The coronavirus pandemic has driven demand for robotics, especially cleaning robots. With people forced to restrict interaction in order to minimize the spread of the virus, these bots have come in handy for running day-to-day errands. Not only at homes, several offices and public places have adopted these cleaning bots to limit human interaction and maintain cleanliness and sanitize large areas at a time.
Cleaning Bots to Stay in Trend
In 2019, the cleaning robots market was dominant in the residential segment, much of which was due to the very high domestic workers’ employment cost. Adoption of robots in cleaning saved costs in many households and in turn boosted the market for these bots.
iRobot Corporation (IRBT) launched two new cleaning robots last year, Roomba s9+ and Braava jet m6 robot mop, for household applications. According to iRobot’s 2019 Financial Results, internationally, the Roomba i7 Series, which includes the Roomba s9 Series and the Braava jet m6 Series, generated around 17% of total revenues in 2019 from iRobot. The sales helped iRobot achieve the goal of surpassing $100 million in revenues last year for the Braava family of robot mops.
Since the coronavirus outbreak, the usage of cleaning robots has dramatically increased. To avoid further spread of the disease, hospitals, offices and stores began to install cleaning bots to disinfect campuses with minimum human force. In April, Nanyang Technological University, Singapore, had developed a semi-autonomous robot that can disinfect large surfaces quickly.
Even as the world returns to normal, these robots are going to stay in trend. Recent technological developments enable these devices to multi-task and reduce human work load. Companies are now working on development of toilet cleaning robots and cooking robots, which can help in daily household chores and help to cut the cost of employing domestic workers. According to a IndustryARC report, the market for cleaning robots is forecasted to reach $7.61 billion, at a CAGR of 17.18% from 2020 to 2025.
AI Backing Consumer Robot Segment
AI has been lending immense support in growth of robotics in the past decade. The smart home market is booming in various regions, especially in the United States. From sensors to cleaning robots, security bots and more, IoT devices have witnessed a spike in demand, thanks to the increasing adoption of automation in households.
Machine learning and virtual reality environment help AI-driven robots to determine the best movements, without human control. In March, Ecovacs had introduced an AI-driven floor cleaning robot, DEEBOT OZMO T8 AVI. This cleaning bot can simultaneously vacuum, clean, and mop with the help of an advanced laser-based home mapping technology. It can identify and avoid objects, with the help of TrueMapping laser mapping and navigation technology built in.
4 Stocks to Buy
Cleaning bots are evolving constantly and higher demand, especially in the residential segment, has boosted overall growth. Moreover, per a report by Statista Research Department, the global market for robots is expected to see a CAGR of nearly 26% to reach just under $210 billion by 2025. In fact, the organization predicts that this market will hit the $100-billion mark in 2020. Hence, the robotics segment will continue to boom in 2021.
Given such prospects, we have shortlisted four stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy) and are poised to grow.
iRobot Corporation designs, builds and sells robots to the consumer market. The company’s expected earnings growth rate for the current year is 18.9% compared with the Zacks Industrial Automation and Robotics industry’s projected earnings growth of 8%.
The Zacks Consensus Estimate for this Zacks Rank #1 company’s current-year earnings has been revised 44.1% upward over the past 60 days.
Trimble Inc. (TRMB) offers technology for video robotic control, scene documentation and photogrametric measurements. The company’s expected earnings growth rate for the next quarter is 12.2% against the Zacks Electronics – Miscellaneous Products industry’s projected earnings decline of 70.7%.
The Zacks Consensus Estimate for the company’s current-year earnings has been revised 10.9% upward over the past 60 days. Trimble holds a Zacks Rank #2.
Rockwell Automation, Inc. (ROK) provides industrial automation and digital transformation solutions. The company’s expected earnings growth rate for the current year is 12.4% compared with the Zacks Industrial Automation and Robotics industry’s projected earnings growth of 8%.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s current-year earnings has been revised 9.1% upward over the past 60 days.
NVIDIA Corporation (NVDA) operates as a visual computing company. The company manufactures chips for domestic robots. NVIDIA’s expected earnings growth rate for the current year is 66.8% compared with the Zacks Semiconductor – General industry’s projected earnings growth of 1.3%.
The Zacks Consensus Estimate for the company’s current-year earnings has been revised 5.8% upward over the past 60 days. NVIDIA holds a Zacks Rank #2.