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Final month, we took a deep dive into the market alternatives surrounding heavy gear primarily based on the emergence of three sorts of applied sciences for driving new income progress. The article centered on automation, digitization (IoT and digital twins), and electrification. We calculated there’s no less than a total addressable market (TAM) of $56 billion for automating, digitizing, and connecting the operation of heavy gear. Because the main development gear producer, Caterpillar (CAT) appeared like a doubtlessly good play on investing in high-tech heavy gear. In spite of everything, it has already developed about 600 robotic mining vehicles.
However as we began to scratch under the floor of Caterpillar’s technological transformation, we weren’t discovering a lot in SEC filings, transcripts, and information tales to supply a lot extra coloration to the story. We’re not saying that Caterpillar is just not trending on this course, however possibly it’s shifting on the pace of a crane in excessive winds. Latest acquisitions and investments counsel the corporate is extra centered on the electrification a part of the equation – a pattern with extra ambiguous payoffs at this juncture. For instance, Caterpillar participated in a $1 billion Collection D final month for Redwood Supplies, a battery recycling startup, and a Seed spherical earlier this yr for {an electrical} engineering agency referred to as Lithos Power that makes a speciality of lithium-ion tech.
John Deere Inventory Plowing Forward
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