The robotics sector is entering a high-growth phase: the global market is expected to expand almost sixfold to $375.7 billion by 2035, for a CAGR of 17.3%. Freedom Capital Markets has listed robotics among its top 10 most promising sectors for investors in the coming decade. The main growth driver is the convergence of AI and the Internet of Things, which enables the creation of semi-autonomous systems, boosts efficiency and scalability, and underpins long-term business transformation, the Freedom analysts said in their report.

Analyst Aldiyar Anuarbekov has put together an index for Oninvest that tracks 53 small- and mid-cap public companies from different countries and from 16 robotics subsegments ranging from service robots to marine drones. The equal-weight version, the EW Robotics index, is up 49.7% year to date. The capitalization-based CW Robotics index has gained only 10.6%, lagging the S&P 500 as well, which is up 15.2% since the start of the year. The gap between the two indexes suggests that smaller-cap companies have drawn the most investor attention.

To compare, the VanEck Robotics Sector Index ETF has added nearly 25% year to date, while the iShares Automation & Robotics UCITS ETF is up 17%.

Market dynamics

So far this year, the strongest returns in the robotics sector have come from companies specializing in humanoid and service robots, underwater systems, drones, and LiDAR technologies. Shares of these companies have surged amid expectations of large-scale market expansion and rising investor interest.

Australian drone manufacturer DroneShield has seen its share price soar 712% since January, while Korea’s Robotis, which produces humanoid and service robots, has gained 520%. Shares of France’s Exail Technologies, focused on underwater robotics, are up 514% year to date. LiDAR developer Aeva Technologies has added almost 250%, and automated-systems manufacturer Kion Group 80%.

Robots are rapidly finding applications across industry, logistics, and services, largely due to the integration of AI and automation.

More capital-intensive niches have shown weaker performance. Shares of exoskeleton maker Myomo have fallen nearly 85% since the start of the year, while medical-robotics company PROCEPT BioRobotics has dropped 57%. Shares of autonomous-security-robot producer Knightscope are down 40%. These subsegments typically face long approval cycles, high capital costs, and challenging economics.

The exoskeleton market remains particularly small – currently valued at just $450 million – and even rapid technological progress has yet to make the technology mainstream. The same is true for some categories of medical robotics, including surgical systems, where high investment requirements and lengthy deployment timelines dampen investor interest. Capital is flowing instead to areas where scaling and profitability appear achievable in the near term.

Three success stories

Now, a closer look at some of the most promising names in the sector, according to Anuarbekov.

Ubtech Robotics

China’s Ubtech Robotics is a leading manufacturer of humanoid robots. The company initially focused on robotics for automotive plants – logistics and assembly-line loading – but now has pilot projects with industrial clients in the U.S., Europe, Japan, and South Korea, according to JPMorgan. Its partners include BYD, Dongfeng, Zeekr, Foxconn, and other major manufacturers. Ubtech plans to scale annual humanoid-robot output to 5,000-10,000 units by 2026 and expects to reach operating profitability in 2026-2027.

In the first half of 2025, Ubtech’s revenue grew 28% year over year, while its net loss narrowed 17.3%, with stronger-than-expected margin improvement.

In early September, JPMorgan rated Ubtech “overweight” with a target price of HKD135 per share. Analysts called the company one of the top beneficiaries of the humanoid-robotics boom, citing its dominance in China and its advanced technology platform. Announcements of mass-market commercial deployments could provide an additional tailwind for the stock, JPMorgan said.

Rainbow Robotics

South Korea’s Rainbow Robotics has become one of the most closely watched robotics stocks since 2023 – especially after Samsung Electronics acquired a 35% stake and became a strategic investor. The company develops collaborative robots (cobots) for logistics, inspection, and machine-tool applications, humanoid robots for research, and autonomous systems for defense and scientific use.

In the second quarter, Rainbow Robotics’ revenue jumped 96% year over year, while the operating loss narrowed 19% to KRW2.06 billion ($1.85 million). At quarter-end, the company held KRW86 billion ($61.4 million) in cash and KRW230 million ($160,000) in debt.

Analysts at SADIF recently upgraded the stock to the equivalent of a "hold." Shares are up 90% year to date. SADIF notes the stock appears rich, with a price-to-book ratio of 46 – reflecting high growth expectations – but says the valuation could be justified if the company continues to grow revenue, reduce losses, and capitalize on surging global demand for robots. 

Stereotaxis

U.S.-based Stereotaxis, with a market capitalization of about $285 million, is a pioneer in robotic systems for cardiac surgery. The company’s magnetic-navigation system for cardiac-catheter procedures allows physicians to guide catheters remotely with high precision using magnetic fields. Stereotaxis holds patents for the technology, which received FDA approval in July and has virtually no direct peers in precision surgery. The company is expanding rapidly in China, Europe, and the Middle East.

In the second quarter, revenue surged 95% year over year, and the management confirmed guidance for double-digit growth for the full year. In June, Stereotaxis raised $12.5 million from a strategic investor and institutional funds, which gives it resources to commercialize new products.

Piper Sandler was upbeat on Stereotaxis in an August report, forecasting revenue growth from $26.9 million in 2024 to $55-56 million in 2026 and expecting the company to reach breakeven as new products gain traction. The bank rated the stock “overweight” with a target price of $4 per share, implying upside of about 25% from current levels.

The AI translation of this story was reviewed by a human editor.

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