Every year, Ark Invest releases a report titled “Big Ideas” that observes promising technologies that can shape the world in the near future. In the 2024 edition, Ark noted several key technologies to watch out for, including robotics. According to the report, robotics represents a global revenue opportunity worth $24 trillion. But what specific sectors are most appealing to investors, and what challenges do companies face in securing funding? Robotics is becoming an attractive field for investors. According to a report by the global venture capital firm F-Prime Capital, $90 billion worth of funding has gone into the robotics industry since 2019. This number represents roughly 10% of overall investments in tech. In 2023 alone, investors put $12.9 billion into robotic companies, with the average monthly investment being about $1.07 billion. That was not always the case. Historically, investors hesitated to venture into the realm of robotics. In my opinion, one of the primary roadblocks was the high cost of research, development, prototyping and manufacturing, as well as longer development cycles compared to software-based ventures. Investing in robotics is also a long-term endeavor. No one wants to undergo laser eye surgery with a robotic minimum viable product (MVP) or travel in a self-driving car with questionable safety features. Hence, creating a safe product, releasing it to the market and consequently generating profit and returns for investors takes time. We can see this from companies like Artas, the developer of a robot for hair transplantation that received FDA approval over a decade ago. Moreover, due to the high costs, some solutions are hard to replicate quickly. Therefore, companies may not grow at the pace that investors would expect.
Full opinion : Why Robotics Represents A $24 Trillion Opportunity For Investors.
