Drone Economics: Succeeding with the World's Newest Form of Transportation

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Acknowledgments About the Authors About the Book Foreword Preface Business Disruption Fuels the Economy Willingness to Think About What Is Possible Unsatisfied with the Status Quo Identifies an Opportunity not Being Seized Thinks the Market Can Be Bigger Chapter 1 A Short Treatise on Commercial Drone Economics and Why It Is Needed Introduction General Microeconomic Principles Apply to All Industries Commercial Drones Are a Disruptive Technology The End Product Is Data, Not the Drone Economics Will Dictate Commercial Drone Engineering Economic Issues Are Determined by Market Structure The Defense Industry Will Drive Commercial Drone Technology Reliability Is Key to Transitioning from Hobbyist to Commercial Drones The Commercial Drone and UAM Markets Will Require Different Market Structures Software Development Offers Higher Rates of Return than Manufacturing Visual Line of Sight Operations Provide Ample Long-Term Opportunities The Commercial Drone Industry Needs to Model the Airline Industry Discussion Case Study: AUVSI Case Study: Academy of Model Aeronautics (AMA) Case Study: Small UAV Coalition Case Study: DroneUp DroneUp Service Contract Synopsis Chapter 2 Disruptive Technologies and the Fundamental Axiom of Drone Economics Chapter Objectives Background Growth Curves of Disruptive Products The Gutenberg Press Necessary Conditions for Drones to be Disruptive Conditions under which Drones Are Not Disruptive Satellites Airplanes and Helicopters Drones Diffusion and Adoption Rates The First and Second Fundamental Law of Commercial Drone Economics A Statistical Analysis of Commercial and Military Drones Analysis Simple Classification Rotary Power Sources Types of Drones Fixed-Wing PowerSources Power Sources The Mission The Product The Business Model Discussion Case Study: Matternet Case Study: Airbus Skyways Chapter 3 Commercial Drone Market Segments Chapter Objectives Drone Markets Commercial Drone Market Segments Real Estate and Videography Public Utilities Emergency Response Precision Agriculture Mining Package Delivery The Risk Matrix Market Potential Commercial Construction Commercial Photography Emergency Response Videography Real Estate Civil Engineering Discussion: VLOS Market Segments Beyond-Visual-Line-of-Sight Markets Precision Agriculture Forestry Public Utilities Pipelines Discussion: BVLOS Markets Autonomous Operations and Package Delivery Discussion: AO and Package Delivery Field Applications Field Application: News Media Field Application: Bridges Field Application: Cell phone towers Field Application: Power Plants Field Application: Oil and Gas Field Application: Power lines Field Application: Emergency Response Field Application: Notre Dame Field Application: Emergency Response Field Application: Open-Pit Mining Chapter 4 Market Structure for Commercial Drones Chapter Objectives Background What Is Commercial Drone Economics? Microeconomics Issues Competitive Markets and Drone Innovation Few Barriers to Market Entry No Barriers to Market Exit Normal Rate of Return Continuous Innovation The FAA Database The Transition from Hobbyist to Commercial Technology Discussion Top 10 Drone Manufacturers DJI (Dajiang) Innovations Aria Insights (formerly CyPhy Works) GoPro Parrot Yuneec Kespry Autel Robotics Delair Aerial Intelligence EHang Chapter 5 Microeconomic Pricing and Economic Changes Chapter Objectives Price Elasticity of Demand Cross Elasticity of Demand Income Elasticity of Demand Discussion Chapter 6 Macroeconomic Issues and Policies Needed to Move Forward Chapter Objectives Status Update: FAA Part 107 Moving Beyond Part 107 Regulating Privacy, Security, Safety, and Standards Privacy and Security Safety Standards The Current Industry and Moving toward a Mature Industry Data Sharing Standards Platform Functionality Conclusion Chapter 7 The Fundamental Economic Laws of Market Dynamics Chapter Objectives The Herfindahl- Hirschman Index High-Tech Industry Dynamics: A Literature Review Market Characteristics Market Entry and Exit Combination and Antitrust Firm Management Structure Market Domination Competition and Market Structure Cost Pressures Case Studies Apple Inc. IBM The Market Overall Discussion Chapter 8 How to Make and Lose Money Chapter Objectives What Does It Mean to Make or Lose Money? Outright Failure Failed Drone Ventures You Make Money, but Less than You Thought (Opportunity Cost) Operators Companies Investors You Make the Desired Amount of Money The Role of Standards Standards and the Role of Drone Manufacturers Standards and the Role of Investors Standards and the Role of Operators Standards and the Role of End Users Standards and the Role of Educators Standards and the Role of Regulators Market Dynamics and Investment Opportunities The Supply Chain The Supply Chain Hierarchy Few Barriers to Entry for Drone Manufacturers Sales A Capital Base Few Barriers to Entry for Investors Few Barriers to Entry for Operators Few Barriers to Entry for Educators The Role of Large Aerospace Manufacturers Aerospace Manufacturers and Drone Manufacturers Aerospace Manufacturers and Investors The Role of Market Structure and Competition Drone Manufacturers and the Market Investors and the Market The Role of Consolidation Types of Consolidation Large Aerospace Manufacturers Enter the Market Looking Ahead to BVLOS and AO Markets Expand Government Contracts Offer Greater Services to Commercial Users Buy Emerging Technologies Compete with Large Aerospace Firms Creating Value The Economic Winners in the Game Sales Capital Partnerships Conclusion Fortem Technologies Advanced Drone Economics Chapter Nine UAS Systems Engineering, or “Why Do You Want To Be In The Air, Anyway?” Why Do You Want To Be In The Air, Anyway? How a UAS Generates Value Types of UAS Platforms Airspace Access Regulations Vertical Take-off and Landing (VTOL) UAS Fixed-wing (FW) UAS Hybrid VTOL/FW UAS Types of UAS Missions and Their System Requirements Package Delivery Aerial Photography or Videography Remote Sensing Payloads Propulsion Systems Engineering Issues Selecting The UAS and Payload Package Delivery Photography/Videography Scientific Remote Sensing Other Considerations: The Unknown Market Chapter Ten An Examination of the Physics and Economics of UAS Summary The First Fundamental Law of Commercial UAS Economics Introduction Overview of Remote Sensing Designing Remote Sensing Tools Wavebands Sensor Overviews EO Sensor Technologies (Visible Waveband) SWIR Sensor Technologies MWIR/LWIR Sensor Technologies Specialized Technologies Polarimetric Imagers Hyperspectral Sensors Light-Field Cameras Other Sensor Technologies Precision Agriculture Overview Minimizing Risks Optimizing Production Quality Environmental Effects Limited Inputs: Irrigation Water Precision Agriculture Enabling Technology Global Positioning Systems (GPS) Geographic Information Systems (GIS) Aerial Imaging Multi-Spectral Sensors Spatial Resolution Revisit Time Limitations of Remote Sensing in Precision Agriculture Image Processing Instrumentation Calibration and Design Cost-Benefit Studies Timely Data Delivery and Analysis Precision Agriculture in Action Precision Agriculture in the United States Remote Sensing in Precision Agriculture in the United States Precision Agriculture and its Technology around the World UAS Remote Sensing Analysis Aircraft Limitations Imaging System Specifications Temporal Resolution Radiometric Correction Topographic Correction (also called Terrain Correction) Atmospheric Correction Interpretation and Image Analysis Data Processing Camera Geometry Estimating Coverage Camera Classes Agricultural Application Constraints Ground Resolution Analysis: Grape Vine and Alfalfa Application Coverage Area Limitations Sun Angle Effects Data Expectations Optics and Effective Pixel Resolution Conclusions Discussion Tables Index Drones are interesting in that they are disrupting existing industries and creating new markets. The drone itself is simply a delivery mechanism used to gather data, in the form of pixels and other medium used by sensors, and in logistics. Drones are disruptive in that they lower costs, open new markets, and make other products obsolete. It is in the pixels and other areas (artificial intelligence, machine learning) where the most money will be made.Review:Drones, eVTOL and other new methods of transportation can change many facets of our lives. It is an exciting time to be alive and watch all these changes. While knowledge of the various technologies is advancing rapidly, we need to take time now to carefully ponder the market dynamics and economic nature of these emerging technologies. “Drone Economics” by Darryl Jenkins and Bijan Vasigh, is an excellent beginning to this branch of knowledge and will become an instant classic.T. Allan McArtorFormer administrator of the U.S. Federal Aviation administration, and former Chairman of Airbus North America Holdings, Inc.