Drawing on the experience of the car market, in the future "repairing robots" may be more profitable than "building robots."

```

The real gold mine of the robot economy may not lie in manufacturing itself, but in the maintenance, services, and financial ecosystem behind the massive stock of robots.

According to Chase Trading Desk news, on April 28, the Morgan Stanley Adam Jonas team released a research report, predicting that the global sales of new robots will reach $25 trillion by 2050, but this figure only reflects new robot sales.

Drawing on the business model of American car dealerships, Morgan Stanley believes that after including the downstream markets of used robots, parts, repair services, financing and insurance, the total revenue scale of the robot economy could expand by 2 to 3 times over the original base.

For investors, this prediction means that focusing solely on robot manufacturers may cause them to miss out on greater value. After-sales services, parts replacement, predictive maintenance, and even robot insurance are all likely to become more profitable tracks.

$25 Trillion is Just the Starting Point

According to Morgan Stanley’s Global Robot Model (GROM), global new robot sales revenue will gradually climb from several billion dollars in 2024 to about $25 trillion by 2050.

The categories covered include household robots, small drones, humanoid robots, autonomous vehicles, industrial robots, professional service robots, and large vertical take-off and landing aircraft.

However, Morgan Stanley analyst Adam Jonas points out that as the global inventory of robots continues to accumulate, billions of autonomous machines in different operational states will be scattered across the world, including many faulty, damaged, or degraded devices.

The report believes that keeping these machines running will create massive commercial opportunities. The report lists dozens of potential service categories running parallel to new machine sales, including:

Hardware: Sensor telemetry and calibration, sensor replacement, chip replacement, actuator replacement, complete joint degree of freedom (DOF) replacement, battery replacement, hardware upgrades and customizationSoftware and Security: Software updates, network security, cloud network coordination, autonomous strategy verificationEnergy and Infrastructure: Wireless energy transfer, charging infrastructure, logistics and infrastructure constructionOperations and Management: Predictive maintenance, training services and continued education, cleaning and sanitation servicesFinance and Legal: Financing and insurance, trade-in, certified pre-owned robots (CPO), robot liability/legal services, regulatory compliance and safety certificationEmerging Services: Humanoid robot clothing/fashion, human-machine relationship and resource management, safety and emergency services, scrapping and recycling/environmental protection services

This list itself constitutes a complete investment map of the robot after-sales service market.

Car Dealership Model Reveals Profit Logic

To quantify the potential value of the downstream market, Morgan Stanley broke down the revenue structure of six listed franchise car dealers in the United States.

These six companies are AutoNation, Asbury Automotive, Group 1 Automotive, Lithia Motors, Penske Automotive, and Sonic Automotive.

Data show that new car sales account for about 50% of these dealerships' total revenue, seemingly the main business segment; however, in terms of gross profit, new car sales contribute only about 20% of the total gross profit.

This means that the profits generated by used cars, parts and services, financing and insurance in downstream sectors are about four times those of new car sales.

Measured by gross profit, parts and services account for about 32%, financing and insurance about 13%, used cars about 4%, and other businesses together about 4%.

While new car sales contribute nearly half of revenue, they only contribute about one-fifth of profit. The huge gap between income and profit clearly reveals the high value-add of downstream services.

If the above profit logic of car dealerships is applied to the robot industry, Morgan Stanley believes that after comprehensively considering downstream and adjacent businesses, the total revenue scale of the robot economy can reasonably be projected to expand by 2 to 3 times based on GROM's forecasts.

~~~~~~~~~~~~~~~~~~~~~~~~

The above wonderful content is from Chase Trading Desk.

For more detailed interpretation, including real-time analysis and frontline research, please join [Chase Trading Desk▪Annual Membership]

Risk Warning and DisclaimerThe market has risks and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article fit their particular circumstances. Investment based on this is at your own risk. ```