How to make money in an emerging market

Every year, exhibitions showcase numerous robots of various complexity levels—from modest household assistants to humanoid androids. However, none of these specimens have made it to the market. Why? The exhibitions demonstrate that hundreds of engineers and inventors are working on creating robots, so what prevents them from flooding the market like smartphones or computers?

The answer is simple: none of the presented models are complete production prototypes on which mass production can be established. Even successful ideas require numerous refinements, which take time and financial investment.

Of course, there are robotic vacuum cleaners, smart coffee makers, various drones, and remote-controlled toys available for sale. But these are not the inventions that serious buyers are waiting for. When we talk about robots, we mean complex devices built on artificial intelligence designed to simplify life.

They are not on store shelves; you cannot buy a robot online, nor can you acquire one exclusively for an outrageous price. Do you know why? Because they don’t exist. So, what’s stopping the creation of robots when engineers have been working on them for decades worldwide?

Problems Faced by Robot Developers

Problem #1: Funding. Money is the cornerstone of any development. Usually, modern projects are worked on by enthusiasts who, at best, have enough funds to create a prototype. But then, testing, refinements, and improvements are needed. A good laboratory, modern equipment, and parts are essential. Moreover, developers need to earn a living; enthusiasm alone won’t keep you fed. You either need to find a good sponsor or combine invention with a main job, which significantly slows down any project. In short, serious financial support is necessary first and foremost.

Problem #2: A Team of Professionals. Suppose you’ve found funding, and the amount is enough for everything needed to work. The next step is to find people who can bring the idea to life. This requires a whole team, including engineers, administrators, PR specialists, and many others. Only a harmoniously tuned production machine, where each person performs their function, can yield the desired results. Unfortunately, finding such individuals for every position is not easy, and this also takes time.

Problem #3: Finding a Manufacturing Company. Funding is secured, the team is assembled, and the idea has been refined. The next step is to assemble the robot. And here comes the problem again—where to find a factory that produces everything needed for the invention, particularly the housing, mechanics, and electronics?

You start reaching out to various manufacturing companies, first in China and then in other countries. Many are willing to make either the housing, mechanics, or electronics. But if you want everything done at one factory, they delay the process and then refuse. Why?

Simply put, such manufacturing companies are practically non-existent. There are no factories capable of handling the robot manufacturing process. One factory may assemble it, another might make the electronics, a third the mechanics, a fourth the housing, and so on. Additionally, it’s unclear what materials are needed, how to install the chips, what the vibrations will be, the temperature conditions, and overall, how practical the product will be. Testing is needed, but conducting it without having a steady production of the necessary mechanisms is quite challenging.

Problem #4: Refinements. After the initial experiments, any device requires enhancements. You will have to change materials, refine the housing, and deal with many surprises that are impossible to anticipate theoretically. Throughout the process, both the robot and its cost will likely change, and the figure will probably increase rather than decrease. The production model is very different from the prototype you assembled in your garage "on your knees." Most likely, the team that made the robots isn’t experienced in production. You will need a completely different team to refine the prototype into a production model. This will most likely be an industrial design bureau. But here’s the question: which factory?

Problem #5: Funding for Mass Production. Even if you’ve gone through all the development stages, found the perfect team, fixed all the robot’s shortcomings, and tested it in the field, creating a production model leaves one final obstacle: mass production. And for that, you need completely different money, much more, and larger production scales with a lot of labor. Considering the previous points, even the ideal prototype cannot pay off immediately, which is why even the most successful projects often end up on the shelf.

Many who embark on robot-related projects either do not know this or think that these problems will be solved "in the process." They won’t. All of this needs to be known, understood, and planned in advance.

Can You Compete with Global Leaders?

Another concern that holds back enthusiasts in the field of robotics is competition with the largest global manufacturers of technology. For instance, Google spends hundreds of millions on experiments with artificial intelligence, yet even Google hasn’t released robots yet. A reasonable question arises: if a corporation with such resources hasn’t tackled this challenge, what can a more modest company achieve? Is it even worth trying?

The answer is unequivocally yes. Because it’s not just about money; it’s also about the ability to allocate resources correctly, set tasks, and develop a plan. Large companies tend to cover as many areas as possible, often missing nuances that are crucial for innovative developments. Furthermore, the bureaucracy and sluggishness of large companies prevent them from focusing on breakthrough, fundamentally new technologies. If you concentrate on one task and work it through to the smallest details, success will follow quickly.

Note that the first personal computers, as we understand them today, were developed not by the world leader IBM, but by a small (at that time) company called Apple, founded by two students, who had neither the components nor the software and knew nothing about manufacturing. The leading manufacturer of electric vehicles is not Ford Motors, not Toyota, and not Mercedes-Benz, but a small California startup called Tesla. The main producer of operating systems for personal computers is not giants like Apple and IBM, but a small startup called Microsoft. The world's leading internet company emerged from a small startup founded by two Stanford students, not Microsoft, IBM, or Apple. The largest social network in the world, Facebook, was started by a few Harvard students, not the giants Microsoft or Google, who had limitless financial resources. The leading global payment system is PayPal, created by a group of young students tired of the bureaucracy and sluggishness of American banks. The list goes on. But the essence is that, strangely enough, you have a much greater chance of achieving breakthroughs and success than giant corporations.

Of course, it’s important to consider various pitfalls:

  • Lack of necessary technologies. Some developments are hard to realize simply due to the physical absence of the required equipment and necessary components. But this also presents an opportunity to create not only a next-generation robot but also the equipment to manufacture it. A double benefit!
  • Idea theft. Some manufacturing companies include clauses in their contracts granting them rights to use their clients' intellectual property. In other words, by starting to work with them, you could lose your business: your idea could simply be stolen, and quite officially at that. Therefore, every company should have a competent lawyer. Always sign NDAs. Always assert your rights to intellectual property in contracts.
  • The human factor. Perhaps the most unpredictable element. You can come up with something absolutely genius, but an unfortunate casing or a dull presentation can ruin the first impression, causing the customer to lose interest in the novelty. This is why advertising campaigns and preliminary research are so important, as they reveal what modern people truly need and find interesting. Remember, design sells. And a customer's impulsive desire to buy and try a novelty is often more important than a multimillion-dollar advertising campaign.

So why should one engage in robotics?

It may seem that with so many obstacles, why spend time on seemingly doomed developments? The thing is, robotics is not just potentially rewarding but also incredibly profitable. The only thing to consider is that it requires substantial long-term effort. The volume of the robotics market in the coming decades will significantly exceed the volumes of the markets for cars, computers, phones, televisions, and all household appliances combined. Robots will simply replace many of these things.

In today's world, technical innovations are welcomed with "hurrah!" only if they are very simple to operate, practical, and original. Right now, these can be counted on one hand, but none of these devices is a robot in the traditional sense of the word. Therefore, the niche is completely open, and whoever has the courage, insight, and skills to occupy it will become the unquestionable market leader—not in billions, but in trillions of dollars.

The task of bringing a robot to mass production is actually not as complicated as it may seem, and we can prove this. Our company's specialists possess all the skills and abilities needed to see any venture through to completion:

  • excellent organizational skills;
  • the ability to prioritize;
  • rational and creative thinking;
  • a love for new technologies;
  • a desire to change the world.

The only thing left is to assemble a team, and you can be part of it!

Let’s bring the future closer together!

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