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Six charts plotting the rise of the robots

'This is a significant growth opportunity and we are only in the early stages of this long-term disruptive trend,' says manager Tom Riley

A year on from launch AXA's Framlington Robotech fund has returned 30.4% against an Equity - Global Thematic peer average of 14.3%.

Manager Tom Riley believes the sector is in a long-term secular uptrend.

'New technologies mean that the use of industrial robotics will
continue to increase efficiency, precision and safety,' he said.

'We think this is a significant growth opportunity and that we are only in the early stages of this long-term disruptive trend.'

Here are his six reasons why.

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A year on from launch AXA's Framlington Robotech fund has returned 30.4% against an Equity - Global Thematic peer average of 14.3%.

Manager Tom Riley believes the sector is in a long-term secular uptrend.

'New technologies mean that the use of industrial robotics will
continue to increase efficiency, precision and safety,' he said.

'We think this is a significant growth opportunity and that we are only in the early stages of this long-term disruptive trend.'

Here are his six reasons why.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Industrial automation is growing

Riley explains the demand for industrial robots has accelerated due to the ongoing trend towards automation and technological advancements.

'This growth has traditionally been driven by the automotive industry, but as robots are become smarter, more flexible, and increasingly capable of working alongside humans, they are  being used across more and more industries,' he says.

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Robotics adoption is highly concentrated  

Some 74% of global robot sales are generated by just five countries. This suggests huge potential for broader adoption, according to Riley

'Robotics leaders Korea, Japan and Germany have a high robot density today, and robot sales will likely grow steadily.

'While China’s robot density remains below average, it is forecast to be the quickest-growing market for robot sales until 2020.'

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China is leading industrial automation adoption

'China has been the biggest buyer of robots each year since 2014 as
companies face rising domestic labour costs. 

'Its regulators are likely to continue to provide a supportive political and financing environment for robotics that are aligned with China’s 'Go Global' strategy and 'Made in China 2025' plan.

'Around 600,000 to 650,000 new industrial robots will have to be installed throughout China to reach Beijing’s target of a robot density of 150 by 2020.

'However, many Chinese companies don’t own the underlying robotics technologies – instead they have bought the technology through M&A in developed regions such as Europe and North America.'

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There is a ‘Big Four’ in the global robotics industry

Fanuc: Leading manufacturer of industrial robots with a significant presence in the US and Asia. Has produced more than 500,000 robots and has a $46 billion market cap.

Kuka: German robot producer with significant
presence in Europe and US. Privately owned by Midea since its
$3.9 billion acquisition in 2016

ABB: Industrial conglomerate whose fastestgrowing business unit specialises in robotics with a $57 billion market cap. It has made a robot so precise it can conduct an orchestra. 

Yaskawa: This Japanese supplier of automation robotics has more exposure to Asia than its peers and a
$12 billion market cap.

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Co-bots are on the rise

Co-bots,  robots intended to physically interact with humans and assist them in specific tasks, are the quickest-growing portion of the industrial automation market, explains Riley. They are forecast to grow 50% a year until 2020.

'Collaborative robots are designed to work safely and reliably alongside humans on the factory floor. They contain spatial sensors and semiconductors to ensure that they operate safely and precisely.'

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What next?

'From 2018-2020, global robot installations are estimated to increase by at least 15% on average per year.

'By 2020 more than 1.7 million new industrial robots will be installed in factories worldwide.'

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Tom Riley
Tom Riley
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