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The Next Big Theme: August 2024

Aug 20, 2024

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Robotics & Artificial Intelligence

Humanoid Robot Development Gains Momentum

In an effort to simplify humanoid robot development, Nvidia is providing top robot manufacturers, AI model developers, and software makers with a suite of services, models, and computing platforms. These offerings include NVIDIA NIM microservers and frameworks for robot simulation and learning, the NVIDIA OSMO orchestration service for multi-stage robotics workloads, and an AI- and simulation-enabled teleoperation workflow.1 NIM microservices, powered by NVIDIA inference software, feature pre-built containers that reduce deployment times from weeks to minutes and enhance simulation workflows for generative physical AI.2 NVIDIA OSMO, a cloud-native managed service, simplifies complex robotics development workflows across distributed computing resources, reducing deployment and development cycles from months to days. It allows users to manage tasks such as generating synthetic data, training models, conducting reinforcement learning, and implementing software-in-the-loop testing at scale for humanoids.3 Additionally, NVIDIA launched a humanoid robot developer program, offering early access to these latest releases, as well as NVIDIA Isaac Sim and Lab, Jetson Thor, and Project GR00T humanoid foundation models. Boston Dynamics, ByteDance, Figure AI, and 1x are among the first to join the early access program.4

Data Centers & Digital Infrastructure

Cloud Providers, AI Firms Drive Robust Data Center Rental Rate Growth

Existing data centers are renting at premium prices, underscoring the growing demand and capacity crunch. North American data center vacancy rates have reached new lows across various major markets. Chicago led again with the biggest year-over-year (YoY) decrease to 2.4% from 6.7% during Q1 2024.5 Northern Virginia’s vacancy rates also declined sharply, dropping to 0.9% from 1.8% the year prior, despite an 18% YoY increase in inventory.6 Singapore, the world’s most power-constrained market, has only 7.2  megawatts (MW) of available capacity and a near record-low 1% vacancy rate.7 As a result of these supply shortages and high demand, North American data center pricing is significantly accelerating. Average asking rates for a typical 250-500 kilowatt (kW) requirement across all four featured North American markets surged by 20% YoY in Q1, the highest global increase.8 For 2024, rental rates for U.S. data centers are expected to grow by 15% YoY.9

Healthcare Innovation

Obesity, Diabetes Meds Set to Take Over 2030 Drug Rankings

Five GLP-1 metabolic drugs are expected to bring in over $100 billion in sales by 2030.10 Led by these five drugs, including Eli Lilly’s Mounjaro and Zepbound, and Novo Nordisk’s Ozempic, Wegovy, and next-gen treatment CagriSema, the broader GLP-1 market is forecast to reach $130 billion by the same year.11 More than 1 billion people worldwide, including over 40% of all U.S. adults, are classified as obese.12 As the treatment category continues to show success in other areas, such as obesity-related cancer, liver disease, and kidney disease, the prospects for the treatment category seem even loftier beyond 2030. A recent study showed patients on GLP-1 drugs like Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro reduced the risk of 10 obesity-related cancers over traditional diabetes treatments.13 Among the largest risk reductions was a 65% reduction in gallbladder cancer, a 59% reduction in pancreatic cancer, and a 53% reduction in hepatocellular carcinoma.14

Lithium & Battery Technology

European Nations Look to Advance Lithium & Solid-State Battery Production

The European Union (EU), Germany, and Serbia signed tentative agreements for lithium excavation and EV battery manufacturing in Serbia.15 These agreements aim to reduce the EU’s dependency on China’s lithium supply chain. If the deals are finalized, Serbia could host one of Europe’s largest lithium mines and become the first European country to manage an entire EV supply chain, potentially contributing 4% of its 2023 gross domestic product (GDP).16 Carmakers Stellantis and Mercedes-Benz are among the signatories of the deals. In the battery space, Volkswagen’s PowerCo and Quantumscape agreed to ramp up mass production of Quantumscape’s solid-state battery technology.17 This agreement allows PowerCo to manufacture up to 40 gigawatt hours (GWh) per year, with an option to extend to 80GWh per year, which enough to power approximately 1 million EVs annually.18 Solid-state batteries are considered the next generation of EV batteries due to their enhanced safety, higher ranges, and faster charging capabilities.

U.S. Infrastructure

New York and Washington State Get Funding Boost for Critical Infrastructure Upgrade

New York Governor Kathy Hochul announced in July more than $484 million in funding for 216 critical infrastructure projects across the state. The funding will go towards projects focused on rehabilitating and replacing bridges and culverts, including hardening existing infrastructure to reduce risks from severe weather events and to enhance the overall safety and sustainability of New York’s transportation infrastructure.19 The funding will be provided through the state’s BRIDGE NY initiative, which is supported by the federal government’s Bridge Formula Program. The funding ads to the $1.23 billion previously awarded though BRIDGE NY.20 In Washington State, the King Country Wastewater Treatment Division selected Jacob’s Solutions for an $800M infrastructure upgrade project at the South Treatment Plant in Renton, where it will lead program management and consulting services.21 The South Treatment Plant is one of the primary plants that services King County, which includes Seattle, and treats an average of 90 million gallons of wastewater per day.22

Clean & Renewable Energy

Offshore Wind Energy Moves Closer to Accelerated Deployment

Maersk Offshore Wind announced that delivery of their first Wind Installation Vessel is likely in 2025. The new design is expected to help reduce offshore wind installation times by up to 30%, which could help yield lower installation costs.23 This development should be  positive for the nascent U.S. offshore wind power industry, which has been hampered by a limited number of vessels and oftentimes complex installation procedures. The U.S. Bureau of Ocean Management (BOEM) issued approvals for two offshore wind projects, a 2.6 gigawatt (GW) New England Wind project in Massachusetts and a 2.8GW Atlantic Shores South project in New Jersey.24 BOEM approved of the construction and operations plan (COP) for New England Wind, which is being developed by Avangrid. Shell New Energies and EDF Renewables are developing the New Jersey project, which gained a different approval during its environmental review process.25 That project can now move towards COP approval, which would another positive step for the U.S. offshore wind industry after a few years of challenges, including project delays and cancellations.

THE NUMBERS

The following charts examine returns and sales growth expectations by theme, based on their corresponding ETFs or indices.

KEEP UP WITH THE LATEST RESEARCH FROM GLOBAL X

To learn more about the disruptive themes changing our world, read the latest research from Global X, including:

ETF HOLDINGS AND PERFORMANCE

To see individual ETF holdings and current performance across the Global X Thematic Suite, including information on the indexes shown, click these links:

Appendix: Thematic Expected Sales Growth Graph Indices

AgTech & Food Innovation: Solactive AgTech & Food Innovation Index

Aging Population: Indxx Aging Population Thematic Index

Artificial Intelligence & Technology: Indxx Artificial Intelligence & Big Data Index

Autonomous & Electric Vehicles: Solactive Autonomous & Electric Vehicles Index

Blockchain: Solactive Blockchain Index

Clean Water: Solactive Global Clean Water Industry Index

CleanTech: Indxx Global CleanTech Index

Cloud Computing: Indxx Global Cloud Computing Index

Cybersecurity: Indxx Cybersecurity Index

Data Center & Digital Infrastructure: Solactive Data Center REITs & Digital Infrastructure Index

Defense Tech: Global X Defense Tech Index

E-Commerce: Solactive E-commerce Index

FinTech: Indxx Global FinTech Thematic Index

Genomics: Solactive Genomics Index

Hydrogen: Solactive Global Hydrogen Index

Internet Of Things: Indxx Global Internet of Things Thematic Index

Lithium & Battery Technology: Solactive Global Lithium Index

Millennial Consumer: Indxx Millennials Thematic Index

PropTech: Global X PropTech Index

Renewable Energy Producers: Indxx Renewable Energy Producers Index

Robotics & Artificial Intelligence: Indxx Global Robotics & Artificial Intelligence Thematic Index

Social Media: Solactive Social Media Total Return Index

Solar: Solactive Solar Index

Telemedicine & Digital Health: Solactive Telemedicine & Digital Health Index

U.S. Infrastructure: Indxx U.S. Infrastructure Development Index

Video Games & Esports: Solactive Video Games & Esports Index

Wind Energy: Solactive Wind Energy Index

Category: Articles

Topics: Consumer Economy, Digital Assets, Disruptive Technology, Physical Environment & ESG, Thematic

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Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Beginning October 15, 2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share. Prior to October 15, 2020, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time. The returns shown do not represent the returns you would receive if you traded shares at other times.

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