The 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution from YoStartups is to develop a LIDAR & AI based Construction Monitoring Solution. The idea is to use the LIDAR technology in combination
with Artificial Intelligence to develop a solution for tracking the progress and quality of construction projects.
Market Definition for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
According to Research and Markets, the global construction management software market is set to grow at a CAGR of 14.96% during the period 2016-2020. The main reason for the market growth can be attributed to the increase in demand for construction management software in the APAC region. It is expected that infrastructure spending in APAC will reach $5.36 trillion a year by 2025, representing 60% of the world’s total infrastructure.
The increase in growth of the construction market in India, China and Japan will contribute to the growth of the global construction management software during the forecast period.
Competitor Analysis 1001 for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
Owing to the large market size, there are numerous Engineering/Construction Management Services companies that provide technical consulting and project monitoring & inspection services. But they mostly rely on physical inspections by the trained personnel, which is very costly and prone to human errors.
As we are here proposing a solution, which altogether eliminates the human dependency, and makes the process of project monitoring and inspection more efficient, consistent and fact-based, the proposed startup won’t see direct competition from these traditional businesses.
There is Palo Alto-based company, Doxel that is using Artificial Intelligence and robotics to make the process of inspection and monitoring autonomous. They also have an application to timely notify the managers about any key finding and provide regular updates on the project.
Pain Point & Target Audience for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
The target audience for the proposed startup would be medium and large-scale Project and Construction Management companies.
Delivering the projects on time with the right quality is imperative for any construction and engineering project. And as time is directly correlated with the cost of the project, untimely project completion inflates the estimated budget by a huge margin. In spite of all these considerations, we know that construction industry is not known for its efficiency and in fact amongst the lowest industry in terms of productivity.
Value Proposition for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
The proposed startup will use the LIDAR equipped on the autonomous ground robots and drones to scan the construction sites on a daily basis. The scanned information will be uploaded to the cloud where the data will be analyzed and compared against the established construction schedules and historical scanned data. This will enable the system to track the progress of the project. The algorithm will also compare the scanned data against the 3D drawings to find any construction faults and abnormalities, enabling better quality tracking.
All in all the proposed solution will eliminate the need for human intervention in day-to-day construction monitoring. As the robots and drones would work autonomously, they can do their scanning during off-peak hours, and avoid any unnecessary interaction with the usual construction work.
Business Model for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
The proposed startup can work on two business models. One it can provide the complete project monitoring and inspection as a service to medium scale Project Management & Construction companies. The startup would charge a fee based on the scale of the project.
Second, the startup can provide its solution on a subscription-based SaaS model. According to us, this will be a more solid and scalable model if executed properly. In this, the startup will first charge a fixed installation fee for designing the 3D model of the complete project so that robots and drones could navigate autonomously and scan using LIDAR. Also, the 3D models will help the algorithm to compare the current stage of the project with the final output to predict the percent completion for different tasks in the project. Once the initial set-up is done, the startup will charge quarterly or annual subscription fees for its project tracking dashboard.
Way to Market for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
Autonomous robots & drones, and the LIDAR technology is very well established in the market, so the startup do not need to devise it on its own.
The startup should focus on developing 3D models and deep learning algorithms to identify most of the components the system could encounter in a construction environment. Along with mechanical components, the startup should also focus on electrical and plumbing components in its learning process to provide comprehensive construction monitoring solution.
Once the algorithm is developed and trained, the startup should run the beta test of the algorithm with 2-3 small-scale projects during the first year to remove any identified bug and to further fine-tune the algorithm.
Milestone for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
The most critical part of the proposed solution is the development of the 3D modeling and deep-learning algorithms to identify most of the construction-related components. The startup should utilize all its resources to complete the basic solution in first six months, and then test the 3D modeling and algorithm in 2-3 small-scale construction projects in the next 12 months.
Investment Needed for the Prototyping for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
For the development of the basic platform and the algorithm pitch for raising up to 100 – 150k USD. The startup can approach any Angel Investor or Accelerator specialized in Real Estate or Artificial Intelligence.
Having early investor or partner from Real Estate Industry can help in product development and getting beta customers for product refinement and validation.
Team Capability for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
The startup must have a co-founder with expertise in Computer Vision technologies and Machine Learning. Having a member with experience in robotics and hardware would be handy at the early stages for any customization of on-ground robots and drones.
Lastly, having a co-founder or a partner from construction management background is essential for overall product development and early-stage business development.
Investor/Expert Take for 1001 Startup Ideas – LIDAR & AI based Construction Monitoring Solution
Real Estate has traditionally been a lagger in adopting new technologies, but with the stagnating market and rising competition, the construction companies are resorting to new age tools to improve their productivity.
The project monitoring and tracking is such an important aspect of the construction industry that the fortunes or demise of these companies depends on the timeline of project completion. That is mainly due to a large amount of interest clocking debt sitting on their balance sheet.
Last year in Jan 2017, Doxel raised USD 4.5 million Seed round from a seasoned Silicon Valley-based VC a16z, further highlighting the need of the hour for the proposed solution.
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This 1001 startup idea article is from Yostartups, YoStartups is a Pre Accelerator and it empowers entrepreneurs to propel their business ideas into successful ventures. Yostartups’ core mission is to take the message of entrepreneurship to 1 billion people globally by 2020.
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