JPMorgan report: Robotics and automation surge as investors back ‘science made real’

The robotics and automation sector is experiencing a dramatic rise in investor interest, as the industry matures from theoretical science to real-world application, according to JPMorgan’s newly released Applied Tech report.

JPMorgan, the world’s largest bank, defines “Applied Technology” as the sector that bridges scientific discovery and engineering innovation – essentially translating lab-born concepts into real-world tools.

Robotics, artificial intelligence (AI), and automation form a core part of this applied frontier, where the theoretical is rapidly becoming practical.

In 2024 alone, investments into robotics startups nearly doubled compared with 2020, with venture capitalists writing larger checks to fewer companies – indicating a shift toward commercialization and scale.

The median deal size in robotics surged across stages, with late-stage valuations topping $160 million, up sharply from prior years.

This spike isn’t just financial froth. As the report outlines, investor confidence is driven by the rise of AI-enhanced robotics, the expansion of industrial use cases, and global urgency to boost productivity amid labor shortages.

From humanoid service robots to collaborative robots (cobots) and robotic process automation (RPA), machines powered by software are increasingly being deployed in settings where adaptability, precision, and continuous operation matter.

In the report, JPMorgan says: “The core focus of Applied Technology is to bridge scientific advances and engineering innovation through state-of-the-art technology applications.

“The sector plays an important role in driving innovation, economic growth and societal progress through the intersection of hardware and software.”

Federal policy fuels private confidence

Federal initiatives are adding fuel to the robotics investment engine. JPMorgan notes that US government agencies – particularly the Department of Defense, NASA, and the National Science Foundation – are injecting billions into applied tech areas including AI, robotics, and semiconductors.

This not only provides direct funding, but signals long-term public sector backing for critical technologies.

The CHIPS and Science Act has further reinforced the US push for domestic capability, particularly in the semiconductor sector, a foundational enabler of modern robotics.

Meanwhile, the Department of Defense has increased its collaboration with startups, offering prototype contracts that help early-stage robotics companies navigate the costly regulatory and R&D process.

AI as the compounding catalyst

While many of today’s robotic systems are built on decades-old mechanical engineering principles, it’s artificial intelligence that is unlocking their next chapter.

The report highlights AI as the key compounding force in Applied Tech, enabling robots to adapt, learn, and operate with increasing autonomy.

AI-powered predictive maintenance, intelligent navigation, and human-robot teaming are already reshaping manufacturing, logistics, and defense sectors.

Notably, the report draws a direct line from historical scientific milestones – like the moon landing and the first robotic manufacturing arms – to the sophisticated intelligent systems now coming to market.

Today’s convergence of high-performance chips, accessible compute power, and AI training models is making what was once speculative science a commercial reality.

M&A landscape dominated by robotics and chips

The report also highlights the role of strategic acquisitions in driving liquidity. Robotics and semiconductor startups lead the pack in M&A activity, with buyers motivated by the urgent need to gain ground in automation and intelligent systems.

These exits are increasingly lucrative: robotics companies acquired in 2024 had typically raised over $100 million in capital before acquisition, and commanded some of the highest exit valuations in the Applied Tech space.

Semiconductors followed closely, reflecting the capital-intensive nature of scaling chip innovation.

The science of application

For decades, scientific breakthroughs often came with the caveat: “Fascinating discovery, but how can it be applied in the real world?” Robotics and automation are now answering that question in powerful, profitable ways.

By translating AI, material science, and computing advances into machines that work, Applied Tech is fulfilling its mission – not just to discover, but to deliver.

As JPMorgan’s report concludes, “Robotics and semiconductor valuations increased at the later-stage in 2024, which may signal renewed optimism in near-term commercialization potential and strong demand for automation and domestic chip production.”

In short, the JPMorgan report suggests that the future of science isn’t just in the lab. Increasingly, it’s on the factory floor, in the field, and embedded in the systems we rely on every day.

In the opening comment in the report, Justin Krauss, head of applied tech for JPMorgan’s innovation economy business, says: “The Applied Technology sector continues to command significant attention from venture investors, driven by its innovative potential and transformative impact on industries.”

He adds: “As market conditions continue to evolve, the sector’s adaptability and resilience will be vital in sustaining momentum and capturing emerging opportunities.

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