Posts tagged "Industry Trends"

In my last post, Five Biggest Commercial Drone Trends of 2017 and the Challenges Ahead, I used data from our 2017 Drone Market Sector Report to illustrate the major trends of the past year and describe the major challenges ahead for the drone industry. That post looked back, but this one looks forward, offering our specific predictions for 2018, including investments, technology improvements, ecosystem partnerships, and software innovations.

(Listen to this companion Drone Radio Show podcast here for our complete assessment.)

1. Investment and testing will continue in earnest on Unmanned Traffic Management (UTM) and beyond visual line of sight (BVLOS) operations.

With regulations moving at the speed of government and dissenting views on Drone ID, it seems like UTM (air traffic management for low-altitude drones) is an elusive dream. However, there is hope that testing being done on beyond visual line of sight (BVLOS) operations in drone corridors will provide the necessary inputs to integrate drones into the national airspace. Expect news this summer from the vendors and service providers conducting tests at NUAIR in New York as they release results and performance-based navigation standards begin to coalesce.

2. You’ll see more news on improved sensors, hardware integration, networking, and processing.

Already, we’ve seen announcements like this one for new thermal imaging drone payloads. Expect to see further Ethernet / IP sensor integration efforts as more and more remote managers demand immediate access to data from local operations. Expect more news on LiDAR / drone integration like this one from Delair-Tech as more land surveyors and construction professionals demand further time and money savings over traditional methods.

3. Look for more partnerships, software, and innovations coming from the DJI Enterprise ecosystem.

We noted in our 2017 Drone Market Sector Report just how much DJI dominates the industry with its 72% market share. All the major mission-planning and mapping applications—like DroneDeploy, PrecisionHawk’s PrecisionMapper, Skycatch, and dozens more—now run on the DJI SDK. What our report didn’t mention was DJI’s focused efforts to further expand its commercial ecosystem. DJI Enterprise’s AirWorks Conference is but one example, an event whose purpose is showcasing applied drone solutions for the commercial industry’s most challenging obstacles. Expect many innovations from DJI’s partners in the hardware, software, and service sectors.

4. Software will dominate advancements.

Along with the new imaging sensor announcements in 2018, we expect to see imaging software advancements as companies seek to combine RGB, thermal imaging, orthomosaic, and radiometric data.

We also expect to see more aerial imaging and mapping software firms announce artificial intelligence (AI) capabilities. Right now, most of this is cloud-based machine learning (aka deep learning and predictive analytics) where data sets are trained by specialized teams. You may see some edge-based AI announcements for image recognition/machine vision, but be cautious when you do. We think it’s still early in the technology development cycle and AI is at peak hype.

We think the big news for 2018 will be the integration of drone data and workflow into asset management systems. Capabilities include documentation, tracking, and GIS data integration. It may bring a yawn to some but we believe when you can connect the dots and show the effect of drone data capture on the balance sheet, CFOs and CEOs will take notice and drive further enterprise adoption.

Parting thoughts

As I speak to clients, I always like to remind them of two things about the commercial drone market. First, it’s not a drone market, it’s a data and information market. The drone is just a data capture device. Second, drones are aircraf, not consumer products and as such their operations are regulated by aviation authorities.  All technology advancements aside, this is a regulated market, so always expect lumpy, bumpy growth.

We hope you keep those in mind as well and wish you best success in the coming year.

Listen to the companion podcast here http://bit.ly/2CXe6uK.

If you have questions about what’s in the report I mention or would like to comment, write me at colin@droneanalyst.com.

Image credit: Shutterstock and Skylogic Research

Last year at this time, I reflected back on the news and trends of the commercial drone markets of 2016 and wrote about the mixed state of affairs ahead for 2017. Throughout the year, I offered my perspective on how the drone industry was still motivated by hype and how assessing forward momentum required hard data on the performance of the various sectors of the industry. To that end, we did research over the summer that surveyed 2,600 respondents on drone purchases, service providers, business users, and software services. In September, we published the data in 2017 Drone Market Sector Report 2017.

In this post, I’ll use that data to illustrate the major trends of the past year and describe what I think are the major challenges ahead for the drone industry.

Listen to this companion Drone Radio Show podcast here for the complete assessment.

Trend 1—Growth

By all measures, the drone industry in 2017 was marked by significant growth – growth in aircraft sales, software licenses, the number of service businesses entering the market, and the number of industrial businesses setting up commercial operations.

Here are a few statistics:

  • We project U.S. sales in 2017 to be about 3.3M units, which is 36% above 2016 figures. That’s all drones, all sizes. It’s about 1.3M units for the >250gram category.
  • As of October 31st, there were about 837,000 hobbyist users and 107,000 non-hobbyist drones registered with the Federal Aviation Administration (FAA).
  • As of December 1st, there were about 66,000 Part 107 FAA Pilots.

This represents a big change in the commercial market since Part 107 regulations supplanted Section 333 as the means for commercial operations in the U.S. What this and our survey data tells us is the number of service providers currently outpaces demand, and as a result, service prices are coming down significantly.

Trend 2—Consumerization

We said in our report that more consumer drones are being used for commercial work than ever before. For example, our data shows that more than two-thirds (68%) of all drones weighing over 250 grams are purchased for professional purposes—either governmental or business.

Why is this significant? Because the impact of consumer-originated technology on the enterprise is something that can’t be ignored. Enterprises want to take advantage of powerful, yet easy-to-use products (like DJI’s popular consumer models), and put them to work on the job. What this means for operators or businesses is that a shared core technology benefits all users and enables companies to scale the best experiences to everyone. Enterprise customers get the added simplicity and usability of the consumer product that has been built to meet the demands of thousands of customers around the world.  The average individual pilot gets to benefit from the reliability and scalability inherent in the product and demanded by enterprise users.

Trend 3—The DJI effect

Our data shows DJI is the clear market leader in drone aircraft sales and almost every software category. For example, DJI is the dominant brand for drone aircraft purchases, with a 72% global market share across all price points and an even higher share (87%) of the core $1,000–$1,999 price segment. Additionally, in the three categories of software we evaluated, DJI is the market-share leader in two: flight logging and operations, and automated mission planning.

This is significant because by building on top of its existing technology platform, DJI has fast-tracked development and has benefited from economies of scale. By migrating a successful technology stack and feature set upmarket, DJI never has to reinvent the wheel—it just needs to improve upon the original design and save engineering cycles for real innovation.

The upshot is that to stay relevant, all the other major vendors have had to partner with DJI (see Trend 5 Partnerships, below). DJI’s sales success has taken market share from others and has led to layoffs at 3DR, Autel, GoPro, Parrot, and Yuneec. However, fears about data security remain. And this has some speculating about whether DJI can sustain its leadership role in the future.

Trend 4—Investments

According to CB Insights, investments shifted in 2017 from aircraft hardware to software. In 2016, there were 106 deals totaling $542M. Most of these were for hardware. In 2017, VCs focused on software, end-to-end solutions, and counter-drone technology. CB Insights projects the year will end with 110 deals totaling $494M. The most significant investment this past year was 3D Robotics’ $53M Series D round. It saw them pivot from hardware to software services.

Why is this significant?  Because it shows the industry is still maturing. Seed and Series A rounds represented 60% of all deals in 2017; whereas early-stage share peaked in 2015 at 73% of deals. Additionally, some of the most well-funded drone companies are targeting enterprise and industrial inspection.

What this means for operators or businesses is greater affordability. Software advances, computer chip manufacturing techniques, and economies of scale will continue to drive down the cost of drone platforms and sensors and solutions.

Trend 5—Partnerships

This year we saw a change from synergistic merger and acquisitions to the creation of end-to-end solutions via partnerships. For example, look at how DJI’s enterprise partnerships have grown. Consider their AirWorks conference. What drone major vendor wasn’t there? The list included DroneDeploy, Measure, PrecisionHawk, Skycatch, and Sentera, to name a few.

This past year we also saw an uptick in regulators and industry stakeholder partnerships. For example, the Drone Advisory Committee was created to provide the FAA with advice on unmanned aircraft integration from a diverse group of stakeholders. Major commercial participants include Intel, DJI, Amazon, Google X, and Facebook, as well the Aircraft Owners and Pilots Association.

Consider also the FAA’s new UAS Integration Pilot Program. Here, government entities are partnering with private-sector companies, such as unmanned aircraft systems (UAS) operators and manufacturers, to submit proposals to the FAA to fly more advanced operations in their communities, including flying beyond line of sight and over people. This is significant because it’s clear that regulators want to include industry when creating policies.

However, there is some good news / bad news with this.

The good news is greater flexibility. With vendor partnerships, drones will be able to perform more types of data gathering in a shorter timeframe and with more precision than many other options. So, more aircraft, sensor, and software integration.

The bad news is operators and businesses have regulatory uncertainty. We advise our clients to plan for some uncertainty as technology, the public, and bureaucracy find common ground on operations for beyond visual line of sight and over people.

Challenges ahead

Here’s my list of the major challenges facing the drone industry in 2018:

  1. Regulations: We may see more regulatory red tape—e.g., a patchwork quilt of rules as the FAA’s UAS Integration Pilot Program begins to make policy.
  2. Public sentiment: Basic public concerns still exist about drone safety, security, privacy, and their public nuisance. My question is: How can we overcome this?
  3. Business value: We’ve yet to see credible ROI that hits the executive scorecard. The key question is: What monetary benefit do drones and information gleaned from drones provide shareholder value?
  4. Information accuracy: Up to now, drone vendors have been focused on the accuracy of image capture and the rigor of the drone system. For better business value, they need to focus on the accuracy of the data processing and the rigor of data analysis.
  5. IT data governance: This is especially the case for drone inspections where a single drone could collect 50 to 100 gigabytes of data. Managing these large data sets starts to become one of the things that have to be worked out.
  6. Automation: A lot of software automation will come, including artificial intelligence (AI) or algorithms that minimize the amount of human effort to distill all that information and get to some actionable inference. But large scale industrial use of AI is young and it requires manual intervention to distinguish the difference between near-similar objects.
  7. Endurance: We’re still on the quest for efficiencies like better power sources or mixes.
  8. Widespread business adoption: Business and industry adoption is growing, but it’s mixed because of factors such as business risk aversion, concerns over invasion of privacy, and a reluctance by many companies to share too much information about successes.

That’s it for now.

Listen to the companion podcast here http://bit.ly/2CXe6uK.

Look for a follow-up piece on our specific predictions for 2018, which will include investments, technology improvements, ecosystem partnerships, and software innovations.

If you have questions about what’s in the report I mention or would like to comment, write me at colin@droneanalyst.com.

Image credit: Shutterstock

Guest post by Zacc Dukowitz, Director of Marketing UAV Coach

In this article we’re going to take a look at some of the data collected in the new report from Skylogic Research on the drone industry—data we think is important to you and answers the question: “Where are drone-based service providers making money?”

The report defines Service Providers as those individuals or companies that offer drone-based imaging or sensing services for outside hire (as opposed to Business Owners, who “use or purchase drone-based imaging or sensing services”).

Let’s dive in.

PRIMARY SERVICE AREAS FOR SERVICE PROVIDERS

Skylogic’s report found that the top three primary service areas for commercial drone work are: Aerial Photography / Videography; Surveying / Mapping / GIS; and Real Estate.

However, as indicated in the pie chart below, the first area (i.e., Aerial Photography / Videography) takes up the lion’s share not just of those three, but of the entire services scene, with 41% of the entire chart, while the following category (Surveying / Mapping / GIS) only receives 13%.

skylogic-survey-services

A note on the data: Respondents were asked to indicate the primary and secondary commercial product or services they offer. They could pick one primary and up to three secondary services. Skylogic intentionally had them choose a primary because previous research revealed that many service providers boast about their ability to service multiple industries, but have no domain expertise in those industries.

But just because the majority of commercial drone operators are working in aerial cinematography doesn’t mean they’re actually making money in that sector.

The report goes on to rank the top 10 drone services making over $100K/year. Surprisingly, it’s Surveying / Mapping / GIS that ranks first in that list. Aerial Photography and/or Video is #2. (Of course, just because you’re not making over $100K/year doesn’t mean you’re not making any money.)

After those first two, the third area listed where people are making over $100K/year is Utilities Infrastructure Inspection or Monitoring—even though this is the seventh item listed in the pie chart above, with only 3% of respondents indicating that they work in that field.

SO WHERE IS THE MONEY?

It seems one conclusion we can draw from these data points is that those commercial drone pilots who find a commercial niche (a place where there aren’t many people operating, but there is a demand for the work) are likely to make the most money.

Taking a simplistic view, a commercial operator could potentially look at those areas of minimal saturation on the pie chart—the ones lower down the list—and then look at those areas where people are making over $100K/year, and see what might be required to get into that sector.

Of course, transitioning into commercial mapping or inspections isn’t as easy as just knowing how to fly a drone. But we can foresee a future where solopreneurs team up with other professionals with specific skill sets—for example, a licensed surveyor—to provide high-end services to large industrial operations.

SERVICES MOST LIKELY TO BE OUTSOURCED

Another chart we want to share from Skylogic’s report shows the commercial areas where business owners are outsourcing services.

If you’re a solopreneur looking to find a skill set that will help you find work, this graphic could be a great jumping off place for finding skill sets you might want to develop.

skylogic-survey-outsourced-services

The bottom line is that there is money to be made as a service provider in the drone industry, but the most popular field (i.e., aerial cinematography) is not the most lucrative, and the areas where you’re most likely to find a solid financial foothold will require additional skill sets beyond knowing how to fly and how to operate a camera.

It will be interesting to see the data in another year or two. Things are developing rapidly, with students beginning to study drones and STEM in high school and the landscape appearing to shift radically to focus more on industrial applications. We may soon see mapping, surveying, and similar commercial use cases rise to the top of the services areas for drone service providers, and we might also see a resulting shift in the market from cheap drones to high-end drones developed for niche applications.

skylogic-report-cover
Don’t have a copy of the report? Purchase a full copy of the report here.

Note: If you participated in the initial survey you can get a copy of the report for free—just email info[at]droneanalyst[dot]com.

This post first appeared on UAV Coach

Image credit: Shutterstock

We have just released the results of our latest market research on the drone industry.

The 2017 Drone Market Sector Report examines worldwide drone sales, service providers, business users, and software services. The research is the result of a three-month project sponsored in part by Airware and DroneDeploy.

The online survey portion of the research garnered over 2,600 respondents representing more than 60 industries worldwide. Our analysis yields 10 key insights that summarize the current state of the industry, plus views of the overall market growth and drone use by vertical.

Among the many insights in the report, three are especially worth highlighting:

  1. The U.S. market is flooded with service providers and remote pilots, with very few making enough money to sustain a full-time venture. The data shows that 85% of service providers make less than $50,000 per year, and 79% perform only one to five operations per month.
  2. More consumer drones are being used for commercial work than ever before. Survey data shows that more than two-thirds (68%) of all drones are purchased for professional purposes—either governmental or business.
  3. DJI dominates the industry with a 72% global market share for drone purchases across all price points. In North America (U.S. and Canada), it’s 62%.

The 88-page report is comprehensive, featuring more than 40 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.
  • The size and nature of drone-based service providers, how they position themselves, and what markets they’re targeting.
  • Who the business users for drone-based projects are, and which industries have traction.
  • How service providers and businesses use software for drone-based projects—for flight management, mission planning, and image processing.

You can find out more about the report and how to get it here: http://bit.ly/2xZRJ4n

If you have questions about what’s in the report or would like to comment on it after reading it, write me at colin@droneanalyst.com.

Image credit: Skylogic Research

We just released a new research report titled “Five Valuable Business Lessons Learned About Drones in Public Safety and First Responder Operations.” This is the fifth and final in a series of white papers intended to share lessons learned in specific industries and how to maximize the value drones can deliver in those industries. This year, we built on the analysis we did for the 2016 “Truth About” papers by incorporating real-world experience gained from businesses and drone pilots operating under the Federal Aviation Administration’s Small Unmanned Aircraft Regulations (aka FAA Part 107).

In this new report, we validate how first responders are sending unmanned aerial vehicles into high-risk or remote emergency situations before putting first responders at risk while helping victims more efficiently. We detail best practices for how police, fire, emergency response, and search & rescue agencies can implement drones into their operations. Learn both the strategies and roadblocks to the successful use of drones in this industry, including:

  • Which licenses are required for employees flying drones
  • How to pick the right drone for your specific operation
  • The importance of a roadmap for training and drone maintenance
  • How to deal with the public in a safe and transparent manner
  • When to outsource drone work

Here is an excerpt from the white paper:

Lesson 3 – Training is multifaceted and should not be an afterthought:

“Buying a drone and training go hand-in-hand.  DJI Director of Education Romeo Durscher recommends thorough training on several topics. This includes basic training—as in Part 107 pilot training and “stick time” on the controls of your aircraft of choice—and advanced training for tactical use, e.g., learning the best way to manage the drone before, during, and after deployment.

Gene Robinson (and the Drone Pilot training team) include these and add additional layers of training gleaned from his years of experience as head of Unmanned Aircraft Operations for the Wimberley Fire Department. Some of those experiences and lessons learned are outlined in a white paper on the 2015 Texas Memorial Day flood.  That paper reports that drones—and at one point 16 manned aircraft—were used for disaster relief for multiple days, but not without problems. Problems included multiple rogue manned and unmanned aircraft being operated within the temporary flight restriction, the loss of communication abilities via cell, the line-of-sight problems with handheld aviation radios, and the inability to request FAA approval to operate in the area.”

The report goes on to describe what many police, fire, and emergency responders have learned about what works and what doesn’t. It details mistakes early adopters have made operating their drones and recommends the actions you should take so your implementation and ongoing use is successful.

You can watch a short video here and get the free report here: http://bit.ly/2u5NVBu

If you have questions about what’s in the report or would like to comment on it after reading it, write me at colin@droneanalyst.com.

Image credit: EENA

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

We just released a new research report titled “Five Valuable Business Lessons About Drones in Asset and Infrastructure Inspection” This is the fourth in a series of white papers intended to share lessons learned in specific industries and how to maximize the value drones can deliver in those industries. This year, we are building on the analysis we did for the 2016 “Truth About” papers by incorporating real-world experience gained from businesses and drone pilots operating under the Federal Aviation Administration’s Small Unmanned Aircraft Regulations (aka FAA Part 107).

In the report, which co-authored by Chris Korody, we demonstrate what drone operators servicing a wide variety of industries have learned about what works and what doesn’t. We explore both the benefits and limitations of drone inspection projects and offer practical advice to would-be adopters. We answer questions like: What have companies learned about creating their own internal drone operation groups? And where do we go or what can we expect from here?

Here is an excerpt:

“While both media and investors have primarily focused on opportunities for using drones in the construction and agriculture industries, inspection applications have fostered innovation together with significant returns on investment. The reasons begin with the “four Ds”—a term coined by GE Ventures to describe the unique ability of drones to meet the needs of their field services customers. The four D’s describe any activity that’s tailor-made to be performed by a drone, and are:

  • Dull
  • Dirty
  • Dangerous
  • Distant

In a 2014 interview, Sue Siegel, the CEO of GE Ventures, added a fifth “D”—for data—saying simply, “Imagine that if you’re doing it faster, you might be able to do it more often. And more data typically will give you better data.”

The four Ds+1 combination is one of the most compelling arguments for drone adoption in companies where uptime is money, crews are expensive, and structures and facilities are often expected to last 50 to 100 years.

The other compelling argument is cost reduction. McKinsey Consulting’s recent white paper “Preserving the downturn’s upside highlights how the oil and gas industry reduced costs by 29% in response to falling oil prices. They show that 40% to 50% of the savings came from eliminating the demand for a variety of services, including manned aviation support. The innovators figured out how to put drones to work.”

The report goes on to discuss how drones and the data from drones offer huge advantages in the oil & gas, telecommunications, and utility industries. It also provides insights from Dexter Lewis, PE, senior engineer in the research and development group at Southern Company (NYSE: SO) which brings electricity and gas to 9 million customers.

You can get the free report here.

If you have questions about what’s in the report or would like to comment on it after reading it, write me at colin@droneanalyst.com.

Image credit: Shutterstock

I just released a new research report titled “Five Valuable Business Lessons Learned About Drones in Mining and Aggregates.” This is the third in a series of white papers sponsored by BZ Media intended to share lessons learned in specific industries and how to maximize the value drones can deliver in those industries.

It seems with the ability to monitor stockpiles, map exploration targets, and track equipment, the usage of drones in mining and aggregates is vast. But there are limitations and in this report, we demonstrate what early adopters have found out about what works and what doesn’t and where we go from here.

Here is an excerpt:

“As early as 2014, mining operators and aggregate producers in Australia, Canada, France, and the U.S. were putting drones to the test.  And why not? These industries are one of those countries’ most important economic sectors. And they’re growing.  In 2016, the consumption of construction aggregates worldwide was estimated at 43.3 billion metric tons (BMT) with a value of $350 billion. Production volume is anticipated to reach 62.9 BMT by 2024.  Mining accounts for almost a quarter of Canada’s exports, and is both a major employer and source of royalties and tax revenue.  Combined, these two industries have a significant footprint, not just economically in terms of employment but also environmentally to their host communities. This footprint extends from exploration to extraction, processing, and shipping. Surveillance, monitoring, maintenance, and oversight in all these areas are monumental tasks, and current approaches to this are both capital and labor intensive.

Back in the early days, visionaries knew that drones could be used for a wide array of activities.  Turns out these visionaries have found in the mining and aggregate sectors a frontier for unmanned aerial vehicles, otherwise known as UAVs.  In recent years, small drones have helped many firms find cheaper and safer ways to map deposit sites, explore for minerals, and calculate inventory via remote control. A drone, with the relevant sensors and data integration, is an excellent tool for such roles.”

The report goes on to discuss how drones and the data from drones offer huge advantages in every part of the mining and aggregate production lifecycle including exploration, planning/permitting, operations, and reclamation. It also provides insights from Iain Allen, Senior Manager, Digital Mining at Barrick Gold, an $8.5 Billion 34-year-old mining company in Toronto, Canada.

You can view a summary video here:  https://youtu.be/aPXEihQmEec

You can get the free report here.

If you have questions about what’s in the report or would like to comment on it after reading it, write me at colin@droneanalyst.com.

Image credit: Shutterstock

As many of you know I’ve been researching and writing about agriculture drone solutions since early 2012. I recently came across this OpEd in PrecisionAg titled “Opinion: The Agricultural Drone War Is Over, And They Lost” and read it with great interest. Two and half years ago, our research indicated the same thing—that small drones might not be able to deliver more usable data to a farmer or provide a cost benefit over the existing image solutions available to them.

Even last year I had my doubts. In our June 2016 report, The Truth about Drones in Precision Agriculture, we looked at how drones have been used as remote sensing devices in agriculture thus far, reviewed competitive and traditional approaches using incumbent technology (like satellites and manned aircraft), and discussed the opportunities and challenges posed by the technology itself.

But a lot has changed since then.  Agriculture drones have matured, and so have the sensors and analytical solutions that support them.  A rising number of software vendors are targeting the agriculture space with increasingly useful solutions. And a new generation of drones is delivering much-needed functionality.

Not all agriculture drone solutions are created equal, so it pays to do a bit of research before committing. There are many factors to consider, from software compatibility to price to technical capabilities such as:

  • Can you get all the components—drone, sensor, software, and analytics—from one company?
  • Is an internet connection required in order to process data?
  • Will it integrate well with your existing tools?

The research process to find the best solution can be overwhelming and time-consuming, but there is some good news. We’ve done a fair amount of this work already which you can access in our latest report, Using Drones to Ensure ROI in Precision Agriculture.  You’ll also find a checklist there to help you determine which solution is the best fit.  Here is an excerpt:

Nearly all agriculture drone solutions process RGB color, near infrared (NIR), and normalized difference vegetation index (NDVI) data.  But not all solutions provide additional analytics and tools better matched to the needs of growers and agronomists. For example, only one solution we know of in the market allows users to view live NDVI data via streaming video while the drone is flying without an internet connection. This means you can more easily fly missions and see critical information at the field’s edge without requiring a trip back to the office. This eliminates a huge bottleneck. Most solutions require that you upload images from the UAV to a mobile device, a laptop or cloud service where they are stitched together to create a base map and the underlying spectrum data is processed into a usable NDVI layer.  In most solutions, you have to wait for that information—sometimes for hours. But with this solution you don’t have to do that, and the added benefit is you can use the time savings to gather additional inputs from the areas the real-time map shows as suspect.

The report goes on to detail the following:

  • The importance of timely inputs
  • New analytics and tools
  • The importance of an integrated solution—sensor, drone, and analytic data platform
  • The challenges of understanding ROI
  • The benefits of end-to-end solutions

You can get the report, plus an End-to-End UAV Solution Checklist for Precision Agriculture, here. 

Look for another report from us on this topic soon. If you have questions about information in the report or would like to comment on it after reading, write me at colin@droneanalyst.com.

Image credit: Sentera

We just released a new research report titled “Five Valuable Business Lessons Learned About Drones in Construction.” This is the first in a new series of white papers sponsored by BZ Media intended to share lessons learned in specific industries and how to maximize the value drones can deliver in those industries. This year, we are building on the analysis we did for the 2016 “Truth About” papers by incorporating real-world experience gained from businesses and drone pilots operating under the Federal Aviation Administration’s Small Unmanned Aircraft Regulations (aka FAA Part 107).

In the report, which is authored by Chris Korody, the founder of DroneBusiness.center, we demonstrate what drone operators servicing the architecture, engineering, and construction (AEC) industry have learned about what works and what doesn’t. We explore both the benefits and limitations of drones for Building Information Modeling (BIM) projects and offer practical advice to would-be adopters. We answer questions like: What have construction companies learned about creating their own internal drone operations groups? And where do we go or what can we expect from here?

Here is an excerpt:

“The $8.5 trillion global construction industry is both massive and far flung—there is no place in the world that does not build things. The industry’s problems reflect an age-old tradition of architects and engineers throwing plans over the wall to be reworked by contractors and subcontractors. It’s not that the system doesn’t work—it’s that the rework eats up increasingly thin margins, wastes huge amounts of material, and creates massive delays. And since much of it is on paper, trying to integrate and keep track of complex projects is no easy task.

In a June 2016 report, McKinsey quantified the problem: “Large projects across asset classes typically take 20 percent longer to finish than scheduled and are up to 80 percent over budget. Construction productivity has actually declined in some markets since the 1990s.” Of the 22 industries McKinsey analyzed, the construction industry is second to last; only agriculture has made less progress digitizing its workflows.

The sheer scale of the problem led Goldman Sachs to write that the first large-scale use of commercial drones will be in construction. It makes perfect sense. Visual line of site (VLOS) works just fine on construction sites. A growing group of software vendors are targeting the space with increasingly useful solutions. And a new  generation of drones is delivering much needed functionality.”

The report goes on to detail the business lessons learned from drone-based projects done by hundreds of firms across the globe—not just for construction but also for engineering and architectural firms. It also provides insights from Richard Lopez, VDC (visual design construction) Manager at Hensel Phelps, a $3.1B 80-year-old construction company in Greeley, CO.

You can view a summary video on YouTube here: https://youtu.be/rGYnDAO5UZQ

You can get the free report here.

If you have questions about what’s in the report or would like to comment on it after reading it, write us as chris@dronebusiness.center and colin@droneanalyst.com.

Image credit: BZ Media