USD30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley

This research builds on the total addressable markets for industries that are an indispensable part of the world but suffer from low labour due to low funding and wages and dangerous, repetitive, and boring tasks. A total of 21 such industries are identified, and they are divided into three tiers. The first tier, or Tier 1, is expected to see humanoid adoption as soon as 2028. In terms of the total adoption percentage, i.e. the number of roles in these industries that could be filled by humanoid robots, the top four industries are construction and extraction, production, farming, fishing, and forestry, and building and grounds clearing maintenance.

Research from more Wall Street analysts estimates that the market could be worth USD38 billion by 2035. Mind you, this is the Goldman analysts' base case model which estimates unit shipments of 1.4 million. The bear case, which sees shipments cut in half to 703 million suggests a value of USD19 billion by 2035, while the bull case and the blue sky scenario estimate shipments of 6.5 million and 11.6 million units, respectively. Extrapolating from a USD38 billion valuation that stems from 1.4 million units, this could mean that the very best scenario for the humanoid robot market leads to a value of USD315 billion. At the heart of this optimism are AI and dropping BOM costs.

XPeng is 3rd in the list of 15. Number of hedge fund investors in Q1 2024 is 16. It competes directly in the humanoid robot industry by having produced a prototype robot called the PX5 robot. Unlike Western firms which have to be quite careful with cost control, XPeng benefits from its Chinese roots which can allow it to leverage a low cost industrial manufacturing base and cheap labour to reduce the humanoid bill of materials. This reduction, as outlined in our intro, is key for the industry, and XPeng further benefits from the sizeable Chinese manufacturing industry to generate demand for its products.

However, trade tensions between the West and China could leave XPeng restricted to China, and make it miss out on the substantial revenue and demand from Western firms as they seek to fill out labour shortages with robots.