{"id":3286,"date":"2019-01-12T11:40:40","date_gmt":"2019-01-12T19:40:40","guid":{"rendered":"http:\/\/droneanalyst.com\/?p=3286"},"modified":"2020-03-21T10:37:53","modified_gmt":"2020-03-21T17:37:53","slug":"seven-trends-that-will-shape-the-commercial-drone-industry-in-2019","status":"publish","type":"post","link":"https:\/\/droneanalyst.com\/2019\/01\/12\/seven-trends-that-will-shape-the-commercial-drone-industry-in-2019\/'","title":{"rendered":"Seven Trends That Will Shape the Commercial Drone Industry in 2019"},"content":{"rendered":"
[This post first appeared in Forbes]<\/em><\/h5>\n

In many ways, 2019 will be another big year for the commercial drone industry. Last year saw a wider rollout of the FAA\u2019s LAANC program (the Low Altitude Authorization and Notification Capability that provides access to controlled airspace near airports), the launch of the UAS Integration Pilot Program from the FAA, and some significant developments for new regulatory frameworks for drones in Europe and in India. This year, expect more of the same\u2014but with a few twists.<\/p>\n

Trend<\/strong>\u00a01 \u2013 Expanded business use<\/strong><\/p>\n

Adoption of aerial drones and drone technology will not be as widespread as some might expect. Instead, it will grow in select industries like agriculture, construction, insurance, mining and aggregates, public safety and first responders, oil & gas, survey engineering, telecommunications\u00a0and\u00a0utilities.<\/p>\n

Last year, companies began to move beyond the provisional use of drones\u2014where they were outsourcing to determine a drone program\u2019s feasibility\u2014to standing up or expanding internal teams to manage workflows and data. This year, expect to see reports about companies expanding their teams and adding use cases that take advantage of the\u00a0waivers allowing limited beyond visual line of sight operations<\/a>.<\/p>\n

Trend 2 \u2013 Slower, more steady growth<\/strong><\/p>\n

The number of certified remote pilots is the benchmark for commercial drone industry growth. That\u2019s because, almost uniformly around the world, regulations demand each drone operation have one pilot. Last year, the number of FAA-certified remote pilots grew about 50% over the previous year, to approximately 115,000. That increase was mostly made up of pilots who work for companies, enterprises or public agencies with internal drone programs as opposed to pilots who operate for drone-based service providers. It\u2019s clear that commercial industries are now driving growth\u00a0rather than individual interest as in years past.<\/p>\n

One thing to keep in mind when looking at FAA numbers is that the month-over-month growth rate is beginning to slow. That may worsen given the current partial U.S. Government shutdown, which will delay the grant of new certificates. It may also slow further because some drone-based service providers who are not making money (most aren\u2019t<\/a>) will choose not to re-certify as a remote pilot.<\/p>\n

Trend 3 \u2013 Further vendor consolidation<\/strong><\/p>\n

Much of the industry\u2019s growth so far has come from the\u00a0early hype\u00a0<\/a>about how drones were going to \u201ctransform\u201d industries as well as huge forecasts that fueled investment. Over the years, we\u2019ve seen those dreams turn to smoke as vendors like 3D Robotics and GoPro fell out of the sky. Last year was no exception. The\u00a0$118M collapse of Airware<\/a>\u00a0and the release of Parrot\u2019s disappointing financial results give us a glimpse into what will come.<\/p>\n

Still, there is good news, and you can expect more moves like\u00a0PrecisionHawk\u2019s\u00a0acquisitions<\/a>\u00a0as\u00a0vendors seek leadership positions in key industries and secure new revenue streams.<\/p>\n

Trend 4 \u2013 Public distrust and civil liability<\/strong><\/p>\n

Despite the benefits of commercial drone use, the general public still has concerns about drones with regards to safety, security, privacy\u00a0and\u00a0public nuisance. After the\u00a0Gatwick debacle<\/a>,\u00a0expect more headlines in 2019 of unauthorized drone sightings and the coming drone apocalypse. In many\u00a0ways\u00a0these stories hurt legitimate commercial operators who often need to gain permission from reluctant\u00a0land owners\u00a0so they can perform inspections and survey maps<\/a> for infrastructure unreachable by other means.<\/p>\n

Here in the U.S., there is another tea kettle about to boil over. A little-known but highly influential group known as the Uniform Law Commission (ULC) will continue to work on a\u00a0proposed \u201cTort Law Relating to Drones Act,\u201d<\/a>\u00a0which concerns drones and privacy. If their proposal is adopted by states, we could see an arbitrary line\u00a0drawn\u00a0200 feet in the sky that would establish a new aerial trespass zone giving property owners the right to establish no-fly zones. Right now, their draft goes much further than any existing state or federal law and, if enacted, would create a complicated patchwork of differing state laws that inhibit commercial operations. Until then, expect to see more local and state laws like\u00a0this one in Pennsylvania<\/a>\u00a0aiming to protect people\u2019s privacy from drones.<\/p>\n

Trend 5 \u2013 More regulation –\u00a0maybe<\/strong><\/p>\n

Some predict 2019 will be the year the FAA finally implements a requirement for\u00a0remote identification for all drones<\/a>, recreational and commercial, flying in the U.S. It\u2019s expected this will be combined with a new rule for flights over people for small drones. But there is a big difference between the FAA proposing a rule (called the Notice of Proposed Rulemaking or NPRM) and that rule becoming law. The difference can be anywhere from six to nine months. So it\u2019s likely we\u2019ll see a proposed rule, but implementation will be like\u00a0Waiting for Godot<\/em>.<\/p>\n

To be clear, Drone ID is not a slam dunk, and the specifics of the ID signature are still being debated within the FAA. Even so, Drone ID needs to exist for\u00a0Unmanned Traffic Management (aka UTM)<\/a>\u00a0to become a reality. UTM should help enable some of the most talked-about use cases for drones, from package delivery to aerial taxi services, but don\u2019t expect this first iteration of remote ID\u00a0to live up to the headlines or vendor expectations of a global autonomous drone network \u2013 as that would ignore the arduous political processes in each country or region to make UTM even possible.<\/p>\n

Trend 6 \u2013 DJI\u2019s continued dominance<\/strong><\/p>\n

SZ DJI Technology Co., Ltd. (a.k.a. DJI), a Chinese company, continues to dominate the market and has made gains this year in every product category, from drone aircraft at all price ranges, to add-on payloads, to software.\u00a0Recent survey data<\/a>\u00a0shows DJI is still the dominant brand for drone aircraft purchases, with a 74% global market share. Much of DJI\u2019s dominance can be attributed to its aggressive product development, technological advancements and partner development in the enterprise channel. Last year, the company released two new series of enterprise products (Phantom 4 RTK and Mavic 2 Enterprise) that target industrial users. It\u2019s safe to predict their leadership will continue given their strategic investment with Hasselblad, their recent investment in an R&D facility in Palo Alto, California, and their partners in the enterprise space\u00a0such as Microsoft<\/a>.<\/p>\n

Trend 7 \u2013 Sensors, software, and AI advancements<\/strong><\/p>\n

Along with the new imaging sensor integration announcements in 2019 (such as smaller, more lightweight\u00a0LiDAR<\/a>), expect to see imaging software advancements as companies seek to combine RGB, thermal imaging,\u00a0orthomosaic, and data from IoT sensors. More aerial imaging and mapping software firms will likely announce artificial intelligence (AI) capabilities. Right now, most of this is cloud-based machine learning (a.k.a. deep learning and predictive analytics), where datasets are trained by specialized teams. Already, there are some drone-based AI solutions for image recognition\/machine vision, but it\u2019s still early in the technology development cycle and\u00a0AI is near peak hype<\/a>.<\/p>\n

Some big news for 2019 could be workflow integration of drone data and workflow into predictive maintenance and service solutions, as well as enterprise\u00a0asset\u00a0management systems such as those from IBM, INFOR, Oracle and SAP. Capabilities could include documentation, tracking\u00a0and\u00a0GIS data integration. That may bring a yawn to some, but when you can connect the dots and show the\u00a0effect of drone data on the balance sheet, CFOs and CEOs will take notice and drive further enterprise adoption<\/p>\n

Image credit: Mark Kauzlarich\/Bloomberg<\/p>\n","protected":false},"excerpt":{"rendered":"

[This post first appeared in Forbes] In many ways, 2019 will be another big year for the commercial drone industry. Last year saw a wider rollout of the FAA\u2019s LAANC program (the Low Altitude Authorization and Notification Capability that provides access to controlled airspace near airports), the launch of the UAS Integration Pilot Program from … Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":3289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,49,30,50,6],"tags":[114,73,91,9,77,20,10],"yoast_head":"\nSeven Trends That Will Shape the Commercial Drone Industry in 2019 - Drone Analyst<\/title>\n<meta name=\"description\" content=\"Skylogic Research analyses the 2019 commercial drone market and reveals the top trends that will shape the market\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/droneanalyst.com\/2019\/01\/12\/seven-trends-that-will-shape-the-commercial-drone-industry-in-2019\/'\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Seven Trends That Will Shape the Commercial Drone Industry in 2019 - 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