Two Paths to Autonomous Equipment
When companies decide to adopt autonomous construction equipment, they face a fundamental choice: retrofit existing equipment or buy new autonomous machines.
This decision has significant implications for capital investment, deployment timeline, fleet flexibility, and long-term operational strategy. Let's examine both paths objectively.
The Build-New Approach
Some equipment manufacturers offer autonomy integrated into new machines from the factory. This approach has certain advantages:
Potential Benefits
- Integrated design: Systems designed to work together from the start
- Single vendor support: One point of contact for equipment and autonomy
- Latest technology: Newest equipment with newest autonomy features
Significant Drawbacks
High Capital Cost: New autonomous equipment costs significantly more than conventional machines. You're buying both the equipment and the autonomy system at premium prices.
OEM Lock-in: Factory-integrated autonomy typically only works with that manufacturer's equipment. If you operate a mixed fleet (CAT, Komatsu, John Deere, Hitachi), you can't standardize on one autonomy platform.
Stranded Assets: Your existing fleet becomes underutilized or must be sold/traded. This destroys value in equipment you've already invested in.
Long Lead Times: New equipment procurement takes months. Autonomy adoption is delayed by equipment delivery schedules.
Limited Availability: True autonomous capability from OEMs remains limited. Most offer semi-autonomous features (like machine control for grading) rather than full unmanned operation.
The Retrofit Approach
The alternative is adding autonomy to your existing equipment through aftermarket retrofit kits. CHINOU has pioneered this approach, deploying retrofit autonomy across 400+ projects and 100+ machines.
How Retrofit Works
A retrofit autonomy kit adds the necessary sensors, computing, and control systems to an existing excavator:
- Sensor array: LiDAR, cameras, GNSS, IMU mounted on the machine
- Compute unit: Edge processing hardware in a protected enclosure
- Control interface: Connection to hydraulic systems for autonomous operation
- Communication systems: Connectivity for fleet control and monitoring
Installation takes 2-3 days per machine. The retrofit is non-invasive — no permanent modifications to the base machine.
Retrofit Advantages
Fraction of the Cost: Retrofit kits cost significantly less than the premium for new autonomous equipment. The exact cost depends on configuration, but the savings are substantial.
Preserve Fleet Investment: Use the equipment you already own. No need to sell, trade, or depreciate your existing machines.
OEM-Agnostic: CHINOU's retrofit kit works across major manufacturers — CAT, Komatsu, John Deere, Hitachi, and others. One autonomy platform across your mixed fleet.
Fast Deployment: 2-3 days per machine instead of months waiting for new equipment delivery. Start seeing ROI immediately.
Flexibility: Remove the kit and transfer it to another machine. Upgrade components as technology improves. No lock-in.
Toggle Auto/Manual: Switch between fully autonomous, semi-autonomous, and full manual control at any time. Operators can still use the machine conventionally.
The Economics: A Real Comparison
Let's examine the economics for a fleet of 10 excavators:
Scenario: Replace with New Autonomous Equipment
- Assume new autonomous excavator premium of $100,000+ over conventional
- Total additional cost: $1,000,000+
- Plus loss on trade/sale of existing equipment
- Plus lead time of 6-12 months
- OEM lock-in to single manufacturer
Scenario: Retrofit Existing Fleet
- Retrofit kit cost (varies by configuration)
- No additional equipment purchase
- Installation in 3-4 weeks for full fleet
- OEM flexibility maintained
- Equipment can still be operated manually
The retrofit approach typically shows positive ROI within 6-12 months through operator cost savings alone.
Fleet-Scale Economics: The 1:4 Ratio
The fundamental economic advantage of autonomous equipment comes from the operator ratio.
Traditional Operation: 1 operator per machine. Ten excavators require ten operators.
Autonomous Operation: 1 operator supervises 3-4 machines. Ten autonomous excavators require 2-3 supervisors.
This 60%+ workforce reduction is the primary driver of ROI. Calculate your specific savings.
Annual Savings Example
For a 10-machine fleet with operators at $45/hour, 8 hours/day, 250 days/year:
- Traditional annual operator cost: ~$900,000
- Autonomous annual operator cost: ~$270,000 (3 supervisors)
- Annual operator savings: ~$630,000
At this savings rate, even significant retrofit investments pay back within a year.
Real-World Deployment: 400+ Projects
CHINOU's retrofit approach has been proven across 400+ projects, including:
- Naruse Dam: Japan's largest national dam construction project
- FDMA Firefighting: 6+ years deployed with fire departments across 10 prefectures
- Tsuchiya Corporation: Production construction operations
- MLIT Training: Government training programs
This isn't theoretical — it's production-scale deployment with documented results.
See detailed use cases and infrastructure deployments.
When Buying New Makes Sense
Despite the advantages of retrofit, there are situations where buying new autonomous equipment makes sense:
Brand New Fleet: If you're starting from scratch with no existing equipment, the retrofit vs. new equation changes.
Mining Operations: Mining applications have different requirements and some manufacturers offer mature mining-specific autonomy.
Manufacturer Requirements: Some customers may have contractual or procurement requirements specifying particular manufacturers.
Specific Feature Requirements: If a manufacturer offers unique features critical to your application.
However, for most rental companies and contractors with existing fleets, retrofit remains the economically superior choice.
Decision Framework
Consider these factors when choosing retrofit vs. replace:
Choose Retrofit When:
- You have an existing fleet of compatible equipment
- You operate multiple OEM brands
- You want fast deployment (weeks not months)
- Capital preservation is important
- You want flexibility to transfer/remove autonomy
- You need production-grade autonomy now
Consider New Equipment When:
- You're starting without existing equipment
- You have strong single-OEM relationships
- You can wait for extended procurement timelines
- Budget is unconstrained
Getting Started with Retrofit
The path to retrofit autonomy is straightforward:
1. Assessment
Evaluate your current fleet:
- Equipment brands and models
- Size class (6-ton to 50-ton excavators supported)
- Current utilization and operational patterns
2. Pilot Program
Start with 3-5 machines:
- 60-90 day evaluation
- Full training and support
- Measure actual ROI in your environment
3. Scale Decision
Based on pilot results:
- Expand to additional machines
- Standardize across fleet
- Continuous optimization
Request pilot information to start the conversation.
Conclusion: Retrofit Wins on Economics
For most construction companies, the retrofit approach to autonomous equipment is the clear economic winner:
- Lower capital cost: Preserve fleet investment
- Faster deployment: Weeks not months
- OEM flexibility: One platform across mixed fleets
- Proven technology: 400+ projects, 100+ machines
The question isn't whether autonomous equipment makes sense — the labor shortage makes that inevitable. The question is how to deploy it most effectively. For companies with existing fleets, retrofit is the answer.
Ready to explore retrofit autonomy? Calculate your ROI or request a pilot.