Table of contents
- What is a UAVs?
- UAV adoption by industry
- Drone Industry
- What drives UAV industry growth?
- Investing in the UAVs industry
- UAV market growth
The UAV industry is growing very fast with advancing technology. According to investment experts, the potential of this industry to grow is as high as aircraft. This high-flying tech’s popularity is growing day-by-day. According to the FAA, in 2021, there are more than 375k commercial registered drones, which is still increasing. Drones are being used in several fields like photography, racing, search and rescue, and many more. Other industries, like agriculture, are researching ways to utilize UAV. This means that the potential of this industry to grow is very high.
What is a UAVs?
UAVs, are unmanned aerial vehicles also known as drones. Drones are aircraft that are flying without any pilot in it. Drone are usually driven by robots that are controlled by pilots from far away. The development of fully-automated drones is still in progress. The main idea behind drones’ development was to use military aircraft in an easier and safer place. As there is no pilot in it, drones are useful in those areas where flying is difficult. Apart from military use, many industries started using drones for their advantages, like photography.
Drones have different shapes and designs, but four main components are necessary for every drone’s functionality. These four parts are battery, microcontroller, motor, and sensor. Smartphones parts are also used in the development of a drone. Investment in smartphone parts has made the cost of drones cheaper, which makes it accessible and affordable for customers to buy and use it.
Drones require a good build quality with smart internet to make it work more efficiently. This combination is necessary to acquire accurate results of drone activity. It also created many job opportunities for drone pilots.
UAV adoption by industry
UAV are evolving in terms of usage by several industries. Originally, drones were being used by the military, but now it’s expanding its usage. The consumer market is already using drones, and now this industry is making its way to the commercial market. Other government sectors like firefighting and farming are also bringing in the use of drones to make their jobs more efficient. This industry is predicted to have a market growth of more than $100 billion in the coming year.
Have a look at how each industry will impact the growth of the Drone market:
Drones were designed as a cheaper, more efficient replacement for man-handled aircraft. Even in the future, this sector’s advancement will further help the military use UAVs in more effective ways. The forecasted sales that this industry is to make in the military sector is $70 billion.
Today, a lot of drones can be seen in the sky while walking through the streets. The reason for that is the use of drones by local markets such as photographers. The consumer market was the first that utilized drones outside of the military for the first time. This market is said to participate in the growth of the drone industry by $17 billion.
Commercial and Civil
Commercial and Civil governments can potentially increase the growth faster than the other sectors. Researches are being conducted to learn the possibilities of drone usage in the future by the government and commercial sectors. It is predicted that these sectors will be spending around $13 billion+ in the coming years.
Drones are in use in many sectors nowadays. Following are the top industries that are using UAVs:
To improve the yield of their crops. Drones have been introduced in the agriculture sector to collect data on their crops easily and efficiently. This collection is then used to improve the health of the crops.
The chemical industry started using drones to collect the data on Chemicals stores in the storerooms. This ensured safety and reduced the chemical exposure for the inspectors. These drones are used to analyze the chemical processes via video data.
In this field, drones are being used to stud the water running through an area. Also, seeds are thrown via drones to ease the process of reforestation. Forestry work and water mapping can also be done with the help of drones.
Before construction, it is important to take a walk in the area for surveying. If the site is a huge one, then walking the entire area can be hard and time-consuming. The introduction of drones makes this process easier in the construction field as drones can fly over the area, and it will give you a video analysis of the site. This is a time-efficient way to speed up the construction process as contractors can have a clear view of the site in no time, and after that, they can proceed with the construction planning.
Delivery of goods via drone is yet to be popularized around the world. But in some cases, such as the delivery of medicines is already being carried out by drones. Drones are used to carry the medicines, and they leave the package at the targeted address. The drones are handled remotely by the experts.
Filmmaking with drones is around for a while now. Probably, it is the most popular use of drones that can be seen. Aerial shots with the help of drones are easy and more cost-effective than the use of helicopters for the same purpose.
Many mining companies are using drones like Elios 2 to locate and analyze their targeted area. This is a safer way to start mining somewhere. This can provide more accurate results before starting the proceedings.
Insurance companies are using drones to visualize the damaged sites. Drones are being used to check the damage on the roofs to ensure the claims of their clients. Insurance companies also use drones to supervise automobile collisions to validate the claims of automobile owners.
Oil and Gas
Elios 2 drones are being used by Oil and Gas companies to provide them with visual data on oil tanks’ condition. These drones are used in tanks, FCC units, and risers to provide the inspector with all the necessary visual data on oil and gas.
Power plants are using drones to collect visual data on boilers in nuclear power plants. This step of using drones is taken to ensure safety and improve accessibility in the areas where it’s difficult for the inspector to go. The risk of radiation exposure is reduced by using drones in this sector.
Public safety sectors like firefighters, search and rescue, and police use drones to improve their efforts in serving the public. Firefighters use drones to record thermal data; with this data, they know which point to focus on extinguishing the fire. Search and rescue teams use drones with thermal and motion sensors to get more help in finding a missing person in the wilderness. Police drones are used to monitor the local area to ensure the safety of the general public from several crimes.
For regular sewer maintenance, indoor drones are used to visualize the sewers’ inner part to detect the source of the problem. These drones also assist with regular maintenance.
The list mentioned above is not the entire sector that is using drones these days. As advancements in the drone industry are increasing day by day, more and more companies are adapting to UAVs.
What drives UAV industry growth?
As described earlier, drones are being used in many industries, but this industry can further grow in several other sectors. Some key factors will help make this industry a growth factor. Delivery services such as DHL and Amazon already tried their delivery system with drones. This can be a cost-effective way if companies start adopting the use of drones in such cases. The reason for that is shipment costs even within the country and takes a lot of time, but if this can be replaced with drones, customer’s orders will be delivered to them without wasting any time.
This service can be further modified by designing the drones in a way that they can carry more weight. Automated aircraft can be used to transport passengers from one place to another. Companies like Uber are working with other industries to make the ‘flying a cars’ dream come true. It is predicted that by the end of 2023, we will see and use air rides with the autopilot system in it.
Furthermore, the construction industry is already using drones to visualize the sites but the advancement to use drones more effectively is yet to come. Companies are focusing on using drones to carry heavy material on the top of tall buildings to ensure more safety for the labour.
Emergency services can be a huge jump in the drone industry. Use of UAV to help reach the accident spot without any hurdles. This will be extremely useful to allow emergency teams to reach the affected area faster and easier.
Investing in the UAVs industry
There are many ways to invest in UAVs , but we are going to focus on the following:
Pre- IPO (Initial Public Offering) is investing in a company by units of stocks. The companies offer this selling of the stocks before the stocks are made public. Because you will be buying huge blocks of stocks, it means more risk is involved in this. That’s why companies offer a discount for the buyers in Pre-IPO placement.
Investing in pre IPO companies is risky yet beneficial. If you choose wisely and make the right investment, you can make huge money through pre IPO investment.
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UAV market growth
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The UAV industry is expanding. Ever since the military has embraced drone usage, the number of other sectors that have adopted UAVs has increased. One of the best industries to invest in is found in this market. Drones are starting to enter a variety of delivery, mining, film making, oil and gas industries. Industry profits were also consistently profitable in the past, and this may continue to be the case in the future. Investing in this industry can be done in several ways, most notably through Stock Investment, Pre-IPO placement, and CopyPortfolio investment.