A huge surge in spending on robotics and AI is imminent

Global X, a New York-based provider of exchange-traded funds (ETFs), specializes in thematic funds including the U.S. Infrastructure Development ETF (PAVE), Lithium & Battery Tech ETF (LIT), Uranium ETF (URA) and Cybersecurity ETF (BUG). These have attracted some of the largest inflows in the thematic tech space this year. Jay Jacobs, the firm’s senior vice president and head of research and strategy told CNBC’s “ETF Edge” on Monday that the robotics industry could reach a “key inflection point” in 2022. (CNBC)

According to Jacobs, a number of factors will combine to induce a massive surge in spending on AI and robotics. These include spiralling labour costs and scarcity, disrupted supply chains and low interest rates that encourage investment in business processes.

“It’s important to try to anticipate the changes that are happening before the rest of the market has picked up on it,” Jacobs said. “I think it behooves many investors to be early on [robotics] as we see it accelerate in the coming year.”

In fact, Jacobs went so far as to say that 2022 could be a key inflection point for the robotics industry.

Global X: Golden era coming

“We think we’re going to be in the golden era of robotics adoption in the United States and beyond,” Jacobs said. “We’re actually forecasting growth in industrial robots from 16 billion to 37 billion over the next 10 years with 2022 being that key inflection point.”

According to Mordor Intelligence, the global robotics market was valued at more than $23bn in 2020, with forecasts suggesting it could nearly triple to $74bn by 2026.

Global X has a thematic ETF that addresses the opportunities in this space. The Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ) was launched on September 12, 2016.

It has returned over 140% since its inception.

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