Finding Value in Commercial Drone Usage
Drones, UAS, UAVs, and RPAS all describe a disruptive technology used for decades by the military and now drawing massive attention from consumer, prosumer, and commercial users. While the technology was first developed and used by militaries across the globe primarily for ISR (intelligence, surveillance, and reconnaissance), the platforms now are smaller, the systems are more affordable, the technology is robust and includes easy-to-use sensors and flight management systems, which makes them an easily adoptable tool for a variety of civil, commercial and consumer uses. As an industry, we are just beginning to see how these machines can assist us in our everyday lives. They’re making workflows more efficient and also transforming how we view the world. From the air.
While military drones and model aircraft have been flown safely for over 70 years, only in the last several years have we seen the growth of the new market of end users — consumer, prosumer, and commercial. These users typically don’t hail from military or aviation backgrounds. They’ve learned how drones can be fun, but also serve as tools that can provide efficiencies. Industries that range from real estate to broadcasting to infrastructure inspection to construction are all starting to understand the value a drone can provide in data collection. Professionals across these industries are gaining unique aerial perspectives of their operations that were previously far more difficult or expensive to do. Every day new commercial uses emerge: Maersk using drones to deliver goods to ships, ski resorts using drones to monitor ski areas and conduct search and rescue missions, Matternet delivering medicine and aid in third world countries, farmers using drones to detect anomalies in their fields and crops, construction sites using drones to conduct volumetric measurements of relocated mass, utilities using drones to monitor vegetation growth near power lines. Drones can perform all these tasks more efficiently and affordably than any prior technology.
Though drones are becoming valuable tools for many different industries and businesses, determining their long-term value has been challenging for many of these enterprises. What kinds of resources (financial and labor) will commercial companies need to invest to have the right type of equipment to collect and analyze the appropriate kinds of data? Do the companies understand what data they need and how it should be analyzed to provide valuable information? Will these companies outsource to drone service providers or will they purchase equipment and train employees? In light of current restrictions (and future restrictions) on drone operations, will operating drones be worth a long-term investment? While we can all say today that drones are good and can provide numerous benefits to businesses, determining the true value proposition for many industries is still a major challenge.
In addition to the challenge of understanding a drone program’s value to commercial end-users, the regulatory environment continues to prevent commercial operations from fully flourishing. To fly a drone commercially, the operator must petition the Federal Aviation Administration (FAA) for approval to fly under a Section 333 process. Even with permission, many commercial operations are still inhibited due to restrictions such as being able to operate at night, over people, or beyond visual line of sight. For a company that wants to use drones for security surveillance, nighttime is most appropriate for patrols, but is not allowed. For oil and gas companies that want to monitor pipelines in rugged terrain, flying beyond the sight of the operator is prohibited, making that application unfeasible. For broadcasters and filmmakers that want to use small drones for filming, operating near or over people is not allowed, (but allowed with a manned helicopter). With such restrictions in place, determining the value of drones for many of these large operations is nearly impossible.
Our industry is anxiously awaiting the release of the final Small UAS rule from the FAA, which will provide broad guidance on how we can operate drones commercially. Within that rule, we expect positive allowances such as no requirement for a pilot’s license or an airworthiness certificate on the vehicle. But we also expect many of the restrictions mentioned above to remain in place. These clearly hinder some of the more innovative applications for drones. The FAA has made strides to venture closer to allowing operations that push the envelope of these restrictions. For instance, the agency has created a process to allow operators to fly closer to people and has seemed more open-minded about working with industry to determine how to overcome operating at night or beyond visual line of sight. But there is still much work to be done.
Additionally, while the federal government contemplates how to manage the rapid growth of this technology, the states are waging their own battles to control local drone usage. Since 2012, we have seen hundreds of bills arise in states. This patchwork of legislation across the United States is not only confusing, but it is also hampering the growth of this industry we are trying to build. These bills target specific uses of drones, try to further restrict how, where, and when drones can operate, or focus narrowly on privacy issues. Many of these efforts come from lack of understanding, and our community must continue to work to educate local legislators on how drones can be used to provide positive economic impact, create jobs, make companies more efficient, and help humanity.
The bottom line is there is still much work to be done before the promise of drones can be fully realized. As policymakers pursue legislation and regulations, drone industry stakeholders must work collectively to ensure that our local, state, and federal officials fully comprehend how the industry wants and needs to use drones. For example, the majority of drone flights conducted for aerial cinematography or real estate are flown less than 100 feet from the ground. While the FAA spends time thinking about crafting rules at higher altitudes up to 500 feet where there may be manned air traffic (medflight helicopters, close proximities to airports, crop dusters), it is important that agency leaders understand the sheer number of operations that take place at lower altitudes and would not interfere with air traffic. It is also important for the FAA to understand how technologies are evolving so that they can craft scalable rules that remain relevant as the future unfolds. Rules should be risk-based in nature instead of one-size-fits-all. Educational efforts to communicate these types of messages are critically important, and our industry stands at the ready to provide data, tell our stories, and work with policymakers to ensure that forthcoming rules and regulations are the best they can possibly be.
Gretchen West, Senior Advisor at Hogan Lovells’ Silicon Valley office and former Executive Vice President at AUVSI, is a long-time advocate for the drone and unmanned systems industry with over a decade working with decision-makers to reduce barriers to entry and working with entrepreneurs and large enterprise to create successful drone programs in this growing market.
