at a 49% CAGR between 2020 and 2030, albeit from a low base (it generated
revenues of just $200m in 2020). Consumer robots also start from a low base, with sales of automated home robots
largely confined to floor cleaning devices. However, as prices decline and efficiency increases, more consumers will be
tempted to adopt a broader range of domestic robots. Privacy concerns and security risks have the potential to cap that

growth. However, the industry is likely to continue minimizing those risks and addressing consumer concerns, which
increases its chances of fulfilling its growth potential.
Exoskeletons are the fastest-growing robotics category

All categories are expected to experience growth between 2020 and 2030
CAGR 2020-2030 by robotics segment

Exoskeletons 49%
Industrial robots 37%
Consumer robots 29%
Inspection, cleaning, and maintenance robots 27%
Field robots 26%
Logistics robots 21%
Drones 19%
Medical robots 12%
Defense and security robots 8%
0% 10% 20% 30% 40% 50% 60%
CAGR (%)
Source: GlobalData

Patent trends
The number of robotics patents increased consistently over the last decade. In 2020, 4 million robotics patents were
granted across all geographies, which compares with 1.2 million patents granted in 2010.
Robotics patent filings grew steadily in the 2010s

The number of patents granted gained pace in the second half of the decade
Patent trends in robotics, 2010-2020

7.2
6.2 6.4
Patent count (millions)
5.5
5.0
4.6
4.0 4.0
3.6
3.0 3.2 3.0 3.2
2.9
2.3 2.5
2.0 3.2 3.2 3.1
1.5 1.7 1.7 2.9
1.3 2.5 2.6
1.2 2.2
1.7 1.6 1.6 1.8
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Filings Grants All Publications
Source: GlobalData
Most leading companies in robotics patents are based in Japan, China, and South Korea. Samsung Group is the leading
patent assignee globally. It holds 430,000 patents. The South Korean giant is followed by Mitsubishi with 379,000 and
Canon with 249,000. Samsung and Mitsubishi have held similar patent numbers throughout the 2010s but since 2018
Samsung started to build a strong lead.
US-based Qualcomm is the only exception among the top 10 leading patent assignees. By geography, Japanese
companies dominate the top 10 as half of the companies are Japan-based. No European companies feature in the top
10.
The numbers in the chart below reflect the parent company, which means that patents granted to subsidiaries are
included in the top line parent figure.
Samsung is the leading robotics patent assignee

Qualcomm is the only US company in the top 10
Top robotics patent assignees

Samsung 430,151
Mitsubishi 379,012
Canon 249,361
Panasonic 234,838
State Grid 228,491
Hitachi 200,070
Huawei 199,015
Toshiba 184,889
Qualcomm 183,926
LG 182,960
Number of patent grants

Source: GlobalData

Mergers and acquisitions

The annual volume of M&A transactions in robotics grew from five in 2010 to 50 by the end of the decade. Activity also
intensified in themes related to robotics, including AI, the future of work, and industrial automation. All these themes
saw an increase in M&A intensity mid-decade. AI M&A activity declined in 2019 but recovered in 2020 when it reached
the highest point of the decade with 109 M&A transactions. Robotics saw a decline in M&A activity in 2020 but is
expected to recover in 2021, based on data for the year so far.
The annual number of M&A deals in robotics increased tenfold over the last decade
The decline in activity in 2020 will be short-lived
M&A in robotics and related themes 2010-2020
100
Number of mergers and acquisitions
80
60
40
20
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
AI IoT Robotics Future of work Industrial automation
*Includes mergers and acquisitions only. Excludes strategic alliances, capital raisings, and other types of deals.
Source: GlobalData
There are three main areas driving robotics M&A activity: medical, logistics, and industrial automation. Most transactions
are in those fields.
In medical, examples include Johnson & Johnson’s acquisition of Auris Health and Medtronic’s acquisition of Mazor
Robotics. Notable logistics and warehouse management transactions include purchases made by Ocado and Amazon. In
the case of Ocado, its acquisition of Kindred took place in late 2020, when demand for online grocery shopping
significantly increased in most of the world, including the UK, where Ocado is based.
Despite the importance of medical and logistics, most M&A deals in robotics involve industrial robotics players. Makers
of industrial robots and developers of industrial automation are particularly interested in software that helps manage
robots or in technologies that improve their performance or augment their autonomy, such as machine learning and
computer vision. Examples include the acquisition of Flir by Teledyne, Sparta by Honeywell, and Isra Vision by Atlas
Copco.

The key M&A transactions associated with the robotics theme since January 2018 are listed in the table below.
Date Acquirer Target Value ($m) Target company description

announced
Apr 2021 Brooks Precise 102 Developer of collaborative robots and
Automation Automation automation subsystems
Apr 2021 D8 Holdings* Vicarious 460 Developer of surgical robotics technology
Surgical and virtual reality software for minimally
invasive surgery procedures
Apr 2021 AppHarvest Root AI 60 Developer of intelligent robots
Apr 2021 Rotor Sarcos Robotics 496 Manufacturer of mobile robots

Acquisition**
Apr 2021 SoftBank AutoStore (40% 2,800 Robotics and software maker that provides
stake) automation technology to warehouse and
distribution facilities
Jan 2021 Teledyne Flir Systems 8,634 Manufacturer of thermal imaging cameras,
components, and imaging sensors
Dec 2020 Honeywell Sparta Systems 1,300 Provider of cloud and on-premise quality
management software
Dec 2020 Hyundai Boston 4,486 Manufacturer of mobile robots
Dynamics (80%
stake)
Nov 2020 Mic AG Pyramid 51 Developer of IT solutions for the retail &
Computer hospitality market, including computer
vision
Nov 2020 Ocado Kindred 262 Provider of AI for intelligent robots used in
Systems logistics
Sep 2020 Atlas Copco Perceptron 71 Supplier of automated industrial metrology
products and solutions for dimensional
gauging, dimensional inspection, and 3D
scanning
Sep 2020 Nvidia Arm 40,000 Provider of processor IP and software
design and development solutions.
Jul 2020 Ford Velodyne Lidar 233 Developer, manufacturer, and supplier of
(7.6% stake) LiDAR sensors which are used in robots and
drones to assist with navigation
Feb 2020 Atlas Copco Isra Vision 1,197 Provider of machine vision programs,
specializing in the area of 3D machine
vision, in particular for 3D robot vision
Feb 2020 Huntington Hydroid 350 Provider of advanced marine robotics to the
Ingalls Industries defense and maritime markets
Oct 2019 Cognex Sualab 169 Developer of AI for machine vision
Oct 2019 Teradyne AutoGuide 165 Developer of autonomous mobile robots
Sep 2019 Shopify 6 River Systems 450 Provider of collaborative warehouse

fulfillment solutions

Date Acquirer Target Value ($m) Target company description

announced
Aug 2019 Greenland Zhongchai 101 Manufacturer of traditional transmission
products for material handling machinery
and a developer of a robotic cargo carrier
prototype
April 2019 Hitachi JR Automation 1,425 Industrial robotics integrator
April 2019 Amazon Canvas 100 Warehouse robotics start-up
April 2019 Daimler Torc Robotics Not Self-driving truck software start-up
(majority stake) disclosed
Feb 2019 Johnson & Auris Health 3,400 Maker of surgical robots for respiratory
Johnson procedures and detection of lung cancer
Oct 2018 Merrick AI Medical 2,319 Manufacturer of AI software and robotic
Systems hardware
Sep 2018 Medtronic Mazor Robotics 1,600 Manufacturer of a robotic guidance system
for spine surgery
Sep 2018 Barnes Gimatic 432 Manufacturer of robotic grippers, end-of-
arm tooling systems, sensors, and other
automation components
Aug 2018 Stryker K2M 1,400 Provider of complex spine and minimally
invasive solutions
Jun 2018 SPX CUES 200 Robotic video pipeline inspection and rehab
company
May 2018 GM Cruise 1,000 Autonomous driving software company
Automation
Apr 2018 Teradyne Mobile 100 Supplier of collaborative autonomous
Industrial mobile robots (AMRs) for industrial
Robots (MiR) applications
Mar 2018 Teradyne Energid Not Developer of robot control, simulation, and
disclosed machine vision software
Feb 2018 KBR Stinger 400 Government contractor specializing in NASA
Ghaffarian contracts
Technologies
Feb 2018 FANUC Life Robotics 100 Manufacturer of co-bots
Jan 2018 Midea (KUKA) Visual Not Provider of simulation software to

Components disclosed manufacturers
* This is a part of a special purpose acquisition (SPAC) deal that saw Vicarious Surgical merge with D8 Holdings. It plans to go public on the New
York stock exchange.
** This is a part of a special purpose acquisition (SPAC) deal that saw Sarcos Robotics merge with Rotor Acquisition. It plans to go public on
Nasdaq.
Source: GlobalData

Timeline
Even though modern robots are a 20th-century creation, humans have been trying to use mechanical devices to do their
labor for a lot longer. The first automata date back 5,000 years. The major milestones in the journey of the robotics
theme are set out in the timeline below.
The robotics story

How did this theme get here, and where is it going?
3,000 B.C. Human figurines were built into water clocks to automatically strike the hour bell.
800 B.C. Automata appeared in Homer’s Iliad.
400 B.C. Mathematician Archytas of Tarentum invented a wooden pigeon that could fly.
1206 al-Jazari published a book about the building and use of automata.
1738 Jacques de Vaucanson, a French artist and inventor, built a flute-playing robot.
1801 The Jacquard loom was invented to simplify the process of manufacturing textiles.
1920 The term “robot” was first used in a play by Czech author Karel Capek.
1939 Westinghouse unveiled Elektro, a robot that could walk and respond to speech (and smoke cigarettes).
1942 Isaac Asimov published his Three Laws of Robotics in the short story Runaround.
1948 Work began on the Elmer and Elsie robots, which were programmed to think the way biological brains do.
1950 Alan Turing proposed a test to determine whether or not a machine has gained the power to think for itself.
1951 Ray Goertz patented a teleoperation arm he developed for handling nuclear materials.
1961 Unimate, the first mass-produced industrial robots, started working on General Motors' assembly lines.
1961 MIT researcher Heinrich Ernst developed the MH-1, a computer-operated mechanical hand.
1963 The first computer-controlled robotic arm was designed as a tool for the disabled.
1970 SRI International's Shakey became the first mobile robot controlled by AI (using a radio link).
1973 The Cincinnati Milacron T3 was released, the first commercial industrial robot controlled by microcomputer.
1979 The Stanford Cart successfully crossed a room, navigating around obstacles using its own sensors.
1984 Wabot 2, a humanoid robot capable of playing the keyboard and reading musical scores, was introduced.
1985 The PUMA 560 robotic surgical arm was used in the first documented robot-assisted surgical procedure.
1995 General Atomics' MQ-1 Predator drone entered service.
1996 Honda launched the P2 humanoid robot.
1999 Sony displayed Aibo, the first robotic dog.
1999 Probotics released Cye, a personal robot that could perform a variety of household chores.
2000 Honda unveiled its Asimo advanced humanoid robot - the first robot to walk on two legs.
2001 The iRobot PackBot was used to search the World Trade Center site after the 9/11 terrorist attacks.
2002 iRobot began selling the first Roomba robotic vacuum cleaners.
2005 Boston Dynamics unveiled Big Dog, a dynamically stable quadruped robot.
2011 Robonaut 2, a human-like robotic assistant, was launched into space on the shuttle Discovery.
2012 Rethink Robotics unveiled Baxter, its collaborative robot designed to work alongside humans.
2013 Japan sent the Kirobo robot into space to work alongside astronauts on the International Space Station.
2014 Hitchbot successfully hitchhikes across Canada, Germany, and the Netherlands.
2015 Hitchbot’s attempt to hitchhike across the US ended when it was destroyed in Philadelphia.
2016 Boston Dynamics announced the latest version of its running and jumping rescue robot, Atlas.
2020 The University of California at Berkeley became the first to use robots to help with COVID-19 testing.
2020 The robotics industry was worth $45bn.
2030 The robotics industry is expected to be worth $568bn.
Source: GlobalData

Value chain
Building a robot is a highly complex task that involves an extensive supply chain.
The robotics value chain

The core segments are hardware components, software components, robot manufacturing, and robotics as a service
Hardware components Software components Robot manufacturing Robotics as a

service
Caged industrial robots
Industrial
robots
Motors, drive Industrial co-bots
systems,
reduction gears,
actuators,
effectors
Precision Industrial Logistics robots
mechanical software
parts
Sensors Medical robots

Machine learning
Exoskeletons
Robotic Cloud
Machine vision
intelligence robotics
AI chips
Consumer robots
Gesture control Service

Communication robots
Semiconductors Drones
chips
Conversational
platforms
Embedded chips Inspection, cleaning, and
maintenance robots
Field robots
Defense and security

robots
Source: GlobalData
Depending on the application, level of sophistication, and reliability requirements, robotics generally involves several
levels of control and processing, including onboard hardware and software, and increasingly, cloud processing and the
pooling of knowledge from multiple robots.
Robots also need to be able to sense their surroundings. Depending on the application, they may also need sensors
sensitive to touch, heat, light, vibration, sound, and even certain chemicals. Many of these sensors will only be available
from specialist manufacturers, with their own R&D priorities and strategic goals.
Mechanical components are another important element of a robot. They need to be precise, reliable, robust, and
consume as little power as possible. In many cases, motors and other mechanical components also need to act as
sensors, providing feedback to the robot’s processing system to allow it to move more accurately. Companies like Maxon,
Keyence, Nabtesco, Omron, Harmonic Drive, Nachi-Fujikoshi, and Nippon Ceramic are all important suppliers to the
wider robotics industry.
In the following sections, we will look more closely at each segment of the value chain. Let’s look at robot manufacturing
first.

Robot manufacturing
Industrial robots are typically housed in safety cages as they lack sensory intelligence, making them too dangerous to be
placed near workers for fear of injury.
China is the key growth driver for the industrial robot sector due to the accelerating automation in the Chinese
manufacturing sector and the retooling of its automotive factories. Growth in the market is also driven by increasing
demand for automation in industries other than automotive, especially electronics. The long-term prospects for growth
in industrial robotics are good. However, robot prices are likely to fall, especially as the leading Chinese industrial robot
makers such as Estun and Siasun increase their presence outside their home market.
The automotive industry remains the biggest user of industrial robots, followed by the electronics industry. However,
the rise of certain types of service robots in areas like logistics and warehouse operations and the growth in the co-bot
market have started to blur the lines between pure industrial applications and the wider use of robots in the enterprise.
The big five industrial robot manufacturers are ABB, FANUC, KUKA, Yaskawa, and Kawasaki. In this category, Japanese
players have the edge over Chinese players. However, Germany’s KUKA has been owned by Midea, a Chinese electrical
appliance maker, since 2016. Rockwell Automation, a US company, is also a leader in this space. In 2021, several of the
main players, including ABB, KUKA, and FANUC, have been tapping into increased demand for automated production
following the COVID-19 pandemic.

Leaders and challengers
Leaders Challengers
ABB Yaskawa Omron Estun Automation

Caged industrial
robots FANUC Stellantis (Comau) Seiko Epson Nachi-Fujikoshi
Kawasaki Midea (KUKA) Daihen Siasun Robotics
Mitsubishi Motors Staubli Denso
Source: GlobalData

Industrial co-bots
Co-bots are increasingly prominent in workshops and smaller factories, as well as major manufacturing sites. They
represent a departure from the traditional approach to industrial robots, which specialized in heavy, repetitive tasks,
were surrounded by safety cages, and did not interact with human workers.
Co-bots are smaller, smarter, and more mobile than traditional industrial robots. They work with humans, sometimes in
confined spaces, on such tasks as machine tending, material handling, assembly, packaging, pick-and-place, counting
and inspecting, mounting, gluing, screwing, soldering, and painting. Universal Robots (now part of Teradyne), with its
one arm, six-axis robots, and Rethink Robotics (which since 2018 has been part of the Hahn Group) created the nascent
co-bot market virtually on their own. Other players such as Franka Emika and Festo have since gained traction.
ABB’s range of co-bots

In 2021, ABB launched two new models: GoFa and Swifti.
Source: ABB
Leaders in industrial robots have launched their own co-bots, including KUKA’s LBR IIWA, Kawasaki’s DuAro, FANUC’s CR
range, and Yaskawa’s HC10. In 2021, ABB followed its YuMi model with two new co-bots, GoFa and Swifti, which are
easier to configure and use and include safety features allowing them to integrate more seamlessly into workplaces.
Industrial co-bots
Leaders Challengers
Franka Emika ABB Kawasaki Siasun Robotics

Robotiq FANUC Fujitsu AUBO Robotics
Industrial co-
bots Midea (KUKA) Teradyne (Universal Robots) Hitachi Hon Hai (Foxconn)
Yaskawa Hahn Group (Rethink Robotics) Festo
Source: GlobalData

Logistics robots (excluding drones)

Service robots focusing on logistics, packing, warehousing, and deliveries are a key emerging area for robotics. We
exclude from this category delivery drones which are covered under commercial drones. This market has some overlap
between service robots manufactured by specialists such as 6 River Systems and InVia Robotics and those developed by
the leading ecommerce companies, including Alibaba and Amazon. The latter unveiled its Scout delivery robot in January
2019, whereas the former launched its own Xiaomanlv model in 2020.
Delivery robots Warehouse robots

Alibaba introduced its Xiaomanlv delivery robots in 2020 Robots work alongside humans in Amazon facilities
Source: Alibaba Source: Logistics Manager
Online sales boomed during COVID-19 lockdowns, and some new customers will not return to bricks and mortar retail.
Therefore, sales of logistics robots are expected to grow rapidly in the coming years.
A measure of how retail logistics is increasingly reliant on robotics came in 2021 when a fire caused by a robot collision
at one of Ocado’s warehouses forced the UK online retailer to cancel thousands of orders and caused its share price to
drop by nearly 5% in one day.
Logistics robots
Leaders Challengers
Logistics robots Amazon Vecna Aethon Locus Robotics
(excluding
Alibaba Clearpath InVia Robotics 6 River Systems
drones)
ABB Toyota Tharsus GreyOrange
Ocado I AM Robotics
Source: GlobalData

Medical robots
The two main types of medical robots are surgical robots and care robots. Other types of robots could be used in a
medical context, including exoskeletons. Cleaning and maintenance robots are used in hospitals and care homes, but are
not explicitly designed for medical use. The healthcare industry uses robots to improve the standard of care while also
helping humans do things that they may not have been able to do in the past or do things quicker and with fewer errors.
Medical robots
Leaders Challengers
Intuitive Surgical Cyberdyne Siemens HealthineersMonteris Medical

Surgical robots Medtronic Zimmer Biomet Titan Medical Vicarious Surgical
Johnson & Johnson Stryker Stereotaxis
Medical robots
Zora Robotics Focal Meditech Omnicell Paro
Care robots Barrett Technology Aethon Diligent Robotics Techmetics Robotics
Embodied Arxium Kompaï Robotics
Source: GlobalData
Surgical robots
Surgical robots automate all or part of the medical surgery process. The use of robots to support the completion of
medical procedures has been the subject of significant R&D over the past two decades. In 2000, the da Vinci Surgical
System (developed by Intuitive Surgical) was the first robotic surgical system approved by the US Food and Drug
Administration (FDA) for general laparoscopic surgery. It spurred significant investment in medical robotics.
An example of a surgical robot

The da Vinci surgical system by Intuitive Surgical
Source: The Daily Mirror

Other competitors include Cambridge Medical Robotics’ Versius surgical robotic system, which aims to make minimal-
access surgery easier for surgeons, and Medrobotics’ Flex Robotic System, which provides access to anatomical locations
that are difficult to access manually.
The medical robotics segment holds enormous promise, particularly for surgical interventions that require high levels of
precision. The evolution of technologies such as cloud computing and AI will drive innovation in this space, thus reducing,
and sometimes even eliminating, the need for the surgeon to be physically present. Future developments in this field
will focus more on preventive care and improving the quality of life for elderly patients by making many procedures less
invasive, with an attendant reduction in recovery time and associated cost. Another application of medical robotics is
nanosurgery, in which surgeons will use micro-robots to operate on individual cells.
Care robots
The number of robots used to provide care and support to the elderly and disabled is currently very low but is expected
to increase significantly over the next decade, particularly in countries like Japan, which face a predicted shortfall in
human caregivers. Initial use cases for these products are relatively simple (such as helping people get into and out of
bed), but they will become increasingly complex, from reminding patients when to take medication to providing
emotional support and interaction for those lacking regular human contact.
This latter function casts care robots less as tools or helpers and more as companions. To fully inhabit that role, robots
need to demonstrate that they understand human emotions, can handle complex constructs like humor, and have a
personality of their own (that does not rely on simply mimicking the humans they meet). Unfortunately, this artificial
emotional intelligence (AEI) is extremely difficult to achieve. The most high-profile attempt to date was Pepper, a robot
developed by Japanese company Softbank. However, in 2021, Softbank announced that it was pausing the production
of Pepper, dealing a blow to the care robot category. The decision was due to weak demand, attributable at least in part
to Pepper’s high price.
Another expected use case for care robots is to assist nurses with the multitude of tasks they perform on an hourly basis.
Many of these tasks are simple but vital, such as taking blood, recording temperature, or improving patient hygiene. If
robots could help with simple repetitive tasks, nurses would have more time to focus on individualized patient care and
devising treatment plans. Products like the Robear, developed by research institute RIKEN and Sumitomo Riko, already
assist patients and nurses in Japan.
Toyota and Honda have been developing human support robots (HSRs) for many years. In 2016 Toyota launched a $1bn,
five-year project to open and run two AI and robotics labs in Palo Alto, California, under the leadership of former Defense
Advanced Research Projects Agency (DARPA) robotics chief Gill Pratt. The facilities were aimed as much at Toyota’s HSR
division as its automotive operation. Honda is doing something similar but based in Tokyo.
AIST’s Paro is classified as a therapeutic robot. Designed to be cute and elicit an emotional response from patients in
hospitals and nursing homes, Paro is a robot baby harp seal covered in soft white fur which exhibits many of the same
behaviors as a real pet. The US government classified Paro as a Class II medical device, putting it into the same category
as acupuncture needles, powered wheelchairs, and infusion pumps.

An example of a care robot

The Robear by RIKEN and Sumitomo Riko
Source: Financial Times

Exoskeletons
Exoskeletons are wearable machines that enhance human performance by allowing limb movement with increased
strength and endurance. Exoskeletons can also be designed for lumbar support to help with lifting heavy objects. The
main use cases are in medicine, the military, manufacturing, and logistics. Additionally, the category is spreading to areas
such as civil protection (for example, firefighting). Advances in brain-machine connectivity will impact the evolution of
exoskeletons. Leading companies in the field are Cyberdyne, ReWalk Robotics, and Ekso Bionics.
The medical use case is the most developed. Robots can aid recovery as well as assist with surgery. For example,
Cyberdyne’s Hybrid Assistive Limb (HAL) exoskeleton users sensors placed on the skin to detect electrical signals in the
patient’s body and respond with movement at the joint. It is designed to assist patients with rehabilitation from
conditions leading to lower limb disorders, including spinal cord injuries and strokes.
Medical exoskeleton Walking assist devices

Cyberdyne designed an exoskeleton that was approved These exoskeletons were developed by Honda.
for medical use by the FDA
Source: Institute of Electrical and Electronics Engineers Source: Honda Robotics
The leading companies in the field are Lockheed Martin, Parker Hannifin, Cyberdyne, ReWalk Robotics, Ekso Bionics, and
Honda Robotics.
Exoskeletons
Leaders Challengers
Lockheed Martin Parker Hannifin Hyundai Motor Otto Bock

Exoskeletons
ReWalk Robotics Cyberdyne SuitX Myomo
Ekso Bionics Honda Robotics Bionik Laboratories Stellantis (Comau)
Source: GlobalData

Consumer robots
The two main types of consumer robots are automated home robots and personal robots.
Consumer robots
Leaders Challengers
iRobot LG Electronics Xiaomi Vorwerk (Neato)

Automated home Dyson Robert Bosch Rokid Five Elements
robots Haier Electrolux SharkNinja Stihl
Consumer Ecovacs Samsung Electronics
robots
Sony Toyota Zora Robotics Intuition Robotics
UBtech Hasbro Blue Frog Robotics
Personal robots
Honda Lego Revolve Robotics
Spin Master AIST
Source: GlobalData
Automated home robots

On the domestic side, robotic vacuum cleaners account for the vast majority of products sold, and they increasingly offer
a range of smart attributes, including obstacle identification and route planning. iRobot is the leading brand, thanks to
the success of the Roomba. However, it faces competition from companies such as Neato Robotics, Dyson, and Ecovacs,
as well as major appliance manufacturers such as Samsung Electronics, LG Electronics, Bosch, Electrolux, Chinese
manufacturer Haier (which has its own brand but also brands in Europe and the US), GE, Candy, and Hoover. Robotic
lawnmowers, which use technology similar to robotic vacuum cleaners, have also been successful in the market in the
last few years.
After the success of robotic vacuum cleaners and lawnmowers, appliance manufacturers are now introducing robots to
help with other household chores. In 2021, Samsung Electronics launched an automated home robot, Bot Handy, that
can put dirty dishes into the dishwasher or even pour you a glass of wine. Its South Korean rival, LG Electronics, was a
pioneer in automated home robots, launching the CLOi Home line in 2018. Even though CLOi wasn’t a success, LG does
well in the more traditional robotic appliances categories, such as robotic vacuum cleaners, and has a wide range of
other automated home devices, making it one of the leaders in this category.
Personal robots
Unlike automated home robots, personal robots will not clean your floor or help with the dishes. Instead, personal robots
are machines that interact with humans to entertain or educate them. Sony is a leader and a pioneer in this space and
has found success in its domestic market (Japan). The other leader in this category is the Chinese company UBtech.
As personal robots are an emerging category, most players are, or behave like, challengers. This is the case even when
they are large, established companies. For example, several traditional toy and games companies, including Lego and
Hasbro, have launched personal robots. Most are targeted at children and designed for play and entertainment. These
companies are leaders in their industry but challengers in robotics.

Automated home robot Personal robot

iRobot’s Braava floor cleaner Sony’s Aibo
Source: iRobot Source: Sony

Drones
Drones are unmanned aerial vehicles (UAVs). They are aircraft without any human pilot, crew, or passengers on board.
The three main types of drones are consumer drones, commercial drones, and military drones.
Drones
Leaders Challengers
Yuneec Autel Robotics Uvify FreeFly

Consumer drones DJI Parrot Hubsan Air Hogs
Skydio Sony
UPS Zipline Inset Trimble

Drones Commercial Flytrex DHL Delair Ehang
drones Wingcopter Amazon Aerialtronics CyPhy
Boeing
Northrop Grumman Lockheed Martin Northrop Grumman Elbit Systems

Military drones General Atomics Boeing AeroVironment Aeronautics Group
AVIC Textron BAE Systems Anduril
Raytheon Israel Aerospace Ind.
Shield AI
Source: GlobalData
Consumer drones
The consumer drones segment is comprised of hobbyists, drone gamers, and professionals who use drone technology
as part of their work (referred to as prosumers).
Fueled by the thrill of aerial photography and the ability to get a bird’s eye view of the neighborhood, the hobbyist subset
comprises early majority shoppers, who currently generate most of the demand for drones in the consumer market. The
hobbyist segment will witness a decline in its market share over the years, but the segment will maintain its dominant
position in the consumer market over the next decade. Its shrinking market share will be due to the increased adoption
of drones in commercial applications and regulations that make it harder for casual users to own and operate drones.
Investments in the hobbyist segment largely emphasize camera packages, editing software, and other tools, with
features like increased time-of-flight (ToF) capabilities seen as differentiators. The segment will witness the rise of some
smaller players, while some leading companies will make a significant shift towards garnering revenue from commercial
businesses.
The hobbyist segment took a hit in 2020. As photography is the main use case and travel was substantially curtailed,
demand for drones declined. A former leading player in the hobbyist segment, GoPro, stopped manufacturing consumer
drones in 2018.
Drone gaming is currently the most rapidly evolving trend among consumer drone enthusiasts. This segment is driven
predominantly by people aged between 15 and 35 – early adopters – and will see a significant increase in demand over
the coming years. Also, this segment will play an important role in supporting the latest accessible commercial-off-the-
shelf (COTS) technologies. Autonomous drones will come into play within the next five years, and drone gaming will
become a more competitive and lucrative business area worldwide.
The prosumers segment currently accounts for the smallest share of the consumer drones market, but it will continue
to be a constant demand generator.

Commercial drones
Drones have multiple commercial applications, including in agriculture, logistics, media and entertainment, power
utilities, and insurance. The commercial use of drones will increase significantly over the next 10 years, especially in
logistics. Due to COVID-19, ecommerce saw unprecedented growth in 2020, and delivery companies, including UPS and
DHL, and online retailers such as Amazon will increasingly invest in drones as a delivery solution.
Most developed and developing nations will consider the application of drones for precision agriculture, with
technological improvements in terms of software and sensor capabilities impacting adoption rates. Product pricing will
certainly have a key impact on adoption in developing countries, and subscription models for drones as a service (DaaS)
– where organizations rent drone services on an as-needed basis - could prove popular.
Construction and real estate are among the first industries to recognize the potential of drones to aid virtual design and
construction (VDC), which provides architects and engineers with a new method of visualizing and analyzing structural
requirements from different perspectives. Several industrial firms in the construction segment, most notably Komatsu
and Hensel Phelps, are already deploying drones within visual line of sight (VLOS) for their daily operations. Although
these sectors currently account for the largest share of the market, construction and real estate will see a decline in their
market share when other sectors begin maturing.
Beyond visual line of sight (BVLOS) is currently a key challenge for the optimal implementation of drones in this sector.
As it is anticipated that restrictions in terms of BVLOS will continue to be imposed for security purposes, the flexibility of
drone applications in the construction and real estate segment will remain limited.
The mining and oil and gas sectors are ready to begin adopting drone technology. However, regulatory restrictions
currently present a significant barrier to adoption. As regulations become more lenient, application rates will grow
steadily. Similarly, the meteorology and environment sector is yet to gain significant traction, with only limited adoption
seen thus far (e.g., NASA’s use of military drones to study hurricanes and other environmental conditions).
The power and utilities segment includes electricity and water management companies operating in energy production,
transmission, and distribution. This is a key sector that intends to use drones for inspection purposes. As the regulatory
environment evolves, adoption will speed up in North America and Europe, whereas adoption will be slower elsewhere.
Software, sensors, and battery capabilities will be key investment areas.
Media and entertainment is one of the most demanding drone application sectors, hampered as it is by regulatory
restrictions. As regulations relax, the sector will drive significant demand for drones.
The most eagerly anticipated commercial application of drones is logistics, spanning medical, food, and mail supplies for
remote locations, package deliveries in urban areas, and eventually human transportation. While much of the hype is
overblown, drone technology will disrupt traditional distribution and logistics models. Once again, this sector will depend
on the effective development of control and management technology and regulatory approval.
Military drones
Militaries worldwide are extensively using drones in a range of mission types, with several countries – notably those with
limited resources – emerging as potential markets for low-cost UAVs. Competition among defense contractors is
gradually intensifying to tap into demand in these countries. Geopolitics and national policies are often seen as
hindrances to military UAV manufacturers marketing their products in these countries. Therefore, they rely heavily on
domestic government and foreign military sales contracts, which serve as the key growth generators for these firms and
the overall market.
Law enforcement agencies (LEAs) see several potential applications for drone technology, including surveillance, search
and rescue, firefighting, crowd monitoring, traffic collision reconstructions, crime scene analysis, and suspect
apprehension. Drone manufacturers are exploring opportunities for growth by collaborating with LEAs. For instance, DJI
has partnered with law enforcement technologies provider Axon. Under the Axon Air program, Axon will supply camera-
equipped DJI drones to LEAs worldwide.

Established military UAV manufacturer General Atomics is also pursuing approval from the US Federal Aviation
Administration (FAA) to equip federal LEAs with a modified autonomous version of the Reaper UAV as a replacement for
helicopters. Similar to General Atomics, other military suppliers such as AeroVironment, Elbit Systems, Insitu (Boeing),
and Schiebel are expected to tap into the LEA market for drones as and when regulations evolve.
Consumer drone Military drone

The Mavic 2 Pro developed by DJI The RQ-170 Sentinel developed by Lockheed Martin
Source: DJI Source: Sony

Inspection, cleaning, and maintenance robots

Robots are increasingly assisting with functions such as inspection, cleaning, and maintenance. These are all tasks that
require similar behavior from robots, and some robots are designed to perform all three. However, there are also
specialized models designed specifically to either inspect, clean, or maintain. Inspection robots are primarily used in
industrial settings where they assist the workforce in inspecting equipment to find faults or recover from outages. Robots
can deliver a level of accuracy that humans cannot always provide and improve safety, as inspection sometimes requires
access to dangerous locations.
Inspection robots are similar to those designed for maintenance. Some robots inspect machinery in a factory, warehouse,
or transport system such as a railway and help maintain those machines or systems. Robots typically perform two types
of maintenance work: preventive maintenance, where robots are used to detect anomalies, and curative maintenance,
where robots resolve issues by manipulating objects, e.g., opening or closing valves or activating switches.
Inspection robot
An ANYbotics robot inspects a train and railway line
Source: Anybotics
Cleaning is sometimes added to the mix. Manufacturers such as Waygate offer hybrid inspection and cleaning robots.
However, cleaning robots are a sub-category on their own, and there are several dedicated cleaning models in the
market. Whereas inspection and maintenance robots are primarily used in industrial settings, cleaning robots are used
in factories, but also in many other settings, including office buildings, hospitals, schools, shops, and other public spaces.
Bear Robotics, Seegrid, Baker Hughes, Softbank, ExRobotics, KOKS, and Genrobotic lead in inspection, cleaning, and
maintenance robots. The category is fragmented, and there are a large number of challengers.

Inspection, cleaning, and maintenance robots

Leaders Challengers
Inspection, John Deere (Bear Robotics) ExRobotics Flyability ANYbotics

cleaning, and Seegrid KOKS Gecko Robotics Q-BOT
maintenance Softbank Genrobotic Neurala Avidbots
robots Baker Hughes (Waygate) Waygate
Source: GlobalData

Field robots
Field robots are mobile robots that operate in dynamic, unstructured environments. They are mainly used in agriculture.
Unlike other types of robots, field robots are usually not programmed to perform the same task repeatedly. The nature
of the tasks they perform and the unstructured environment in which they operate means that they need to be adaptive
and responsive, able to work under variable conditions and sometimes even in unexplored territory. They often perform
tasks that are too laborious or dangerous for humans. For this reason, as the underlying technology steadily advances,
field robots are becoming highly desirable across several different industries.
At the moment, the main use case is in agriculture, where they are usually referred to as agribots. These machines enable
precision farming while collecting essential data. Field robots in agriculture can also monitor greenhouse gases (GHGs)
such as carbon dioxide and nitrous oxide to study agriculture's impact on climate change. Farmers are also starting to
use field robots to work with animals, for example, to herd sheep and cattle across large fields, ensuring livestock are
healthy and adequate grazing.
An agribot: a field robot used in agriculture Field robots used in space exploration
A robotic strawberries harvester developed by Agrobot Spirit and Opportunity have been exploring Mars since
2004
Source: Agrobot Source: NASA
Emerging areas using field robots include mining and space exploration. The robots that land on other planets to explore
and collect information use technology similar to those that do the same in fields here on Earth.
The main players in field robots are Abundant Robotics, Agrobot, American Robotics, Bear Flag Robotics, EcoRobotix,
and Rabbit Tractors.
Field robots
Leaders Challengers
Abundant Robotics John Deere Rowbot

Field robots
Agrobot EcoRobotix Small Robot Company
American Robotics Rabbit Tractors Soft Robotics
Source: GlobalData

Defense and security robots (excluding drones)

Unmanned aerial vehicles, or drones, are extensively used in the military and for security purposes. The use of robots in
defense and security is also happening on land and at sea.
In addition to drones, there are three types of defense and security robots: unmanned ground vehicles (UGVs),
unmanned surface vessels (USVs), and unmanned underwater vehicles (UUVs).
Ground robotics systems are increasingly being tested for integration into the force structures of militaries. Although
the market is now growing quickly, their introduction has not been an easy process. Military drones were the spearhead
that opened the way for the technology to be tested, combat-proven, and ultimately adopted by many countries
worldwide. They offered the necessary learning curve for engineers to develop the range of systems and technologies
included in them and for users to test and implement new concepts of operations.
With such a strong installed knowledge base, research organizations and institutions, both government and private,
developed similar systems for the maritime and land environments. Explosive ordnance disposal (EOD) and demining
have been the main defense and security applications of robotics for many years and have helped military and security
organizations acquire the technical and operational knowledge required for their development and introduction into
service. Developments in AI and telecommunications allow further expansion of their use in complex applications such
as combat, logistics, and manned-unmanned teaming (MUMT).
Explosive ordnance disposal (EOD) robot Unmanned surface vessel

A bomb disposal robot developed by Northrop Grumman USV developed by Kongsberg
Source: Northrop Grumman Source: Kongsberg
Like UGVs, USVs can be used as force multipliers in many areas of naval operations, with their modular structures and
ability to carry many different payloads. With AI in USVs nearing maturity, USVs will soon participate in naval battle
groups with manned platforms. As a result, naval forces and defense industry companies worldwide have increased their
investment in USV technologies. Leading shipbuilders such as Huntington Ingalls Industries (HII), Fincantieri, Austal, and
BAE Systems compete for the highest share of the growing USV market.
Although UUVs have been used for marine exploration, research, and search and rescue since the late 1950s, they
became more common when they began to be used for mine countermeasure missions. Today's UUVs offer an
improvement in operation time and safety, greater flexibility of use, more efficient power systems, and lower
implementation and sustainability costs. Like USVs, UUVs can be used as force multipliers in many areas of naval
operations, and the use of AI is also at an advanced stage. Leading shipbuilders and defense companies such as Boeing,
Lockheed Martin, HII, General Dynamics, ThyssenKrupp, and BAE Systems compete in the growing UUV market.
Private security companies increasingly also use robotics to improve their performance. However, there aren’t any
private security-specific robots. Instead, private companies buy from the same vendors and often use robots from other

robotic categories for security purposes. For example, field robots and commercial drones can be used for security
monitoring.
Defense and security robots (excluding drones)

Leaders Challengers
Defense and
security robots Northrop Grumman Thales Group Aardvark Tactical Kongsberg Maritime
(excluding Lockheed Martin BAE Systems
drones) ABB Maxar Technologies
Source: GlobalData

Hardware components
There are several hardware components in most robots, but we focus on precision mechanical parts and semiconductors.
Precision mechanical parts

An important part of making a robot is allowing it to interact with and manipulate the world around it. This requires the
robot to be able to move and have limbs. Therefore, a range of mechanical components such as reduction gears,
actuators, effectors, drive systems, and other precision parts represent an essential part of the robotics supply chain.
Here, specialist Japanese parts suppliers such as Keyence, Nabtesco, and Omron are world leaders.
Furthermore, the biggest growth driver in the industrial robot and co-bot markets is China’s determination to automate
its factories under the auspices of its Made in China 2025 program. The program highlights prospects for the leading
Chinese robot makers such as Estun Automation and Siasun Robot & Automation, with Midea-controlled KUKA very
much to the fore, and enablers such as specialist Japanese parts makers Keyence, Nabtesco, and Harmonic Drive.
Precision mechanical parts

Leaders Challengers
Motors, drive
systems, Harmonic Drive Nachi-Fujikoshi Estun Automation GSK CNC
reduction gears, Keyence Omron Siasun Jabil Circuit
actuators,
Nabtesco Cognex Maxon Teledyne Technologies
effectors
Precision HollySys
mechanical
parts
TE Connectivity Nippon Ceramic TDK First Sensor
Sensors Keyence Honeywell AMS Rockwell Automation
NXP Infineon Intel ST Microelectronics
Sensata
Source: GlobalData
Semiconductors
Chips are a vital part of robotics systems. They range from Qualcomm’s Snapdragon processors – the same general-
purpose ones that power mobile phones – to specialist silicon in sensors and other components and high-speed signal
processing and communication chips. The development of robotics requires a range of specialist and general-purpose
chipsets, including a mix of off-the-shelf and custom offerings. This implies that, at least for now, many chipmakers will
have a piece of the robotics market. The big challenge will be to develop new chip architectures that can operate more
like the human brain on a handful of watts and using much smaller data sets.
Silicon photonics is making inroads into the market, with leaders such as Infinera, Intel, and Lumentum upbeat about
the future prospects of this technology. Silicon photonics can be manufactured with patterned silicon to transmit data-
carrying laser signals. It transfers far more data between computer chips than electrical conductors and also consumes
less power, making it potentially a worthy replacement to traditional electron-based semiconductors. However,
limitations such as poor emission of light and loss of large signals in the presence of many photons are significant
obstacles to the widespread adoption of this technology.
Neural networks have been at the heart of recent advances in AI technology. They comprise anything from a few dozens
to millions of nodes arranged in a series of layers, each of which connects to layers on either side. To operate effectively,
these nodes need to interact simultaneously, running tasks in parallel rather than one at a time. Traditional central
processing units (CPUs) are optimized for serial processing. They prioritize a single task within a larger process, making
them unsuitable for the parallel processing required by neural networks. Graphics processing units (GPUs), on the other

hand, were found to possess computational capabilities that far surpassed multicore CPUs and so became fundamental
to the development of neural networks and, with them, AI technologies.
Nvidia is the market leader in GPUs, with AMD the number two player. Intel, the leader in providing CPUs to data centers,
missed out on the surge in demand for GPUs but has since made significant moves to improve its position in AI, including
spending $350m on deep learning start-up Nervana Systems. Nvidia’s bid to acquire UK chip company Arm has hit
regulatory roadblocks caused by concerns around technological sovereignty. Should it go ahead, the acquisition would
give Nvidia access to Arm’s intellectual property, solidify its leadership in AI, and give it a competitive advantage in
robotics too. Even if it ultimately fails, the bid demonstrates Nvidia’s desire to build on its GPU dominance.
GPUs are ideally suited to training neural networks, as they can handle the high number of calculations required. Still,
they struggle with the execution stage – that is, the part where the system classifies and successfully labels the data.
This requires a process known as inference. Google has developed tensor processing units (TPUs), designed specifically
to speed up the execution of neural networks, while other firms are increasingly using field-programmable gate arrays
(FPGAs) manufactured by companies such as Xilinx and Intel as accelerators.
Communication chips
Anything connected to the internet – whether it be a smartphone, smart speaker, car, robot, or pacemaker – is part of
the swelling IoT.
Sensors on these connected IoT devices provide real-time data feeds to machine learning algorithms. These algorithms
digest the data, meaningfully interpret it, analyze it and send instructions back to the devices in a virtuous circle of
continual improvement. The more data that is collected, the better the machine learning algorithms can interact with
the connected device. This could enable routine maintenance (e.g., detection of faulty parts), predictive analytics (e.g.,
telling a driver he is about to enter a congested traffic zone), or smart robotics (e.g., telling a robot how to move, based
on cloud-based control centers that analyze data from onboard computer vision sensors).
Therefore, more connected devices will carry radio frequency (RF) chips, including Wi-Fi and near field communications
(NFC) chips. Increasingly, RF functionality is being embedded within systems on a chip (SoCs).
Over the last five years, the RF industry has consolidated into a handful of semiconductor giants – notably Broadcom
and Qualcomm – that seem to snap up anything that moves in the field (a proposed takeover of Qualcomm by Broadcom
was blocked by President Trump in 2018).
Desperate to become less dependent on foreign chip suppliers, China is building a native segment around Tsinghua
Unigroup’s RDA Microelectronics and Spreadtrum affiliates. Tsinghua has been linked as a partner (or predator), on and
off, for Taiwan’s MediaTek.
One to watch in this arena is the veteran pioneer of digital signal processors, Texas Instruments. Unlike the other majors,
it has not been acquiring other companies (its most recent deal was the purchase of National Semiconductor in 2011).
This is expected to change in the near future.
Embedded chips
A major source of the streaming data that powers IoT comes from sensors. Connected things carry many sensors,
including accelerometers, heat and humidity components, pressure components, cameras, and microphones. Some
industries – like automobiles and manufacturing – will move faster than others to embed sensors into their products,
although retail, utilities, and logistics will catch up rapidly. In the early years of this transition, the sensor makers may
see competitive power shift to them as it has done in the automobile sector. Leading automotive sensor manufacturers
like Autoliv and Continental are poised to take more and more of the value add in the automotive industry away from
the carmakers. As the IoT cycle matures, sensor makers’ products are becoming increasingly commoditized.
There is a trend towards multiple sensor capabilities in a single connected device, so microcontroller units (MCUs, which
tell these sensors what to do) are getting more complex. Leaders like NXP and Microchip will likely see a golden age for
their products, but Arm and Intel also wish to dominate this space.

At the smart sensor and fused sensor levels, Intel (via Mobileye), NXP, Infineon, STMicroelectronics, and Texas
Instruments are all leaders, with Sony the clear leader in image sensing. A market for 3D sensors is developing (and not
just for autonomous vehicles) where Samsung Electronics and optical interconnect specialist Lumentum lead, the latter
with its laser diodes. Through its acquisition of Finisar in 2019, II-VI has also become a player in this space. Key roles are
also played by Texas Instruments and Analog Devices in digital signal processors (DSPs) and analog-to-digital systems.
In lidar, the current leader is Velodyne, with Quanergy and Luminar very much in contention and a race to come to
market with solid-state lidar. Some players, such as Tesla, insist that lidar will never become commercially viable and are
instead banking on 3D cameras, ultrasound, and AI. Intel-backed Chinese start-up Horizon Robotics is working on the
same approach.
Semiconductors
Leaders Challengers
Nvidia Ambarella Xilinx Cambricon

AI chips AMD Intel Alibaba Cerebras
Google Microsoft Rokid Graphcore
Horizon Robotics
Qorvo Broadcom Marvell MediaTek

Semiconductors Communications Skyworks Microchip Infineon RDA Microelectronics
chips Qualcomm Texas Instruments ST MicroelectronicsSpreadtrum
Softbank (Arm)
NXP NXP Infineon Luminar

Microchip ST MicroelectronicsII-VI
Embedded chips Intel Texas Instruments Quanergy
Velodyne
Source: GlobalData

Software components
There are several software components in most robots, but we focus on robotic intelligence.
Robotic intelligence
In recent years, software has become an increasingly important part of the robot design process. Due to the nature of
the industry historically, most of the software powering industrial robots is proprietary and closed, only compatible with
systems from one robotics company. This is changing with the emergence of software specialists that have developed
what are essentially robot operating systems (ROSs). There is even a popular open-source project, known as ROS-
Industrial, that is extending the capabilities of ROSs to manufacturing automation and robotics.
Some of the traditional robotics players, such as ABB and Softbank, are opening up their platforms, encouraging more
open development around robotics and improved interoperability between systems. This interoperability will become
more important as more data is shared with cloud robotics platforms. It will allow them to learn from a wider range of
robots and develop better algorithms and control systems.
Robotics software might be about to leap forward with Google’s return to the field. The company made several robotics
acquisitions in the first half of the 2010s but ended up selling off or shutting down most of those companies, with Boston
Dynamics the most notable example. In 2021, Alphabet, Google’s parent company, launched a new company called
Intrinsic. The exact products that Intrinsic will work on were not immediately revealed, but the company’s CEO, Wendy
Tan-White, said that the company “is working to unlock the creative and economic potential of industrial robotics for
millions more businesses, entrepreneurs, and developers. [Intrinsic] is developing software tools designed to make
industrial robots…easier to use, less costly and more flexible, so that more people can use them to make new products,
businesses and services.”
AI, an area where Google is a leader, is becoming an integral part of next-generation robots. Covariant, a universal AI
that enables robots to see, reason, and act on the world around them, secured $80m in funding in 2021. This was only a
year after it had raised $67m in a previous round.
Despite investment and interest in general-purpose software and AI, most robots’ processing will have to occur at the
device level within so-called OODA loops (named after the jet fighter pilot drill: observe, orient, decide, act). This requires
advances in micro-electro-mechanical systems (MEMS), sensor fusion software, on-chip memory, optical data, and, most
of all, processor chips. The latter will need to process a lot more data much more quickly while drawing a lot less power.
Neuromorphic processors (chips configured more like a human brain than a traditional chip) will become crucial to this
new form of robot. They are trained using basic libraries of relevant data, then taught to think by themselves by
processing sensory inputs. Eventually, these chips use the acquired skills to perform assigned duties using associations
and probabilities.
Historically, these tasks are performed in the cloud, but increasingly it is being performed on the robot itself. The
approach is known as edge computing, where computing power is decentralized. IBM, Intel, Qualcomm, Xilinx, and a
host of well-funded start-ups are at the forefront of developing this technology.
By the mid-2020s, the world of robots will start to be transformed by embedded neuromorphic processors making the
centralized model of cloud computing give way to increasingly intercommunicating devices – notably, robots and
vehicles – at the edge with their own sensor feeds.

Robotic intelligence
Leaders Challengers
Industrial Preferred Networks ABB HollySys SAP

software Rockwell Automation GE IBM Schneider Electric
IBM Baidu Sentient Tech BigML

Machine learning Google Amazon PickNik Robotics PredicSis
Cognex Omron Brain Corp Applied Vision

Robotic Keyence Ambarella Prophesee Airobotics
Machine vision
intelligence
Microsoft Sony EyeSight 3DiVi

Gesture control Google Samsung Electronics GestureTek Leap Motion
Conversational Amazon Google Apple Nuance

platforms IBM Baidu Microsoft iFlytek
Source: GlobalData

Robotics as a service
Cloud robotics
Whilst the first robot age focused on advances in electro-mechanics, the second robot age is a by-product of a string of
advanced technologies, such as cloud computing, machine learning, and high-speed communications. The advent of
cloud robotics enables robots to communicate with each other, which means robots can share data among themselves.
For example, Kiva Systems, acquired by Amazon in 2012, developed robots that could coordinate with each other and
move around the warehouse to locate items. They used cloud services to improve their performance collectively.
The emerging area of cloud robotics is still not fully defined, but it allows the sum of all knowledge gained by a robot
connected to a cloud platform can be passed on to every other robot on the same platform. It also means that data
collected from individual robots can be aggregated easily and processed using advanced algorithms and hardware not
available on the robots themselves. While this trend is still at an early stage of development, the emergence of cloud
platforms and infrastructure as a reliable, scalable, and easily deployed computing source suggests that robotics could
easily benefit from these developments in the future.
On the industrial side, Industrial Internet platforms have matured significantly in recent years, and GE Predix’s machine
learning capabilities are being developed to provide improved control and asset tracking for industrial robots. IBM
Watson’s services have also been used by KUKA’s adaptive robots to monitor robots' health, treating them as edge
devices in an Internet of Things (IoT) network while aggregating their data and processing it in the cloud.
Cloud robotics
Leaders Challengers
Amazon Preferred Networks GE Digital Rapyuta
Cloud robotics FANUC C2RO Tend.AI Festo
Midea (KUKA) Cisco Huawei Noos
Source: GlobalData

Companies
The table below lists some of the leading players associated with this theme and summarizes their competitive position.
Company Country Competitive position in the robotics theme

Cognex US Cognex is one of the key players in the fast-growing machine vision market. Its
products are used in automated manufacturing, warehousing, and robotics to
inspect and identify parts, detect defects, and verify product assembly. They
range from mobile scanners, laser profilers, and smart 3D cameras to image
analysis software. The company has gained traction in China, especially in co-
bots requiring 3D camera-based vision systems. It has also seen rapid growth in
warehouse inventory profiling and management applications globally. In 2020,
the company paid its highest dividend per share ever but was also hit by
controversy. Just before paying out a $2 per share dividend, Cognex laid off 8%
of its headcount. In February 2021, Robert Shillman, one of its founders, had to
resign from the board of directors due to associations with the far-right.
Cyberdyne Japan Cyberdyne is a leading Japanese manufacturer of exoskeletons. The company
has also developed waistband lumbar supports for workers that are required to
lift heavy goods regularly. Cyberdyne’s products address many of the challenges
facing Japanese healthcare in an aging society. In December 2017, it won FDA
marketing approval for its lower body HAL exoskeleton. In 2021, the UK’s
National Health Service (NHS) recommended using HAL Lumbar to improve
adult social well-being. Ekso Bionics and ReWalk Robotics are Cyberdyne’s main
competitors.
Estun Automation China Estun Automation is a Chinese industrial robot manufacturer. It specializes in
metal joining and electro-hydraulic robots and, like some other Chinese robot
companies, customizes robots supplied by the four largest industrial robotics
companies (ABB, FANUC, KUKA, and Yaskawa). Estun aims to gain a bigger share
in the industrial robotics market and has set up an M&A fund, seeking to acquire
US start-ups spinning out of university labs, US regulators permitting. So far, it
has mostly acquired European companies, including Germany’s Cloos Group
and the UK’s Trio Motion.
FANUC Japan FANUC is one of the world’s biggest industrial robot manufacturers. It has a
production capacity of 11,000 units and, in 2021, it produced its 750,000th
robot. The company’s sales were initially affected by the COVID-19 pandemic
but rebounded quickly. FANUC uses sensors, analytics, and the cloud to provide
a continuous service to its customers by anticipating equipment and process
problems and organizing the automatic replacement of parts. The company
works closely with Cisco, Rockwell Automation, and the Japanese AI start-up
Preferred Networks to deliver and upgrade this service, which started as a pilot
project in 2014 involving GM factories. Like all its peers, FANUC has been
developing co-bots and may become a force in that segment (FANUC acquired
co-bot manufacturer Life Robotics in February 2018). Until 2015, FANUC,
operating from its Mount Fuji base, was just about the most secretive company
in the world. However, spurred by activist investor Dan Loeb and pressured by
the Japanese government to become more investor-friendly, FANUC opened
up. FANUC faces two medium-term threats: one from Chinese rivals Estun and
Siasun, and the other from cloud robotics provided by the likes of Amazon,
Alibaba, Google, and IBM.


HollySys China HollySys is a supplier of industrial automation equipment. The company is a
premier supplier to China’s rail, subway, and nuclear industries. It also has a
strategically important role in upgrading and automating China’s factories in the
context of the State Council’s Made in China 2025 program. The company
operates in eight markets outside China, all in Asia. In June 2021, two
investment firms (CPE Funds Management and Ace Lead Profits) and an
individual investor requested consent from shareholders to acquire the
company. However, the HollySys board did not support the move and
recommended that shareholders take no action on the consent request.
Honda Japan Honda produces a wide range of machinery, including power equipment,
automobiles, and motorcycles. It has also long been developing robots,
including the famous humanoid robot, Asimo, released in 2000 and
discontinued in 2018. Also in 2018, Honda announced its new robotics line,
dubbed 3E (empower, experience, and empathy). Currently, all of Honda’s
robots fall under the 3E range. AI is a significant component of 3E as Honda’s
robots learn from each other and can be fed data in the form of images and
then learn to distinguish between different objects on their own, without the
need to be re-programmed.
Intuitive Surgical US Intuitive Surgical is a leader in medical robot assistants for minimally invasive
surgical procedures. Robots were involved in 40% of all surgeries in 2020, up
from 9% at the start of the decade. In 2021, about 80% of surgeries involving
robots use Intuitive Surgical’s da Vinci system, which had an installed base at
the time of writing of 4,986 units worldwide, including 2,770 in the US and 719
in Europe. Intuitive Surgical faces competition from two medical equipment
incumbents who have formed joint ventures with robotics companies.
Medtronic teamed up with Mazor Robotics (a partnership that led to Medtronic
acquiring Mazor in 2018), and Johnson & Johnson joined forces with Google to
form Verb Surgical. However, even if competitors bite into Intuitive Surgical’s
market share in the future, the company is likely to continue to perform well,
as its revenue is in part derived from maintaining existing da Vinci systems.
iRobot US iRobot is a world leader in mobile robotics. The company pioneered robot
vacuum cleaners with its Roomba brand way back in 1990 as an MIT spin-out.
Despite its longevity and brand leadership in high-tech home robots, it remains
a mid-sized enterprise. The company sold off its military security (bomb disposal
robot) business in 2016 and spun off its telepresence robot operation to
concentrate all its resources on its home robot business. More than ever, iRobot
is a thematic play in a world of urbanized millennials and older people living
alone, both of whom are keen to automate as much as possible. LG, Samsung,
and Xiaomi now make robot vacuum cleaners, and Ecovacs, Honda, and Dyson
are also in competition, but iRobot is the clear market leader. In the long run,
iRobot’s growth potential is capped by the fact that it is not diversifying into
home care areas beyond floor cleaning. However, in the short run, the company
is likely to continue to do well. Throughout the pandemic, it experienced supply
chain disruption, but its revenue continued to grow.
Keyence Japan Keyence is a major force in sensors and measuring instruments used in factory
automation, notably force sensors for touch sensing. The company specializes
solely in product planning and development and does not manufacture the final
products itself. Instead, the products that Keyence designs are manufactured by
contract manufacturing companies in China. The company will continue to
benefit from rising unit sales of robots and from its strong position in China, a
market where there is a drive to increase robot density and a desire to develop
an indigenous robotics industry.


Midea China KUKA, acquired by Chinese home appliance manufacturer Midea in 2016, is one
of the four biggest industrial robot manufacturers. Like FANUC, it is taking on a
service dimension to look after its industrial customers. KUKA has formed a
close allegiance with Huawei to create a global 5G network. In 2021, it
announced that it was partnering with Nokia to bring 5G to industrial
manufacturing. It is also starting to integrate AI – specifically machine learning
– into its robot systems. The tie-ups with Huawei and Nokia may keep KUKA in
the vanguard of serviced industrial robotics. KUKA has been aggressively
developing co-bots since 2014. Following its acquisition by Midea, KUKA is an
integral part of the Made in China 2025 program and, therefore, of strategic
importance to China. It is also at the core of Germany’s Industrie 4.0 project,
which China looks to as an inspiration.
Nabtesco Japan Nabtesco is a precision component supplier for aircraft, rail, and road vehicles,
as well as robots. The company is one of the main providers of precision
reduction gears for industrial robots. These gears are applied to every robot
joint to give them strength and precision. The company also makes actuators
for aircraft and hydraulic kit. Like Keyence, Nabtesco could benefit from rising
unit sales of robots and its position as a supplier to Chinese robot
manufacturers, especially in the next three years as the country strives to
increase its robot density. In 2021, the company started looking at shipping as
an area of expansion and invested in DeepSea Technologies, a Greek maritime
technology company specializing in vessel performance monitoring and
optimization.
Northrop Grumman US Northrop Grumman makes aerospace, defense, and security technology, and its
portfolio includes defense and security robots, an area in which it is a leader.
The company is the maker of the Andros Mark V-A1, the robot used by Dallas
police to kill a suspect in a shooting in 2016. This put the model in the spotlight
as it was the first time a robot had been used to kill the perpetrator in a US
shooting incident. Northrop Grumman has a contract with the US government
to build a robotic explosive ordnance disposal system, which completed its first
stage in 2020. Despite the close links to the US government, the company sells
defense and security equipment to other markets in Europe, Asia, and Latin
America.
Omron Japan Omron makes broad-based electronic components and systems for factory
automation and healthcare. Like Keyence and Nabtesco, Omron is a key supplier
to the robotics industry. It might benefit from China’s drive to automate its
manufacturing base. The company has branched out with an autonomous
intelligent vehicle (AIV) for moving cargo and materials around factories and
warehouses. Its main 2021 launch was in the healthcare field. Omron developed
its first single-lead electrocardiogram and blood pressure monitor for home use.
Rockwell US Rockwell Automation is a robotics software and industrial automation
Automation company. Its rivals include Emerson (which attempted to acquire Rockwell in
2017), GE, and Honeywell. Rockwell’s sensors, controls, and software
architecture help companies integrate hardware and software components to
set up and run automated plants. As and when the crucial need to raise
productivity forces the release of capex and opex budgets to deploy robot
automation wholesale, Rockwell could be a clear beneficiary. In 2021, the
company partnered with cloud-based product digitization and traceability
platform developer Kezzler to provide supply chain solutions focused on
product traceability.


Siasun Robot & China Siasun is China’s leading robotics company. It is owned by the Chinese Academy
Automation of Sciences, a government body. Its national champion status means that it can
count on almost whatever assistance it needs to acquire foreign robotics assets
and companies. It has announced an M&A fund, but that is a modest front for
the backing it can call upon for M&A activities. It joined forces in 2015 with
Vanke, China’s largest real estate firm, to form the Sino-Israeli Robotics
Institute, marrying Israeli technology with Chinese manufacturing capabilities
and market access. As a national champion and state-owned enterprise (SOE)
the country’s new cybersecurity laws should work in Siasun’s favor. During the
COVID-19 pandemic, the company received media attention for donating
robotics to hospitals and the Red Cross in Shenyang.
Stryker US Stryker is a leader in implants and implant procedures for hip and knee
replacements. The number of people requiring knee and hip replacements is
rising rapidly and will not slow in the foreseeable future, especially with rapid
urbanization in China, India, and Africa. In 2018, Stryker acquired K2M, a leader
in complex spine and minimally invasive solutions, for $1.4bn. According to
Stryker, this deal complemented its leadership in the spine and
neurotechnology markets. Stryker developed Mako, a robotic arm that provides
surgeons with assistance during procedures. COVID-19 impacted the company’s
business as elective procedures were postponed so that healthcare systems
worldwide could focus on treating patients infected by the virus. However,
Stryker is rebounding as elective procedures return in countries that have
managed to control the pandemic with vaccines.
Teradyne US Teradyne makes automation equipment for testing semiconductors and
industrial applications, counting Qualcomm, Samsung, and IBM among its
customers for automatic test systems. In 2015, it acquired co-bot pioneer
Universal Robots for $285m. Universal Robot’s safe, easily programmable, and
versatile six-axis, single-arm robots had established a strong leadership position
in the nascent co-bot market, and the acquisition gave Teradyne a strong
position in a rapidly growing market. Teradyne has continued to grow its
industrial automation business with the purchases of Energid and MiR in 2018.
With a historical presence in semiconductors and industrial applications,
Teradyne has acquired its way into the industrial co-bots market and is now a
key player.
Toyota Japan Toyota has long been developing robots, namely health, elder care, and
companion robots. To this end, in 2015, Toyota announced an investment of
$1bn over three years in two Silicon Valley AI labs under the leadership of ex-
DARPA roboticist Gill Pratt. It is putting a lot of profile-raising public relations
behind its robot division. For instance, amid much fanfare, it launched its 4-inch-
high glove compartment-fitting driver companion robot, Kirobo Mini, which
recognizes faces and locations, can detect and respond to human emotions. It
is not that Toyota is about to become a company that makes robots with cars
on the side, but more and more of the news flow around the group in the future
could be about its robotics business. Like other Japanese companies, Toyota
used the Tokyo Olympics to showcase its technological prowess. For example,
during a basketball match, a Toyota robot successfully performed a series of
three-point shots. In the UK, the Japanese company sponsored the Paralympics
team and released an ad showing Toyota robots assisting athletes from Team
GB in their training.
Source: GlobalData

Sector scorecards
At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector. Our sector
scorecards have three screens: a thematic screen, a valuation screen, and a risk screen.
Robotics is a theme that impacts many of the 17 technology, media, and telecom (TMT) sectors we cover. In this section,
we focus specifically on the industrial automation and consumer electronics sectors.
For a full explanation of our thematic scoring methodology, please refer to the Appendix.
Industrial automation sector scorecard

Who’s who
Who does what in the industrial automation space?
Industrial automation
(52 companies)
MKT CAP
Company Ticker Sector Country Description
(US$ M)
ABB ABBN Industrial conglomerate 77,023 Switzerland Industrial conglomerate that makes robots
Accenture ACN IT Services 227,253 Ireland Management consulting and IT services house
Alibaba BABA Internet ecosystems 467,526 China China's leading ecommerce company
Alphabet GOOGL Internet ecosystems 1,916,714 USA Internet ecosystem monetised by advertising, primarily through the Google search engine
Amazon AMZN Internet ecosystems 1,753,864 USA Ecommerce giant and cloud infrastructure leader with a broad-ranging internet ecosystem that includes internet TV
Aveva AVV Industrial automation 17,375 UK Industrial software provider
Bosch Unlisted Auto parts Unlisted Germany Manufacturer of Tier 1 auto subsystems
Capgemini CAP IT Services 38,366 France Management consulting, IT services and outsourcing house
Cisco CSCO Networking equipment 250,871 USA IP networking equipment manufacturer
Cognex CGNX Imaging equipment 15,619 USA Maker of machine vision systems
Cyberdyne 7779 Exoskeletons 558 Japan Robotics company that specialises in robotic limbs
Danaher DHR Industrial conglomerate 236,607 USA Manufacturer of medical, professional, commercial and industrial products.
Emerson Electric EMR Industrial conglomerate 63,187 USA Provider of infrastructure technologies and lifecycle services.
Ericsson ERIC B Mobile infrastructure equipment 40,511 Sweden Wireless telecom equipment manufacturer
Estun Automation 2747 Industrial robots 3,460 China Manufacturer of mechanical equipment focusing on metal forming and electro-hydraulic robotic machines.
FANUC 6954 Industrial robots 45,369 Japan Manufacturer of factory automation systems
GE GE Industrial conglomerate 116,637 USA Industrial conglomerate
Harmonic Drive 6324 Robotic components 5,367 Japan Manufacturers of speed reducers
Hitachi 6501 Industrial conglomerate 54,604 Japan Manufacturer of communications and electronic equipment, heavy industrial equipment and consumer electronics
HollySys Automation HOLI Automation software 1,194 China Producer of process, industrial, rail and subway, and nuclear power plant automation equipment
Honeywell HON Industrial automation 159,461 USA An industrial automation software company
Huawei Unlisted Mobile infrastructure equipment Unlisted China Maker of smartphones and telecom equipment
IBM IBM IT Services 125,493 USA Technology conglomerate
Intuitive Surgical ISRG Surgical robots 127,502 USA Manufacturer of surgical robotic systems
Kawasaki Heavy 7012 Industrial robots 3,578 Japan Industrial conglomerate that makes robots
Keyence 6861 Robotic components 148,215 Japan Manufacturer of fiber optic and photoelectric sensors for robots.
KUKA KU2 Industrial robots 3,116 Germany Manufacturer of industrial machines
Microsoft MSFT Internet ecosystems 2,263,110 USA Software conglomerate
Mitsubishi Electric 6503 Industrial conglomerate 29,419 Japan Manufacturer of electronic and industrial equipment
Nachi Fujikoshi 6474 Robotic components 1,000 Japan Manufacturer of industrial robots and robot parts
NEC 6701 Fixed line infrastructure equipment 14,586 Japan Manufacturer of chips, PCs, telecom equipment and software
Nokia NOKIA Mobile infrastructure equipment 34,703 Finland Wireless telecom equipment manufacturer
Ocado OCDO Online retail 21,607 UK Online retailer of groceries
Omron 6645 Robotic components 20,270 Japan Manufacturer of electronic components, equipment and systems used for factory automation.
Oracle ORCL ERP systems 250,721 USA Software conglomerate with focus on ERP databases
PTC PTC Decision management applications 15,475 USA Software developer focused on process lifecycle management
Rockwell Automation ROK Automation software 37,956 USA Industrial automation power, control systems
Roper Technologies ROP Industrial conglomerate 51,261 USA Manufacturer of industrial equipment and components
SAP SAP ERP systems 183,520 Germany Software conglomerate focused on ERP systems and big data
Schneider Electric SU Industrial conglomerate 104,314 France Industrial conglomerate focused on power equipment
Seiko Epson 6724 Imaging equipment 7,691 Japan Manufacturer of communications equipment, printers, scanners, LCD panels, semiconductors, watches and robots
Siasun Robot 300024 Industrial robots 2,609 China Manufacturer of industrial robots, service robots and personal robots.
Siemens SIE Industrial conglomerate 143,024 Germany Industrial conglomerate
Software AG SOW Enterprise applications 3,785 Germany Enterprise software provider
Sony 6758 Audio visual equipment 132,996 Japan Technology conglomerate with interests in TVs, smartphones, games, etc.
Stryker SYK Surgical robots 104,712 USA Manufacturer of robotic orthopedic solutions
Tata Consultancy Services TCS IT Services 194,442 India IT services company with large outsourcing business
TE Connectivity TEL Electronic components (other) 49,553 Switzerland Maker of connectivity and sensor solutions
Teradyne TER Chip equipment 19,940 USA Manufacturer of automatic test systems (esp. for wireless chips). Also owns Universal Robots, a maker of co-bots
Wipro WIPRO IT Services 48,737 India IT services company with large outsourcing operations
Yaskawa 6506 Industrial robots 13,578 Japan Robot manufacturer and robot component maker
Yokogawa Electric 6841 Industrial conglomerate 4,405 Japan Industrial automation company.
Source: GlobalData

Thematic screen
Our thematic screen ranks companies based on overall leadership in the 10 themes that matter most to
their industry, generating a leading indicator of future performance.
Industrial automation Thematic Screen

5% 15% 15% 20% 5% 10% 5% 10% 5% 10% 100%
(52 companies) Weighting
Company MKT CAP Ticker Country Virtual and Artificial Cybersecurity Industrial Wearable Tech Robotics Edge computing COVID-19 Future of work Digital twins C Thematic
(US$ M) Augmented Intelligence Internet o Ranking
Reality l
5B
u
Microsoft 2,263,110 MSFT USA 5 5 4 4 5 4 5 4 5 4 1
ABB 77,024 ABBN Switzerland 3 5 4 5 4 5 4 2 4 5 2
Siemens 143,024 SIE Germany 3 5 4 5 4 4 4 3 3 5 3
IBM 125,494 IBM USA 3 5 4 5 3 4 4 3 4 4 4
GE
Alphabet
116,638 GE
1,916,714 GOOGL
USA
USA
3
5
5
5
4
4
5
3
4
4
4
5
4
4
2
4
3
5
5
3
5
6
Thematic
Rockwell Automation 37,957 ROK USA 3 4 4 5 3 5 4 2 4 4 7 leader
6B
Aveva 17,375 AVV UK 4 4 5 4 3 3 4 3 4 4 8

Amazon 1,753,864 AMZN USA 2 5 4 3 4 4 5 5 5 2 9
Cognex 15,619 CGNX USA 3 4 3 5 3 5 4 3 4 3 10
Cisco 250,872 CSCO USA 4 4 5 4 3 2 5 2 5 4 11
Schneider Electric 104,314 SU France 3 4 4 4 3 4 4 2 4 5 12
Emerson Electric 63,187 EMR USA 3 4 3 5 3 3 4 3 4 4 13
Tata Consultancy Services 194,442 TCS India 3 4 3 4 3 4 4 4 3 4 14
Hitachi 54,605 6501 Japan 3 4 3 5 3 4 4 3 3 3 15
Ericsson 40,511 ERIC B Sweden 3 4 4 4 3 3 4 3 4 4 16
Ocado 21,607 OCDO UK 3 4 3 4 3 5 3 4 4 3 17
Teradyne 19,940 TER USA 3 4 3 4 3 5 5 3 4 3 18
Accenture 227,253 ACN Ireland 3 4 4 4 3 2 4 3 5 4 19
SAP 183,521 SAP Germany 3 4 3 4 4 5 3 2 4 4 20
Stryker 104,712 SYK USA 3 4 3 3 2 5 4 5 4 3 21
Wipro 48,737 WIPRO India 3 4 4 4 3 3 3 4 3 3 22
Seiko Epson 7,692 6724 Japan 5 4 3 4 4 4 4 2 4 3 23
Sony 132,996 6758 Japan 5 4 2 3 4 5 4 4 4 3 24
Intuitive Surgical 127,502 ISRG USA 3 4 3 3 3 5 4 4 4 3 25
FANUC 45,369 6954 Japan 3 2 3 5 3 5 4 3 4 3 26
Capgemini 38,366 CAP France 3 4 3 4 3 3 4 3 4 4 27
KUKA 3,117 KU2 Germany 3 4 3 4 3 5 4 2 4 3 28
Nokia 34,703 NOKIA Finland 3 4 4 3 3 3 4 3 4 4 29
Harmonic Drive 5,368 6324 Japan 3 3 3 4 3 5 4 3 4 3 30
Alibaba 467,527 BABA China 4 5 2 3 2 4 4 4 4 3 31
Oracle 250,722 ORCL USA 3 4 4 3 3 3 3 3 4 4 32
Honeywell 159,462 HON USA 3 4 2 4 3 4 4 3 3 4 33
Roper Technologies 51,261 ROP USA 3 4 3 4 3 4 2 3 4 3 34 7B
Bosch Unlisted Unlisted Germany 3 3 3 4 3 4 3 3 3 4 35

Yokogawa Electric 4,406 6841 Japan 3 2 3 5 3 4 4 3 2 3 36
Mitsubishi Electric 29,419 6503 Japan 3 2 3 4 3 4 4 3 3 4 37
PTC 15,476 PTC USA 3 3 3 4 3 3 2 3 4 4 38
Keyence 148,215 6861 Japan 3 2 3 4 3 5 4 3 2 3 39
Siasun Robot 2,609 300024 China 3 3 2 4 3 5 4 2 3 3 40
TE Connectivity 49,554 TEL Switzerland 4 3 3 3 3 4 3 3 3 3 41
Yaskawa 13,578 6506 Japan 3 2 3 4 3 4 4 2 4 3 42
Kawasaki Heavy 3,579 7012 Japan 3 2 3 4 3 5 4 2 2 3 43
HollySys Automation 1,195 HOLI China 3 3 2 4 3 4 4 2 4 3 44
Nachi Fujikoshi 1,000 6474 Japan 3 3 3 3 3 5 4 2 3 3 45 Thematic
Huawei
Danaher
Unlisted Unlisted
236,608 DHR
China
USA
4
3
4
2
1
3
3
4
4
3
3
2
4
2
3
5
4
3
4
3
46
47
laggard
NEC 14,586 6701 Japan 3 4 3 3 3 2 3 3 4 3 48
Estun Automation 3,461 2747 China 3 2 2 4 3 4 3 4 3 3 49
Cyberdyne 559 7779 Japan 3 2 3 3 3 4 4 2 4 3 50
Omron 20,270 6645 Japan 3 2 2 4 3 4 4 2 2 3 51
Software AG 3,785 SOW Germany 3 3 1 4 3 3 3 2 2 3 52
Source: GlobalData
Key: 1 (red) implies this theme will have a negative impact on earnings over the next 12 months; 3 (amber) implies a neutral impact; and 5 (green) a
positive impact. See Appendix for an explanation of our research methodology.

Valuation screen
Our valuation screen ranks our universe of companies within a sector based on selected valuation
metrics.
Industrial automation Valuation Screen

25% 20% 15% 20% 20% 100%
Company MKT CAP Ticker Country EV/EBITDA EV/Sales Div yield % Net Debt (Cash)/ ROCE % C Valuation
(US$ M) Market Value % o Ranking 5B
l
u
Mitsubishi Electric 29,419 6503 Japan 6.5 0.7 2.4 -31.3 7.0 1
Ericsson 40,511 ERIC B Sweden 9.2 1.4 1.4 -11.6 17.7 2
Yokogawa Electric 4,405 6841 Japan 9.5 1.2 1.9 -20.5 8.2 3
Hitachi 54,604 6501 Japan 6.0 0.9 1.6 0.8 11.6 4
NEC 14,586 6701 Japan 6.3 0.7 1.3 -7.1 6.2 5
Seiko Epson 7,691 6724 Japan 6.9 0.8 2.5 -7.4 5.6 6 Cheap
HollySys Automation 1,194 HOLI China 7.7 1.2 1.1 -53.8 6.7 7
Cisco 250,871 CSCO USA 16.2 4.8 2.5 -5.2 18.0 8
Software AG 3,785 SOW Germany 17.4 3.5 1.8 -7.6 7.9 9
Omron 20,270 6645 Japan 21.8 3.0 0.8 -13.3 10.3 10
Sony 132,996 6758 Japan 10.9 1.6 0.4 -123.6 4.8 11
GE 116,637 GE USA 9.4 1.9 0.6 -9.9 4.9 12
Nokia 34,703 NOKIA Finland 13.6 1.3 0.5 -10.5 3.6 13
Teradyne 19,940 TER USA 17.9 6.1 0.3 -5.7 31.5 14
Accenture 227,253 ACN Ireland 26.5 4.9 0.9 -3.9 26.7 15
Emerson Electric 63,187 EMR USA 20.1 4.0 1.9 6.6 14.6 16
Wipro 48,737 WIPRO India 22.0 5.4 0.2 -7.1 20.5 17
Nachi Fujikoshi 1,000 6474 Japan 7.8 0.9 2.3 35.3 3.1 18
SAP 183,520 SAP Germany 19.3 6.0 1.2 3.4 14.5 19
Honeywell 159,461 HON USA 23.8 5.1 1.6 4.1 13.2 20
Siemens 143,024 SIE Germany 18.6 2.7 2.6 14.7 5.6 21
IBM 125,493 IBM USA 15.3 2.4 4.6 37.9 4.0 22
Tata Consultancy Services 194,442 TCS India 30.6 8.5 0.8 -2.2 42.8 23
Schneider Electric 104,314 SU France 22.2 3.8 1.6 3.6 8.4 24
Rockwell Automation 37,956 ROK USA 30.2 6.3 1.2 0.9 20.8 25
Microsoft 2,263,110 MSFT USA 27.0 13.1 0.7 -2.9 28.5 26
Oracle 250,721 ORCL USA 15.9 7.1 1.2 15.0 14.2 27
ABB 77,023 ABBN Switzerland 33.2 3.0 2.3 -1.8 5.6 28
FANUC 45,369 6954 Japan 28.2 8.0 1.0 -13.9 7.5 29
Capgemini 38,366 CAP France 17.8 2.4 0.7 17.7 9.4 30
Alphabet 1,916,714 GOOGL USA 32.7 9.8 -7.4 15.7 31
Yaskawa 13,578 6506 Japan 35.1 3.9 0.7 -1.1 8.2 32
Alibaba 467,526 BABA China 30.7 3.9 -25.6 3.4 33
Cognex 15,619 CGNX USA 77.4 18.8 2.5 -4.9 10.2 34
Amazon 1,753,864 AMZN USA 35.7 4.5 -2.1 11.8 35
Keyence 148,215 6861 Japan 54.1 28.6 0.3 -10.7 14.4 36
Stryker 104,712 SYK USA 38.1 8.1 0.8 10.5 7.6 37
7B
TE Connectivity 49,553 TEL Switzerland 42.4 4.3 1.3 6.5 3.5 38

Kawasaki Heavy 3,578 7012 Japan 23.5 0.6 89.2 -2.4 39
Intuitive Surgical 127,502 ISRG USA 91.0 28.1 -5.5 10.3 40
Cyberdyne 558 7779 Japan 41.5 19.3 -53.7 0.9 41
Danaher 236,607 DHR USA 39.6 11.4 0.3 6.4 6.8 42
KUKA 3,116 KU2 Germany 96.4 1.2 0.2 1.8 -6.3 43 Expensive
Roper Technologies 51,261 ROP USA 31.0 10.9 0.4 18.1 6.6 44
Ocado 21,607 OCDO UK 88.6 6.5 -4.5 0.2 45
PTC 15,475 PTC USA 55.5 11.1 4.3 7.8 46
Harmonic Drive 5,367 6324 Japan 75.9 15.8 0.3 -4.9 0.3 47
Siasun Robot 2,609 300024 China -44.9 6.5 0.5 -4.6 -8.1 48
Estun Automation 3,460 2747 China 115.5 9.7 0.3 6.6 3.6 49
Aveva 17,375 AVV UK 81.3 16.0 0.7 3.8 0.6 50
Bosch Unlisted Unlisted Germany 51
Huawei Unlisted Unlisted China 52
Median 23.6 4.6 0.8 -3.4 7.7
Mean 31.2 6.6 1.0 -3.5 9.6
Source: GlobalData
Key: Green denotes that the company is cheap (15% more attractively priced than the median value for the sector) relative to its global peers; amber
denotes it is within 15% of the sector median value; and red denotes that it is expensive relative to its global peers. Private companies are shown at
the bottom of these rankings by default because they do not have a publicly listed market price. See Appendix for an explanation of our research
methodology.

Risk screen
Our risk screen ranks companies within a particular sector based on overall investment risk.
Industrial automation Risk Screen

(52 companies) Weighting 20% 25% 25% 30% 100%
C
MKT CAP Corporate o Risk
Company Ticker Country Accounting Industry Political 5B
(US$ M) Governance l Ranking

u
Microsoft 2,263,110 MSFT USA 4 5 4 4 1
Oracle 250,721 ORCL USA 3 4 3 5 2
GE 116,637 GE USA 5 3 3 4 3
Teradyne 19,940 TER USA 3 3 3 5 4
Cognex 15,619 CGNX USA 3 3 3 5 5 Low risk
PTC 15,475 PTC USA 3 3 3 5 6
Alphabet 1,916,714 GOOGL USA 2 4 5 3 7
Cisco 250,871 CSCO USA 4 4 1 5 8
SAP 183,520 SAP Germany 3 4 3 4 9
Bosch Unlisted Unlisted Germany 3 3 4 4 10
Accenture 227,253 ACN Ireland 5 2 2 5 11
Aveva 17,375 AVV UK 4 3 3 4 12
Ocado 21,607 OCDO UK 2 4 2 5 13
Intuitive Surgical 127,502 ISRG USA 3 3 2 5 14
Stryker 104,712 SYK USA 3 3 2 5 15
Yaskawa 13,578 6506 Japan 2 2 5 4 16
Amazon 1,753,864 AMZN USA 2 4 4 3 17
IBM 125,493 IBM USA 4 1 3 5 18
TE Connectivity 49,553 TEL Switzerland 3 3 3 4 19
ABB 77,023 ABBN Switzerland 4 2 3 4 20
Ericsson 40,511 ERIC B Sweden 4 3 2 4 21
Honeywell 159,461 HON USA 4 3 3 3 22
Sony 132,996 6758 Japan 4 2 4 3 23
Capgemini 38,366 CAP France 4 3 3 3 24
Rockwell Automation 37,956 ROK USA 2 3 2 5 25
Danaher 236,607 DHR USA 3 3 2 4 26
FANUC 45,369 6954 Japan 2 2 5 3 27
Software AG 3,785 SOW Germany 3 2 3 4 28
KUKA 3,116 KU2 Germany 3 3 2 4 29
Tata Consultancy Services 194,442 TCS India 3 4 2 3 30
Roper Technologies 51,261 ROP USA 3 3 3 3 31
Nokia 34,703 NOKIA Finland 4 3 3 2 32
Emerson Electric 63,187 EMR USA 2 3 2 4 33
Wipro 48,737 WIPRO India 2 3 3 3 34
Cyberdyne 558 7779 Japan 2 2 4 3 35
Keyence 148,215 6861 Japan 3 2 3 3 36
Estun Automation 3,460 2747 China 1 2 3 4 37
Siasun Robot 2,609 300024 China 1 2 3 4 38
HollySys Automation 1,194 HOLI China 1 2 3 4 39
Schneider Electric 104,314 SU France 2 3 2 3 40
Omron 20,270 6645 Japan 2 2 3 3 41
Seiko Epson 7,691 6724 Japan 2 2 3 3 42
Harmonic Drive 5,367 6324 Japan 2 2 3 3 43
Yokogawa Electric 4,405 6841 Japan 2 3 2 3 44
1,000 6474 Japan 2 2 3 3 45
Nachi Fujikoshi High risk
Hitachi 54,604 6501 Japan 4 1 2 3 46
Siemens 143,024 SIE Germany 1 3 2 3 47
NEC 14,586 6701 Japan 2 2 2 3 48
Huawei Unlisted Unlisted China 2 3 3 1 49
Mitsubishi Electric 29,419 6503 Japan 2 1 2 3 50
Kawasaki Heavy 3,578 7012 Japan 2 1 2 2 51
Alibaba 467,526 BABA China 1 1 3 1 52
Source: GlobalData
Key: Green denotes low risk; amber denotes medium risk; red denotes high risk. See Appendix for an explanation of our research methodology.

Consumer electronics sector scorecard

Who’s who
Who does what in the consumer electronics space?
Consumer electronics
(48 companies)
MKT CAP
Company Ticker Sector Country Description
(US$ M)
Acer 2353 Computers 2,738 Taiwan Manufacturer of PCs, laptops, displays and computer peripherals
Alarm.com ALRM Surveillance equipment 4,256 USA Provider of home security systems and automated home products
Alibaba BABA Internet ecosystems 467,526 China China's leading ecommerce company
Alphabet GOOGL Internet ecosystems 1,916,714 USA Internet ecosystem monetised by advertising, primarily through the Google search engine
Amazon AMZN Internet ecosystems 1,753,864 USA Ecommerce giant and cloud infrastructure leader with a broad-ranging internet ecosystem that includes internet TV
Apple AAPL Mobile phones 2,539,860 USA Internet ecosystem monetised by the sale of proprietary hardware (smartphones and computers)
Asus 2357 Computers 8,469 Taiwan PC contractor - motherboards, graphic cards
Baidu BIDU Internet ecosystems 56,514 China Internet search engine with Chinese internet ecosystem
Blackberry BB Mobile phones 6,372 Canada Mobile handset manufacturer and corporate communications services provider
Canon 7751 Imaging equipment 31,825 Japan Provider of digital imaging solutions
Compal 2324 Computers 3,585 Taiwan Subcontractor for notebooks
Control4 Unlisted Surveillance equipment Unlisted USA Provider of automated home products integrating music, video, lighting, temperature and security
Dell DELL Computers 74,131 USA Provider of PCs, enterprise servers, monitors, printers, storage, software and networking equipment
DJI Unlisted Drones Unlisted China Drone manufacturer
Facebook FB Social networks 1,058,081 USA Internet ecosystem monetised via advertising on social networks
Garmin GRMN Wearable tech 33,787 Switzerland Manufacturer of navigation and comms devices - esp. GPS
GoPro GPRO Wearable tech 1,529 USA Developer of wearable and mountable cameras
Hikvision 2415 Surveillance equipment 74,312 China Manufacturer of video surveillance products, network hard disk video recorders, cameras and network storage.
Honeywell HON Industrial automation 159,461 USA An industrial automation software company
HP HPQ Computers 35,557 USA Manufacturer of printers and PCs
HTC 2498 Mobile phones 1,050 Taiwan Smart phone manufacturer
Huawei Unlisted Mobile infrastructure equipment Unlisted China Maker of smartphones and telecom equipment
Inventec 2356 Computers 3,152 Taiwan PC subcontractor
iRobot IRBT Consumer robots 2,367 USA Manufacturer of consumer and military robots
Lenovo 992 Computers 12,929 China PC, server and smartphone manufacturer
LG Electronics 66570 Audio visual equipment 20,782 Korea Manufacturer of consumer electronics and home appliances
Logitech LOGN PC peripherals 17,596 Switzerland Manufacturer of personal interface products for PCs (mouse, web cameras, keyboards)
Magic Leap Unlisted Wearable tech Unlisted USA Manufacturer of head-mounted wearable technology
Microsoft MSFT Internet ecosystems 2,263,110 USA Software conglomerate
Nikon 7731 Imaging equipment 4,131 Japan Manufacturer of chip equipment, imaging solutions and microscopes
Ningbo Bird 600130 Mobile phones 491 China Mobile handset manufacturer
Nintendo 7974 Games consoles 65,469 Japan Gaming console manufacturer and games developer
Panasonic 6752 Audio visual equipment 29,359 Japan Manufacturer of home appliances, audio video, PC peripherals, and telecom equipment
Parrot PARRO Drones 179 France Manufacturer of infotainment solutions for cars, civil drones and connected objects
Quanta Computer 2382 Computers 10,745 Taiwan Biggest notebooks subcontractor
Ricoh 7752 Imaging equipment 7,490 Japan Manufacturer of office automation equipment
Samsung Electronics 5930 Foundry 442,722 Korea Integrated chip maker, smartphone maker and consumer electronics conglomerate
Seiko Epson 6724 Imaging equipment 7,691 Japan Manufacturer of communications equipment, printers, scanners, LCD panels, semiconductors, watches and robots
Sharp 6753 Audio visual equipment 7,911 Japan Manufacturer of consumer and industrial electronics
Sonos SONO Audio visual equipment 5,103 USA Manufacturer of high-quality wireless speaker systems
Sony 6758 Audio visual equipment 132,996 Japan Technology conglomerate with interests in TVs, smartphones, games, etc.
TomTom TOM2 Navigation devices 1,041 Netherlands GPS navigation product maker
Toshiba 6502 Industrial conglomerate 19,371 Japan Manufacturer of electronics, NAND flash, power generators and medical equipment
Vuzix VUZI Augmented reality 804 USA Manufacturer of virtual reality and augmented reality eyeglasses
Wistron 3231 Computers 2,880 Taiwan PC manufacturer
Xiaomi 1810 Mobile phones 81,565 China A consumer electronics company that makes smartphones and a host of other consumer goods.
Yuneec Unlisted Drones Unlisted China Drone manufacturer
ZTE 63 Mobile infrastructure equipment 22,495 China Manufacturer of telecom equipment and smartphones
Source: GlobalData

Thematic screen
Our thematic screen ranks companies based on overall leadership in the 10 themes that matter most to
their industry, generating a leading indicator of future performance.
Consumer electronics Thematic Screen
10% 10% 15% 5% 5% 10% 5% 25% 10% 5% 100%
Company MKT CAP Ticker Country Virtual and Artificial Digital Media Automated Wearable Tech Autonomous ESG COVID-19 Internet of Robotics C Thematic
(US$ M) Augmented Intelligence Home Vehicles Things o Ranking
Reality l
u
Amazon 1,753,864 AMZN USA 2 5 5 5 4 4 3 5 5 4 1
5
Alphabet 1,916,714 GOOGL USA 5 5 4 5 4 5 3 4 4 5 2

Apple 2,539,860 AAPL USA 4 5 5 5 5 4 2 4 5 3 3
Sony 132,996 6758 Japan 5 4 4 4 4 4 4 4 5 5 4
Microsoft
Alibaba
2,263,110 MSFT
467,527 BABA
USA
China
5
4
5
5
2
4
5
4
5
2
3
4
5
2
4
4
4
3
4
4
5
6
Thematic
Baidu 56,514 BIDU China 4 5 4 4 3 5 1 3 4 4 7 leader
6B
Samsung Electronics 442,722 5930 Korea 2 4 4 4 5 4 3 3 5 4 8

Facebook 1,058,081 FB USA 5 4 4 4 4 3 2 3 4 3 9
Huawei Unlisted Unlisted China 4 4 4 4 4 4 2 3 4 3 10
Parrot 179 PARRO France 3 3 3 4 3 4 3 4 4 4 11
Vuzix 804 VUZI USA 5 3 3 4 4 3 3 3 5 3 12
Honeywell 159,462 HON USA 3 4 3 4 3 3 4 3 5 4 13
DJI Unlisted Unlisted China 3 3 3 3 3 3 3 4 3 5 14
Yuneec Unlisted Unlisted China 3 3 3 3 3 3 3 4 3 4 15
Hikvision 74,312 2415 China 3 4 4 4 3 3 1 2 5 3 16
Seiko Epson 7,692 6724 Japan 5 4 3 3 4 3 3 2 3 4 17
Nintendo 65,469 7974 Japan 2 2 4 3 3 3 2 4 3 2 18
Garmin 33,787 GRMN Switzerland 3 3 3 4 5 4 3 2 4 3 19
iRobot 2,368 IRBT USA 3 4 3 5 3 3 2 2 4 5 20
Xiaomi 81,566 1810 China 4 3 4 4 5 4 1 1 4 4 21
Blackberry 6,372 BB Canada 3 3 2 3 3 5 3 3 3 3 22
HTC 1,050 2498 Taiwan 5 3 3 4 4 3 3 2 3 3 23
Lenovo 12,929 992 China 4 4 2 3 4 3 4 2 4 3 24
Control4 Unlisted Unlisted USA 2 3 4 4 3 3 3 2 4 4 25
Dell 74,131 DELL USA 3 4 3 3 2 3 4 2 4 3 26
LG Electronics 20,782 66570 Korea 2 2 4 4 2 3 5 2 4 4 27
Panasonic 29,360 6752 Japan 2 2 2 4 3 4 4 3 4 2 28
Logitech 17,596 LOGN Switzerland 4 3 3 4 3 3 3 2 4 1 29
Sonos 5,104 SONO USA 3 2 4 4 3 2 4 2 4 3 30
Alarm.com 4,256 ALRM USA 2 3 3 5 3 3 3 2 4 4 31
GoPro 1,530 GPRO USA 1 3 4 4 5 3 3 2 4 1 32 7B
TomTom 1,042 TOM2 Netherlands 3 3 3 3 3 3 3 2 4 3 33

Toshiba 19,372 6502 Japan 4 4 2 4 4 3 3 1 4 4 34
ZTE 22,496 63 China 1 3 4 4 2 3 2 2 4 3 35
HP 35,557 HPQ USA 3 2 2 3 4 3 4 2 4 3 36
Compal 3,586 2324 Taiwan 4 4 3 3 3 3 3 1 4 1 37
Wistron 2,881 3231 Taiwan 3 3 3 3 3 3 4 1 4 3 38
Magic Leap Unlisted Unlisted USA 2 4 3 3 1 3 3 2 4 1 39
Inventec 3,152 2356 Taiwan 3 3 3 3 3 3 3 1 4 3 40
Quanta Computer 10,746 2382 Taiwan 3 3 3 4 3 3 3 1 4 1 41 Thematic
Ningbo Bird
Ricoh
491 600130
7,490 7752
China
Japan
3
2
3
3
3
3
3
3
3
3
3
3
3
3
1
1
3
3
3
3
42
43
laggard
Nikon 4,131 7731 Japan 2 3 3 3 4 2 4 1 3 2 44
Asus 8,469 2357 Taiwan 2 3 2 4 2 3 3 1 4 2 45
Acer 2,738 2353 Taiwan 2 3 2 4 2 3 4 1 4 1 46
Canon 31,825 7751 Japan 3 3 3 3 1 2 3 1 3 2 47
Sharp 7,912 6753 Japan 2 2 2 4 3 3 3 1 3 2 48
Source: GlobalData
Key: 1 (red) implies this theme will have a negative impact on earnings over the next 12 months; 3 (amber) implies a neutral impact; and 5 (green) a
positive impact. See Appendix for an explanation of our research methodology.

Valuation screen
Our valuation screen ranks our universe of companies within a sector based on selected valuation
metrics.
Consumer electronics Valuation Screen
25% 20% 15% 20% 20% 100%
Company MKT CAP Ticker Country EV/EBITDA EV/Sales Div yield % P/E FCF yield % C Valuation
(US$ M) o Ranking
l
u 5B
Lenovo 12,929 992 China 4.7 0.3 3.4 10.7 21.7 1

Acer 2,738 2353 Taiwan 3.8 0.1 3.1 12.6 35.2 2
Quanta Computer 10,745 2382 Taiwan 6.4 0.2 4.9 11.8 22.6 3
Compal 3,585 2324 Taiwan 7.5 0.1 5.3 10.6 6.6 4
HP 35,557 HPQ USA 8.7 0.6 2.8 12.5 10.5 5 Cheap
LG Electronics 20,782 66570 Korea 5.3 0.5 1.0 12.2 6.4 6
Panasonic 29,359 6752 Japan 5.4 0.5 1.8 19.6 6.4 7
Asus 8,469 2357 Taiwan 6.2 0.4 4.4 8.8 -2.0 8
Sharp 7,911 6753 Japan 8.4 0.5 1.3 16.3 17.6 9
Wistron 2,880 3231 Taiwan 5.8 0.2 7.1 9.2 -26.3 10
Seiko Epson 7,691 6724 Japan 6.9 0.8 2.5 27.4 9.1 11
Inventec 3,152 2356 Taiwan 12.9 0.2 5.3 11.6 2.0 12
Nintendo 65,469 7974 Japan 8.4 3.1 2.7 15.0 8.4 13
Samsung Electronics 442,722 5930 Korea 6.3 1.8 1.9 19.6 4.7 14
Sony 132,996 6758 Japan 10.9 1.6 0.4 12.5 5.7 15
Canon 31,825 7751 Japan 10.9 1.2 3.6 42.0 4.8 16
iRobot 2,367 IRBT USA 10.4 1.3 16.1 8.5 17
Logitech 17,596 LOGN Switzerland 12.9 3.0 0.8 18.6 7.9 18
Ricoh 7,490 7752 Japan 11.7 0.4 1.8 -25.2 7.3 19
Dell 74,131 DELL USA 10.4 1.2 22.8 12.6 20
Toshiba 19,371 6502 Japan 11.3 0.7 1.0 18.7 0.3 21
Baidu 56,514 BIDU China 8.5 2.7 16.3 5.2 22
ZTE 22,495 63 China 19.6 1.6 1.9 34.0 2.6 23
Honeywell 159,461 HON USA 23.8 5.1 1.6 33.4 3.3 24
Control4 Unlisted Unlisted USA 17.8 2.0 14.5 4.5 25
Xiaomi 81,565 1810 China 17.5 1.8 25.9 3.6 26
Hikvision 74,312 2415 China 29.1 7.2 1.4 35.9 2.9 27
Garmin 33,787 GRMN Switzerland 27.0 7.6 1.3 34.0 2.8 28
Alibaba 467,526 BABA China 30.7 3.9 20.1 6.2 29
Microsoft 2,263,110 MSFT USA 27.0 13.1 0.7 36.9 2.5 30
Apple 2,539,860 AAPL USA 33.1 9.3 0.6 44.2 2.9 31
Nikon 4,131 7731 Japan -11.7 0.6 1.6 -13.2 -4.0 32
Facebook 1,058,081 FB USA 25.2 11.6 36.3 2.2 33
GoPro 1,529 GPRO USA -80.1 1.6 -22.9 5.8 34
Amazon 1,753,864 AMZN USA 35.7 4.5 82.2 1.5 35
Alarm.com 4,256 ALRM USA 48.3 6.7 54.7 1.9 36
Alphabet 1,916,714 GOOGL USA 32.7 9.8 47.6 2.2 37
Sonos 5,103 SONO USA 513.6 3.6 -253.7 2.5 38
Ningbo Bird 491 600130 China 53.7 3.8 92.5 -4.5 39 7B
TomTom 1,041 TOM2 Netherlands -261.2 1.0 -3.4 -3.0 40

HTC 1,050 2498 Taiwan -0.7 0.7 -4.9 -26.5 41
Parrot 179 PARRO France -2.1 1.3 -3.9 -21.9 42
Expensive
Blackberry 6,372 BB Canada -7.0 7.1 -5.8 0.6 43
Vuzix 804 VUZI USA -50.6 66.3 -44.8 -1.9 44
DJI Unlisted Unlisted China 45
Huawei Unlisted Unlisted China 46
Magic Leap Unlisted Unlisted USA 47
Yuneec Unlisted Unlisted China 48
Median 10.4 1.6 0.9 16.2 3.5
Mean 16.0 4.4 1.5 12.7 3.7
Source: GlobalData
Key: Green denotes that the company is cheap (15% more attractively priced than the median value for the sector) relative to its global peers; amber
denotes it is within 15% of the sector median value; and red denotes that it is expensive relative to its global peers. Private companies are shown at
the bottom of these rankings by default because they do not have a publicly listed market price. See Appendix for an explanation of our research
methodology.

Risk screen
Our risk screen ranks companies within a particular sector based on overall investment risk.
Consumer electronics Risk Screen
(48 companies) Weighting 20% 25% 25% 30% 100%
C
MKT CAP Corporate o Risk
Company Ticker Country Accounting Industry Political
(US$ M) Governance l Ranking
u 5B
Microsoft 2,263,110 MSFT USA 4 5 4 4 1

HP 35,557 HPQ USA 4 4 2 5 2
Alphabet 1,916,714 GOOGL USA 2 4 5 3 3
Apple 2,539,860 AAPL USA 4 3 4 3 4
Amazon 1,753,864 AMZN USA 2 4 4 3 5 Low risk
Logitech 17,596 LOGN Switzerland 3 3 3 4 6
Honeywell 159,461 HON USA 4 3 3 3 7
Sony 132,996 6758 Japan 4 2 4 3 8
GoPro 1,529 GPRO USA 2 3 2 5 9
Alarm.com 4,256 ALRM USA 2 3 4 3 10
iRobot 2,367 IRBT USA 2 3 4 3 11
Control4 Unlisted Unlisted USA 2 3 4 3 12
DJI Unlisted Unlisted China 2 2 5 3 13
Blackberry 6,372 BB Canada 4 2 2 4 14
TomTom 1,041 TOM2 Netherlands 4 2 2 4 15
Lenovo 12,929 992 China 1 3 3 4 16
Garmin 33,787 GRMN Switzerland 3 2 2 4 17
Vuzix 804 VUZI USA 2 2 4 3 18
Yuneec Unlisted Unlisted China 2 2 4 3 19
Parrot 179 PARRO France 3 3 2 3 20
Samsung Electronics 442,722 5930 Korea 2 3 2 3 21
Dell 74,131 DELL USA 2 2 3 3 22
Seiko Epson 7,691 6724 Japan 2 2 3 3 23
Nintendo 65,469 7974 Japan 3 2 2 3 24
Canon 31,825 7751 Japan 3 2 2 3 25
Asus 8,469 2357 Taiwan 2 3 3 2 26
Compal 3,585 2324 Taiwan 2 3 3 2 27
Inventec 3,152 2356 Taiwan 2 3 3 2 28
Acer 2,738 2353 Taiwan 2 3 3 2 29
HTC 1,050 2498 Taiwan 2 3 3 2 30
ZTE 22,495 63 China 1 2 2 4 31
Ningbo Bird 491 600130 China 1 2 3 3 32
Magic Leap Unlisted Unlisted USA 1 1 4 3 33
Sharp 7,911 6753 Japan 2 2 2 3 34
Ricoh 7,490 7752 Japan 2 2 2 3 35
Nikon 4,131 7731 Japan 2 2 2 3 36
Facebook 1,058,081 FB USA 2 4 1 2 37
Hikvision 74,312 2415 China 1 3 4 1 38
Wistron 2,880 3231 Taiwan 2 2 3 2 39
Panasonic 29,359 6752 Japan 3 2 2 2 40
Sonos 5,103 SONO USA 3 3 1 2 41
Huawei Unlisted Unlisted China 2 3 3 1 42
Xiaomi 81,565 1810 China 1 2 2 3 43 High risk
Quanta Computer 10,745 2382 Taiwan 2 2 2 2 44
Baidu 56,514 BIDU China 2 2 3 1 45
Toshiba 19,371 6502 Japan 1 1 2 2 46
Alibaba 467,526 BABA China 1 1 3 1 47
LG Electronics 20,782 66570 Korea 1 1 3 1 48
Source: GlobalData
Key: Green denotes low risk; amber denotes medium risk; red denotes high risk. See Appendix for an explanation of our research methodology.

Glossary
Term Definition
5G 5G refers to the fifth generation of cellular technology standards, that will be based on
IMT2020 standards, under development by the 3GPP. The term ‘5G’ does not explicitly
refer to any particular technology or standard and is therefore a loose term that can be
used and interpreted in multiple different ways, typically for marketing purposes.
Actuator A component of a machine that is responsible for moving and controlling a mechanism
or system, for example by opening a valve.
Artificial intelligence (AI) Refers to software-based systems that use data inputs to make decisions on their own.
Automated home robots Robots that can undertake household chores such as cleaning and mowing the lawn.
Beyond visual line of sight Refers to the concept that a drone may fly beyond the visual line of sight of the
(BVLOS) operator. This may impact the ability of the operator to safely handle the drone and is
an inflexion point for many regulators.
Caged industrial robots Industrial robots that work in a cage to avoid the risk of injury to humans.
Care robots Robots that help care for patients in a hospital, a care home, or a private home by lifting
them and providing medicine at the correct time.
Cloud computing Computing delivered as an online service. It encompasses the provision of IT
infrastructure, operating software, middleware and applications hosted within a data
center and accessed by the end user via the internet.
Cloud robotics Often referred to as robotics as a service. Field of robotics that attempts to invoke cloud
technologies such as cloud computing, cloud storage, and other technologies centered
on the benefits of converged infrastructure and shared services for robotics.
Consumer robots Robots primarily used for household chores (such as cleaning) or education and
entertainment. There are two sub-types of consumer robots: automated home robots
and personal robots.
Cybersecurity The practice of defending computers, servers, mobile devices, electronic systems,
networks, and data from malicious attacks.
Deep learning Deep learning is a field of machine learning that is built using artificial neural networks
which model the way neurons in the human brain talk to each other.
Defense and security robots Mobile robots used for security, law enforcement, military, and defense purposes. In
this report, military drones and exoskeletons are considered in their dedicated
categories. There are three types of defense and security robots: unmanned surface
vessels, unmanned ground vehicles, and unmanned underwater vehicles, including
remotely operated vehicles (ROVs).
Drones Unmanned aerial vehicles (UAVs). There are three sub-types of drones: consumer
drones, commercial drones, and military drones.
Drones as a service (DaaS) Refers to the concept of renting drone services on an as-needed basis, rather than
having to develop drone capabilities in-house.
Edge computing Refers to a network architecture concept that enables cloud computing capabilities and
an IT service environment at the edge of the network. By running applications and
performing processing tasks closer to the customer, edge computing delivers superior
performance with reduced latency.
Exoskeletons Wearable mobile machines, that allow for limb movement with increased strength and
endurance. The main use cases are in healthcare, defense, and manufacturing.
Ethics Moral principles or practices that individuals and organizations follow.

Term Definition
Field robots Mobile robots that operate in dynamic, unstructured environments. They are mainly
used in agriculture.
Industrial collaborative A robot that is designed to work alongside humans on specific tasks.
robots (industrial co-bots)
Industrial Internet Refers to the use of connected sensors and actuators to control and monitor the
industrial machinery environment, to help detect faults early and predict maintenance
requirements.
Industrial robots Robots that are typically used in factories to automate parts of the manufacturing
process. There are two types of industrial robots: caged industrial robots and industrial
collaborative robots or co-bots.
Inspection, cleaning, and Robots used for inspection (e.g., sewer systems), cleaning, and maintenance.
maintenance robots
Internet of Things (IoT) Describes the use of connected sensors and actuators to control and monitor the
environment, the things that move within it, and the people that act within it.
Latency The time it takes a data packet to transit from point A to point B.
Logistics robots Autonomous devices capable of transporting goods with limited human assistance, e.g.,
warehouse robots and delivery robots.
Machine learning An application of AI that gives computer systems the ability to learn and improve from
data without being explicitly programmed.
Medical robots Robots used in the medical sciences, including surgical robots and care robots.
Micro-electro-mechanical Miniaturized mechanical and electro-mechanical elements (typically devices and
systems (MEMS) structures) that are made using the techniques of microfabrication.
Near field communication A set of communication protocols that enable two electronic devices, one of which is
(NFC) usually a portable device such as a smartphone, to establish communication by bringing
them within four centimeters of each other.
Personal robots Robots that interact with humans and are used for playing and entertainment.
Typically, voice- or touch-activated, or controlled by a mobile device (e.g., a tablet).
Robots Machines capable of carrying out a complex series of actions (typically programmed by
a computer) automatically and repeatedly.
Robotics as a service Often referred to as cloud robotics. An attempt to invoke cloud technologies such as
cloud computing, cloud storage, and other internet technologies centered on the
benefits of converged infrastructure and shared services for robotics.
Service robots Robots that assist humans, either at work or in the home. There are eight types of
service robots: exoskeletons; medical robots; logistics robots; consumer robots;
inspection, cleaning and maintenance robots; drones; field robots; and defense and
security robots.
Soft robotics Sub-field of robotics that deals with developing robots from highly compliant materials,
similar to those found in living organisms.
Surgical robots Remote manipulators used in keyhole surgery.
Visual line of sight (VLOS) Refers to the ability of a drone operator to safely control a drone by keeping it within
his or her direct line of sight.
Source: GlobalData

Further reading
GlobalData reports
Publication date Report title
26 January 2021 Thematic Research: TMT Predictions 2021
8 December 2020 Thematic Research: Tech, Media, & Telecom Themes 2021
26 November 2020 Thematic Research: China Tech (2020)
2 October 2020 Thematic Research: Artificial Intelligence (2020)
17 July 2020 Thematic Research: The Future of Work (2020)
3 July 2020 Thematic Research: Autonomous Vehicles (2020)
24 June 2020 Thematic Research: Cybersecurity (2020)
2 June 2020 Thematic Research: Cloud Computing (2020)
29 May 2019 Thematic Research: Industrial Internet (2019)
15 February 2019 Thematic Research: Drones (2019)
14 June 2018 Thematic Research: Internet of Things (2018)
Source: GlobalData

| Our thematic research methodology

Companies that invest in the right themes become success stories. Those that miss the important themes in their industry
end up as failures.
Viewing the world’s data by themes makes it easier to make important decisions
We define a theme as any issue that keeps a CEO awake at night. GlobalData’s thematic research ecosystem is a single,
integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies
in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the
right investments ahead of the competition, and secure that all-important competitive advantage.
Traditional research does a poor job of picking winners and losers

The difficulty in picking tomorrow’s winners and losers in any industry arises from the sheer number of technology cycles
– and other themes – that are in full swing right now. Companies are impacted by multiple themes that frequently
conflict with one another. What is needed is an effective methodology that reflects, understands, and reconciles these
conflicts.
That is why we developed our “thematic engine”

At GlobalData, we have developed a unique thematic methodology for ranking all companies in all sectors based on their
relative strength in the big investment themes that are impacting their industries. Our thematic engine identifies which
companies are best placed to succeed in a future filled with multiple disruptive threats.
To do this, we rate the performance of the top 1,000 companies against the 50 most important themes impacting those
companies, generating 50,000 thematic scores. The algorithms in GlobalData’s thematic engine help to identify the long-
term winners and losers within each sector.
How do we create our sector scorecards?

First, we split each industry into its component sectors, because each sector is driven by a different set of themes. Taking
the TMT (technology, media and telecom) industry as an example, we split this industry into the 18 sectors shown in the
graphic below.
Our five-step approach for generating a sector scorecard

Here we use the tech, media and telecom sector as an example sector, for illustration purposes
Sectors Themes Research Thematic screen Sector scorecard
1. Split the global TMT 2. Identify and rank the 3. Identify and score tech 4. Calculate overall 5. Determine leading companies
sector into 18 subsectors. top 10 themes driving leaders and challengers thematic rankings for in each sector using our three
earnings for each sector. for each theme. all companies in a sector. screens.
Hardware
Semiconductors 1. Voice
Servers, storage, networking
Telecom equipment Consumer
electronics Sector Scorecard =
Component makers
Industrial automation
Software 2. Cloud Thematic screen
Application software
Infrastructure software +
Security software Valuation screen
Video games software
IT services +
Internet & Media 3. Blockchain
E-commerce
Risk Screen
Social media
Advertising
Music, film and television
Publishing
Telecoms 10. Internet of
Telecom operators
Cable operators Things
Source: GlobalData

Second, we identify and rank the top 10 themes for each sector (these can be technology themes, macroeconomic
themes, or industry-specific themes). Third, we publish in-depth research on specific themes, identifying the winners
and losers within each theme. The problem is that companies are exposed to multiple investment themes and the
relative importance of specific themes can fluctuate. So, our fourth step is to create a thematic screen for each sector to
calculate overall thematic leadership rankings after taking account of all themes impacting that sector. Finally, to give a
crystal-clear picture, we combine this thematic screen with our valuation and risk screens to generate a sector scorecard
used to help assess overall winners and losers.
What is in our sector scorecards?

Our sector scorecards help us determine which companies are best positioned for a future filled with disruptive threats.
Each sector scorecard has three screens:
▪ The thematic screen tells us who are the overall leaders in the 10 themes that matter most, based on the
algorithms in our thematic engine;
▪ The valuation screen tells us whether publicly listed players appear cheap or expensive relative to their peers,
based on consensus forecasts from investment analysts; and
▪ The risk screen tells us who the riskiest players in each industry are, based on our assessment of four risk
categories: corporate governance risk, accounting risk, technology risk, and political risk.
How do we score companies in our thematic screen?

Our thematic screen ranks companies within a sector based on overall leadership in the 10 themes that matter most to
their industry, generating a leading indicator of future earnings growth.
Thematic scores predict the future, not the past.
Our thematic scores are based on our analysts’ assessment of their competitive position in relation to a theme, on a
scale of 1 to 5:
The company’s activity with regards to this theme will be highly detrimental to its future
1 Vulnerable
performance.
The company’s activity with regards to this theme will be detrimental to its future
2 Follower
performance.
The company’s activity with regards to this theme will have a negligible impact on the
3 Neutral
company’s future performance, or this theme is not currently relevant for this company.
The company is a market leader in this theme. The company’s activity with regards to this
4 Leader
theme will improve its future performance.
The company is a dominant player in this theme. The company’s activity with regards to this
5 Dominant
theme will significantly improve its future performance.
How our research reports fit into our overall thematic research ecosystem?
Our thematic research ecosystem is designed to assess the impact of all major themes on the leading companies in a
sector. To do this, we produce three tiers of thematic reports:
▪ Single Theme: These reports offer in-depth research into a specific theme (e.g. artificial intelligence). They
identify winners and losers based on technology leadership, market position, and other factors.
▪ Multi-Theme: These reports cover all themes impacting a sector and the implications for the key players in that
sector.
▪ Sector Scorecard: These reports identify those companies most likely to succeed in a world filled with disruptive
threats. They incorporate our thematic screen to show how conflicting themes interact with one another, as
well as our valuation and risk screens.

5. Ask the analyst

We hope that the data and analysis in this case study will help you make informed and imaginative business decisions.
If you have any questions or further requirements, MarketLine's research team may be able to help you. The MarketLine
Research team can be contacted at ReachUs@MarketLine.com.
6. About MarketLine
At MarketLine, we deliver accurate, up-to-date insights on over 100,000 companies, 3,500 industries, 215 countries, and
3,000 cities as well as the latest news and financial deal information from within your market and across the globe.
Established in 1997 when the Internet was in its infancy, we recognized the need for a convenient and reliable data
service to help our clients understand local and global markets and the companies operating within them.
In today’s information-rich world, sifting fact from fiction to pick out what’s relevant and what’s up to date has become
the new ‘holy grail’ in business information provision.
Hundreds of dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
Disclaimer: All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior
permission of the publisher, GlobalData. The facts of this report are believed to be correct at the time of publication but
cannot be guaranteed. Please note that the findings, conclusions and recommendations that GlobalData delivers will be
based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not
always in a position to guarantee. As such, GlobalData can accept no liability whatsoever for actions taken based on any
information that may subsequently prove to be incorrect.

| Contact Us
If you have any more questions regarding our thematic research services, please get in touch.
Head of Thematic Research Customer Success Team

Cyrus Mewawalla
0B Understand how to use our Themes product
2B
cyrus.mewawalla@globaldata.com customersuccess.thematic@globaldata.com
3B
+44 (0) 207 936 6522

1B +44 (0) 207 406 6764
4B

Robotics: AI and Cloud Computing Are Unlocking The Potential of Robotics

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Robotics: AI and Cloud Computing Are Unlocking The Potential of Robotics

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Robotics

AI and cloud computing are unlocking the

MarketLine Theme Report

Report Code: ML00026-049

Technology briefing ...................................................................................................................................................... 6

Industry analysis ......................................................................................................................................................... 17

Value chain ................................................................................................................................................................. 25

| Our thematic research methodology ....................................................................................................................... 64

© MarketLine 2019. This product is licensed and is not to be photocopied.

Will the robots of the future look like us?

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Robotics value chain Leaders Challengers

Hardware components Softbank (Arm) NXP Alibaba Marvell

ABB Cognex IBM HollySys

ABB Yaskawa Omron Estun Automation

Franka Emika ABB Kawasaki Siasun Robotics

Intuitive Surgical Cyberdyne Siemens Healthineers Monteris Medical

Lockheed Martin Parker Hannifin Hyundai Motor Otto Bock

Yuneec Autel Robotics Uvify Trimble

Inspection, John Deere (Bear Robotics) ExRobotics Flyability ANYbotics

Abundant Robotics John Deere Rowbot

Defense and ABB Thales Group Aardvark Tactical Kongsberg Maritime

Amazon Preferred Networks GE Digital Rapyuta

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What makes a robot?

Structure Manipulator Controller Sensor system End effector Power source

From automata to modern robotics

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Robot ethics and the socio-economic impact of automation

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Industrial robots Service robots

Caged Industrial co-

Logistics Exoskeletons Inspection, Field robots

Medical Consumer Drones Defense and

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© MarketLine 2019. This product is licensed and is not to be photocopied.

Trend What’s happening?

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Trend What’s happening?

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Trend What’s happening?

© MarketLine 2019. This product is licensed and is not to be photocopied.

Trend What’s happening?

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Trend What’s happening?

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Trend What’s happening?

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Trend What’s happening?

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Market size and growth forecasts

Service and industrial robots revenue, 2020-2030 ($bn)

200 Industrial robots

Industrial robots will be the growth engine of robotics

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The industrial robotics market will be worth $352bn by 2030

Global industrial robots revenue, 2020-2030 ($bn)

Service robots will grow at a 22% CAGR in the coming decade

The service robots market will be worth $216bn in 2030

Global service robots revenue, 2020-2030 ($bn)

An increasingly varied landscape

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Exoskeletons are the fastest-growing robotics category

CAGR 2020-2030 by robotics segment

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Robotics patent filings grew steadily in the 2010s