Building the future and potential for infrastructure robotics

The robotics market could boom as automation replaces manual workers

Replacing or supplementing manual labor with robots offers many potential benefits and is already driving industry adoption and innovation.

A possible solution for labor shortages

Robots might be necessary to close the labor gap. The construction industry has a median workforce age of 42, with 22.3% of the workforce being 55+ and just 10% being 25 and under.¹  In 2024, 1.9 million construction workers are expected to leave for other industries.²

Increased safety

The construction sector saw 1,056 worker fatalities in 2022. Robots have the potential to reduce worker deaths and injuries by taking over high-risk tasks like working at heights or demolishing structures.³

More precision and better quality control

Robots are accurate and fast when laying bricks, painting, surveying, and installing components. They are programmed to perform the same task consistently, which is difficult to achieve through manual labor.

Increased efficiency and speeds

Robots can move faster than workers without tiring.⁴  A worker may experience fatigue and make judgment errors as the workday goes on,⁵  but a robot can work continuously without losing focus or energy.

Long-term cost efficiency

Industrial robots cost an average of $68,659 in 2005, $31,776 in 2014, $27,074 in 2017, and are expected to drop to $10,856 by 2025.⁶  Nonetheless, robotics can offer significant savings by reducing labor costs⁷  and accelerating project timelines.⁸  Alternatively, a robotics-as-a-service business model can replace upfront costs with a more affordable subscription. 

Investors eye opportunity in construction industry robotics

Construction firms increasingly use 3D modeling, known as building information modeling (BIM) or virtual design & construction (VDC). With these 3D “digital twins,” construction firms can easily integrate robots to execute on-site tasks, such as painting, excavation, moving heavy objects, surveying land, installing drywall, or laying bricks.⁹  The construction robots market stands at $383.11 million with a projected CAGR of 15.5%, potentially reaching $787.48 million by 2029.¹⁰

Investors looking to understand the long-term opportunities in construction robotics might be interested in learning about today’s companies driving promising innovation.

• Ekso Bionics (EKSO): This public company’s wearable exoskeleton, Ekso EVO, can reduce workplace industries, enabling construction workers to perform repetitive tasks and lift heavy objects without injury.¹¹
• Caterpillar (CAT): In 2020, this public company announced the acquisition of Marble Root, Inc., a robot and autonomy technology solutions company.¹²  Caterpillar, which broke its sales record in February 2024, has also invested in Fastbrick Robotics,¹³  Clearpath Robotics,¹⁴  Sarcos Corp,¹⁵  and the aerial data company Airware.¹⁶
• Boston Dynamics: Their robot, Spot, is designed to offer real-time insights into construction sites by laser-scanning environments and integrating that data into digital twin software.¹⁷
• Construction Robotics: Their Material Unit Lift Enhancer (MULE) can lift and place heavy materials to automate masonry and construction.¹⁸
• Fastbrick Robotics: TheHadrian X® works  from 3D CAD models and uses Dynamic Stabilisation Technology® to measure and react to dynamic interference and movement, for bricklaying precision.¹⁹
• Dusty Robotics: The FieldPrinter accurately automates layout using BIM.²⁰  It can quickly print points, text, and lines from a CAD file on a construction site, helping accelerate schedules and ensure everyone is on the same page.

Exploring the potential for infrastructure robotics investment

Infrastructure robots are useful for inspecting, repairing, and maintaining roads, bridges, tunnels, and other forms of infrastructure and equipment.²¹  They can go where human workers can’t, improving safety, reducing costs, and increasing operational efficiency.²²

In the U.S., environmental factors, higher loads, poor maintenance, damage, and aging have led to crumbling infrastructure.²³  One in every 13 bridges is in poor condition,²⁴  while more than 40% of our nation’s roads are in poor or mediocre condition.²⁵

Congress approved a $1.2 trillion transportation and infrastructure law in November 2021,²⁶  and spending on infrastructure repair will likely continue to increase, driving investor opportunity.

Investors are keeping an eye on innovative infrastructure robotic companies and projects, including:

• Oceaneering (OII): This public company develops products for the oil, aerospace, defense, and theme park industries²⁷  and has eight different robots capable of conducting underwater inspections, lifting heavy objects, drilling, repairing, and more.²⁸
• AeroVironment (AVAV): AeroVironment’s stock jumped in early 2024 after the company announced AI-powered drone capabilities. While largely intended for defense, this company’s solutions have infrastructure applications as well.²⁹
• Voliro: Voliro produces flying drones that can inspect infrastructure like wind turbines, solar farms, storage tanks, and power lines, to identify potential problems and minimize downtime.³⁰
• Seoul Robotics: Seoul Robotics has created the world’s first infrastructure-based autonomous driving solution, LV5 CTRL TWR, which relies solely on LiDAR.³¹
• Gecko Robotics: Their robots can scale walls and use ultrasonic technology to collect data and generate digital twins.³²

The rise of robotics in construction and infrastructure could spell potential investment opportunity

Robots are poised to play an ever-expanding role in shaping our world, including in construction and the built environment.

Robotics and automation offer unparalleled efficiency, improved safety, and other benefits for construction projects and infrastructure needs, across a range of intriguing use cases.

With government investment already flowing to infrastructure projects, innovation in the industry is picking up. Today’s investors have an opportunity to see a return on investment as robotics adoption sweeps across the U.S. 

References to companies are for illustrative purposes only and should not be viewed as investment recommendations.

Risk Warning:

Investment involves risk including the loss of capital.

The information has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. This analysis and conclusions are the expression of an opinion, based on available data at a specific date. Due to the subjective aspect of these analyses, the effective evolution of the economic variables and values of the financial markets could be significantly different for the projections, forecast, anticipations and hypothesis which are communicated in this material.