CES 2022: Robotics Dominate The Show

Robotics dominate CES 2022, Hyundai flexes its robotics muscle

CES 2022 could easily have been mistaken for a robotics trade show with the large number of robotics and related companies at the event. We highlight some of the key takeaways from the show and their implications for investors and the robotics industry as a whole. Some of the most interesting news from the show include Hyundai Motor’s (OTCPK:HYMTF) announcement of its meta mobility vision and showcasing of several robots. Also of note is the great interest in robotics for agriculture, such as what is being offered by John Deere (NYSE:DE) and Trimble (NASDAQ:TRMB) backed Monarch.

Business interest in robotics continues to grow at an accelerating rate with the continuance of the pandemic. Robotics companies with the capabilities to solve challenges today and with the potential and vision to lead tomorrow are promising investments, in our view. Among the names we surveyed, we think Teradyne (TER) is one of the most promising for its dominance in autonomous mobile robots (AMRs) and collaborative robots (Cobots) as these platforms are being increasingly used to develop new robot business as evidenced by the myriad new applications and companies coming online almost daily.

Meanwhile, it is apparent that Korean companies are taking a larger role on the global robotics stage. Among the conglomerates, Hyundai Motor Group is clearly positioning itself to emerge as a robotics superpower. Indeed, the company did not have any cars at the trade show, only robots, which is an indicator of where the company stands in the robotics business.

In addition to the big names, there are many promising and innovative startups in Korean robotics such as the award-winning PurrSong, which makes robotic litter boxes and smart technologies for cats. Among the large conglomerates, Hyundai Motor Group’s efforts in robotics are on track to outpace Samsung Electronics (OTC:SSNLF), LG Electronics, Doosan, and Hanwha thanks to its differentiated approach and comprehensive understanding of the concept of robotization and the Internet of Robotic Things (IoRt). Hyundai Motor for its robotics endeavors and coordination among Group companies for synergies in robotics could make it a robotics superpower in the years ahead.

The autonomous electric vehicle (EV) tractor unveiled by Trimble-backed Monarch drew interest for its ability to lower labor costs and simultaneously reduce greenhouse emissions. Traditional farm equipment maker John Deere also had an impressive showing as it unveiled an autonomous tractor, but it was powered by an internal combustion engine (ICE), which makes it less interesting than the offerings by some of its rivals, in our view. As tractors currently make up a quarter of the world’s total greenhouse gases, rapidly tightening regulations, coupled with labor shortages, growing demand for smart farms, along with a variety of government subsidies to help the autonomous EV tractor business to grow. John Deere and Monarch are poised to lead the market in autonomous tractors. Trimble is an investor in Monarch and the electric tractor maker uses Trimble technology. Both stocks are promising, but we think Trimble as the better of the two due to its diversification across many industries and companies (including other tractor makers).