Winning Business Models Of Construction Robotics

INDUSTRY INSIGHT
The Rise of Robotics in Construction: Insights for Startups and Investors

In May, we travelled to Amsterdam. After sitting down with one of the most fascinating CEOs we’ve had on the show over the last 2 years, it was obvious to us that not all founders are created equal.

Salar al Khafaji is the Founder and CEO of Monumental. A brick-laying robotics company backed by some of the greatest investors in construction technology.

Although this post does not reveal Salar's journey (we will soon release a series of videos on that topic), our trip, along with some episodes featuring our friends at Foundamental, sparked our curiosity in construction robotics and served as the inspiration for this post.

What Investor’s Look For In Robotics Companies:

In April, on Bricks & Bytes, we discussed robotics with Patric Hellermann of Foundamental. Here are some of the points that transpired from our discussion.

When evaluating construction trades ripe for robotic automation, investors look for:

Product-Centric Founders

Investors seek founders with a strong product mindset who can componentise their technology stack and create modular, scalable solutions. 

A Granular Focus

Startups that target specific, granular parts of the construction workflow and build initial capabilities around them are more attractive to investors. This focused approach allows companies to develop expertise and establish a strong foundation for future expansion.

In addition, investors consider the following characteristics:

• Controlled environments with highly repeatable motions

• Trades requiring no more than two axes of motion

• Tasks where worker safety is a concern, driving faster adoption

• Activities prone to causing frequent worker injuries, such as repetitive bending

• Applications with simple geometries and large, uniform surfaces

Outcome-Oriented Business Models.

Investors favor startups that sell access to their robots rather than the robots themselves. By offering robotics-as-a-service or acting as a robotic subcontractor, companies can capture more value and scale their operations more effectively.

3x Winning Business Models For Robotics

Getting the business model right is essential to success. It requires unconventional thinking, not simply selling robots to contractors in the hope that your robotics company will succeed.

So far we have discovered that there are three primary business models for robotics companies in the construction industry:

1. Selling Robots Outright. While selling robots directly to contractors is an option, it may not be the most scalable or profitable approach.

2. Offering Robots-as-a-Service. In this model, the startup owns and maintains the robots, providing access to contractors on a subscription or pay-per-use basis. This approach reduces upfront costs for contractors and allows the startup to maintain control over the technology.

3. Acting as a Robotic Subcontractor. Perhaps the most promising model is for the startup to act as a robotic subcontractor, providing the automated service itself. This approach captures the most value and mirrors how human subcontractors operate today. In the long-term, a hybrid model that combines in-house service provision in major cities with franchising to partners in other regions could offer the best of both worlds.

Robotics in construction is still in it’s infancy. But there has been a huge influx in funding over the last few years. The business models noted above are what we know so far, but that’s not to say as robotics become the norm, the winning business model develops into some different altogether.

How To Build a Winning Robotics Company

The rise of robotics in construction presents a transformative opportunity for startups, investors, and the industry as a whole.

Robotics has the potential to revolutionise the way we build by addressing labor shortages, delivering predictable outcomes, and leveraging technological advancements.

As the industry evolves, the startups to watch will embrace a product-centric approach, focus on granular problem-solving, and adopt scalable business models.

To build a successful robotics company in the construction industry, startups should:

1. Embrace a product mindset rather than an automation-centric approach

2. Target granular parts of the workflow to build initial capabilities

3. Componentise the technology stack for reuse and expansion

4. Sell access to the robot rather than the robot itself

5. Prioritize repeatability over cutting-edge AI applications

With the right strategies and a deep understanding of the construction landscape, the future of robotics in this sector is bright, promising a new era of efficiency, safety, and innovation.

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RESEARCH
Bricklaying Bots & EV Charging

Rugged Robotics - Modernised Layout Processes

Rugged Robotics is modernising construction layout processes through their full-service platform operated by skilled experts. By leveraging robotic automation, they deliver ultra-fast, precise layouts with exceptional design fidelity.

Their solution captures even the most intricate geometries, provides actionable data for installation clarity, and lays out all trades in a single pass. Rugged Robotics' team brings a deep understanding of building control and runway requirements to ensure optimised schedules and top-notch quality.

With a keen focus on end-to-end excellence, they are steering the construction industry towards a more efficient and accurate future.

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SafeAI - Autonomous Vehicle Retrofit Kit and OS

SafeAI offers an autonomous vehicle retrofit kit and purpose-built operating system that allows construction and mining companies to convert their existing fleets, regardless of the manufacturer.

The open, interoperable solution is already deployed at sites worldwide, delivering productivity gains, improved safety, and cost savings.

SafeAI's experienced team leverages an ecosystem of partners to scale the technology. The company recently unveiled the first autonomous, zero-emission haul truck with Obayashi.

Corporates and investors can explore partnership opportunities, while industry players can learn how to implement SafeAI's field-proven autonomy solutions to accelerate their transition to smarter, safer worksites.

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