Tuesday, 3 December 2019

Commercial Drone: Flying Business into the Future



According to Drone Industry Insights, the drone market will grow from USD 14.1 billion in 2018 to USD 43 billion by 2024. This strong growth of 20.5% CAGR is a reflection of the ongoing high investments and the consolidation of the commercial drone market.

Source: Goldman Sachs (2016)

The commercial drone market will drive the industry forward with its growth opportunity. By 2021, the commercial drone industry will have sold 1,000,000 units. The US and China currently dominate the commercial drone market. Their revenue together makes up over 2/3 of the global drone market. And India, having legalized drones at the end of 2018, will be by far the fastest growing commercial drone market. By 2024, it will develop into the 3rd largest commercial drone market in the world.

With drones, less human operation is required and therefore, businesses save time and costs. Drones can also enhance data analytics, which allow companies to better comprehend and predict operating performance. They will even provide new business models and opportunities to businesses.

How can drones be used for commercial?

1. 3D Mapping

This helps businesses to survey sites, take photos and create maps. In agriculture, farmers can get clearer idea of what crops look like, and help them to make data-driven decisions. Same goes to construction and mining, where drones can accurate contour maps, monitor change over time, and share insights via the cloud.

2. Delivery

Drones can bypass the traffic congestion and make delivery more easily. In some rural places, drones can be serve for medical purpose. It could deliver urgent medical supplies in shorter time to hard-to-reach areas. In these areas, flying is sometimes more efficient than driving and can be an effective substitute for more expensive solutions like helicopters.

3. Inspections

Hard-to-reach areas are now reachable with drones. People are using drones for telecommunication tower inspection, as well as inspection on pipelines, solar panels, electric grids, and offshore platforms. Some insurance companies also started to use drones to determine cause, liability, responsibility and total damage after events like natural disasters.

4. Data Transmission

Drones can amplify internet network signals and access remote locations such as deserts or sprawling areas of Africa or Asia. An all-wireless network in the sky would be less expensive, less disruptive, and would take less time to build than land-based infrastructure. Google has been reportedly testing solar-powered broadband drones to support the implementation of Project Loon, a network of balloons traveling on the edge of space to extend connectivity.


Source: Project Loon

In Malaysia, the oil palm industry is a potential market for the use of drones. Images collected from drones help palm oil companies to spot fires in remote and inaccessible areas. Drones are also capable in collecting data that can be used to decide if crops have enough water and nutrients, and even to find leakages in irrigation systems. This makes the oil palm industry shift from dependence on manual labor to becoming one of the fastest-growing markets for commercial unmanned aircraft (The Star, 2019).

Also in Malaysia, we have a ‘Super Drone’ here (also known as the ‘Flying Car’). This is a joint venture project between EastCap Bhd and Chinese firms, EHang Intelligent Equipment (Guangzhou) Co Ltd and Strong Rich Holdings Ltd. According to EastCap, ‘Super Drone’ was not meant for transport use, but for applications such as border patrol and as an emergency aid vehicle. Its plan includes the construction of an assembly facility in Malaysia with a production capacity of 10,000 units a year with 2,000 job opportunities.

Today, drones are not only for military, or just for hobbyist. Tech and retail giants like Amazon, Facebook, Wal-Mart, and Google have already invested heavily in drones. The future of drones being used for commercial purpose is no longer as far off as many thought. Instead, it has already begun!


Reference:

1. Francesco Castellano, Commercial Drones Are Revolutionizing Business Operations https://www.toptal.com/
2. Drones that do the work of 500 farmers are transforming palm oil, 20 Nov 2019, The Star
3. Redzuan sneaks a peek at 'Super Drone', 21 Nov 2019, MalaysiaKini

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