Unmanned Aerial
Vehicles (UAV) or unmanned aerial systems (UAS) have been around for a long
time, however, Amazon’s announcement in 2013 to start drone delivery
experiments stirred the industry. Since
then, advent of several drone-based companies has been witnessed and the trend
is here to stay as numerous industries are leveraging the power of unmanned
aerial vehicles to gather crucial insights.
Array Of Industries In Which Drones Have Penetrated So Far
Drones market is
growing at a rapid pace and is expanding to various verticals, including,
media, government, energy & utilities, aerial photography, agriculture,
e-commerce and entertainment. Unmanned aerial vehicles help to gather crucial
information with reduced cost of technology and compliance, which is bolstering
their demand across various industries. Additionally, integration with
technologies, such as augmented reality, 3D modelling and internet of things,
can open a multitude of possibilities for their operation. Drone technology is
used to capture visual information, however, with proper programming and
computing, visual information can be converted into data points which can be
used in multiple ways.
Application
Of Drones In Various Industries
UAV
Market In Key Countries
Since the advent
of drones, North America has been an early adopter of drones and is the
dominant geography with US leading the race. Additionally, according to
Association for Unmanned Vehicle Systems International, 70,000 jobs are
anticipated to be added, with the US economy reaching $ 13.6 billion within the
first three years of commercialization of UAV.
In terms of
funding, China topped the list with $ 262 million funding since 2015. While, among
regions, European countries are witnessing high developments and investments in
UAV technology. US, China and India have aviation authorities such as Federal
Aviation Administration (FAA), Directorate General of Civil Aviation (DCGA) and
Civil Aviation Administration of China (CAAC), respectively in place for
regulating the operations of UAS in these countries. Aviation authorities have
been implementing new regulations for facilitating the adoption of drones in
various economies. For instance, in 2018, FAA launched UAS Integrated Pilot
Program for implementing drone programs to integrate upcoming technologies in
federal regulations. FAA also initiated Low Altitude Authorization and
Notification Capability (LAANC) program, which allows flying drones at a
location close to any airport.
According to TechSci Research report “Global Drones Market By Type (VTOL/Rotary, Fixed Wing, etc), By
Segment (Consumer, Commercial & Military), By Application (Aerial
Photography, Agriculture, Industrial Inspection, etc), By Payload, By Region,
Competition Forecast & Opportunities, 2023”, global drones market stood
at over $ 69 billion in 2017 and is projected to grow at a CAGR of more than
11% to surpass $ 141 billion by 2023, on the back of increasing use of drones
in commercial and military applications as well as in surveillance activities.
Moreover, technological advancements in commercial drones and rising use of
drones for aerial remote sensing is further fueling growth in the drone market,
globally. Additionally, formulation of regulatory policies for optimal
utilization of drones along with increasing awareness about UAVs is further
expected to positively influence global drones market in the coming years.
Leaders
In The UAV Market
According to TechSci Research, SZ DJI Technology Co., Ltd. is the dominating player in the drone
aircraft market. The Chinese company accounts for the majority share in the
market, as of 2018, which can be attributed to technological advancements and
product developments by the company. SZ DJI has a global distribution network
and competitive pricing working in advantage for the growth of the company. Other
players operating in global drones market include 3D Robotics, Inc.,
AeroVironment, Inc., Parrot S.A., Yuneec International Co. Ltd, General
Atomics, Lockheed Martin Corporation, Northrop Grumman Corp., Boeing, and China
Aerospace Science and Technology Corporation, among others.
Present
Scenario In India
The market for
unmanned aircraft systems in India is at a nascent stage. Based on Federation
of Indian Chambers of Commerce & Industry’s report on Make in India for
Unmanned Aircraft Systems, Indian UAV market is projected to reach $ 885.7
million during 2017-2023, exhibiting a CAGR of 18% during the forecast period. The country
is expected to witness adoption of drones majorly for commercial and military
applications. UAVs have witnessed steady growth in India over the past five
years, however the application was only limited to the PSU, law
enforcement agencies (LEAs) and government agencies.
Uses
Cases of Unmanned Aerial Systems in India
With the
increasing popularity of the unmanned aerial systems, National Railway System has
started deploying drones for monitoring the construction progress of railway
lines in mega projects. Other instances of unmanned aerial systems in India
include:
- PSUs are employing unmanned
aerial systems for monitoring, intrusion detection and surveillance of solar
power plants.
- Coal mining companies are
utilizing drones for the aerial surveys of coal mines for the assessment of greenery
restoration.
- Disaster management
organizations are employing drones for rescue and relief operations.
In October 2018, Director General of Civil Aviation
(DGCA) published regulations for usage of drones so as to promote the adoption
of unmanned aerial vehicles. The regulations came
into effect from 1 December 2018, and all the operations of the remotely operated
aircraft will be allowed through digital sky platform. Indian drone policy is
expected to encourage the manufacturing of drones in India and offer employment
opportunities to professionals. As a result of the Indian drone policy and Make
in India initiative, private players are entering into the commercial drone
space so as to register positive growth in the drones market.
According to TechSci Research report “India Commercial Drones Market, By Type (Fixed Wing, High-Altitude Long
Endurance (HALE), Unmanned Combat Aerial Vehicle (UCAV), Medium-Altitude
Long-Endurance Unmanned Aerial Vehicle (MALE) and Others), By Payload (Less
than 250 gm, 250 gm - 2 kg, 2-25kg, 25-250kg, above 250 Kg), By Application
(Agriculture & Forestry, Media & Entertainment, Mapping &
Monitoring and Others), By Company and By Geography, Forecast &
Opportunities, 2024”, India commercial drones market is projected to grow
at a double digital CAGR during forecast period. Commercial drones are
significantly gaining adoption across several applications owing to growing
technological advancements and rising demand for drones in media and
entertainment applications. India is among top countries across the globe in
terms of drones imports. In 2018, India accounted for over 20% of the global drones
imports. Moreover, the government of India is focusing on “Make in India”
initiative to increase domestic manufacturing of these drones in the coming
years. Based on type, the market is segmented into Fixed Wing, High-Altitude
Long Endurance (HALE), Unmanned Combat Aerial Vehicle (UCAV), Medium-Altitude
Long-Endurance Unmanned Aerial Vehicle (MALE) and Others. In 2018, MALE segment
dominated the market and is anticipated to maintain its dominance over the next
five years as well. Commercial drones have several end user applications like
Agriculture & Forestry, Media & Entertainment, Mapping & Monitoring
and others which is anticipated to drive the overall commercial drone market
during forecast period owing to increasing demand from these sectors.
Additionally, the introduction of government policies is further augmenting the
demand for commercial drones in the country.
Timeline of Indian Drone
Policy
Implications
Of Drone Policy Implemented By The Director General of Civil Aviation (DGCA)
- The current drone policy
classifies unmanned aerial systems into five categories including micro and
mini based on the maximum take-off weight.
- All the UAVs need to be
registered and possess Unique Identification Number (UIN) before they can be
operated.
- All the UAVs will have to
adhere to the rules set by Civil Aviation Requirements (CAR) based on their
classification.
- Only trained pilots can fly
UAVs and each flight must be recorded with data so that it can be produced to
the regulator on demand.
- Nano and micro remotely piloted
aircraft are exempted from filing flight plan and obtaining Air Defense
Clearance upto 50 feet and 200 feet, respectively.
- Operations of the remotely
piloted aircraft will be permitted only in daylight with visual line of sight.
- Remotely operated aircraft
cannot discharge objects without the approval from Unmanned Aircraft Operator
Permit (UAOP).
- Only nano remotely piloted aircraft
are excused for approvals from police authority before commencing operations.
- Minimum ground visibility of 5
km is must for remotely piloted aircraft.
- Unmanned air operator has to
file for flight plan and obtain clearance with concerned air traffic services
(ATS) units for operation at or above 200 feet.
Indian Drone Policy for the regulation of unmanned
aerial vehicles is aimed at building world-friendly and safe environment for
the adoption of drones in India. The guidelines are expected to provide the
required thrust for the drone start-ups and private players to venture into UAV
space. Some of the Indian start-ups operating in the market include Martian Way
Corporation, Aarav Unmanned Systems, Aerial Photo India, Aerialair, Aero360, AirPix,
Asteria Aerospace, Aurora Integrated Systems, among others.
Author: Mr. Ruchit Mahendru, Research Manager, TechSci
Research
Mr. Ruchit Mahendru is a management and strategy consulting
professional with over 8 years of experience. Mr. Mahendru has been instrumental
in developing and implementing business strategies for many ICT companies. He
has extensive experience in advising clients to identify and tap unearthed
opportunities for its clients to lead rather than following competition.