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

Our Website and YouTube Channel
.
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