Industrial Automation Spending Is Set to Snap Back in 2024. Here Are 3 Robotics Stocks to Buy.
This year hasn't been a particularly great one for the industrial robotics market. After four consecutive years of growth, market researcher Interact Analysis says worldwide warehouse automation revenue will end 2023 down slightly from 2022's levels. As the firm's research manager Rueben Scruen explains, "The rise and fall of warehouse construction [stemming from pandemic-prompted investment in e-commerce] has led to a corresponding increase and decrease of end-to-end warehouse automation solutions." The robotics market may see a slow start to 2024 as well, held back by high interest rates and economic uncertainty.
Before 2024 comes to a close, however, the world may be seeing the convergence of several factors all working in favor of automation technologies. Now paired with the power of artificial intelligence (AI), manufacturers and retailers will likely clamor for the efficiency that such solutions can now offer.
The International Federation of Robotics believes the total number of worldwide robotic installations will grow by an average of 7% per year through 2026, jibing with Interact Analysis' market growth forecast of less than $35 billion in 2023 to more than $50 billion in 2027. An enterprising automation company may even be able to capture more than its fair share of that growth.
Source Fool.com
