Adoption of Drone Logistics and Mobility – Raison d’être

  1. Raison d’être 
  2. EXPLORATION – FASTER HIGHER FURTHER – E3 CONSERVATION – Where saving Nature is the objective and profit an automatic byproduct
  3. Progression – Drone disruption – Cell phone disruption
    DISTRUPTIVE RATIOS – POWER TO WEIGHT 
  4. Current status – FOG
    BAZAAR BUZZ
  5. Opportunity – Market Size & Development
    Insider Intelligence predicts total global shipments to reach 2.4 million in 2023 – increasing at a 66.8% compound annual growth rate (CAGR).
    There’s no arguing the spike in drone industry growth that has occurred in the last few years – the drone services market size is expected to grow to $63.6 billion by 2025, and Insider Intelligence predicts consumer drone shipments will hit 29 million by 2021.
    Sales of US consumer drones to dealers surpassed $1.25 billion in 2020, according to Statista. Goldman Sachs forecasts the total drone market size to be worth $100 billion—supported by this growing demand for drones from the commercial and government sectors.
    The Indian UAV industry was valued at US$ 830 million in FY 2020 and is estimated to expand at a CAGR of 14.5% between 2021-26
    Drone makers in India currently have a turnover of about INR 800 million (US$10.88 million)
    At a press briefing on Thursday, September 16, the Civil Aviation Minister Jyotiraditya Scindia said, “With Drone Policy (Rules) and Drone PLI scheme, we have an aim that drone manufacturing companies in India should reach a turnover of ₹900 crore [INR 9 billion (US$122.44 million)] in the coming three years.” This will be a cumulative result of the development of a “value chain in the drone industry”, covering “hardware (drone manufacturing), software, and service delivery.”
    According to NITI Aayog, India’s UAV market will expand to US$ 50 billion over the next 15 years as drones are projected to substitute 80% of operations presently carried out by manned aircraft.
    While the drone industry has benefited from growth in sales turnover and a growing number of start-ups, it still lags behind leading economies. India has registered 211 drone start-ups (data from Tracxn, March 2022) – a small increase from 157 in August 2021 but nowhere close to the 970 in the US. Funding for drone start-ups has also only marginally grown, increasing on average from US$5.1 million per start-up in 2021 to US$5.6 million in 2022.
    As the capabilities of drone technology continue to expand, so too does the market for these devices. According to a new report from Research and Markets, the market for drones that can fly beyond the visual line of sight (BVLOS) could surpass a $34 billion value in the next eight years. This growth is being driven by the expanding applications of drone technology. Drones are now used for various tasks beyond photography and videography, such as package delivery, agricultural mapping, and search and rescue operations. As the number of potential drone uses continues to grow, so does the market for these devices.
    Analysts say that the market for BVLOS drones is expected to nearly double by 2029, as the technology continues to gain traction. With the rapid expansion of the market, it is clear that drones are here to stay and will only become more commonplace in the years to come.
  6. Scope – Applications and uses
    Disaster Management – High Risk conditions – Remote area – Survey & Surveillance –
    Drone Market Trends and Forecasts
    Drones for the enterprise hold the most potential in the broader drone market. Insider Intelligence defines enterprise drones as all unmanned aerial vehicles (UAVs) sold directly to a business for use in its operations.
    Under that criterion, Insider Intelligence predicts total global shipments to reach 2.4 million in 2023 – increasing at a 66.8% compound annual growth rate (CAGR). Drone growth will occur across five main segments of the enterprise industry: Agriculture, construction and mining, insurance, media and telecommunications, and law enforcement.
    The UN projects that the world’s population will reach a massive 9.7 billion by 2050, causing agricultural consumption to rise 69% between 2010 and 2050. And considering most of the farmers and agriculture companies using drones are big-ag-owned farms that manage thousands of acres of land, the potential for drone growth in agriculture is extensive.
    Popular applications for drones in agriculture include crop and livestock monitoring, irrigation management, and fertilization – DroneFly estimates that drones can spray fertilizer 40 to 60 times faster than doing so by hand.

    Drones in construction and mining
    Drone use in construction and mining could eventually become a $28.3 billion global market, according to PwC. Businesses within these industries are leveraging drones to more easily adhere to the extensive laws and regulations surrounding worker safety.
    It’s estimated that the average global annual cost of insurance claims from natural disasters has increased eight-fold since 1970. Because of this, insurance firms will likely leverage drone technology to provide faster and more accurate property assessments.
    Enterprise drones can get to hard-to-reach locations immediately after a disaster hits. From there, they can capture precise images and videos of damage that can be transmitted back to mobile devices for assessment in real time. Ultimately, drones can help claims adjusters process property significantly faster than doing so manually.

    Drones in law enforcement
    Drones are currently used by police forces for a variety of situations including surveilling expansive open areas, negotiating hostage situations, pursuing armed suspects, and investigating bomb threats.
    Unmanned aerial vehicles are an innovative, affordable alternative to helicopters, which can be very costly and aren’t always readily available. Most importantly, they allow police to navigate potentially dangerous situations while ensuring the safety of their officers.

    – The FAA to release updated regulations and guidelines for Beyond Visual Line of Sight (BVLOS)
    – Once this occurs, the market for drones flying beyond the visual line of sight (BVLOS) could surpass a $34 billion value in the next eight years.

    The Delivery Drones Market is expected to reach a value of $1.29 billion by 2028
    During times of extreme emergencies where lives are at risk, it is essential for first responders to be aware of their environment and constantly analyze risks that are sometimes beyond the visual line of sight (BVLOS). Draganfly’s Search and Rescue drone is a high-endurance, multirotor drone capable of providing optical and infrared imaging to map inaccessible areas, locate survivors and provide critical life-saving information before ground crews arrive.
    Medical response and search and rescue drones can also play a critical role in the aftermath of a natural disaster. If a country experiences an earthquake or hurricane, drones can be deployed to look for survivors, deliver critical supplies, and help in overall relief efforts.
    BVLOS criteria updates by the FAA will allow commercial drone companies to expand into unmanned package delivery. Draganfly recently introduced a new Heavy Lift Drone (DHL), a versatile, multi-rotor unmanned aerial vehicle (UAV) designed to enhance deliveries and flight times. The DHL Drone supports automated missions and manual flight operations and has a payload/cargo lift capacity of 30kg (67lbs).

  7. Vehicle – Product
    Light weight – < 1 kg – Mid weight – 1-20 kgs  – Heavy Weight – 50 kgs & above
    With an aim to make India a global drone hub by 2030 and to generate job opportunities by ensuring drone application in transportation, logistics, defense, mining, infrastructure and other sectors, the Indian government notified Drone Rules, 2021 in August last year.
    The Directorate General of Foreign Trade, under the Ministry of Commerce, has banned the import of drones to promote indigenous manufacturing of drones. Drones shall be strictly imported for three reasons- R&D, defence, and security purpose.
    From April 1, 2022, the ownership of any drone without a valid UIN will be declared illegal and subject to penal action under the law.
    Foreign participation allowed
    Foreign companies can also invest or own companies operating drones in India.
    Import regulation
    The Directorate General of Foreign Trade (DGFT) will continue to regulate import of drones but requirement of import clearance from the Directorate General of Civil Aviation (DGCA) is abolished.
    Digital Sky platform
    The single-window platform is now operational for the required clearances that will further streamline the process
  8. Market – Sales / Lease & Revenue Source
    Leasing – Commercial airliner model 
  9. Eco System
    DRONE BASE
    – Centres of Excellence / Training Schools
    – Maintenance / Service / Parking & Storage Area.
    Authorized remote pilot training organizations are free to collaborate with foreign entities while ensuring strict compliance with the requirements specified by the Director General of Civil Aviation with respect to training syllabi, infrastructure, instructors, equipment, infrastructure, etc.
    On February 11, 2022, the MoCA removed the requirement of a drone pilot license for operating drones in the country. A Remote Pilot Certificate (RPC) issued by a DGCA-approved drone school will suffice. However, for drones for non-commercial purposes and up to 2kg – this RPC Import ban announced February 9, 2022 by DGFT
    To promote domestic drone manufacturing, the Indian Directorate General of Foreign Trade (Ministry of Commerce) notified that the “import policy of drones in CBU/CKD/SKD form under HS Code 8806 is ‘Prohibited’ with exceptions provided for R&D, Defence, and Security purposes. Import of drone components shall be ‘Free’. This shall come into force with immediate effect.”

    Zonal demarcation categories relaxed
    The demarcation and mobility of drones in the yellow, green, and red zones have also been reformed. Previously, the yellow zone was a zone at a distance of 45 km from the airport perimeter; this is now reduced to a 12 km radius. Consequently, the green zone is an area beyond the 12 km radius of the airport perimeter.

    Drone certification scheme
    The new drone certification scheme establishes the minimum safety and quality requirements for unmanned aircraft systems in the country and will apply to all domestic drone makers, assemblers, and importers. The scheme thus introduces an accreditation framework to match global standards for drones, widens scope for commercial applications, and clarifies necessary safeguards.
    Another key goal of the scheme is to speed up and simplify the certification process for indigenous drone manufacturers, assemblers and importers.
    In terms of regulatory oversight, the scheme will be supervised by a steering committee to be chaired by a “known professional” accepted by government and industry stakeholders – along with a Quality Control of India secretariat. The steering committee shall include technical and certification committees.
    Requirements when submitting an application for certification of a drone by manufacturers include various test data, results, etc. Details to be provided include weight specifications, type of launch and recovery mechanism installed, speed, etc.

    Setting up remote pilot training organizations
    As per Drone Rules, 2021, any person who intends to obtain the authorization to establish a Remote Pilot Training Organization (RPTO) shall submit an application to the Director General of Civil Aviation in Form D5 on the Digital Sky Platform, along with the specified fees.

    Safety & Policy – Clearing the Fog, process of culling
    HELPING DEVELOP INDUSTRY , PUBLIC SAFETY AND PROTECTION OF CONSUMERS IN THE USE & APPLICATION OF DRONE ON THE LINES OF AEROSPACE  BUSINESS ON A SUSTAINABLE BASIS. Cost of drone to rise, safety to increase, number of players – down to a handful. Timeline a decade.
    In January 2022, the Ministry of Civil Aviation introduced a drone certification scheme to maintain minimum safety and quality standards to promote domestic manufacturing.
    Moreover, drones up to a weight of 500 kg has come under the ambit of the Drone Rules. Previously, the regulations covered drones up to 300 kg. This means drone taxis will become a possibility in India.
    No security clearance required
    Security clearance prior to issuing a drone license is now abandoned.
    No drone license required
    India now just requires a Remote Pilot Certificate / RPC issued by a DGCA-approved drone school through the DigitalSky Platform. It has been reported that no RPC is required for operating a drone up to 2kg and for non-commercial use.

    Business Model
    Develop an ecosystem driving policy and ensuring reasonable profit at each stage of development of the ecosystem. Though gestation period for manufacture and lease of drones to be perhaps more than a decade.

  10. GOAL
    Survival of the Patient & Intelligent – not Quickest & Fastest. On E3 Principles

KAPIL – Saturday 26th November 2022

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