Posts tagged "drone industry"

We just released the results of our third annual drone industry benchmark survey and it’s a kicker.

The 2018 Drone Market Sector Report examines worldwide drone sales, service providers, business and public agency users, and software services. This independent research, which is sponsored by DJI, DroneDeploy, DroneInsurance.com, and Trimble, finds a growing demand for businesses to use drone-acquired data in their day-to-day operations as well as other fresh insights on major drone industry segments.

Research

Our online market survey garnered over 2,500 respondents representing over 60 industries worldwide. Our analysis yields 10 key insights that summarize the current state of the industry, plus detailed analysis of drone adoption by businesses and enterprises.

Report

The 107-page report presents the results and analyses from each survey question. It’s organized to match our survey, with four sections that correspond to the four major segments of the drone industry:

  1. Drone aircraft and payloads purchased
  2. Service providers that offer drone-based imaging or sensing services for outside hire or sale
  3. Businesses and public agencies with drone programs
  4. Software apps or online services for drone operations and imaging

The report features more than 60 helpful figures and tables and offering insight and analysis on:

  • Who’s buying what types of drones from which makers at what prices and for what uses.
  • How large the drone-based service providers are, and how they position themselves to their target industries.
  • Who the business users of drone-based projects are, and which industries have traction.
  • How much service providers, business users, and public agencies are using flight management, mission planning, and image processing software for drone-based projects.

Findings

Among the more interesting findings are that commercial drone fleet sizes are smaller than most people think. If you believe the hyperbole, there are hundreds of thousands of drones in the airspace at the same time, but the survey finds that the average commercial user has just two drones that are only flying two projects a month and most of those flights consume less than flight three hours.

There are many other insights in the report, but these three are especially worth highlighting:

  • Professional use of drones is growing. We find that almost three-quarters of all drones weighing over 250 grams are purchased for professional purposes—either governmental or business. This is up from last year.
  • DJI continues to dominate the market and has made gains this year in every category from drone aircraft at all price ranges, to add-on payloads, to software. Survey data shows DJI is still the dominant brand for drone aircraft purchases, with a 74% global market share in sales across all price points.
  • Most businesses and public agencies are new to drones, have small programs, and perform their own services. The survey finds that nearly three-quarters of businesses or public agencies have only had a drone program in place for two or fewer years.

How to get it

You can download a complete prospectus or purchase the report here: http://droneanalyst.com/research/research-studies/2018-drone-market-sector-report-purchase

Image credit: Skylogic Research

We just announced the launch of our third annual Drone Market Sector Research survey, which promises to be our most comprehensive study of drone market trends and usage to date. The online portion of this research seeks to get information about who is buying and using small unmanned aircraft systems—otherwise known as drones. It improves upon the 2017 research by, among other things:

  • Asking more specific questions about flight operations and flight times
  • Investigating the adoption and maturity of enterprise and/or public agency drone programs
  • Diving into how users geo-reference images for maps

Take the brief 10-minute survey here: https://www.surveymonkey.com/r/2018_drone_market

As an incentive for participation in the survey, there will be an opportunity to:

  • Receive a free summary report of the research results, a $95 value
  • Enter to win a free DJI Spark mini-drone package (a $425 value) or one of two $100 VISA gift cards.

What’s new?

This year’s research is designed to uncover fresh insights on which drone industry sectors are thriving (and which aren’t) and how businesses are using drone-acquired data in their day-to-day operations. Skylogic Research hopes the survey results will fill a gap in knowledge and understanding of the commercial drone industry around:

  • Actual drone and drone data usage (most reports forecast use but don’t survey actual users)
  • How and why operators and users are deploying drones now and how/why they plan to grow their use in the future
  • Baseline statistics for market share among the brands as well as information about the size of service providers, enterprises, and businesses that have drone programs

The online portion of this year’s research seeks to get information about who is buying and using small unmanned aircraft systems. This independent study is being supported by DJI, DroneDeploy, DroneInsurance.com, and Trimble.

The survey will explore:

  • Who’s buying what types of drones from which makers at which prices and for what uses?
  • How large are drone-based service providers, and how and where are they positioning themselves to whom and which target industries?
  • What most concerns businesses that perform drone-based projects and why?
  • How much are service providers, business buyers, and public agencies using flight management and data analytic software for image-based projects?

Our previous studies have found that more consumer drones are being used for professional use than ever before, the U.S. market is flooded with service providers and remote pilots but very few make enough money to sustain a full-time venture, and film / photo / video dominates both the hobby and professional uses of drones. This year’s study will continue to challenge these insights and explore further the sustainability of drone service providers.

Who should take the survey?

  • Individuals or organizations who have purchased a drone in the past 12 months for any reason
  • Commercial drone service providers
  • Businesses, enterprises, and public agencies that perform drone-based operations

Why this study?

We believe the consumer and commercial drone market needs this annual benchmark study. There is a lack of objective information on the drone industry. We find an absence of credible market-based research and little understanding of the difference between large industry forecasts and actual buyer adoption rates. This study will clarify much of that.

When complete, the research study will provide a complete view of topics like:

  • Critical industry drivers
  • Vendor and service provider market share
  • Business and public agency adoption trends and issues

The survey will be open for four weeks, and results will be available in September.

Image: Shutterstock and Skylogic Research

Increasing numbers of companies are becoming active in the drone sector. The last few years have seen the development of a real market that provides a diverse range of platforms with specific applications. And the sector is constantly becoming more professional. While projects initially focused primarily on the film and photographic sectors, applications are increasingly making inroads into the particular technologies. The trend of the last few years is clear – a constantly growing number of companies have established themselves in the drone market as manufacturers or professional users. Other companies are continually entering the sector and becoming active as manufacturers of hardware and software solutions, for example, or as professional users with drone services.

The market offering encompasses the manufacture (of hardware and software) and use of drones as an efficient tool for specific applications, end-to-end solutions, and services such as drone-as-a-service. These all harness the multitude of possibilities offered by drone technology to generate genuine added economic value for customers. Surveying and building inspections, for example, can thus be performed quickly, easily and cost-effectively, because scaffolding, building climbers and the intensive deployment of personnel on site for days on end are no longer required, unlike in conventional processes. The density of the data captured is also far greater, while the outlay is lower overall. What’s more, drones can now do all this in a much shorter timeframe.

However, the market still has huge potential. Now, this doesn’t so much apply to the drone platform itself but rather the growing application options made possible by larger loads and longer flying times. As a result, for instance, more sensors can be used on drones, gathering even more data and even more precise data.

Many potential customers who could use drone technologies to make their workflows much more efficient still have no precise idea about the wide range of possibilities offered by the drone market for the actual working environment.

“There is a strong trend towards growth and professionalism.”

However, there are also challenges. The regulatory framework still does not reflect what has long been technologically possible using drones. Among other things, flying out of sight is not permitted. Companies are often put off by the complex ordering procedures. Orders where drones are to be used at very short notice often fail due to the weeks taken to process applications for flight permits from the relevant authority. Nevertheless, within the means available, the sector is implementing an increasing number of projects in which drones play a key role.

Yet the image of drones among the general public often differs. Apart from being perceived as a toy, they often only make the headlines as a threat to air traffic or as a pizza delivery service. But the reality of professional drone use is completely different and occurs mostly beyond the public gaze. A recent industry survey gives an insight into the commercial market for unmanned flights: The industry barometer was carried out using the ‘explori’ survey platform on behalf of INTERAERIAL SOLUTIONS and sheds real light on the drone market and the issues of those involved. It highlights challenges but also a very clear trend towards growth and professionalization.

The survey in the first quarter of 2018 canvassed 350 companies, 43% of which are commercial drone users and 38% drone manufacturers. The remaining 19% are universities, research institutes, students, developers, manufacturers of accessories or lawyers. […]

Learn more and read all statistics in the paper.

This report provides insights on a very high level. If you need deeper insights into the economics of drone operation, technical, regulatory advisory, please contact us at info@droneii.com

Learn more

The drone industry is one that is currently booming. As the technology in drones becomes more and more advanced, as well as more accessible, many people and businesses are starting to invest in their services for all manner of reasons.

However, since the industry continues to pick up the pace, standing out in the crowd becomes more and more difficult, so you’ll need to start thinking about how you market your business.

Whether you’re in the video or photography side of the drone business, here are seven essential steps you need to know about marketing your drone business.

#1 – Formulate a Strategy

Once your website is set up, in addition to social media pages, it’s time to start getting organised and thinking about the future. This means setting up a content marketing strategy. This doesn’t have to be as complicated as it may first sound, it’s simply planning what content you’re going to upload and when.

You’ll also want to think about the promotional channels you’re going to use. You could post on social media, use PPC campaigns and even banner advertising and guest posting on relevant blogs. Think about your word count for each channel, which you can track using tools like Easy Word Count and the audience that you’re appealing to on each channel.

#2 – Get a Website

As a drone business, the chances are that you’ve already set up an Instagram page, or another social media website, to host the photos and content you capture on your drones. This is renowned for being one of the best ways to market your business.

However, social media is renowned for not having a very high conversion rate, which is why you need to think about getting a website. It doesn’t matter where this website is; you need a base camp for interested customers to come and visit to get more information about you.

If you’re struggling for ideas, start by looking into WordPress. You can then source content for your website by using copywriting services like Ukwritings or Assignment help.

#3 – Set Up Your Systems

Since you’re running a drone company, you’ll already be aware of the fact that there are a lot of systems you’ll need to manage. In addition to managing the actual drone equipment, you’ll be thinking about scheduling plans, delivery, payment and invoicing systems, flying times and regulations in your area and the law.

“Make sure that you take the time to familiarise yourself with every aspect of your business and get everything working seamlessly so you can focus on giving your all to your customers” – explains Carolyn Simon, a Marketing Consultant at Revieweal.

#4 – Researching Your Target Market

You’re not going to be able to effectively generate sales unless you know who your target audience is. This means researching who your best customers are, what demographics they fit and then catering your content to this market.

#5 – Create Original Content

The internet is overflowing with content, even more so when it comes to drone photography since anybody can buy one. Make sure when you’re in your content creation stage that your photos, videos and your written blog content are 100% original and relevant to your business.

It can be easy to try and emulate another business that’s successful, but it’s important that you take the time to find your own footing and your own style of branding, i.e. tone of voice and content structure. If you’re writing your own content, you can improve your skills using writing guides like State of Writing and generate captivating headlines with generators like Essayroo.

#6 – Provide the Best Experience

When it comes to modern-day businesses, the aim is to give your customers the best experience. If you don’t, they’ll simply take their business to a competitor. Think about every design element, every word and every image that you use to ensure that your customer has everything they need to make a purchase.

When it comes to your content, you’ll need to make sure that you’re checking it over and over again to ensure it’s the highest-quality, free from errors and mistakes for the highest level of readability. If you need help with this process, you can use proofreading and editing tools like Boomessays, as recommended by the HuffingtonPost, or Grammarix.

#7 – Adding Social Proof

The majority of customers are going to want to see the opinion of other buyers first, typically in the form of a review of a testimonial. When marketing your business, you need to make sure you’re including these reviews within your content, allowing a potential lead to judge the kind of business you’re providing.

If a customer goes to your website, or you upload a case-study blog about a customer’s experience, this is usually all the convincing they are going to need. You can add these reviews to your website and content using referencing tools like Cite It In.

Conclusion

As you can see, there are many things you can consider when it comes to marketing your drone business. Take the time to look into the details of each section of your marketing process, and you can be sure that your business will be a success.

The drone industry is one that is currently booming. As the technology in drones becomes more and more advanced, as well as more accessible, many people and businesses are starting to invest in their services for all manner of reasons.

However, since the industry continues to pick up the pace, standing out in the crowd becomes more and more difficult, so you’ll need to start thinking about how you market your business.

Whether you’re in the video or photography side of the drone business, here are seven essential steps you need to know about marketing your drone business.

#1 – Formulate a Strategy

Once your website is set up, in addition to social media pages, it’s time to start getting organised and thinking about the future. This means setting up a content marketing strategy. This doesn’t have to be as complicated as it may first sound, it’s simply planning what content you’re going to upload and when.

You’ll also want to think about the promotional channels you’re going to use. You could post on social media, use PPC campaigns and even banner advertising and guest posting on relevant blogs. Think about your word count for each channel, which you can track using tools like Easy Word Count and the audience that you’re appealing to on each channel.

#2 – Get a Website

As a drone business, the chances are that you’ve already set up an Instagram page, or another social media website, to host the photos and content you capture on your drones. This is renowned for being one of the best ways to market your business.

However, social media is renowned for not having a very high conversion rate, which is why you need to think about getting a website. It doesn’t matter where this website is; you need a base camp for interested customers to come and visit to get more information about you.

If you’re struggling for ideas, start by looking into WordPress. You can then source content for your website by using copywriting services like Ukwritings or Assignment help.

#3 – Set Up Your Systems

Since you’re running a drone company, you’ll already be aware of the fact that there are a lot of systems you’ll need to manage. In addition to managing the actual drone equipment, you’ll be thinking about scheduling plans, delivery, payment and invoicing systems, flying times and regulations in your area and the law.

“Make sure that you take the time to familiarise yourself with every aspect of your business and get everything working seamlessly so you can focus on giving your all to your customers” – explains Carolyn Simon, a Marketing Consultant at Revieweal.

#4 – Researching Your Target Market

You’re not going to be able to effectively generate sales unless you know who your target audience is. This means researching who your best customers are, what demographics they fit and then catering your content to this market.

#5 – Create Original Content

The internet is overflowing with content, even more so when it comes to drone photography since anybody can buy one. Make sure when you’re in your content creation stage that your photos, videos and your written blog content are 100% original and relevant to your business.

It can be easy to try and emulate another business that’s successful, but it’s important that you take the time to find your own footing and your own style of branding, i.e. tone of voice and content structure. If you’re writing your own content, you can improve your skills using writing guides like State of Writing and generate captivating headlines with generators like Essayroo.

#6 – Provide the Best Experience

When it comes to modern-day businesses, the aim is to give your customers the best experience. If you don’t, they’ll simply take their business to a competitor. Think about every design element, every word and every image that you use to ensure that your customer has everything they need to make a purchase.

When it comes to your content, you’ll need to make sure that you’re checking it over and over again to ensure it’s the highest-quality, free from errors and mistakes for the highest level of readability. If you need help with this process, you can use proofreading and editing tools like Boomessays, as recommended by the HuffingtonPost, or Grammarix.

#7 – Adding Social Proof

The majority of customers are going to want to see the opinion of other buyers first, typically in the form of a review of a testimonial. When marketing your business, you need to make sure you’re including these reviews within your content, allowing a potential lead to judge the kind of business you’re providing.

If a customer goes to your website, or you upload a case-study blog about a customer’s experience, this is usually all the convincing they are going to need. You can add these reviews to your website and content using referencing tools like Cite It In.

Conclusion

As you can see, there are many things you can consider when it comes to marketing your drone business. Take the time to look into the details of each section of your marketing process, and you can be sure that your business will be a success.

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The changes and developments we saw throughout the drone industry in 2017 were incredible and deserve a proper examination. For the most part, the hype that drove so much misunderstanding and frustration in this space is gone,and that’s a good thing. While the kind of hype we’ve seen associated with UAVs can create needed attention, it can also lead to irrational behavior and impossible expectations. Now that we can get a better sense of when drones will be able to reach the “plateau of productivity” from the Gartner Hype Cycle, we can finally talk about the organizations and uses of this technology that will truly drive and define the drone industry.

How does our Drone Ecosystem Map help define what these developments look like in 2018 and beyond though? First, it provides a great overview of the most active and relevant players in the drone industry in their category and sub-category. We limited the Map to 1,000 players so you can focus on the companies and people that are set to have the biggest impact on the drone market. The Map is not totally comprehensive, and it’s not supposed to be. The focus is on the diversity and reach of this drone ecosystem.

The second way it can help is directly related to the first, since the Map can help you uncover niches and players you might not otherwise come across in this vivid market. Since we’re not trying to provide you with an all-encompassing look at the drone industry as a whole, you can use the Map to find technology and organizations that can make for ideal partners. We’ve heard from countless people who got in touch to say they used the previous version of this Map to locate strategic partners. This is a resource that has led to a great deal of investment for people on every side of the drone industry. Transparency can and does drive decisions in this space, and that’s why we want to share our knowledge with anyone who is or will be making a decision about drone technology.

If we look at the drone industry as a whole in 2017, we can see a clear movement towards investment in software. Many companies realized that it’s not the drones themselves that provide value for users, but instead it’s the data they’re gathering. This is part of the reason we’ve seen such a dramatic increase in strategic partnerships. Stand-alone drone hardware is not what commercial customers are looking for when considering drone technology. Many of the players in the drone industry realized that creating a complete solution was the best approach, and that desire drove many of these strategic partnerships.

If you compare the 2016 and 2018 Maps, you can see some interesting trends that have and continue to permeate the drone industry. 10% of the companies listed (711 total entries) in the 2016 map are gone. 360 new entries were added, which is indicative of the strong movement that we’re seeing in almost every sector. It’s impossible to stay on top of all these movements though, as major changes like GoPro moving away from the drone business took place in the first couple weeks of 2018. We’ll see more headlines like these throughout the year, as this market continues to be defined before our eyes. Now let’s take a closer look at the most important developments in the drone industry:

Platform Manufacturers:

  • A great deal of consolidation is happening, and that’s something you can see with the mergers, acquisitions, drop-outs and focus changes. 3DR, PrecisionHawk, and Agribotix have moved away from hardware and are now mostly or wholly focused on software. Much of this has been triggered by the market superiority of DJI. 3DR officially noted that competitive pricing was a key reason for their $100m failure in hardware.
  • There’s a trend toward strong specialization in specific industries and with custom configurations. Agriculture, delivery systems, safety & security are some of the bigger industries that are seeing this development of specialization. That’s being augmented by specialized configurations, which have also created new niches and provided unique selling points. These configurations include fixed-wing, VTOL fixed-wing and lighter-than-air.
  • The AAT’s (Autonomous Air Taxis – also called flying-cars or e-VTOLs) sector has come on in a big way, and there’s a lot of funding in this space. Big companies seem to grab the best pieces before it’s too late, which is something you can see with developments like Terrafugia being acquired by Volvo-owner Geely, and Aurora Flight Sciences being acquired by Boeing. We’re also seeing some pivoting happening in this sector, as companies like Ehang have changed their strategy to move away from recreational drones to AAT’s.
  • In the consumer/recreational market, drone racing events and selfie drones continue to define the space. Many have had to fight to stay relevant here, as Parrot’s struggles in the space directly led to the transition of Bebop for commercial purposes, Lily’s failure allowed the Mota Group to acquire the product and DreamQii had to issue refunds on account of their PlexiDrone.

Software:

  • Powerful pieces of inspection software have been developed which utilize pattern recognition for asset management. The industrial needs to integrate AI & Deep Learning algorithms will allow these programs to automate inspection processes even more, and in turn, provide more value.
  • Many strategic software partnerships have been formed to provide end-to-end solutions because many organizations have recognized that providing one piece of the puzzle is not enough.
  • API’s and approaches that allow drone data to be integrated into existing processes quickly become a requirement. Opening channels (API) and tools that integrate drones into established processes came on in a big way in 2017, and that development will become even more distinct in 2018.
  • Aerial Data Providers such as Airbus Aerial and Intel Insights have taken the concept of aerial acquired data to a new level. Providing a virtual data platform for satellite, plane and drone data unshackles them from drone operation and the corresponding risk.
  • The UTM has unlocked many national and international partnerships, and we’ve started to see the results of these developments. Skyward and Airmap have become the first organization to be able to provide LAANC accreditation.

Service:

  • There’s a lot of talk about drone logistics services, but we’ve finally seen an impact that has gone beyond marketing. Matternet and Zipline are just two of the companies that are frequently flying medical deliveries in Europe and Africa. Drone-based warehousing solutions are also on the rise.
  • Drone show providers have showcased an entirely new application for the technology. Intel’s’ halftime-show and many other drone swarms have ushered in a new era of outdoor and indoor entertainment.
  • System integrations that are being provided and created have taken on critical importance. More tailor-made solutions are required by various industries, and that means more providers are working to alter standard configurations to meet industry-specific needs
  • Drone accelerators programs have uncovered the potential of the extremely quick-moving drone companies. They’ve jumped started new companies, and more of that will happen in 2018.
  • Organizations that provide Drones as a Service (DaaS) have matured to the point that providers have proven they can contract big business. This service has also been augmented by certain jobs whose complexity has been reduced, meaning that the DaaS model can allow savings to stay in-house.

Counter-UAS:

  • This is a new market in the civil world that’s rapidly growing with big funding and large international partnerships
  • Pure CUAS conferences and expos have been created to explain threats and opportunities
  • There are limitations for physical and non-physical systems that include jammer restrictions (federal network agency) and problems for health in public spaces (e.g. pacemakers).

Components and Systems:

  • High priced equipment and flights in populated areas call for rigorous safety measures, which is why there’s been a proliferation of launch & recovery They provide more awareness and available solutions for operational security.
  • Brand new drone propulsion methods have been developed, and they’re as essential as they are powerful. Hybrid systems(battery/fuel cell, gas/battery) allow long endurance/range by optimizing mission requirements for hardware.
  • Cameras are now being used for indoor navigation while FLIR cameras almost sold out due to high demand from industry.
  • Encrypted data links are getting very popular since the standard drone-to-ground communication is quite vulnerable. Data & communication logistics and details will continue to be a top priority.
  • Drone ground stations, aka “drone box” solutions, have been labeled by some as complete solutions since they offer a roof over your drone and the ability to wirelessly charge/exchange batteries before the drone takes off on a new pre-programmed flight.

Drop-outs/Struggle:

  • Crowdfunding does not seem to work, as we saw a lot of failures and bankruptcies. Those include Bionic Bird, Micro Drone, FlyPro, Lily, Onagofly and Globe Drone, among others.
  • Many supplier/retailer vanished due to hard competition and not yet high demand, especially in Europe.
  • Yuneec laid off 70% of its U.S. staff in March of 2017 and introduced a new CEO. Parrot announced in January 2017 that it was going to reduce its drone team from 840 employees to 290 people, which represents a reduction by about 66%. Autel also laid off employees in February 2017, while GoPro just announced they were entirely shutting down their drone division and laying off more than 200 employees. All of these developments are an indication of how untenable the aerial market is, and that’s mostly due to the dominance of DJI.
  • While niches like drone racing and selfie-drones seem to work well for many startups, there’s a simple fact that’s impossible to get around: building hobby drones is hard. It’s going to get even more competitive now that DJI has announced ‘Tello’ – a $99 selfie drone designed by Ryze Tech.

Takeaways

  • Machine learning for drone navigation and data analytics is driving numerous developments.
  • The degree of automation and adoption of drone technology will further increase.
  • Conglomerates will directly address the drone market. In the past startups, came up with niche solutions and sometimes were happy to partner with a big industry player, which is something that happened with Airware and Caterpillar. Now though, big companies like Komatsu & NVIDIA are partnering to bring solutions with a bigger scope to the market. Those are partnerships designed to sort out logistics related to topics like AI. It begs to question of whether we’ll see companies like IBM and Hitachi or Qualcomm and Mitsui form the next major partnership that will have a direct and indirect impact on the drone industry.
  • There is a lot happening under the radar in China, especially in agriculture and delivery.

All of these developments are indicative of how and why 2018 is going to be so exciting. The drone industry as a whole will undoubtedly go through some exhilarating highs and discouraging lows. We’ll see solutions that are going to become mature and easier to integrate into existing workflows as well as new capabilities that will enable uses few have even considered. The Drone Ecosystem Map will be a critical resource you’ll be able to refer to and utilize throughout this process. To learn more about the players, their capabilities and their role in the market feel free to contact us. To learn more about the companies listed on the map, check out our services.

No matter if overhyped or not, a well-educated market is a stable market. That’s the kind of market we can all contribute to and want to be part of.

Have a great and successful year 2018!

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Previous articleExpert Roundup: How to get started with drone videography and photography

DUBLIN–(BUSINESS WIRE)–The “Global Commercial Purpose Drone Market Insights, Opportunity Analysis, Market Shares and Forecast, 2017 – 2023” report has been added to Research and Markets’ offering.

A commercial drone is an aerial vehicle, does not carry a human operator. It uses aerodynamic forces to lift the vehicle and can fly autonomously and is controlled by remote. The global commercial purpose drone market is expected to grow with a CAGR of about 55% during the forecast period of 2016-2023.

The applications of commercial purpose drone include product delivery, rescue operations, high altitude mapping along with inspections, agriculture, security, search and land surveying. These applications are surging the growth of global commercial purpose drone market during the forecast period. However, increasing privacy concerns among consumers and lack of regulatory framework are the factors restraining the growth of the global commercial purpose drone market during the forecast period.

Geographically, North America held major share for commercial purpose drone market, in terms of revenue in 2016. The region is expected to dominate the market during the forecast period. The market is widely experiencing growth rate in the region because of increasing usage of commercial purpose drones in precision agriculture, irrigation equipment monitoring and cattle monitoring applications. Moreover, Asia Pacific is considered to be the fastest growing region during the forecast period in the field of commercial purpose drone market due to technological advancements such as Internet of Things in the region.

Companies Mentioned

  • Aeryon Labs Inc. (Canada)
  • Ascending Technologies Gmbh (Germany)
  • Aurora Flight (U.S.)
  • Bae Systems (U.K.)
  • Denel Soc Ltd. (South Africa)
  • Dji Innovations (China)
  • Elbit Systems Ltd. (Israel)
  • Flir Systems Inc. (U.S.)
  • General Dynamics Corporation (U.S.)
  • Kespry Inc. (U.S.)
  • Lockheed Martin Corporation (U.S.)
  • Mavinci Gmbh (Germany)
  • Microdrones Gmbh (Germany)
  • Northrop Grumman Corporation (U.S.)
  • Parrot S.A. (France)

Key Topics Covered:

1. Introduction

2. Market Overview

3. Market Determinants

4. Market Segmentation

5. Competitive Landscape

6. Geographical Analysis

7. Company Profiles

For more information about this report visit https://www.researchandmarkets.com/research/ztm5d7/global_commercial

The last year in the drone industry moved at incredible pace – especially when it comes to strategic partnerships. We frequently provided updates about partnerships in the past. Now, why is this so important? Drone companies (hardware and software manufacturers, and service providers) are constantly expanding their product/service portfolio and interdisciplinary expertise. This is extremely interesting because it unveils the company’s strategic alignment.

Looking at the last year, the number of strategic partnerships increased by 24% (42 to 55) compared to the same period of the previous year which shows the increasing maturity of the industry. Furthermore, the elements changed: partnerships with software companies (2016: 20% -> 2017: 33%) and services (2016: 29% -> 2017: 31%) increased. The role of hardware is still very important (2016: 51% -> 2017: 36%), but the industry understood that it cannot stand alone anymore – customers look for easy-to-use end-to-end solutions and this involves software and service.

What happened so far

There are very active players like DJI, Intel, Parrot, DroneDeploy, Airware, Airmap and 3DR in the drone industry tirelessly building their individual end-to-end ecosystem. Strategic partnerships, however, are not just there to build a solution but also to detain key-players from competitors. So far it seems there are plenty of fish in the sea but the fight for key-technologies and key-players has already begun some time ago.

Hardware + Hardware

To continuously enlarge the product portfolio and product abilities, HW+HW partnerships are a good way to complete a solution. Yet, these kinds of partnerships are still the minority. Again, this indicates the already high maturity level of the drone technology.

  • Microdrones and Delair-Tech partnered to combine R&D strengths, allowing Delair-Tech and Microdrones to collaborate on “the second generation of commercial UAVs”.
  • UMS Skeldar and Sentient Vision Systems announced an agreement to provide the ViDAR (Visual Identification Detection and Ranging) system for USM Skeldar’s unmanned systems at the Paris Airshow.
  • Dedrone and Battelle will explore ways to create an end-to-end solution (detect and defeat drones) to provide complete airspace security for sensitive infrastructures.

Hardware + Software

The strategic HW+SW coalitions represent the biggest block in the overall comparison, exemplifying the rising value of data driven end-to-end solutions. Hardware manufacturers are currently under extreme pressure and software partnerships are the biggest opportunity to reach the actual clients’ needs: actionable data.

  • Flyability and SkyFutures have partnered up to launch a fully integrated solution for drone-based industrial inspection, merging the critical infrastructure platform (Elios) with inspection software.
  • DroneDeploy and Aeryon Labs teamed up to enable operators capturing imagery using the Aeryon SkyRanger UAV and process it into maps and 3D models on the DroneDeploy platform.
  • 3DR and DJI announced that 3DR’s “Site Scan” software will now work on DJI drones, starting with the Phantom 4 and eventually expanding from there to support other drones in DJI’s product line.

Hardware + Service

HW+SV is a strong combination and often used as an additional sales channel, or to offer a true end-to-end solution. Drone acquired data must be translated into actions. So why not add value through a partner experienced in data uploads to machinery? The following are a few examples of this strategic partnership:

  • John Deere will offer their customers the Kespry aerial intelligence systems. The deal could prove a boon for sales of Kespry’s drones and data analytics software. It could help John Deere tap into new, high-tech means of generating sales and profits in construction and forestry.
  • Flyability’s and MFE Rentals’ partnership enables the Swiss-based drone manufacturer to accelerate the use of the Elios in North America.
  • Freedom Class and SME360 partnered to manage and promote the newly sanctioned FAI Freedom Class and Freedom 500 Drone Racing series globally.

Software + Software

There are a lot of industry-specific software solutions available today. Yet, these niche products need extensions, exposure, and multifunctionality to successfully make their way into industrial applications. Strategic SW+SW partnerships provide a tremendous competitive advantage. Remember: software eats the word!

  • DroneDeploy and Skyward: the two companies will collaborate on an integrated approach that relieves compliance pain and streamlines overall drone operations.
  • PrecisionHawk and AkitaBox partnered to capture data and automatically generate a 3D point cloud, 2D orthographic views, and 3D mesh data models that can be fed into AkitaBox for further analysis and long term planning.
  • 3DR’s Site Scan software and Pix4D’s leading photogrammetry engine offers an industry first: multi-engine photogrammetry processing for aerial data products.

Software + Service

Software as a service business models have revolutionized the world, and SW+SV sales partnerships can supply additional leverage on these models. Service providers on the other hand often require a niche software solution to launch a new business branch, as our first example shows:

  • Airmap and Rakuten’s UTM platform will provide situational awareness for airspace managers. Rakuten entered the commercial drone field with the launch of the Sora Raku, a drone delivery service in April 2016.
  • Airware and Luck Stone partnered to expand UAV data collection processes. Airware’s technology improves operational efficiency with its powerful analytics tools, which were developed specifically for the mining and aggregate industry.
  • DroneBase and Getty Images, a global leader in visual communication, signed a worldwide content distribution deal with the leading global drone pilot platform DroneBase. The agreement allows the supply of high-quality 4K videos to over one million customers.

Service + Service

A partnership between SV+SV providers is a promise for something big. Presuming that both providers already possess the required hardware, software, and sales channels it represents the most comprehensive (“buy”) offer from a customer’s point of view.

  • Measure and energy provider AES partnered, allowing AES to ramp up the use of drones and to get more and state of the art drones on short notice, along with pilots to help run them wherever they are needed.
  • Geo Wing and Hawk Aerial now extend the range of services, sensors, and platforms and provide each partner with the ability to offer their clients superior survey and map products.
  • Camp Six Labs and 3M’s strategic collaboration will help wind-turbine owners achieve optimal performance and return on investment using 3M’s wind products, while simultaneously leveraging on installation efficiencies provided by Camp Six applicators.

What happens next:

The degree of drone hardware and software maturity is high, but the challenge lies within the integration into existing services and business models. Larger players will play an increasingly important role and make drone technology an essential part of their product/service line. Since competition will become much fiercer in the near future product portfolios based on strategic partnerships will have a great advantage, while the competitive pressure on the lone wolfs will rise.

According to Gartner’s Hype Cycle, we are on our way to the valley of disillusionment. This does not mean that the market will slow down or shrink – it means, the industries realize that there is more to the successful adaptation of drone technology than was assumed a year ago.

Strategic partnerships often lead to mergers or acquisitions which will further drive the market consolidation over the next years. Once the market is sorted and the “plateau of productivity” is reached (in 2-5 short years from now), the number of partnerships will decline. Deal sizes for mergers and acquisitions, however, will increase dramatically.

We just announced the start of our 2017 Drone Market Sector Research, which promises to be the most comprehensive study of drone market trends and usage to date. The online portion of this research seeks to get your opinions about buying and using small unmanned aircraft systems—otherwise known as drones This independent research is being underwritten by Airware and DroneDeploy and is designed to uncover fresh insights on which drone industry sectors are thriving (and which aren’t) and how businesses are using drone-acquired data in their day-to-day operations.

Why are we doing this?

Because we believe the consumer and commercial drone market needs it. Our observations:

  • We see a lack of objective information on the drone industry.
  • We find there’s an absence of credible market-based research.
  • We see little understanding of the difference between large industry forecasts and actual buyer adoption rates.

The survey will explore:

  • Who’s buying what types of drones from which makers at which prices and for what use?
  • How large are drone-based service providers and how and where are they positioning themselves to whom and which target industries?
  • What concerns business buyers of drone-based projects most and why?
  • How much are service providers and business buyers using flight management and data analytic software for image-based projects?

Who should take the survey?

  • Individuals or businesses who have purchased a drone in the past 12 months for any reason
  • Commercial drone service providers
  • Businesses that use drones or drone services as part of their company’s internal work or projects

Take the brief 10-minute survey here: https://www.surveymonkey.com/r/2017_drone_market

As an incentive for your participation in the survey, there will be an opportunity to:

  • Receive a free summary report of the research results, a $95 value
  • Enter to win a free DJI Spark Mini Drone (a $400 value) or one of two $100 VISA gift cards.

When complete, the research study will provide a complete view of topics like:

  • Critical industry drivers
  • Vendor and service provider market share
  • Business adoption trends and issues
  • Market size for all drones and growth projections by segment

The survey will be in market for four weeks, and results will be available in September.

As always, I’m interested in hearing from you.  If have questions or comments, feel free comment below or email me at colin@droneanalyst.com.

Image: Shutterstock and Skylogic Research