$94 Billion Robotics Market Set to Surge 300%: 1 ETF to Buy Now

In the past decade, robotics has been a great example of thematic investing, but for as rapidly as it burst onto the scene, it sure felt like it was quickly surpassed by artificial intelligence (AI).

That doesn't mean the robotics investment thesis has fizzled out or lacks relevance. It's actually as relevant as ever and, like AI, it's growing by leaps and bounds. Consider the following: As of the end of last year, the size of the global robotics technology market was estimated to be $94.5 billion, but that figure is forecast to surge to $372.6 billion by 2034. That's nearly a quadrupling.

If that growth forecast is met or exceeded, the Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ) could deliver outsize gains for patient investors. The $3.04 billion fund debuted in September 2016, making it one of the oldest products in the robotics category -- nice superficial stats, but there are deeper reasons why this exchange-traded fund (ETF) could excel in the years ahead.

With the humanoid robotics market set to grow in exponential fashion, this ETF could be a leader. Image source: Getty Images.

Humanoid robots could drive this ETF

The $94.5 billion to $372.6 billion robotics growth forecast mentioned above, assuming it proves accurate, is obviously compelling and sets the foundation for investing in this theme. However, the Global X ETF could be a multibagger in the making for a simple reason: That estimate could prove to be far too conservative. The evolution of the humanoid robotics market explains why.

Humanoid robots -- you guessed it -- do human tasks, including tasks in factories and the healthcare and logistics industries. Combine the utility of these robots with expectations that prices will decline as adoption increases, and we're talking about a massive total addressable market -- one that could pave the way for big gains for this ETF. One estimate indicates the total addressable market for industrial humanoids could swell to $1.75 trillion by 2035. That's trillion with a "t."

And that's just industrial humanoids, or one subset of the humanoid space. Sure, it may feel like an episode of The Jetsons come to life, but household humanoids are real and, as average selling prices (ASPs) decline, that market could expand to an estimated $2.8 trillion.

Said another way, this ETF could get a lift from the broader adoption of robots that do things like cleaning sinks and washing dishes -- chores we real humans don't enjoy.

This ETF has some unique traits

Typically, thematic funds are concentrated in some way. In the case of this robotics ETF, like many of its peers, it's heavily concentrated in technology and industrial stocks, with those sectors commanding 83.2% of the roster as I write this.

Still, it has some diversity as 10 countries are represented in the portfolio, with domestic stocks accounting for less than half the fund's weight.

Plus, this ETF lives up to its "and AI" billing. An 11% weight to Nvidia confirms as much while highlighting some level of thematic diversification, which could be advantageous relative to a dedicated robotics bet.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.