Investments in robotics are gaining momentum in 2024, signaling a recovery from the post-pandemic slowdown. New data from CrunchBase shows that the sector already secured $4.2 billion in funding during the first half of the year.
As it stands, the investment surge is on track to surpass 2023’s total of $6.8 billion. A surprising development, considering the devastating impact COVID-19 had on the industry, bringing it down from an all-time high of $17.7 billion raised in 2021.
Why does this matter? The current investment spike shows that the robotic startup industry is recovering, and investors are taking note again. This, in turn, would reflect positively on broader economic trends and technological advancements.
Robotic startups leading the charge
CrunchBase reports that the humanoid robot category is performing remarkably well. Figure, a California-based startup, secured a massive $675 million Series B round while Norwegian firm 1X raised $100 million with OpenAI’s help.
Even the humanoid robots are graduating from testing phases to real-world employment! Agility Robotics’s bipedal humanoid Digit landed its first job in warehousing. It will handle all those repetitive, physically demanding tasks humans were expected to perform in the past.
Beyond warehousing and logistics, medical robotics has also seen a significant surge. Companies like MMI and Rono Surgical have attracted funding.
Despite the excitement around humanoid and medical robots, the real hero is warehouse automation. Startups focusing on factory and warehouse processes are showing how with the right funding, labor gaps can be filled and efficiency boosted.
As per the data from CrunchBase, notable investments include:
- Bright Machines raised $126 million for factory manufacturing robotics.
- Collaborative Robotics secured $100 million for “cobot” (collaborative robot) development.
- Carbon Robotics garnered $85 million for AI-enabled agricultural robots.
- Bear Robotics attracted $60 million for hospitality and assisted living robots.
The truth about the robot uprising
But while fear of the inevitable “robot uprising taking our jobs” remains large, it’s not all doom and gloom. Sensationalist headlines aside, robotics and automation will actually create millions of new jobs. A staggering 97 million jobs, according to the World Economic Forum.
If anything, robotics, machine learning and automation can be a lifeline for struggling industries looking to enhance (instead of replace) human jobs. It could solve the looming labor crisis in warehousing, help e-commerce businesses boost sales, and even save lives.
According to Statista, the average injury rate for warehouse workers was four injuries per 100 employees. Robots would be able to perform vital roles which, in the past, would risk human lives.
NOW READ: The truth about warehouse automation and employment
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About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
