Taken separately, there is vast economic potential contained in cloud and robotics technology. But when considered together, the promise offered by these two emergent technologies can be revolutionary.
What’s more, cloud robotics is only going to be spurred on by extending pandemic conditions.
What Is Cloud Robotics?
Cloud robotics is essentially the use of cloud technologies to complement and enhance robotics.
By leveraging the benefits of cloud computing, cloud storage, and the interconnectivity offered by converged infrastructure, robots can more ably and efficiently fulfill their tasks. Robots that utilize machine learning, information processing, and input reception from human operators on a connected network will benefit from enhanced capabilities powered up by the cloud.
Pandemic-Driven Growth in Cloud, Robotics, and Automation
Businesses are already engaged in mass cloud migration: 30% of all IT budgets are spent on cloud computing. That spending increase is expected to translate into a $623.3-billion-dollar industry globally by 2023.
Robotics are similarly seeing increased adoption by businesses: pre-pandemic, McKinsey found that 88% of surveyed respondents were looking to increase investment in robotics and automation. Now, we’re seeing a surge of 37% in robot sales in Q3 2021, the highest growth rate yet for robotics sales.
Robots, after all, are impervious to COVID-19. While there was already a soft trend towards automation and robotics prior to 2020, the pandemic has only accelerated adoption rates, and this may not be slowing down anytime soon. We have recently witnessed how businesses that host a more automated workforce have less to fear from COVID variants, lockdowns, and other pandemic-related interruptions.
Robots distributing hand sanitizer and face masks. REUTERS/Sivaram V. Source: BusinessInsider.com, “How Asia, the US, and Europe are using robots to replace and help humans fight coronavirus by delivering groceries, sanitizing hospitals, and monitoring patients” (April 2, 2020)
The cloud is similarly seeing a pandemic-related boom: Gartner is anticipating end-user spending on public cloud services to grow 21.7%, reaching $482 billion in 2022.
Again, this is a perfectly sensible response to a pandemic that primarily affects crowded, indoor spaces. The cloud helps facilitate remote work setups and helps businesses scale, lower IT costs, protect data, and establish a more efficient IT environment. With more people than ever looking to work from home (and in many cases being mandated to do so), having a robust cloud infrastructure is becoming even more essential.
There are some exciting developments in the marketplace between cloud computing and robotics. Below are just some of the industries that are currently adopting cloud robotics:
The mass adoption of cloud-empowered robotics is most anticipated in the automotive industry, where connected and self-driving cars are expected to be among the primary beneficiaries. 5G connectivity will give car manufacturers and governments unprecedented amounts of data about connected vehicles that will help improve both performance and regulation. The global market for car data alone could be as big as $750 billion by 2030, according to McKinsey & Company. Mobile, cloud, analytics, and computing opportunities exist in the infrastructure, service providers, drivers and passengers, other vehicles, homes, OEMs and dealers that will be involved in the connected car space.
Our accelerating advancement towards a more connected world (Internet of Things or IoT) and the advent of Big Data necessitating increasing cloud storage and cloud computing capabilities to simply keep up with the terabytes created every second, coupled with our expanding need to connect in this isolating pandemic environment creates almost ideal market conditions in which cloud robotics can thrive.
Investing in Cloud Computing and Robotics with Evolve ETFs
Selecting cloud computing and robotics companies to invest in could be a difficult task, especially if you are not well versed in these industries. Alternatively, choosing to invest in a carefully selected basket of companies through an ETF removes the hassle of stock picking and may lower your downside risk.
If you’re interested in investing in a cloud computing ETF, consider the Evolve Cloud Computing Index Fund (DATA ETF), Canada’s first cloud computing ETF. DATA ETF invests primarily in equity securities of companies located domestically or internationally that have business operations in the field of cloud computing. To learn more about DATA ETF, please click here: https://evolveetfs.com/data/
Looking for a more diversified investment solution? The Evolve Innovation Index Fund (EDGE ETF) is an 8-in-1 innovation fund that invests in disruptive innovation themes across a broad range of industries, including: cloud computing, cybersecurity, egaming & esports, automobile innovation, 5g, fintech, genomics, and robotics & automation. For more information on EDGE ETF, visit our website at https://evolveetfs.com/edge/ or click here.
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