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November 12, 2015
Greetings: In this issue: A detailed look at expanding use of drones for business purposes. While there’s still uncertainty and government red tape, commercial use of drones is on the rise. “The market is already taking off,” says Mariah Scott, chief operating officer of Skyward, a company that provides software to manage drones. The Federal Aviation Administration has issued 2,200 special exemptions over the past two years for moneymaking drone endeavors. (Before the exemptions, commercial drone use was all but illegal.) Expect at least a thousand more firms to get the OK before the FAA’s sweeping rules for commercial drones under 55 pounds are finalized, likely sometime in 2016. After that, business use will ramp up even more quickly. In the first three years, the drone market will total more than $10 billion and create tens of thousands of jobs. Among the jobs: drone pilots, technicians and software developers. Most sectors of the economy will find valuable uses for drones, which often are cheaper, smaller and safer than piloted aircraft. Businesses are champing at the bit to use drones. Firms with FAA exemptions canvas the country, making it feasible to find a nearby provider. “Have drone, will travel,” says Landon Phillips, program manager of Texas-based Midstream Integrity Services, which has already done work in other states. Many drone companies are staffed by people with industry-specific expertise. Phillips, for instance, was an instructor pilot in the Air Force, and the company, which provides pipeline inspections and other services, also employs longtime oil and gas professionals. Some big firms are working on drones internally, too. Companies with FAA exemptions include State Farm, BNSF Railway, Chevron and Dow Chemical. If you’re considering drone services, make sure the company has an FAA exemption, a licensed pilot and insurance. Many companies offer drone services without FAA approval, a licensed pilot or both, says Greg MacMaster, who started Eagle-Eye Drone Service after serving as a state representative in Michigan. Many companies don’t know how drones can benefit them, so it may make sense to choose a service that understands your field. Danny Landry, cofounder of LandBros Aerial Photography in New Orleans, says his workers have an edge in offering photography to the construction industry because they come from the construction world. “You don’t want a video production team on-site because that can be a safety hazard,” says Landry. A Nascent IndustryThe military, of course, has years of experience using drones. Count on some of today’s biggest builders of military drones to pay more attention to the commercial market. Companies in the U.S. include Boeing, Northrop Grumman, AeroVironment, Raytheon and Lockheed Martin. Foreign makers include SenseFly of Switzerland, Prox Dynamics of Norway and Israel Aerospace Industries. Plus, component makers such as Fla.’s Harris Corp. and Applied Industrial Technologies of Ohio will see more business. But the unique needs of the commercial industry will benefit other companies, too, especially makers of small drones, such as DJI, Parrot and Aeryon Labs. Many nonmilitary companies will be nimble at quickly building cutting-edge drone technology. Among potential business uses for drones:
Drone Tech AdvancesRed tape, not technology, is the biggest headwind for the industry. The FAA now requires drones to be within line of sight of a licensed pilot during flight, limiting many potential uses. Eventually, though, swarms of drones won’t have operators and will move autonomously far from where they take off. More drones, for both commercial users and consumers, will come with advanced safety software. Sense-and-avoid technology will be critical to keep drones from avoiding crashing into tall structures or other drones or from interfering with commercial flights. Safety systems use GPS signals to prevent operation near airports, busy city centers and other restricted zones. In addition, software can bring a drone down safely if it loses its wireless connection during flight. Drone makers will embrace the safeguards, seeking to avoid tougher state and federal rules as the number of drones quickly expands. Chinese maker DJI has a global database of restricted areas encoded into its drones and also provides alerts to users. In coming years, drones will move cargo, manipulate machinery, spread pesticides and more. Other far-out ideas: Drones that pace running workouts, give college tours and move items inside big warehouses. Look for a cottage industry of software developers and other services to come up with new ideas for drones. Apps will help drones take on specific tasks, harnessing the onboard sensors and computer brains. To stay in compliance with complex rules, many companies will use consulting services and software to manage drone fleets. Portland, Ore.-based Skyward, for instance, is seeing strong interest in its software, which tracks rules, airspace maps and flights. PrecisionHawk, based in North Carolina, offers artificial intelligence software for real-time in-flight calculations. Additional technologies in the works: Drones with advanced sensors, such as infrared, that can detect things beyond human eyesight. Gas-powered small drones that fly longer than battery-powered ones. Drones with microfilament tethers that let them fly 24/7 in certain areas with reliable power and communication. On-demand services that send autonomous drones and help crunch big data. Delivery Drones? You BetDelivery by drones will gain traction in the next decade. Companies looking to ship goods by drone include Amazon, Google and Wal-Mart. The idea seems far-fetched, but note that 86% of Amazon packages weigh under five pounds, making them light enough for small, battery-powered drones. “By 2020 you will be seeing drone delivery,” Helen Greiner, CEO of Mass.-based CyPhy Works, recently remarked at an MIT conference. “It will take at least that long for regulations.” Greiner, who cofounded consumer robotics company iRobot, thinks that delivery drones will be designed to function as both mini-helicopters and fixed-wing planes. They’ll fly like a plane to cover a lot of ground, then hover and precisely drop a package on a doorstep. While delivery is further off than other applications, it will make a large impact on homeowners. Delivery times will be slashed to under 30 minutes in some cases. An army of small drones will bring small goods from fulfillment centers about two miles away, furthering the automation of online commerce. Amazon is betting that quicker deliveries will solidify its paid membership, which costs $99 per year and is expected to be used in half of U.S. households by 2020. Members will be first in line for drone delivery. But other companies will be racing for similar uses. Oversight IssuesBecause of the sheer number of consumer drones hitting the sky, federal and state lawmakers are concerned with safety and privacy issues. The rulemaking process is already years behind because drones require entirely different rules than piloted craft and the pace of change caught regulators flat-footed. And note that states that pass strict laws preventing legitimate drone uses risk losing business. Sincerely, View the archive of past Alerts issues
Copyright © 2015, The Kiplinger Washington Editors, Inc. |
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