Money Morning’s Chief Investment Strategist Keith Fitz-Gerald recently alerted investors to a growing sector that’s offering some of the best investments to make today – and its potential is largely underestimated.
“Right now analysts are split on what’s happening,” Fitz-Gerald said. “Some believe this sector will play a critical role in the years to come. Others can’t see the light and are ignoring it. Several have even gone on record calling it ‘concerning’ and even ‘creepy.’”
“Creepy” or not, it’s already hugely profitable. And according to an industry researcher, only 10% of the market has been tapped so far…
The industry Fitz-Gerald is referring to is robotics.
“There is not a single industry or product that will have a more profound impact on our lives, our future, and, of course, our money,” said Fitz-Gerald, who delivers top profit plays to investors every month in The Money Map Report newsletter.
According to the Robotic Industries Association (RIA), nearly 26,000 industrial robots worth $1.57 billion were shipped worldwide by North American robotics makers in 2013. Of those robots, 88.53% were shipped inside North America.
One of the industries that has adopted robotics the fastest is life sciences, which posted a 73% net gain in terms of units ordered in 2013.
“The life sciences growth makes sense given the aging population we have and the exploding nature of medically oriented production of everything from equipment to medicine,” Fitz-Gerald said. “Other key growth segments are non-automotive industries, which jumped 22% over 2012, and consumer goods companies, which ordered 67% more robotic units.”
The numbers for the North American robotics market continue to grow, and in the first quarter the industry posted its second-highest quarter ever in terms of robots ordered. According to the RIA, nearly 6,000 robots totaling $338 million were ordered by North American companies in the first quarter.
While more than 228,000 robots are being used in U.S. factories currently, the RIA estimates that fewer than 10% of the companies that could benefit from robots have purchased robotics products.
All this means one thing:
this industry is set to explode. And burgeoning industries like robotics can provide some of today’s best investment opportunities.
That’s because it’s not just robots that are being purchased. Some of the world’s largest tech companies are spending huge amounts of cash on robotics companies…
Best Investments 2014: Big Tech Billions
Google spent more than $60 million on seven robotics acquisitions in December 2013 alone. GOOG didn’t stop there – spending $650 million on the artificial intelligence company DeepMind Technologies in January.
Amazon spent more than $775 million on the robotics manufacturer Kiva Systems in 2012. Kiva builds robots that are used in shipping centers, and its robots are able to locate and move products throughout warehouses. The deal was the second-largest acquisition in Amazon’s history.
“Undoubtedly, Google and Amazon are onto something. But I think if they really knew how big this industry will be in just 24 months, they’d be spending tens of billions on it right now,” Fitz-Gerald said.
With the untapped robotics industry growing by the day, Money Morning’s Chief Investment Strategist Keith Fitz-Gerald has been looking for ways to profit. Buying large tech companies like GOOG or AMZN is a round-about way to invest in robotics, so Keith dug deeper. And he found a company whose products are used throughout the robotics industry… Find out how here how you can get this pick, as well as the other investment opportunities in The Money Map Report...
What do you think about robotics and how it’s changing the world? Join the conversation on Twitter @moneymorning using #BestInvestments.
- The Wall Street Journal: Amazon Adds That Robotic Touch
- Robotic Industries Association: North American Robotic Orders Record Second-Highest Quarter Ever in First Quarter 2014