This Year's CES Focus: "Physical AI"... Construction Firms Join R&D Race [Real Estate AtoZ]

Hyundai Engineering & Construction Allocates 1.09% of Sales to R&D
Smart Construction Research Lab Focuses on Digital and Robotic Transformation
Daewoo Engineering & Construction Also Invests Over 1% of Sales in R&D

Yonhap News Agency

With "physical artificial intelligence (AI)" emerging as one of the key themes at CES 2026, the world's largest electronics and IT exhibition, which opens on January 6 (local time), major construction companies are actively engaging in research and development (R&D) of robots and other technologies that can be practically applied at construction sites.

According to the Financial Supervisory Service's electronic disclosure system on January 5, Hyundai Engineering & Construction's R&D expenditure as a percentage of sales for the third quarter of last year was 1.09%. This is an increase of 0.03 percentage points compared to 1.06% at the end of 2024.

The Technology Research Institute serves as the central R&D organization for Hyundai Engineering & Construction. Among its four specialized divisions, the Smart Construction Research Lab is responsible for research on digital transformation (DX), robot transformation (RX), and more. Hyundai Engineering & Construction explained, "We aim to continuously enhance our capabilities in securing and executing projects through strengthening EPC (Engineering, Procurement, and Construction) competitiveness, creating new future businesses, and adopting smart construction technologies," adding, "We are also conducting research projects on technologies related to smart construction, such as robotics, AI, and big data."

In particular, the company is focusing on technological transformation for automation and safety management based on physical AI. A representative device is an autonomous indoor inspection drone. The drone collects 3D spatial information and high-resolution images, checks the status of equipment and potential structural interferences, and can remotely monitor environmental indicators such as oxygen levels. In addition, demonstration projects are underway for process robots, including transport robots and drilling robots. The Apgujeong District 2 redevelopment project, which Hyundai Engineering & Construction is promoting, will be built as a robot-friendly apartment complex. Personal mobility robots for transporting heavy loads or making deliveries, unmanned fire-fighting robots, and valet parking robots will be deployed within the complex.

Daewoo Engineering & Construction is investing more than 1% of its sales in R&D to develop future growth engines. As of the third quarter of last year, its R&D expenditure as a percentage of sales was 1.04%, up 0.25 percentage points from 0.79% at the end of the previous year. Daewoo Engineering & Construction developed "digital-based automation technology for road construction equipment" through December of last year. In February of last year, it completed research on document analysis technology based on large language models (LLM). The company also plans to strengthen its capabilities in the field of physical AI, including drone-based construction management and crack inspection, material transport, and formwork dismantling robots.

POSCO E&C is focusing on unmanned construction, represented by its "remote-controlled excavator." Last year, through joint research with HD Hyundai Site Solution, it succeeded in the first-ever domestic field demonstration of a remote-controlled excavator. Its embossing robot won an Innovation Award at CES 2025. POSCO E&C spent 0.57% of its sales on R&D in the third quarter of last year, an increase of 0.15 percentage points from the end of the previous year.

Meanwhile, physical AI is being recognized as the latest AI technology poised to transform industries, following "online AI" in the form of chatbots. As its potential applications in manufacturing and logistics increase, the construction industry is also paying close attention. For example, Doosan Bobcat, a construction equipment manufacturer, will unveil AI technologies at this CES that enhance productivity and safety at construction sites.

This content was produced with the assistance of AI translation services.