RISING INTO THE FUTURE: NEW BUSINESS IDEAS IN THE DRONE INDUSTRY

Drones are better known as unmanned aerial vehicles (UAVs) or unmanned aircraft systems. Essentially, a drone is a flying robot that can be controlled remotely. It can navigate autonomously using software-controlled flight plans in embedded systems that work in conjunction with onboard sensors and a global positioning system (GPS).

The history of drones dates back to Italy in 1849, when Venice was fighting for independence from Austria. Austrian soldiers attacked Venice with balloons filled with hot air, hydrogen or helium, and equipped with bombs.

The first unmanned radio-controlled aircraft was used during the First World War. In 1918, the US Army developed the experimental Kettering Bug, an unmanned aircraft with a "flying bomb". However, the Kettering Bug was never used in combat.

The first widely used drone appeared in 1935 as a full-size modification of the de Havilland DH82B “Queen Bee” biplane. It was equipped with a radio and control servomechanisms mounted on the rear seat. The aircraft was usually controlled from the front seat, but was typically flown unmanned and was used for gunnery practice.

It was then that the term “drone” appeared to refer to unmanned aerial vehicles. Before the word “drone” came to mean UAV, it meant a male bee or drone in English. The word comes from the Old English dran or dræn. Like many English words, it has its roots in the Proto-Germanic language: dran.

But why exactly the drone in relation to the aircraft? This name was established in 1935 when the DH82B Queen Bee took to the skies. This remote-controlled aircraft was a variant of the Tiger Moth, which was widespread and also named after the insect. The transition from moth to drone is simply an extension of the metaphor. Merriam-Webster Dictionary explains:

“Drones are larger and heavier than worker bees, and in the fall they leave the hive and swarm. They are known for a kind of mindless, driven existence: they do not collect honey, protect or maintain the hive, and their sole purpose is to impregnate the queen bee.”

The use of the term “drone” for UAVs highlights the fact that they do not have a will of their own. And, their buzzing flight resembles the sound made by a flying bee.

UAV technology was initially used primarily by the military. They were used for anti-aircraft shooting, intelligence gathering and, less commonly, as weapons platforms.

Today, a drone is a flying, swimming or walking robot that is either remotely controlled or can move autonomously using software-programmed flight plans embedded in embedded information systems that work in conjunction with on-board sensors and GPS.

Thus, the drone industry in a broad sense includes developers and manufacturers of hardware and software for flying, floating and ground-based unmanned vehicles designed to work with unstructured data systems.

Drones come in different shapes, sizes and functions and can be classified according to various aspects.

By area of application, drones are divided into the following segments:

Military segment: As mentioned above, the initial use of drones was military. In the military they are used for surveillance, reconnaissance and attack. The military sector continues to be the main buyer of drones, occupying a significant portion of the market.

Commercial segment: Commercial use of drones is one of the major factors driving the growth of the market.

Consumer segment: Recreational use of drones has created an entirely new consumer market. From photography enthusiasts to amateur racers. Consumer drones are also a growing market segment.

By size, drones are divided into:

Nano-drones: Weighing no more than 250 grams, they are small and usually used for entertainment purposes.

Microdrones: often weighing between 250 grams and 2 kilograms, used both in the consumer segment and for some commercial purposes.

Minidrones: Weighing from 2 to 25 kg, these drones are more versatile and are used in various professional sectors.

Medium Drones: they weigh between 25 and 150 kg and are typically used for more complex tasks such as industrial inspections.

Large drones: Typically weighing more than 150kg, large drones are used for specialized missions such as military operations or transporting heavy loads.

Based on the number of rotors, drones are divided into:

Drones with one propeller: like helicopters, they have one large rotor and a small tail rotor. They are more energy efficient but require complex mechanical maintenance.

Multi-rotor drones: this category includes:

• Tricopters (3 rotors)
• Quadcopters (4 rotors)
• Hexacopters (6 rotors)
• Octocopter (8 rotors)

Multi-rotor drones are most common for consumer and commercial applications because their design allows for greater stability and maneuverability.

Fixed wing drones: Unlike rotary drones, they are more similar to traditional aircraft. They can cover long distances, but are less maneuverable.

Hybrid Fixed Wing VTOL Drones: they combine the characteristics of a fixed-wing UAV with VTOL capability, providing the best of both worlds.

Based on their functions, drones are classified into:

Drones for recreational use: designed for hobbyists and enthusiasts mainly used for photography and video shooting

Racing drones: specifically designed for high-speed competitive drone racing.

Commercial drones: they are used in various industries such as agriculture, real estate and construction. These may include specialized equipment such as spray guns or thermal imaging cameras.

Military drones: Designed for defense purposes, these drones are equipped for surveillance, reconnaissance or combat missions.

Cargo drones: Designed for transporting goods and parcels.

Drones for research and development: are used by scientists and researchers for various experimental purposes.

Based on the level of autonomy, drones are divided into:

Manual drones: completely controlled by human operators.

Semi-autonomous drones: can perform certain functions independently, but still require human intervention.

Fully autonomous drones: capable of performing tasks without human intervention, following pre-programmed instructions or decisions made by artificial intelligence.

The revolution in the smartphone market, accompanied by its explosive growth, has led to lower prices for electronic components - microcontrollers and sensors. Thanks to these innovations, key components for drones such as gyroscopes, accelerometers, etc. together with brushless motors, they became cheaper, which significantly reduced prices for drones, and in turn led to increased demand and rapid expansion of the market.

Drones and unmanned aerial vehicles (UAVs) have become important assets for private users, businesses and governments, and their increasing availability is opening up new and broader opportunities for countless applications across a variety of industries. The use of UAVs is rapidly expanding and the global UAV market is experiencing dynamic growth.

The global UAV market is expected to reach $38 Billion in 2023. and will more than double by 2030. In 2023, almost half of the market will be military drones – $15.88 Billion. Drone technology and military applications will continue to evolve, but commercial applications will outpace military applications. Forecastedthat until 2027 the military market will grow at an average CAGR of 6.8%. , while civilian applications of UAVs will provide an average annual growth of 39%

The consumer market will also grow at an average annual rate of about 16.2% and will reach $13.67 billion by 2027.

The growing demand for drone services is one of the major factors driving the commercial drone market. Drones are increasingly used for a wide range of tasks, including delivery, inspection, mapping and surveying. The drone delivery market's revenue growth is driven by rapidly growing e-commerce, which today requires fast and reliable delivery services. In addition, drones are used to perform various inspection tasks in various sectors, including oil and gas, construction and agriculture. Drones are increasingly being used for inspection purposes due to their increased access to remote and hard-to-reach regions.

The consumer drone market is growing rapidly and will continue to grow over the next decade. This growth indicates that drones are becoming increasingly popular and that the industry will likely continue to expand in the future.

Market dynamics indicate that the drone industry is a lucrative and fast-growing sector, and that there are many opportunities for businesses to benefit from this trend. Businesses looking to invest in drones should take advantage of this growth and capitalize on the opportunities the market presents.

CONSTRUCTION INDUSTRY

In the construction industry, UAVs are used for video recording, inspection, monitoring and safety. They are equipped with a global positioning system (GPS) and various downward-facing sensors such as RGB (red, green and blue), multispectral and thermal cameras, and light detection and ranging (LiDAR) technology that helps capture high-resolution images and data . The information thus obtained is used for mapping construction sites, tracking construction progress and quality control. Drones provide real-time positioning and are used to inspect hard-to-reach areas such as roofs and tall structures, reducing the risk of accidents and injuries. In addition, they help generate accurate geodetic maps and aerial photographs of construction sites, materials, machinery and personnel, and identify potential problems that may not be apparent during ground-level inspections. As a result, drones are gaining increasing popularity among contractors, building designers, designers, scientists, engineers and architects.

Infrastructure development and demand for advanced technologies that enable accurate reporting, safety, cost-effectiveness and efficient workflows on construction sites represent a key driver of market growth.

Market dynamics are positively impacted by the need for accurate and detailed data for mapping, surveying and inspection of construction sites. The widespread use of products for three-dimensional (3D) modeling and photogrammetric purposes such as volumetric measurement is opening up new profitable business opportunities in the construction segment.

The market expansion is driven by the use of drones for the inspection and maintenance of sidewalks, highways, bridges, buildings, facades and historical monuments. Drones are effective for remote inspection of high-risk areas as well as high-rise buildings, another important factor driving growth. Urbanization and the growing number of smart city initiatives, ongoing product innovations such as the integration of advanced cloud computing and Internet of Things (IoT) technologies, and the demand for sustainable building solutions are creating favorable conditions for the use of drones.

AGRICULTURE

The agricultural drone market refers to the industry involved in the production, sale and use of drones specifically designed for agricultural purposes. Agricultural drones are equipped with sensors, cameras and other technologies to collect data and perform various tasks in agricultural operations. The use of drones in agriculture has become widespread in recent years due to their ability to provide valuable information and improve the efficiency of farming practices. Agricultural drones offer a number of benefits, such as improved crop monitoring, early detection of crop diseases and pest infestations, and optimization of irrigation and fertilization processes. These capabilities can help farmers make data-driven decisions, reduce resource wastage, increase yields and improve overall farm management.

The growing popularity of precision agriculture is creating significant demand for agricultural drones. According to the World Bank, the world population will reach 9.9 billion by 2050. Given the acute food situation in the world, the question arises whether it is possible to meet the food needs of the population. Experts suggest that agricultural drones could be one of the ways to increase overall crop yields.

In the field of agriculture, drones can perform a variety of tasks: irrigation monitoring and scheduling, crop health analysis, crop damage assessment, and soil analysis. Western countries were the first to integrate drones into the agricultural sector, and now this trend is slowly and steadily gaining momentum in Asian countries.

In the short term (2023 – 2026), the agricultural drone services industry will be in the early stage of the business cycle. Expectedthat the market will expand rapidly and take the form of an organized industry in the next ~2-5 years. Market participants assume that sales will be generated mainly by demand from small farmers. In the medium term (2026-2029), market dynamics will be determined by macro factors related to global population growth. Long term (2029-2033): Continuous technological advancement in agricultural drones will create many opportunities for the services market. The formation of a regulatory framework for the market will contribute to its expansion.

LOGISTICS

Delivery drones are quickly becoming important parts of logistics, especially in the e-commerce space. The use of cargo drones in the logistics industry will continue to grow.

Last year, several companies teamed up with drone makers to experiment with instant delivery capabilities. Walmart has partnered with DroneUp to expand its drone delivery program and reach millions of customers. Drone delivery company Flytrex has worked with several fast food chains to deliver orders in the US. Even governments in Europe and Asia have begun experimenting with drone delivery services. Currently, transnational corporations such as DHL, UPS and Amazon remain leaders in the use of cargo drones. However, with the development of the industry, this situation is rapidly changing. More mid-sized companies are expanding their drone operations, and by the end of 2023, drone delivery may no longer be a monopoly of multinational corporations.

The main trends in the development of this segment are determined by the desire of cargo drone manufacturers to increase their ability to fly in harsh weather conditions, lift heavy loads and provide longer delivery ranges. Manufacturers' efforts are receiving support from governments. Dronamics, the world's first cargo drone company, has received a €2.5 million grant from the European Innovation Council (EIC) to support its research and development programme. Dronamics' goal is to create sustainable and affordable solutions for fast delivery across Europe, especially in isolated and underserved areas.

The company is developing long-range drones designed specifically for cargo transportation. Their flagship drone, the Black Swan, can transport up to 350kg of cargo over a distance of 2,500km at a cost that is 50% cheaper than conventional air freight. Moreover, their technology also ensures that the 60% reduces its carbon emissions compared to air travel. Dronamics is also IATA's strategic partner for drone manufacturing worldwide.

DroneUp, Walmart's drone operations division, is expanding its delivery network to reach an additional four million households in six US states. The company currently has the capacity to deliver one million packages annually using drones. Some of the other key players in the drone delivery market include Drone Delivery Canada, Airbus, Matternet, DHL, SF Express and Rakuten Group INC.

PUBLIC SAFETY

Public safety drone market in 2023 is assessed at $1.1 billion and is projected to reach US$2.0 billion by 2028 at a CAGR of 13.0%.

UAV technology has revolutionized the way we respond to emergencies and conduct public safety operations. The flexibility and maneuverability of drones allows them to penetrate hard-to-reach areas and provide critical support to first responders. Equipped with advanced sensors and cameras, drones can detect hazards, locate missing people and help manage critical incidents.

The use of drones improves situational awareness, response capabilities and operational efficiency. With improved flight performance, longer flight times and greater payload capacity, drones can navigate hazardous weather conditions, stay aloft longer and carry complex equipment and sensors. Advanced image processing technologies, live video streaming and data communications enable real-time situational awareness, while intelligent flight modes and autonomy simplify operations. In addition, the data collected by drones allows public safety agencies to use valuable information for incident management and subsequent analysis. Advances in technology in the public safety drone market promise to open up new opportunities and revolutionize emergency response efforts by ensuring safety and effective crisis management.

Major applications of drones for public safety include:

• Maintaining Law and Order
• Public transport management
• Emergency Management
• Fire protection
• Search and rescue

Currently, micro- and mini-drones are mainly in demand in the public safety segment, since their technical characteristics allow the rapid deployment of aerial surveillance and the formation of direct situational awareness in emergency situations. They are relatively inexpensive and do not require complex infrastructure, such as runways or hangars.

Depending on the operating mode, public safety UAVs are divided into semi-autonomous and fully autonomous drones. The latter offer a number of benefits, including improved automation, reduced operator workload, increased reliability, scalability and continuous operation.

Fully autonomous drones can carry out pre-programmed flight paths and tasks without requiring constant human intervention. This makes them suitable for large-scale operations and ensures smooth operation in various scenarios. The automation and reliability of fully autonomous drones allows them to carry out missions efficiently and effectively, fueling their increasing use in the public safety sector.

The fully autonomous segment is expected to grow at a higher compound annual growth rate (CAGR) over the next 5-7 years.

As mentioned above, drones are complex systems that use many of the latest technologies. The expansion of the drone market both in existing segments and their penetration into new areas is determined by their functionality. Below are the main technology trends that define them.

Artificial Intelligence and Machine Learning 

As the drone industry evolves towards autonomous systems, the use of elements of artificial intelligence and machine learning will become key. From predictive analytics for maintenance to advanced obstacle avoidance, artificial intelligence will be a key part of future drone technology. Machine learning algorithms can also allow drones to learn from experience, enabling adaptive behavior.

AI and machine learning will be used to analyze the data collected by drones. These technologies will identify patterns and enable predictions, such as determining the optimal time for planting or detecting early signs of crop disease. Machine learning algorithms will also allow drones to “learn” and adapt to the specific characteristics of the different environments in which they operate.

AI will also play an increasingly important role in drones used in the public safety segment, helping to analyze collected data to support critical decisions in real time. For example, AI can help recognize patterns or objects of interest in video streams, such as identifying a missing person during a search and rescue operation.

Autonomous operation 

The development of autonomous navigation technologies will allow drones to operate in difficult conditions without the participation of a human pilot. This opens up the possibility of using drones in dangerous situations without putting human lives at risk, including in environments where GPS is not available, such as indoor operations or in urban areas with high-rise buildings.

Autonomy is also critical for drone applications in logistics. They must be able to follow given routes, avoid obstacles and respond to unexpected events. AI-powered autonomy allows drones to “learn” and “make decisions,” significantly improving their efficiency and safety.

Communication systems, data relay, 5G, etc. 

Drones need reliable and secure communication systems to operate effectively. As the industry moves toward more data-intensive drone applications, the need for faster, more reliable communications will grow. The deployment of 5G systems and future generations of mobile networks will enable real-time data transmission and improved remote control, especially for Beyond Visual Line of Sight (BVLOS) operations.

Real-time telemetry is critical to ensuring safe operations and the safety and security of transmitted data.

In situations where communications infrastructure is compromised, such as during a natural disaster, drones can serve as aerial communication and data points. This helps restore communication channels and ensure effective coordination of rescue efforts.

Advanced Diagnostic Imaging Techniques 

Advanced visualization systems are especially necessary for effectively solving such problems as recognizing objects, places, and collecting information about their condition.

High-resolution cameras with the ability to recognize the visible light spectrum (Reg, Green, Blue - RGB), or capable of generating multispectral, hyperspectral and thermal imaging will become increasingly important. In logistics, they are necessary to effectively solve problems such as recognizing parcels, delivery locations or checking the condition of goods for delivery. In agriculture, by collecting data that the human eye cannot see, it can provide valuable information about plant health, hydration levels, and plant pest or disease infestation. For example, hyperspectral imaging can provide highly detailed images across the entire electromagnetic spectrum that can be used to detect subtle changes in plant health.

Increased load capacity

Increasing payload capacity is relevant for many drone applications. This is especially true in logistics, public safety and agriculture.

High payload drones have significant potential for logistics applications, and further developments in this area of technology will further expand their use in the freight industry.

In the areas of public safety and agriculture, the development of lightweight, heavy-lift drones will be key. The ability to lift heavy loads will allow additional equipment, such as first aid kits, life rafts or firefighting chemicals, to be delivered directly to people in need. And agricultural drones of the future will need to carry a variety of payloads, from advanced sensors to spraying equipment.

Unmanned swarm technology

Drone swarm technology involves deploying a number of drones working together to achieve a common goal. Each drone communicates and collaborates with the others, creating a “swarm” that can perform tasks more efficiently than a single drone. This technology has great potential in various applications such as search and rescue, agriculture, surveying and more.

Swarm technology, in which multiple drones work together, will become increasingly important for quickly and efficiently covering large agricultural areas. Using autonomous drone swarms can help scale operations and manage large farms more efficiently.

The use of drones working together can also provide a more complete overview of an emergency situation, helping to quickly cover large areas, providing critical information to first responders.

Operation of drones beyond the line of sight (Beyond Visual Line of Sight - BVLOS)

Currently, most regulatory agencies require drones to remain within the operator's line of sight. But for drones to revolutionize logistics, they must be able to operate beyond visual line of sight. Advances in drone technology, such as improved communications systems and greater autonomy, are paving the way for this type of operation. This will significantly expand the range of drones, allowing them to operate in remote or hard-to-reach areas.

High precision navigation

High-precision GPS systems and computer vision for visual odometry and location estimation are critical for accurate navigation and delivery. While GPS is an integral part of navigation today, in the future drones will likely use more advanced and accurate navigation systems. This could include integration with other global navigation satellite systems or the use of Quantum Compass technology, which can provide highly accurate positioning without the use of satellites.

Modern satellite positioning systems require constant optical contact with a number of satellites. If the connection is lost (say, inside a tunnel), the satellites will no longer see the device and therefore navigation becomes impossible.

The Quantum Compass is a prototype of a self-navigating machine that will allow not only drones, but any moving object to determine its exact position without the use of GPS or any other satellite navigation systems. A quantum compass measures the absolute distance traveled from a given starting point, while GPS gives the position of an object relative to a (set of) satellites.

This one sounds simple, but implementing a quantum compass currently requires high-powered lasers and expensive designs with precision electronics, usually housed in massive laboratory facilities. For the practical application of this technology, it is necessary to find a way to place all the necessary devices inside the drone, as well as take into account and eliminate potential sources of noise that reduce the accuracy of the method. This is the technology of the next generation of unmanned vehicles.

Advanced power and battery solutions

Battery life and energy efficiency are important limiting factors for modern drones. Advanced solutions such as more efficient batteries, solar power or hybrid power systems will allow drones to fly longer, cover larger areas and carry heavier payloads.

Limited flight time is a significant limitation for modern drones, which are primarily powered by lithium polymer (LiPo) batteries. Future drone developments will likely see advances in more efficient batteries, solar power, hydrogen fuel cells, or even wireless charging.

Application of new materials

Many functions require drones to be lightweight but durable. This challenge is being addressed by using new materials in their designs, from carbon fiber composites to self-healing materials, which will allow drones to withstand harsh conditions and have a longer lifespan.

Integration with the Internet of Things (IoT)

IoT integration will allow drones to interact with other devices and systems, providing a wealth of data to improve decision-making and automate a variety of processes and functions. For example, a drone could interface with a weather station to receive real-time weather data, or with traffic systems to avoid navigating congested areas.

In addition to the technologies that are important for all drone applications listed above, it is worth listing a number of innovations that are of particular importance to individual segments.

The following areas are being developed in the field of logistics:

Fail-safe mechanisms

These include emergency recovery systems such as parachutes, backup power and control systems, and functions such as returning home if communications are lost.

Fleet management

In a logistics context, it is likely that multiple drones will work together. Therefore, technologies that enable efficient fleet management, including coordination, task assignment and monitoring, are also critical.

Parcel processing systems

Delivery drones need a way to carry and release packages. This could be a mechanical grab or a cargo compartment that can open and close.

Obstacle detection and avoidance systems

Drones must be equipped with advanced detection and evasion systems to navigate complex urban environments. These systems typically use sensors such as cameras, LiDAR, or radar to detect and avoid obstacles.

In the field of agriculture:

Integration with farm management systems

To operate effectively, drones must integrate with other digital farming tools such as farm management software, weather forecasting systems, and IoT devices. This will provide a comprehensive overview of farms and help make more informed management decisions.

Precision farming

Integration of high-precision navigation systems will allow drones to follow precise paths over fields, providing complete coverage and reducing overlaps and missed spots. This will be especially important for tasks such as seeding, pesticide and fertilizer spraying.

Real-time data processing

Instead of storing data for later analysis, future drones will be able to process data on the fly, providing farmers with real-time information. This will require increasing the data processing capabilities of the drone itself in edge or edge computing formats.

In the field of public safety:

High-precision 3D mapping

Drones will increasingly use technologies such as LIDAR and photogrammetry to create highly accurate 3D maps of terrain. This can be used for a variety of purposes, such as assessing the structural integrity of a building after an earthquake or planning tactical actions in the event of a hostage situation.

Thermal and night vision

Thermal and night vision sensors will help drones identify people or objects in the dark or in hard-to-reach places, such as smoke-filled areas during a fire. This makes drones valuable tools for search and rescue and firefighting operations.

So, both the present and future of drones is undoubtedly promising from a business perspective. Innovation in this area is already transforming industries around the world. It is vital to stay informed and understand how these events may impact various business sectors and daily life.

Source: https://www.crunchbase.com