Summary of the emerging drone economy and how Miami-Dade County could benefit from the growing sector of unmanned aviation.

1. Miami and Commercial Drones
June 15, 2017
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2. PRESENTER: CHRISTOPHER TODD
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1.Former technology analyst, advised Fortune 500 firms on
various Internet content and marketing strategies.
2.Former U.S. Coast Guard search and rescue operator.
3.Founder/president of Airborne Response. Miami Beach-based
drone services company focused on commercial services and
emergency response.
4.Founder of the Airborne Incident Response Team (AIRT), a
global network of drone operators who can assist in
emergencies and disasters.

3. OBJECTIVES
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1. Assess the market & opportunity for
commercial drones in Miami
2. Explore emerging drone use cases
3. Understand current FAA Part 107 UAS
regulations
4. Q&A

4. DRONE, UAS & UAV
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drone /drōn/: a remote-controlled pilotless aircraft or missile
Official FAA designation is unmanned aircraft system (UAS), also commonly called
unmanned aerial vehicle (UAV).
A UAS is defined by statue as an aircraft that is operated without the possibility of
direct human intervention from within or on the aircraft.

5. 2017 DRONE PRODUCTION = 3 MILLION
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Production Increase of 39% from 2016
2016 2017
Personal Drones 2,041.9 2,817.3
Commercial Drones 110.3 174.1
Total Units 2,152.2 2,991.4
Total Growth 60.3% 39.0%
Personal and Commercial Drone Units Forecast, 2016-17 (Thousands of Units)
SOURCE: Gartner (February 2017)

6. 2020 DRONE PRODUCTION = 7.8 MILLION
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Over $3.3 billion in revenue from consumer drones
SOURCE: Goldman Sachs Research (May 2017)

7. 2017 TOTAL U.S. AVIATION FLEET SIZE
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0
200000
400000
600000
800000
1000000
1200000
Manned Unmanned
Manned UAS
Manned Commercial Aviation = 7,500
(approx)
Manned General Aviation = 205,000 (approx)
Unmanned Aviation = 2,545,000 (approx)
SOURCE: FAA Aerospace Forecast (Fiscal Years 2017-2037)
212,500
2,545,000

8. FAA UAS FORECASTS
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Potential for Over 6 Million UAS in NAS by 2021
Year Commercial Hobbyist
2016 0.042 1.100
2017 0.235 2.310
2018 0.445 3.180
2019 0.742 3.790
2020 1.133 4.150
2021 1.616 4.470
Total U.S. UAS Fleet, High-End Projections (Millions of Units)
SOURCE: FAA Aerospace Forecast (Fiscal Years 2017-2037)

9. WHO IS OPERATING THE DRONES?
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Military
Public
Agencies
Commercial
Operators “Hobbyists”

10. COMMERCIAL VS HOBBYIST OPERATORS
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COMMERCIAL OPERATORS
• Certified as a Remote Pilot by FAA Part
107 or Section 333
• Aircraft(s) must be FAA registered
• Fly for commerce/business
• Training, insurance, safety-focused
• Building a reputation/business
HOBBYIST OPERATORS
• No FAA certification required
• Aircraft could be FAA registered
• Fly for fun
• May or may not have training,
experience, insurance
• Flight operations not commerce or
business related.

11. FLORIDA RANKS #2 IN REMOTE PILOTS
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SOURCE: FAA via sUAS News, April 6, 2017

12. FAA REMOTE PILOT ESTIMATED GROWTH
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UAS
SOURCE: FAA Aerospace Forecast (Fiscal Years 2017-2037)
20,362
422,000
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
2016 2017 2018 2019 2020 2021
RP's
327,000
241,800
166,800
107,800

13. WHAT ARE DRONES DOING TODAY?
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0 5 10 15 20 25 30 35 40
Aerial Photography Real Estate Construction Agriculture Emergency Mgmt. Insurance
SOURCE: FAA Aerospace Forecast (Fiscal Years 2017-2037)
Insurance
34%Aerial Photography
Real Estate
Construction / Industrial
Agriculture
Emergency
26%
26%
21%
8%
5%

14. OK, this is all great stuff, but what does it really mean?
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15. DRONE + DATA = BUSINESS INTELLIGENCE
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1. A drone by itself is essentially useless for business purposes.
2. When combined with a payload, the drone becomes a tool.
3. The tool can capture data or deliver cargo.
4. Software processes the data and delivers actionable intelligence.
5. Artificial Intelligence (AI) will redefine how drones operate.

16. USE CASE EXAMPLES
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Accident Investigation
Bridge Inspection
Cell Tower Inspection
Construction Surveys
Crime Scene Investigation
Crop Analysis
Disaster Response
Brush Fire Prevention
Harbor/Marine Patrol
Insurance Claims
Land Surveys
Mapping
News Gathering
Pipeline Inspection
Port Security
Power Line Inspection
Private Security
Public Safety
Real Estate Imagery
Wildlife Surveys

17. AT&T UAS PROGRAM
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• 33% of manned cell tower climbs eliminated via
drones
• Microwave path analysis
• Bird nest surveys
• Working on tethered drone systems to conduct
maintenance and repairs
• CoW UAS to provide mobile network services at
special events and during disaster response

18. BECHTEL - CONSTRUCTION
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• Site mapping and planning
• Inventory management
• Surveying and design
• Volumetric calculations
• Environmental compliance
• Insurance claims management
• Parking and traffic management

19. FLORIDA AVOCADO GROWERS
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• Ambrosia beetle infests avocado tree with a
dense canopy resulting in Laurel Wilt disease,
ultimately threatening grove
• FIU creates “Dogs and Drones” research
program, drones evaluate tree canopy
• Grove owners now flying drones to inspect their
own tree canopies for Laurel Wilt
• Multi-spectral and hyper-spectral imaging
solutions may be the key, but very costly

20. FIRE RESCUE
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• Menlo Park Fire District creates 3-phase UAS
implementation plan
• FDNY launches UAS program for command
situational awareness
• LAFD launching UAS program for firefighter safety
• MDFR, City of Miami FD launching UAS program for
multi-mission use

21. ASCENDING BEYOND THE WALLED GARDEN
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Flying drones in the radio controlled, visual line-
of-sight realm of today is a lot like using dial-up
Internet service in the 1990’s
The eventual shift to Beyond Visual Line-Of-Sight
(BVLOS) operations will unleash an entirely new wave of
aviation innovation, unlike anything we have ever seen
before.

22. THE BIG OPPORTUNITY
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Percentage of companies and
municipalities with traditional
manned aviation operations
Global drone/UAS services
market by 2020 according to
Goldman Sachs and PwC

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SOURCE: Goldman Sachs “Drones Reporting for Work” (May 2017)
“The $100 billion market opportunity we forecast over the
next five years is just the tip of the iceberg.
Drones’ full economic potential is likely to be multiple times
that number, as their ripple effects reverberate through the
economy.”

24. DRONE SERVICES BY SECTOR, 2020
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$45.2 billion Infrastructure
$32.4 billion Agriculture
$13.0 billion Transportation
$10.0 billion Security
$8.8 billion Media & Entertainment
$6.8 billion Insurance
$6.3 billion Telecommunications
$4.4 billion Mining $127.3 billion
SOURCE: PwC “Clarity from Above” (May 2016)

25. How do we establish Miami-Dade County as a leader in the
emerging drone economy?
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26. URGENCY
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1. Other cities/states are
actively vying for their
share of the emerging
drone economy.
2. South Florida must take
action NOW to establish
itself as a legitimate player
in the industry.

27. CHALLENGES
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1. Slow start, need to make up ground
2. Congested airspace
3. Complex regulatory environment
4. Perception: Tourism vs Tech
5. High cost of living, real estate

28. STRENGTHS OF SOUTH FLORIDA
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1. Weather and climate
2. Diverse cultures
3. Rich aviation history
4. Major financial institutions
5. Evolving tech scene
6. Emergence upon world stage
7. Proximity to Latin America & Caribbean
8. International air and sea shipping
9. No state income taxes
10.Abundant recreational options

29. DRONE OPPORTUNITIES FOR MIAMI-DADE
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1. Develop a commercial drone testing
facility.
2. Emerge as a thought leader by hosting
key industry conferences.
3. Become the epicenter of Caribbean and Latin American drone sales,
distribution, service, and innovation.
4. Look to the future and focus on the “What’s Next” segment of the
emerging drone, unmanned, and autonomous economies.

30. THE FUTURE OF UNMANNED AVIATION
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1. BVLOS flight operations will be a game
changer for the aviation industry.
2. Drones carrying advanced sensors
with artificial intelligence (AI) and
machine learning capabilities will
disrupt many industries.
3. Communication networks will be vital
for aircraft command and control, as
well as data transfer.

31. THE FUTURE OF UNMANNED AVIATION
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4. The aircraft carrier of the future may float in
the air instead of the sea.
5. Buildings will be redesigned with rooftops
that accommodate a wide range of drone
use cases.
6. Like the wheel, the locomotive, the
automobile, the Internet, and wireless
networks -- unmanned aviation will
fundamentally change the way we live our
lives.

32. Nobody is going to do the work for us.
Success is predicated on the collective efforts of the greater
South Florida community, spearheaded in part by the Miami-
Dade Beacon Council.
Are you ready to pitch in?
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33. CONTACT
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CHRISTOPHER TODD
Founder | President
ctodd@airborneresponse.com
+1 305 771 1120
JAMES C. KOHNSTAMM
SVP Economic Development
jckohnstamm@beaconcouncil.com
+1 305 579 1300