VanEck Highlights Robotics Sector as Installation Numbers Near Records
Iris Coleman Feb 20, 2026 00:32
Global robotics market valued at $71.2B with 541,302 industrial units installed in 2023. VanEck sees expansion beyond factories into logistics and healthcare.
Asset manager VanEck is making the case for robotics exposure as the sector approaches record deployment levels, with installations expanding well beyond traditional factory floors into logistics and healthcare applications.
Drew Anderson, writing for VanEck's thematic investing blog, argues the robotics market has reached a scale that institutional investors can no longer dismiss. The timing coincides with industrial robot installations hitting 541,302 units globally in 2023—just 2% below the all-time record set in 2022.
Market Size and Regional Dynamics
The global robotics market reached a valuation of $71.2 billion in 2023, with operational industrial robots worldwide hitting an all-time high of approximately 4.3 million units by year-end. Asia dominates deployment, capturing 70% of all newly installed industrial robots in 2023. China alone accounted for 51% of global installations.
ABB Ltd., a major player in the industrial automation space, currently trades between $90.99 and $91.62 with a market capitalization of $166.33 billion—illustrating the substantial valuations robotics-adjacent companies now command.
Growth Drivers and Near-Term Headwinds
The sector's expansion stems from escalating automation demand as companies seek efficiency gains, cost reductions, and solutions to persistent labor shortages. However, investors should note that 2024 brought some cooling: the industrial robotics segment contracted 5.8% year-on-year due to sluggish demand and declining average prices, according to Interact Analysis data from July 2025.
Industry forecasts remain bullish longer-term. Revenue projections suggest a 58% jump by decade's end as the post-2024 slowdown gives way to renewed growth, per October 2024 analysis.
Investment Considerations
VanEck's robotics-focused ETF tracks the BlueStar Robotics Index, offering exposure to companies across the automation value chain. The fund carries sector concentration risks, with particular exposure to Japanese and European issuers alongside U.S. holdings. Medium-capitalization companies feature prominently, adding volatility considerations.
For investors weighing robotics exposure, the sector presents a classic growth-versus-cyclicality tradeoff. The structural tailwinds—automation adoption, labor economics, AI integration—remain intact even as near-term demand fluctuates with industrial cycles.
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