Utility Drones Market

[140 Report Pages] The global utility drones market was valued at USD 85.8 million in 2017 and is projected to reach USD 538.6 million by 2023, at a CAGR of 37.34% during the forecast period.

The years considered for the study are as follows:

• Base Year: 2017
• Estimated Year: 2018
• Projected Year: 2023
• Forecast Period: 2018–2023

The base year considered for company profiles is 2017. Whenever information was unavailable for the base year, the prior year has been considered.

Objectives of the Study

• To analyze and forecast the market size of utility drones in terms of value
• To provide detailed information about the major factors influencing the growth of the market such as drivers, restraints, opportunities, and industry-specific challenges of the market
• To define, describe, and forecast the market on the basis of type, services, and end-user
• To forecast the expansion of the market size with respect to main regions, namely, North America, South America, Europe, the Middle East & Africa, and Asia Pacific
• To strategically analyze the utility drone market with respect to individual growth trends, future expansions, and contribution to the market
• To analyze market opportunities for stakeholders and details of a competitive landscape for the market leaders
• To analyze competitive developments such as contracts & agreements, mergers & acquisitions, new product developments, investments & expansions, partnerships, and collaborations in the market
• To strategically identify and profile the key market players and analyze their core competencies in the market

Research Methodology

This research study involved the use of extensive secondary sources, directories, journals on power generation technologies, and other related rental markets; newsletters and databases such as Hoover’s, Bloomberg, Businessweek, and Factiva to identify and collect information useful for a technical, market-oriented, and commercial study of the global utility drone market. The primary sources include several industry experts from the core and related industries, vendors, preferred suppliers, technology developers, alliances, and organizations related to all the segments of this industry’s value chain. The research methodology has been explained below.

• Study of annual revenues and market developments of the major players providing utility drones
• Assessment of future trends and growth of types (multi-rotor and fixed wing)
• Assessment of the market with respect to the services mainly used (end-to-end solution and point solution)
• Assessment of the market with respect to the solutions used for different end-users (power and renewable)

After arriving at the overall market size, the total market was split into several segments and subsegments. The figure given below illustrates the breakdown of primary interviews conducted during the research study based on company type, designation, and region.

To know about the assumptions considered for the study, download the pdf brochure

Major players operating in the utility drones market include Cyberhawk (Scotland), Delair (France), HEMAV (Spain), PrecisionHawk (US), and Measure (US).

Target Audience:

• Manufacturers and suppliers of utility drones
• Service providers of utility drones
• Energy & environment associations
• End-user industries such as power industry, solar power, and wind power
• Government and research organizations
• State and national regulatory authorities
• Investment banks
• Manufacturers’ associations
• Institutional investors
• Environmental research institutes

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Scope of the Report

:

By Type

• Multi-rotor
• Fixed wing

By Services

• End-to-end solution
• Point solution

By End-user

• Power
  • Generation
  • Transmission & distribution
• Renewable
  • Solar
  • Wind

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:

Product Analysis

• Product Matrix, which provides a detailed comparison of the product portfolio of each company

Company Information

• Detailed analyses and profiling of additional market players (up to 5)

Company Information

• Detailed analyses and profiling of additional market players (up to five)

Drivers

Growing global demand for minimizing outages related to transmission infrastructure

Power outages have been a severe global issue impacting the reliability of transmission systems. Reliability is a critical factor, especially for countries where energy prices are regulated. Power utilities face backlashes from regulatory authorities in terms of penalties, every time there is a power outage. A major cause of power outages has been the interference of tree branches with power lines. Drones have helped in minimizing such problems by acting as an asset management tool. Earlier, utility companies spent millions of dollars on inspecting difficult-to-reach infrastructures, from power lines to pipelines. Unmanned Aircraft Systems (UAS), or drones, have significantly solved these inspection issues by monitoring sensitive infrastructures better as well as minimizing the downtime.

Time and cost efficiency

Drones help in providing a real-time image of a problem/damage in the utility asset, which ultimately expedites the correcting measures. Deploying manned helicopters, vehicle patrols, and foot patrols to inspect power lines and surrounding vegetation is extremely costly for utility companies. Use of drones for inspection has helped in significantly cutting down costs to nearly half, while providing high-quality, detailed images of the damage to overhead utility lines.

Restraints

Legal regulations

Legal regulations, across the globe, have constrained advances in the utility drones market. Although utility drones are extremely useful to utility companies, they have limited freedom owing to the regulations set by the Federal Aviation Administration (FAA). These regulations, in particular, exclude drone operations in some circumstances such as Beyond Visual Line-Of-Sight (BVLOS), over long distances, or at night. Considering that FAA has not maintained a pace with the fast-growing drone technologies, utility companies have not been able to utilize all the benefits of drones to improve the efficiency and effectiveness of infrastructure inspection and disaster recovery efforts. As quoted by the American Public Power Association, On June 21, 2016, the FAA released final rules for commercial operation of small unmanned aircraft systems (or drones). These rules, referred to collectively as Part 107, made it easier for businesses, nonprofits, and government agencies to use drones for a variety of purposes; however, these rules do not allow users to operate beyond visual line of sight and do not clarify that drone usage by public power utilities is a governmental activity.

Contracts & Agreements

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Date	Company Name	Development
June 2018	Delair	Delair entered into an agreement with Cansel, a full-service provider of surveying and mapping solutions to the Canadian market. Cansel became the first Canadian reseller of Delair’s UX 11 long-range drone, and the 2 companies planned to rapidly expand the agreement to include the entire Delair product line.
May 2018	Delair	Delair signed an agreement with Sphere Drones, a UAV sales, consulting, and service provider in Australia. As a part of the agreement, Sphere Drones would be the first Delair UX11 reseller in the country, with the 2 companies set to rapidly expand the agreement to include the entire Delair product line.

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Partnerships

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Date	Company Name	Product Name
May 2018	PrecisionHawk	HAZON and PrecisionHawk entered into a strategic partnership, where HAZON would serve as the preferred training partner for PrecisionHawk’s BVLOS waiver consulting program.
January 2018	Sky Scape	SUEZ partnered with Sky Scape to implement drone technology into water utility operations. The partnership was based on incorporating safe and efficient drone technology solutions into the maintenance and construction of one of the country’s most valuable utilities.

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New Product Launches

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Date	Company Name	Product Name
June 2018	HEMAV	HEMAV released Hemav Planner.
May 2018	PrecisionHawk	PrecisionHawk released a Beyond Visual Line of Sight (BVLOS)-enabled, multi-rotor drone platform.

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Investments & Expansions

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Date	Company Name	Product Name
April 2018	Delair	Delair announced the global availability of its UX11 fixed-wing UAV. The drone model passed its final testing phases and is available from Delair authorized distributors in more than 70 countries.
March 2018	HEMAV	HEMAV approved an international expansion plan in Brazil and Mexico, consolidating its presence in Peru, Ecuador, Colombia, Chile, Argentina, France, Portugal and Spain.

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The global utility drones market is estimated to be USD 110.2 million in 2018 and is projected to reach USD 538.6 million by 2023, at a CAGR of 37.34% from 2018 to 2023. Rising demand for minimizing outages related to transmission & distribution infrastructure, focus on time and cost efficiency, and reachability in hazardous locations are the major drivers of the utility drones market.

The report segments the utility drones market, by services, into end-to-end solution and point solutions. The end-to-end solution segment is expected to dominate the market in 2018 because of the availability of expertise required to obtain accurate data on utilities assets. This solution includes the provision of the drone; drone pilots; engineers; software; data management, processing, and analytics; drone advisory services; and consulting, among several other services.

Based on end-user, the utility drones market has been segmented into power and renewable. The power segment is expected to hold the largest market share in 2018. The advantages of using utility drones for the power industry include cutting down of operation and maintenance costs; boosting of worker safety considering their ability to fly in potentially dangerous areas; use of little or no fuel; and negligible environmental impact. All these are the key factors driving the power end-user segment of the utility drones market during the forecast period.

Based on type, the utility drones market has been segmented into multi-rotor and fixed wing. The multi-rotor segment is estimated to lead the market in 2018 and is expected to grow at the fastest rate during the forecast period, as multi-rotors are comparatively cheaper and readily available in the market.

In this report, the utility drones market has been analyzed with respect to 5 regions, namely, Asia Pacific, Europe, North America, South America, and Middle East & Africa. The North American region is expected to hold the largest market share in 2018 and is the fastest growing market from 2018 to 2023. Factors such as increased investments in power infrastructure, rising power consumption, and increasing focus on renewable power generation in the energy mix are driving the utility drones market in the North American region.

Advancements in drone technology and amendments in drone regulations, permitting BVLOS flights can create opportunities in the utility drones market. However, legal regulations could restrain the growth of the market, leading to declining profits.

Some of the leading players in the utility drones market are Cyberhawk (Scotland), Delair (France), Measure (US), PrecisionHawk (US), and HEMAV (Spain). Contracts & agreements and partnerships were the most widely adopted strategies by players to ensure their dominance in the market.

Opportunities

Amendments in drone regulations, permitting BVLOS flights

BVLOS flights represent vast opportunities for the utility drone market. Considering the worldwide pressure by public utility companies on FAA for permitting or at least easing out regulations regarding BVLOS, there are high chances that the coming years would see more countries allowing BVLOS flights. Many countries have already started updating their regulatory frameworks regarding BVLOS flights, hence allowing them to utilize the full potential of the utility drones. Countries such as Australia, Czech Republic, Denmark, the UK, the US, Sri Lanka, and Brazil have initiated the testing of BVLOS flights with prior approvals. For instance, in Denmark, “BVLOS flights may only be performed with prior permission from the Danish Transportation Authority” as quoted by the Danish Transportation Authority; in Canada, “For BVLOS operations…specific weather requirements…are determined on a case-by-case basis. The minimum meteorological conditions must be suitable to allow the safe departure and arrival of the aircraft” – as quoted by Transport Canada.

Advancements in drone technology

Companies around the world have been consistently working on one prime issue faced with drones battery performance. Considering that drones can be operated only for a couple of minutes, their makers are trying to improvise on various parameters to allow longer flight durations, hence cutting down costs further. On the other hand, battery manufacturers have also been in the pursuit to come up with innovative solutions to enhance the battery life, and eventually the overall flight time of drones. For instance, a start-up from Massachusetts named SolidEnergy Systems has been working on lithium metal batteries, which are expected to provide twice as much power as opposed to the conventional lithium-ion batteries.

Challenges

Working safety

Adoption of drone technology, by the utilities and also other sectors, is growing at a very fast pace. This can lead to problems in tackling air traffic, increasing the risks related to collisions and other related aviation accidents. In case of malfunctioning, such as loss of power or loss of signal between the pilot and the drone, the incidents can pose major threats to the public. For utility companies, a minor malfunctioning can lead to drones crashing onto their assets (e.g., power lines) and can lead to a disruption in electricity supply while also severely damaging the equipment.

Data protection and security

Since drones capture enormous amount of data, for utilities in this case, there are concerns regarding the protection and safety of confidential data from potential hackers. Cybersecurity is of utmost importance to drones and the related software industry. Although data hacking from drones has not been a big issue, there are still chances of data vulnerability if drones are connected to the internet. Such cyber issues have been overcome by some companies, such as Sharper Shape, which use cloud technology to process and maintain sensitive data. However, there are utility companies that still rely on old-school methods of data protection and have not adopted modern day cloud-based solutions.

Mergers & Acquisitions

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Date	Company Name	Development
March 2018	Aerodyne	Aerodyne bought a 60% controlling stake in wind turbine blade inspection company AtSite for Euros 2.2 million.
February 2018	PrecisionHawk	PrecisionHawk acquired Droners.io and AirVid. The acquisition was aimed at launching the nation’s largest network of commercially licensed drone pilots.

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Collaborations & Alliances

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Date	Company Name	Development
September 2017	Sharper Shape	Sharper Shape and SkySkopes, in cooperation with an investor-owned utility, utilized Sock pulling for power-line construction. The mission used the Sharper A6 UAS to string sock lines for a 675-kV line construction project.
September 2017	PrecisionHawk	McCarthy collaborated with PrecisionHawk to develop customized tools and services aimed at expanding the use of drones across field solutions, BIM, survey, and risk management.

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