Last year at this time, I reflected back on the news and trends of the commercial drone markets of 2015 and wrote about the mixed state of affairs in the U.S. Back then we saw only 2,500 Section 333 grants for commercial activity, and the press’s narrative that ‘drones are cool’ turned to ‘drones are a privacy invasion headache.’ This was tempered by a proliferation of the drone conferences that had both exhibitors and vendors scrambling to attend. We also saw the outcome of the UAS Registration Task Force Aviation Rulemaking Committee and the FAA’s rapid implementation to put hobby drone registration in place.
In January 2016, I wrote a piece titled Six Trends Driving the Commercial Drone Market in 2016 and Beyond, which articulated that, while making predictions is not an exacting science, six trends would provide key opportunities and challenge for the industry:
- Competition
- Fidelity
- Sensors
- Mobility
- China Incorporated
- Virtual and Augmented Reality
In this post, I’ll review those trends as well as other significant news for drone manufacturers, service providers, and investors in 2016.
What rang true?
- Competition
The biggest news all year was that the FAA Part 107 regulations are now in place. And they’re not as onerous as they could have been. Hurray! We (at least in the U.S.) have the basis for an industry and a firm regulatory framework upon which to grow. And that’s what I saw and heard from so many companies that want to use drones for their businesses at the major drone shows. So many were sitting on the sidelines waiting for regulations to be clear.
Several weeks ago, Patrick Egan of sUAS News wrote a piece called “Part 107 Your Golden Ticket” that sums my feelings and it’s this: There has been some grousing about what’s not in the rule. But there is plenty of work that can be done under this rule. The 10 years of uncertainty is over, and people can begin to offer services—from the real estate agent who wants aerial photos to the cellular company that wants tower inspection, to the insurance company that wants proper damage assessments, to the first responder who wants a better view of an incident. I think that’s exciting.
And so is having competition. Many think it’s a race to the bottom on prices for drone-based business services–and that’s true in part–but the other side of the coin is there is healthy competition, which delivers customer benefits. Because everyone is working harder to produce a better product.
- Fidelity
Continue reading here: http://droneanalyst.com/2016/12/19/commercial-drone-markets-2016-year-in-review/
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