Despite the greater hype around fully self-driving cars, a growing number of companies are developing AV technology for industries like agriculture, construction, mining and maritime shipping.
Why it matters: Many of these sectors use human-operated vehicles in structured, repetitive, non-public environments: Think tractors driving down rows of crops or pickups shuttling materials across a construction site. Applying AV technology in such constrained settings could offer a more straightforward path to market — and an equally compelling business case.
By the numbers: Though often considered unglamorous and overlooked by entrepreneurs and venture capitalists, these industrial markets are among the largest in the world.
- Construction is an $11 trillion global industry. Agriculture is a $5 trillion global industry. For mining, the figure is $600 billion; for maritime shipping, $500 billion.
The impact: In these settings, AVs would face fewer deployment challenges compared to autonomous commercial passenger vehicles, while improving safety, cost and productivity.
- Increased automation could reduce accidents and injuries in construction and mining, which remain among the most dangerous industries in the U.S.
- An autonomous tractor or construction vehicle could operate close to 24 hours a day, vastly improving commercial productivity.
- In agriculture and construction, labor can represent up to 50% of a company's costs. Given the added strain of labor shortages in these sectors, automation could reduce labor costs and boost profitability.
Yes, but: Automating these functions would entail some technological unemployment, a tension most industries will have to grapple with as AI spreads throughout the economy.
Where it stands: These opportunities attract less buzz than self-driving cars, but a small group of startups is actively targeting them.
- Built Robotics is piloting autonomous construction vehicles, starting with track loaders for excavation.
- Bear Flag Robotics retrofits tractors with autonomous technology, enabling farmers to automate tasks like spraying, mowing and ripping.
- Other companies are working on autonomous maritime vessels. Shone is focusing on large cargo ships, and Sea Machines on a wide range that includes ferries, patrol boats and survey vessels.
The bottom line: "Constrained autonomy" is an under-explored but potentially massive opportunity. Expect more entrepreneurs and investors to take notice.
Rob Toews works on strategy at Zoox and is the co-founder of SHFFT.
