Defect Scanner Targets Korean Market with AI-Powered No-Code Product Defect Detection Solution
Defect Scanner, an AI-powered no-code product defect detection solution, is targeting the Korean market. The Indian startup, which was selected as an excellent startup team in the NIPA’s ‘K-Startup Grand Challenge 2022‘ and is being nurtured by BigBang Angels, is preparing to relocate its headquarters to Korea.
Defect Scanner’s technology is based on cloud-based open source hardware and has low price competitiveness. It also has generative AI technology that can be trained with just 10 photos. This allows it to find even small defects without error and helps prevent manufacturing defects from the early stages to the end. It can be easily installed and used even in manufacturing processes that require ultra-precision technology using AI cameras, and it is easy to use.
Defect Scanner plans to enter the Korean market, which is leading machine vision technology, and is prepared to relocate its headquarters to Korea. The company expects that its technology will be well-received in the Korean market, which has a large manufacturing base.
What problems are you trying to solve?
Defect Scanner, an innovative solution powered by No-Code Generative AI, is helping manufacturers to detect defects in their products efficiently. The cost of manufacturing defects can be significant, with more than one billion consumer products being recalled last year alone.
In the automotive industry, losses in the U.S. market alone exceeded 22 billion dollars. Defect Scanner is a promising solution that could help manufacturers avoid such losses by identifying defects early in the production process.
How are you trying to solve this problem?
Defect Scanner has developed an AI camera system that can be installed by manufacturing companies to aid in identifying defects in their products.
What are some of the competitive advantages that your company has over its competitors?
Defect Scanner boasts a competitive edge with their AI Camera, which is not only cloud-based and built on open-source hardware, but also highly affordable, costing only a tenth of their competitors’ solutions.
Unlike our competitors’ solutions, which require highly skilled programmers, Defect Scanner’s offering can be easily set up by anyone, regardless of their technical proficiency.
Thanks to their innovative Generative AI, Defect Scanner’s defect detection system can be trained with less than 10 images, as their technology creates numerous patterns of defects from a small dataset. In contrast, our competitors’ solutions require thousands of images to be marked for training the defect detection system.
What is your product?
Defect Scanner has successfully implemented pilot projects with some of the biggest names in the manufacturing industry worldwide. These include BMW Motorrad in India, Hyundai and KIA’s tier-1 suppliers in India, as well as Caterpillar, the world’s largest manufacturer of construction equipment.
What is the market size your products targeting? Who are key target customers?
Defect Scanner’s technology falls under the category of “machine vision,” which is widely used in the manufacturing industry to automate visual inspections, measurements, and analysis.
Various industries within manufacturing utilize machine vision, including the automotive industry, where it is used for quality control and inspection of parts and in the assembly process to ensure correct component placement.
The electronics industry also employs machine vision to inspect printed circuit boards, detect defects, and ensure the accuracy of component placement and alignment.
The packaging industry uses machine vision to inspect products for quality and accuracy of labeling and packaging. The pharmaceutical industry uses it to inspect and verify medication quality and accuracy, as well as to ensure regulatory compliance.
Lastly, machine vision is used in the food and beverage industry for quality control, inspection, and grading of products.
The market for machine vision technology is projected to reach $10.71 billion in 2023, with 50% of this growth occurring in the APAC region. The market growth rate is expected to accelerate at a CAGR of 13.76%. Defect Scanner targets these industries and markets with its innovative technology solutions.
Why did you enter the Korean market?
Defect Scanner has chosen to establish its headquarters in South Korea due to the fact that 50% of the market growth for machine vision technology is in the APAC region, with South Korea being located in the heart of it.
Moreover, South Korea has one of the world’s largest manufacturing industries, including companies such as Hyundai, KIA, Samsung, SK Hynix, LG, and more in various sectors like automotive, semiconductor & electronics, oil, gas, and energy, which are the ideal target clients for Defect Scanner.
Machine vision technology has wide-ranging applications across various industries in South Korea, and businesses that could benefit from automation, quality control, and data analytics are the prime target market for this technology. As a result, establishing a foothold in South Korea presents Defect Scanner with significant opportunities for growth and expansion in the APAC region.
What is your business model?
Defect Scanner operates on a subscription model with a one time cost of hardware for the AI Camera and a yearly subscription fee
Can you tell me about some of the significant milestones?
In South Korea, we have achieved significant milestones, notably signing agreements with two prominent global companies. Firstly, we partnered with Continental, the fourth largest auto-component manufacturer in the world, to launch a project aimed at inspecting their manufactured parts for defects. This partnership marks a significant step in our commitment to quality control and customer satisfaction.
Additionally, we are proud to have Caterpillar, the world’s largest manufacturer of construction equipment, as our valued customer. Our Defect Scanner will be utilized to scan Caterpillar’s vehicles for any potential defects, which will further enhance their already renowned reputation for producing high-quality products.
What’s Your team’s competitive advantages?
The Defect Scanner team is composed of highly skilled individuals with diverse technical and business backgrounds in the manufacturing industry.
Tejesh Sudheer, the CEO, boasts over a decade of experience in the computer vision/AI domain, specifically within the manufacturing industry. With this expertise, Tejesh understands that cost is a critical factor preventing the adoption of AI-based defect detection systems by over 10 million factories worldwide.
Subicsha Velumani, our Business Head, previously led business teams at Google and is now responsible for identifying new business opportunities, cultivating relationships with potential customers and partners, and developing marketing and sales strategies.
Pratik Agrawal, our Computer Vision Engineer, hails from a top engineering institute in India and is responsible for designing and implementing computer vision models that enable our machine vision technology to analyze and interpret images and videos.
Jo Bomsun, our Korean Head of UI & Software, is responsible for adapting our product to meet the unique needs and preferences of South Korean customers. This includes localizing our user interface, documentation, and customer support to ensure an optimal user experience in the South Korean market.
What do you need the most to enter the Korean market?
One of our main objectives is to establish local partnerships in South Korea to expand our reach, gain market knowledge, and access vital distribution channels. We are seeking partners who possess relevant industry expertise and can offer valuable resources and connections to support our growth.
In addition to forging local partnerships, we are keen to leverage the various programs and incentives offered by the South Korean government to support foreign startups. We are particularly interested in participating in government-led initiatives such as accelerator programs or innovation contests that will help us to acquire new customers and establish a strong foothold in the market.
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