Amazon
AMZN
ramps up its robotics initiatives by launching a home robot called Astro, which rolls around the house autonomously.
Astro, which marks itself as the first domestic robot, is embedded with cameras, a microphone, motion sensors and a rotating screen with digital eyes on it. Further, it is equipped with Alexa, which makes it ‘Alexa on wheels’.
The robot is designed for various purposes like home monitoring, setting up routines and reminders, controlling smart home devices, handling video calls, and finding the concerned person when someone calls.
It also delivers entertainment experiences to customers by playing music, podcasts and TV shows.
Astro is well-equipped to keep a check on people and pets at home for monitoring purposes. It stops immediately if someone moves in front of it.
Most importantly, it is synchronized with Ring’s Protect Pro service, which makes it ideal for security purposes. Astro can detect disturbances and unrecognized people, and can send required alerts to homeowners.
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Astro Holds Promise
We note that the latest move bodes well for Amazon’s growing efforts toward home automation. The move is in sync with the company’s deepening focus toward delivering a technology-driven home-monitoring experience.
We believe that Amazon is well-poised to penetrate the booming market of household robots, which, per a report from Market Research Future, is expected to exceed $8.5 billion by 2025, witnessing a CAGR of 15.5%.
A report from Mordor Intelligence indicates that the market is likely to see a CAGR of 20.5% between 2021 and 2026.
The latest launch positions Amazon well to capitalize on the growth prospects present in the global robotics market, which, per a report from Mordor Intelligence, is anticipated to hit $74.1 billion by 2026, witnessing a CAGR of 17.4% between 2021 and 2026.
Competitive Scenario
With Astro, Amazon is likely to gain a competitive advantage against other companies like
iRobot
IRBT
,
Teradyne
TER
and
Books Automation
BRKS
, who are also well-known players in the robotics market.
Brooks Automation is well-known for its industry-leading vacuum robots and atmospheric robotics modules, which cater to the automation requirements in the semiconductor manufacturing markets.
iRobot’s offerings include Roomba Vacuums, Braava Mops and Terra Mows. The company is gaining from the solid adoption of new cleaning robots — Roomba s9+ and Braava jet m6 robot mop.
Teradyne’s buyout of Universal Robots, which is best known for cobots (collaborative robots), remains noteworthy.
Nevertheless, Amazon’s strengthening efforts toward bolstering its robotics arm — Amazon Robotics — remains positive. Its acquisitions of Canvas Technology and Kiva Systems remain noteworthy.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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