When it was announced in March that ABB would spin off its robotics and discrete automation business into a separate entity, it marked a significant turning point for the industry.
While pure-play robotics firms have long captured investor enthusiasm – think Fanuc or iRobot – most robotics businesses remain buried inside sprawling conglomerates. But for how much longer?
As capital markets reward clarity and focus, robotics divisions trapped inside multi-industry giants may be next in line for separation. Below are 10 companies that could follow ABB’s lead.
1. Mitsubishi Electric
Mitsubishi Electric has one of the most comprehensive robotics portfolios in Asia, with strong capabilities in SCARA, articulated arms, and factory automation software.
However, its robotics business is a small piece of a much larger industrial electronics and infrastructure empire.
A spin-off could unlock value and focus innovation, especially as the company seeks to expand in digital manufacturing.
Spin-off rationale: Robotics is growing faster than Mitsubishi’s core businesses; a standalone listing could re-rate the division with a higher valuation multiple.
2. Kawasaki Heavy Industries
Best known internationally for its motorcycles, Kawasaki is also one of Japan’s oldest and most respected industrial robotics companies.
Yet its robotics division competes internally for capital with businesses ranging from aerospace to shipbuilding.
Spin-off rationale: The robotics division’s profile and profitability differ dramatically from Kawasaki’s heavy industries core, making it a candidate for a clean break.
3. Panasonic
Panasonic’s robotics efforts focus on logistics, warehouse automation, and manufacturing process automation, often tied to its battery and energy storage businesses.
However, it lacks visibility in the robotics space due to its integration with other business units.
Spin-off rationale: Panasonic is already restructuring to focus on high-margin sectors; a robotics spin-off could bring sharper focus and external investment.
4. Toshiba
Following years of financial turmoil and restructuring, Toshiba is now privately held and looking for ways to shed non-core assets. Its robotics assets include surgical systems and medical automation.
Spin-off rationale: Divesting non-core robotics technology could raise capital and reduce complexity as Toshiba retools its strategy post-privatization.
5. Omron Corporation
Omron has built a strong portfolio in factory automation, sensors, and increasingly, mobile and collaborative robots.
The company’s acquisition of Adept Technology in 2015 gave it a solid foothold in industrial robotics, but its robotics operations remain a small part of a larger automation and healthcare-focused business.
Spin-off rationale: A dedicated robotics spin-off – especially focused on AMRs and flexible automation – could attract targeted capital and enhance innovation in a faster-moving, high-growth environment.
6. Doosan Group (Doosan Robotics)
Doosan Robotics is already run as a semi-autonomous division and has achieved global recognition in collaborative robots (cobots). Doosan Group recently listed other subsidiaries and is no stranger to restructuring.
Spin-off rationale: A Doosan Robotics IPO would likely attract strong investor interest, particularly given the growth of the cobot market and Doosan’s international expansion.
7. Hanwha Group (Hanwha Robotics / Hanwha Precision Machinery)
Hanwha has been aggressively investing in industrial automation and cobots, and has begun consolidating its robotics capabilities under a unified vision.
Its conglomerate structure includes defense, chemicals, and finance – sectors with little synergy to automation.
Spin-off rationale: Robotics could emerge as a star performer, warranting a separate public listing to fund growth and attract partnerships.
8. Hyundai Motor Group (Hyundai Robotics / Boston Dynamics)
Hyundai’s acquisition of Boston Dynamics and internal development of Hyundai Robotics shows its commitment to next-gen automation, including logistics and mobility robotics.
However, these assets remain a small and potentially distracting part of a much larger automotive strategy.
Spin-off rationale: Hyundai could unlock capital and strategic flexibility by listing Boston Dynamics or Hyundai Robotics as standalone companies with autonomy to forge tech partnerships.
9. Hitachi
Hitachi’s presence in robotics and automation is centered on logistics and smart factories, supported by its Lumada data platform.
The company has already spun off units like Hitachi Metals and Hitachi Construction Machinery.
Spin-off rationale: Robotics-as-a-service models and digital twin ecosystems align with market trends and could thrive as a focused, standalone company.
10. Yaskawa Electric
Though already a pure-play automation and robotics company, Yaskawa might consider spinning off specific business units – such as motion control or medical robotics – if capital markets reward specialization.
Spin-off rationale: Further unbundling could sharpen strategic execution and attract more sector-specific capital.
11. Epson
Epson says it is a global leader in SCARA robots and has been expanding its 6-axis lineup, notably with the C-B Series powered by the RC700E controller and integrated SafeSense technology.
Their robots are widely used in precision manufacturing, including electronics and automotive sectors.
Spin-off rationale: Epson’s robotics division has a distinct identity and market presence. Spinning it off could unlock shareholder value and allow the robotics unit to pursue growth opportunities independently.
Why spin off a robotics division?
Several financial and strategic motivations support the spin-off trend:
- Valuation arbitrage: Robotics divisions often grow faster and are more tech-forward than their parent conglomerates, but their potential is masked by the parent’s overall performance. Spinning them off allows the market to value them on their own terms.
- Investor appetite: There’s robust demand for robotics and automation IPOs, especially from funds focused on AI, industrial innovation, and ESG.
- Strategic clarity: Standalone robotics firms can move faster, form partnerships more freely, and attract top talent, all of which are harder under a multi-business conglomerate.
The spin cycle is gaining speed
ABB’s decision may set a precedent. As automation reshapes global manufacturing and logistics, investors are increasingly eager to back focused robotics companies.
For conglomerates with diversified holdings, the message is clear: either double down and scale up, or spin off and let your robotics stars shine on their own.
