Issue link: https://te.mouser.com/i/1416839
Insurance is an area in which large enterprises may have fleets of drones—including drones for roof inspections (prosumer systems) and for post-hurricane/disaster inspections (mini- systems). The number of mini-systems is expected to be considerably smaller than prosumer systems. Delivery & Communication As noted earlier, the COVID-19 pandemic has helped improve the prospects for deployment of delivery drones. Deliveries of documents, high-priority packages and even needed inputs for factories are prime targets of opportunity for drone delivery. The full promise of the delivery market will only be met once access to national airspace is freely available which will be realized in 2029. vi The economics of widespread use of the delivery UAS depends on the regulations/restrictions in terms of payload capacity, flying in urban areas, flying BVLOS and other safety concerns like theft and system hacks. Additionally, the market for low-cost high-altitude pseudo satellites (HAPS) appears to have both the investment and applications to emerge as a major new market. HAPS aircraft will be designed to stay in the air for months, powered by solar cells. The primary market will be to provide internet to areas that are currently not served. Barriers to Entry, Challenges for Engineers & Manufacturers As attractive as the commercial drone market is, there are significant challenges and uncertainties still to be resolved. Despite this market's rapid growth, there are few companies making a profit at this early stage. The massive number of startups and investments by existing companies has created capacity that outstrips demand, driving prices downward. As companies are forced to evolve quickly to deal with intense competition, consolidation promises to accelerate in the industry. The Teal Group anticipates that well over half of the companies now involved in commercial drones will be out of the market in five years. vii In addition to this fierce competition, the following challenges also add some uncertainty to the market: • Airspace Rules – With a lack of air traffic management by aviation authorities in various countries, progress in developing rules for airspace access could be jeopardized by major accidents or terrorist attacks using drones. • Rising Costs – Some UAS manufacturers are concerned that the requirement for detect-and-avoid technology could raise the cost of those systems and undermine their viability. • Industry Safety – Safety concerns around drone operations, such as crashes due to improper handling and battery failure, necessitate strong requirements for skilled, professional drone operators. • Cybersecurity – Safety and security issues such as spoofing of UAVs, thefts, hacking and UAVs being shot down is a serious issue that needs more attention as this market accelerates. Commercial customers also will demand UAS that keep their proprietary business information safe. PAGE 6 PAGE 6 KEY DRIVERS OF GROWTH ACCELERATION IN THE COMMERCIAL DRONE MARKET / TREND PAPER Key Drivers of Growth Acceleration in the Commercial Drone Market Deliveries of documents, high-priority packages and even needed inputs for factories are prime targets of opportunity for drone delivery. "ONE OF THE BIGGEST CHALLENGES IS THE LIMITATION OF POWER DENSITY OF THE BATTERIES, WHICH ULTIMATELY DETERMINES HOW LONG THE DRONE CAN BE IN THE AIR" — Qualitative research respondent, TE Connectivity