The Emergence of the Commercial Drone Industry

July 9, 2021
5:32 am

Introduction

Drones are reinventing industries and creating new prospects in business. In 2016, the Federal Aviation Administration (FAA) released regulations related to the usage of commercial drones that clarified the legal landscape for businesses and workers. In South Africa the Minister of Transport signed the Eight amendment of the Civil Aviation Regulations, 2011. The amendment which contains Part 101: Remotely Piloted Aircraft Systems came into operation on the 1st of July 2015. Since then, the industrial applications of commercial drones have significantly increased. Drones have emerged as versatile tools. They are transforming business operations world wide.

The 501.4 billion USD global commercial drone market is anticipated to register a CAGR of 57.5% from 2021 to 2028. A CAGR is the compound annual growth rate. This is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s life span.

The rising demand for commercial drones can be attributed to the growing application base across a wide range of end-use verticals, including real estate and construction, media and entertainment, and agriculture.

In terms of economic impact Goldman Sachs predicts a $100 billion market for drones between 2016 and 2020, with the military making up the bulk of it with $70 billion spending.

As the drone industry grows from strength to strength you might want the answers to where do drones come from and what can drones do.

Where Drones Come from

There is an interesting online debate revolving around the origin of drones with the first basic concept of drones being considered by military technologists as to have began more than 170 years ago. In 1849 in Venice Italy whilst fighting for its independence against Austria, Austrian soldiers attacked Venice with hot-air, hydrogen- or helium-filled balloons equipped with bombs.

In this attack Austria launched around 200 incendiary balloons over the city. Each of the balloons carried a cargo of between 11 to 14 kg of bombs. Once in position, these bombs were dropped but luckily for the Venetians only one bomb successfully went off. Most of the balloons were blown off-course due to a sudden change in wind direction.

In contrast the first ‘generally’ used drone appears 86 years later in 1935 as a full-size retooling of the de Havilland DH82B “Queen Bee” biplane. It was fitted with a radio and servo-operated controls in the back seat. The plane could be conventionally piloted from the front seat, but generally it flew unmanned and was shot at by artillery gunners in training. The term drone dates to this initial use, a play on the “Queen Bee” nomenclature.

What Can Drones Do

Although originally built for military purposes, drone operations have seen rapid advancements in developing in commercial industries.

These roles range from search and rescue operations, surveillance, traffic monitoring, weather monitoring and fire-fighting, to personal drones and business drone-based photography, as well as videography, agriculture and even delivery services. They have assisted in dealing with illegal poachers and more.

"A drone, in technological terms, is an unmanned aircraft. ... Essentially, a drone is a flying robot that can be remotely controlled or fly autonomously through software-controlled flight plans in their embedded systems, working in conjunction with onboard sensors and GPS."

Alan R. Earls, Boston-based freelance writer focused on business and technology

Drones can be equipped with a number of sensors, including distance sensors (ultrasonic, laser, lidar), time-of-flight sensors, chemical sensors, and stabilization and orientation sensors, among others. Visual sensors offer still or video data, with RGB sensors collecting standard visual red, green and blue wavelengths, and multispectral sensors collecting visible and non-visible wavelengths, such as infrared and ultraviolet.

To achieve flight, drones consist of a power source, such as battery or fuel, rotors, propellers and a frame. The frame of a drone is typically made of lightweight, composite materials, to reduce weight and increase maneuverability during flight.

Drones require a controller, which is used remotely by an operator to launch, navigate and land it. Controllers communicate with the drone using radio waves, including Wi-Fi.

Some drones employ obstacle detection and collision avoidance sensors. Initially, the sensors were designed to detect objects in front of the drove. Some drones now provide obstacle detection in all six directions: front, back, below, above and side to side.

Some of the key highlights projected for Drones in the Global Commercial Drone Market Report 2021 include:

Drones have the ability to perform increasingly complex tasks which will stand to improve with advancements in technologies such as collision avoidance and autonomy.

Commercial drones are anticipated to become a potential alternative for the logistics activities of companies, helping them increase their competitive advantage.

Drones are widely being used to inspect power plants, oil and gas, and other industrial sites to ensure proper operations and safeguard these sites.

Newer drone-supportive regulations are expected to lower the entry barriers for startups providing commercial operations of drones.

The advent of drones is set to transform the media industry as it allows the journalism sector to cover news in areas where human entry is prohibited

“This year more than ever we see drones viewed by the public as more of a “tool in the toolbox” than a novel piece of tech. This is a good thing! Next year we’ll see more companies that ever decide to take this new tool and scale. What’s going away is the notion that drones are too ‘cutting edge’ to be used by everyone.”

Jeremiah Johnson, Imagery Solutions Architect

The Future

The pandemic has exposed the inefficiencies and limitations of labour heavy systems, the spotlight has been firmly placed on autonomous systems and their ability to drastically improve the way we deliver goods, inspect critical infrastructure, and maintain public safety.

There are varied projections for drone industry in 2021 as the world recovers from the unprecedented global pandemic.

“COVID may have an end in sight thanks to vaccines, but the lessons and values realized by critical infrastructure companies operating drones during the pandemic only pave the way for more adoption of drones in the future.”

Cynthia Huang, VP of Enterprise Business Development, Auterion

As technology develops allowing for more customization of commercial drones, the door will continue to open to new possibilities and functions.

Business Insider expects global shipments of drones to rise to 2.4 million dollars by 2023 which is a 66.8% compound annual growth rate. “Drone growth will occur across the four main segments of the enterprise industry: Agriculture, construction and mining, insurance, and media and telecommunications,” told Business Insider.

Drone use in construction and mining could eventually become a $28.3 billion global market, according to Drone Powered Solutions. Businesses within these industries are leveraging drones to more easily adhere to the extensive laws and regulations surrounding worker safety.

Many countries have laws requiring construction companies to survey their sites on a regular basis to ensure the safety of their employees. These processes across fields can take hours up to days but with drone technology inspections can be completed in hours or less..