Drone Power - Unlocking a $121BN Market with Airspace Rights
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The sky is no longer the limit. The Unmanned Aerial Vehicle (UAV) industry is poised to become the most dynamic growth sector in the aerospace realm over the next decade, with global spending estimated to exceed a staggering $121 billion.
The Promise of Commercial Systems
Jeremiah Gertler, senior analyst behind the study, predicts that the real drone boom will unfold in the higher-value commercial systems. While lower-level UAV markets may seem mature, it is the commercial realm that holds the keys to this potential gold rush. The United States market, in particular, is primed for explosive growth.
Roadblocks to Growth
Although the U.S. has made notable strides in drone regulations, embracing night operations, one significant hurdle remains: the lack of regulatory guidelines for beyond visual line of sight operations. This is one obstacle restraining the full potential of the market, impeding its progress and curbing growth. However, Gertler's study optimistically projects that the integration of unmanned systems into the airspace will inevitably occur, but it requires private market solutions.
The U.S. House of Representatives Transportation and Infrastructure Committee's passage of the "Securing Growth and Robust Leadership in American Aviation Act (H.R. 3935)" has received praise from representatives of the drone industry. The act, which must still be approved by both the House and Senate, is seen as a significant step toward providing support and regulatory clarity to U.S. companies involved in advanced aviation, drones, and Advanced Air Mobility (AAM). Michael Robbins, Chief Advocacy Officer of the Association for Un-crewed Vehicle Systems International (AUVSI), expressed enthusiasm for the legislation, emphasizing the need for integrating drones safely into the airspace while fostering domestic workforce growth, technology innovation, and manufacturing to enhance U.S. global competitiveness.
One notable provision of the bill requires the Federal Aviation Administration (FAA) to expeditiously outline a Notice of Proposed Rule Making (NPRM) on Beyond Visual Line of Sight (BVLOS) drone operations at or below 400 feet, with publication set to occur four months after the legislation's passage.
It is important to note that this is the low altitude airspace which is owned and controlled by the landowners.
The bipartisan nature of the legislation and its swift progression through the committee process have been acknowledged and appreciated.
Everyone seems to like this bill, the drone industry like it, the regulators like it and some of the politicians like it. Should we be concerned that so many people like it? It doesn’t tie it in a bow and deliver drones in our skies, that’s for sure. It may give the illusion of a neatly parcelled solution but it is lacking the vital element, which is not within any of these groups gift to give. The air rights owners permission.
What about your air rights?
The U.S. is witnessing a significant encroachment on private airspace rights as major corporations like Walmart seek to establish drone delivery services.
Airspace is being transited through by commercial delivery drones. Property laws have long recognised landowners' control over this airspace, and the Supreme Court has affirmed their rights to exclude unwanted intrusions. However, powerful corporations are lobbying for policies that undermine these airspace rights to facilitate drone deliveries. These companies are using Federal Aviation Administration (FAA) authorisations in an attempt to claim rights over private airspace without providing any compensation to landowners.
Attempts to preempt state property laws through Congress have failed, as has the push for a drone-friendly uniform law at the state level. Undeterred, drone delivery companies like Amazon, UPS, and Wing have secured FAA authorisations for commercial drone operations, disregarding landowners' exclusion rights.
Pilot programs are limited to remote areas but the FAA is gradually permitting expansion into major suburban regions. Drone delivery companies are confident that incremental expansion and the promise of convenience will outweigh concerns about privacy and property rights. Having spoken to homeowners I am sure the person in the street does not see it this way.
But the devil is in the detail. The FAA are not giving the drone companies the air space to use. They are approving the drones to fly. They don’t own the airspace to give it away and if they were to authorise its use as a government body they would be required to compensate the landowners for taking it!
An alternative approach
It exists and it respects landowners' airspace rights. Landowners can register their air rights to low altitude airspace and temporary routes are created for autonomous commercial drone flights. Market forces enable a more balanced use of airspace, benefiting millions of individual landowners and distributing economic value more equitably.
The future of drone deliveries in the U.S. will develop over time. Landowners who fail to assert their airspace rights could find their homes transformed into unpaid delivery routes. To avoid this outcome, it is crucial to address the issue and protect property rights in the evolving landscape with SkyTrades.
Driving Forces of Change
In the realm of drones, it is the commercial sector that will steer the course of the market. As consumer drone purchases reach a point of saturation, and government purchases maintain a small yet ascending slice of the pie, major corporations have begun to harness the power of drones in their day-to-day operations. This shift in focus has compelled manufacturers to set their sights on the upmarket, targeting more sophisticated and higher-value units.
The Delivery Market
Among the various commercial applications, it is the delivery market that stands out as the crown jewel, promising the potential to touch every household worldwide. However, this grand vision must navigate through a labyrinth of intricate environments. By 2030 the delivery sector will reign supreme in the drone landscape of the United States.
Sector Growth Opportunities
Looking beyond the boundaries of delivery, the agriculture sector is set to soar. Heavy investment in subsidising agricultural drone spraying, coupled with the increasing availability of affordable drones tailored for smaller farms, positions China as a dominant player in this realm. Meanwhile, industrial inspection emerges as a promising market, with construction leading the pack. The study unveils that all of the top ten construction firms worldwide are either deploying or experimenting with drone systems, showcasing their global deployment capabilities. Additionally, sectors like general photography, communications, insurance, and entertainment are poised to leverage the transformative potential of drones.
Drone Inspections
Southern Company, in partnership with Skydio, has been granted a conditions-based waiver by the Federal Aviation Administration (FAA) for fully remote, autonomous beyond visual line of sight (BVLOS) dock operations. This BVLOS waiver is one of the first of its kind and will enable Southern Company to remotely monitor and inspect infrastructure at various plant sites, substations, and fixed locations. By integrating autonomous drone systems Southern Company aims to enhance the efficiency and reliability of inspections, mapping, and monitoring, ultimately leading to more dependable energy infrastructure for its customers.
The national-scale approval enables Southern Company to perform remote operations at critical infrastructure sites across multiple states, thanks to the intelligent capabilities of the drones. Previously, Southern Company received a waiver in November, facilitating advanced BVLOS operations for mapping and inspecting infrastructure at Plant Barry in Alabama. This earlier waiver has already proven beneficial in conducting recurring inspections of critical infrastructure within the Southern Company system.
The critical element of this is that the owners of the infrastructure are granting permission to the drone operators to fly in their airspace. This is what is enabling the inspections to happen. Like an approved car on a highway why would we need the FAA to be involved other than a simple safety check for approval.
To get scale these two element are fundamental;
Drones that can fly
Air Space use permitted by the owner
Venture Funding and the Global Landscape
As the drone revolution unfolds, over $20BN of venture funding has flown into the sector, fuelling the development of software to handle the vast amounts of data generated by unmanned systems. Notably, U.S. start-ups have secured the lion's share of the funding, propelling them to the forefront of drone analytics. Meanwhile, Chinese firms, known for their hardware are navigating the transition from consumer to commercial systems, vying to make their mark in markets already dominated by established players.
Drone Potential
While regulatory hurdles and complexities persist, the potential of the delivery market, agriculture and industrial inspection remains unrivalled when the air rights holders are brought into the eco-system.
Without the air rights holders the entire industry will be incentivised into more governmental and military realms and the real value to our communities will be left on the table. SkyTrades is determined to make sure the industry flys in the right direction.