Humanoid robots are expected to reach an annual market size of trillions of yuan when they become mature enough, a top securities brokerage firm said in a research note.
China Securities said today that humanoid robotics is one of the most promising applications of AI.
In the future, it will not just free mankind from dreary and dangerous work but also enhance human productivity and work efficiency, the research note says.
It adds that humanoids can be deployed to a wide range of scenarios including industry, commerce, home service and outer space exploration.
In the past, humanoids released by companies like Boston Dynamics and Ameca are fancy but face high barriers to mass production.
But with the entry of Tesla into this sector and mass manufacturing “three to five years away,” more and more robotic parts suppliers and robot builders are enticed to venture into the segment as well.
China Securities thus suggests investors pay attention to two types of companies in the research note: the first is firms that have strong technologies, successful experience, and are highly likely to launch their bids to compete in the humanoid race.
Another type is manufacturers that have scalable technologies and can branch out into humanoids.
Caveats for investors
Several caveats do apply. The brokerage firm warned investors against three major risks related to humanoids.
This budding space may feel the squeeze when the macroeconomic climate worsens and investment shrinks, resulting in lower demand for humanoid robots.
Another downside is supply chain risks. Due to global economic uncertainties, trade wars and natural disasters, a shortage of key materials and components like chips will hike the manufacturing costs for robotic parts suppliers and hurt their bottom line.
The third risk lies in the prospect of slower-than-expected growth of humanoid robots, a sector still grappling with lots of R&D difficulty, the research note explains.