To enlighten investors on the impact of these breakthroughs and the opportunities they should create, we began publishing Big Ideas in 2017. This annual research report seeks to highlight

US Manufacturing Robot Density 
(Density per 10,000 Employees)
-
50
100
150
200
250
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
US Economy Automation Density
(Density per 10,000 Employees)
5 Years

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•
Source: ARK Investment Management LLC, 2020 based on data sourced from: “World Robotics.” IFR International Federation of Robotics 
60
Automation
•
Following the great recession in 2008/2009, 
perhaps in response to it, industrial robot 
demand hit an inflection point.
•
Trade tensions between the US and China 
may have added to the momentum before 
COVID-19 created a headwind in 2020.
•
According to ARK’s research, short-term 
obstacles will not prevent a rebound in 
industrial robot sales and could encourage 
companies to automate and cut costs more 
aggressively.
Industrial Robot Demand Seems
To Have Hit An Inflection Point
2009
2019
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
$0
$20
$40
$60
$80
$100
$120
Unit Sales of Industrial Robots
Unit Price of an Industrial Robot
(Thousands)
Industrial Robot Price Elasticity of Demand
1996-2002
2002-2010
2009 and 2019
2010-2015
2016-2018

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•
Note: Each purple dot represents a year from 1991 – 2015.
*Labor share is employee wages as a percent of income.
Source: ARK Investment Management LLC, 2020 based on data sourced from: Bureau of Labor Statistics (BLS), EU KLEMS Database September 2017 release, July 2018 revision.
61
Automation
A drop in labor relative to capital does not suggest 
necessarily that wages are falling. Instead, output 
can grow faster than wages. Thanks to increased 
productivity and automation, ARK expects a 
combination of the following four outcomes: 
•
Higher wages: benefiting employees
•
Lower prices: benefiting consumers
•
Higher margins: benefiting companies
•
Higher investments: creating virtuous cycles