A Snapshot of the Drone Industry: UAS Mapping Reno

We at Aerotas have spent the past 3 days at the UAS Mapping conference in Reno, Nevada.  In addition to a deluge of information about surveying, photogrammetry, and image processing, we got to meet many of the companies that are working in this industry today.  It provides us with an interesting snapshot of the types of firms involved in actually using drone technology, and all of the specialties that it takes to make this technology profitable.  Below is a snapshot based on the 50 firms that were exhibiting at the conference.  There are definitely some companies here that didn’t exhibit, and this certainly doesn’t represent the entire commercial drone industry, but it can provide some valuable insights about the industry as a whole.  

Exhibiting Companies at the UAS Reno Conference

The most obvious takeaway from the above chart is the balance in the industry between hardware manufacturers, software manufacturers, and support companies, which include drone operators, consultants, and trade groups, among others.  Many of these firms are highly specialized, like some of the data processing firms that analyze survey data for operators.  It suggests that a fully vertically integrated firm that tries to build their own drone, autopilot, sensors, data processing software, and then run the operation on the ground, will face huge challenges from the more modular options out there.  In this industry, it will make more sense to specialize on a specific part of the industry rather than the full value chain.  

Hardware Manufacturers

Software Developers

Support Companies

Drilling into the data a bit deeper we get hints of where most people think a lot of the value in the UAS industry is.  Of the 20 hardware manufacturers, over half made complete aircraft, while 7 only made sensors, and only 4 companies sold individual aircraft components like flight computers, suggesting that a lot of people see value in complete hardware systems.  On the software side, nearly all firms were involved in data post-processing, primarily image stitching and 3D modeling.  Only 2 firms offered flight computer and navigation software.  The support industry was more varied, with a wide selection of service providers, consultants, and other firms like industry advocacy groups, schools, and trade magazines.  

The most important thing that can be gathered from this data is actually what is missing.  Of the 50 firms presenting, there was not a single firm focusing on legal compliance, regulatory management, or workflow management.  It shows that these functions, while critical to the industry, are often overlooked by practitioners and end users of UAS technology.  There are many good companies out there, like Skyward or Rupprecht Law, that address these industry needs.  However, though both firms were in attendance, neither had a booth in the exhibit hall.  

There is no question that this data set is incomplete.  In fact, it isn't even a complete list of the companies that attended the conference.  It does, however, show what the industry currently does, and does not, choose to focus on.  Hardware manufacturing and software data processing are hot and very competitive.  Support industries, especially legal and professional services, are not getting much attention.  They are, however, as critical to safe, legal, and profitable operations as any good piece of hardware.  Lets hope the the industry eventually catches on to develop a full suite of functions to grow to its full potential.

A Letter to California Governor Jerry Brown

September 8, 2015

The Honorable Edmund G. Brown, Jr.
Governor of California
The Capitol
Suite 1173
Sacramento, CA 95814

Dear Governor Brown,

As an entrepreneur, small business owner, and lifelong Californian, I strongly urge you to veto SB 142, which was recently introduced by Sen. Hannah-Beth Jackson and passed by the California Legislature.  This bill only serves to increase the unfounded fears that people unfamiliar with unmanned aircraft systems (UAS) have, and will not make California safer from the risks associated with UAS technology.  Rather, it will hurt the UAS industry, and suppress small businesses in California.  For the sake of my business, our clients, and all of the people that UAS technology could benefit, I insist that you veto SB 142.

Having spent nearly 2 years working in the UAS industry, and years more flying radio controlled aircraft, I have a great deal of experience that allows me to understand the true impact of SB 142.  By restricting flights below 350 feet, a large number of potential UAS applications, from photography to infrastructure inspection, become much more difficult, if not impossible.  This means that an industry that could employ thousands of photographers, designers, pilots, artists, and students, is restricted before it even has a chance to grow. Soon, the Federal Aviation Administration (FAA) will finalize its rules on integrating commercial UAS into the national airspace, which could open the door to endless possibilities across the country.  However, if California insists on having the most restrictive rules on UAS technology, then these benefits may never be realized.  

For small businesses like mine, it is bills like this that make the difference success and failure.  I love California and want to grow my business here, hire more employees here, grow the economy, and contribute to a safer, cleaner, and more efficient world.  That is why I so strongly insist that you veto SB 142 and allow the UAS industry to grow to its full potential.  

Sincerely,

Logan Campbell
Founder & CEO
Aerotas

Do You Really Need a Pilot's License for Commercial Drones?

Logan Campbell - Logan@Aerotas.com

We often hear questions from people interested in commercial UAS about what the requirements are to actually be a commercial UAS pilot.  This question carries numerous implications, with the biggest problem that, the more certifications required, the more expensive it is to hire and train a commercial UAS pilot.  So the short answer to the question of whether or not your UAS pilots need an FAA issued pilot's license is: Yes.  To operate commercially right now, commercial UAS pilots need a license to fly manned aircraft from the FAA.  However, the real questions to be asking are: what will the licensing needs be in the future, and when are they going to change,  and how should I adjust my business model to these issues?

It is abundantly clear to the FAA, commercial UAS companies, and even the general public, that all of the safety requirements we put on manned aircraft pilots are not necessary for UAS.  The skills required to pilot UAS safely a few hundred feet above the ground are very different than those required to fly cross-country.  Thankfully, the FAA has acknowledged this, and their proposed rules would eliminate this requirement. According to original deadlines, they are supposed to integrate the final version of these rules by September 2015.  Unfortunately, that is not going to happen.  

The most recent direct communication from the FAA targeted June of 2016 as the target date for releasing the final version of these rules.  However, the FAA has missed deadlines like this in the past, and occasionally by significant margins.  It would be foolishly optimistic to have faith in this deadline, especially if the viability of your UAS business line depends on this changing.  

Realistically, the effective elimination of the pilot license requirement for commercial UAS will happen sometime in 2017, and any businesses involved in commercial operations ought to plan accordingly.  For many operations, this may mean running only a small test program for the next 18 months with the more expensive pilots, and then scaling the business fully once the requirements change.  For others, it may mean holding off on their UAS operations altogether, as the cost structure just doesn't work under the current regulatory system.  

Getting a sport pilot's license, the lowest way to fulfill current requirements, can cost as much as $10,000 per person, enough to crush many business models.  Thankfully this is going to change.  However, it is important to consider when this is going to change, and what the costs will be once it does change.  So although the current requirements are universally acknowledged as being burdensome, ultimately they will change, and a well informed manager can navigate the changing regulations well enough to be successful.  

Are you interested in learning more about how to operate commercial drones safely?  Send us an email at info@aerotas.com.

Logan is the founder and CEO of Aerotas.  He graduated from Harvard Business School in 2015 and brings experience in a broad range of industries, including agriculture, real estate, and finance.  A lifelong tinkerer and avid UAV enthusiast, Logan also has hundreds of hours of flight experience over a broad set of different UAV types.