DRONES EX.pdf

DRONES
DRONES
A report on Drone basics and use cases and domestic market analysis
2021
A Report by Neeraj Kumar
9/30/2021

DRONES 2
A Report by Neeraj Kumar |
CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION
 DEFINATION
 CLASSIFICATION OF DRONES BASED ON STRUCTURE
 CLASSIFICATION OF DRONES BASED ON WEIGHT
 IMPORTANT DRONE SENSORS
DOMESTIC MARKET ANALYSIS
 DOMESTIC DEFENCE MARKET
 DOMESTIC CIVILIAN MARKET
APPLICATIONS OF DRONES
 DEFENSE SECTOR
 CIVILIAN SECTOR
 CURRENT USE TRENDS IN INDIA
MARKET DRIVERS
 DRONE REGULATIONS IN INDIA
 DRONE REGULASATIONS 1.0
 DRONE REGULATIONS 2.0
 DRONE REGULATIONS 3.0
 GROWING DEMAND FOR HIGH QUALITY DATA
 ENHANCING DATA PROCESSING & ACCESSIBILITY
 NEW TECHNOLOGICAL OPPORTUNITIES
MARKETCONSTRAINTS
 POLICY CHALLENGES
 MARKET CHALLENGES
PORTER’S FIVE FORCES ANALYSIS

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MARKET OPPORTUNITY ASSESSMENT
 DEFENCE SECTOR
 CIVILIAN SECTOR
FORMULATION OF BUSINESS MODEL
 DRONE-AS-A-SERVICE (DAAS)
 DATA-AS-A-SERVICE (DDaaS)
 CASE STUDY OF A BUSINESS MODEL ―MONITORING USING
SMART AUTONOMOUS DRONES IN SMART AGRICULTURE‖
 BUSINESS CANVASS ON ―MONITORING USING SMART
AUTONOMOUS DRONES IN SMART AGRICULTURE‖
KEY STRATEGIC RECCOMENDATIONS
REFERENCE

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EXECUTIVE SUMMARY
Technology is changing the face of the world inmultiple
ways, and industries across the globe have been defining
new ways to do business by utilizing these technological
advances.
One such next-generation technology is UAVs/drones,
which are increasingly gaining attention. Multiple
industries are utilising drones for myriad tasks—from
surveillance to monitoring of projects, from detection to
prevention, and from improving current
methods/processes to transforming and innovatively
handling new requirements.
This report looks at the technology aspects of drones and
the business environment. It details various use cases
that have been piloted across the globe and in India,
specifically in the government sector.
It then details various ways in which governments in
Indian states could utilize drones in specific sectors,
ranging from agriculture to tourism.
Finally, it takes up business models which an
organization can follow to enter into UAVs business with
discussion on few specific business models.

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INTRODUCTION
Drones or Unmanned aerial vehicles (UAVs) are the game changing
marvel of technology representing boundless possibilities for
innovation and utilization. Unmanned aerial vehicles (UAVs) are
basically aircraft without human pilots that have been in operation
since the early 1900s. Though initially used only for target practice by
military groups, they were later equipped with real-time surveillance
capabilities to monitor troop movements behind enemy lines. In recent
years, the market for drones has grown dramatically with a projected
CAGR of over 20%.
This is primarily attributable to the technological evolution that
caused a significant reduction in the cost, price and size of drones,
hence enabling democratization of aerial observation. This further led
to an explosion in the applications of this technology beyond their
traditional use for defence purposes, and to widespread non-military
commercial use ranging from photography to pizza delivery.

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Definition
Drones also known as UAV is an abbreviation of unmannedaerial
vehicle, meaning aerial vehicles which operate without a human pilot
on board. UAVs are commonly used in both the military and police
forces in situations where a human piloted aircraft is unacceptable or
the situation makes using a manned aircraft impractical.
Classification of Drones Based on Structures
Fixed Wing Drones:
Fixed wing drones as the name suggests have two fixedWing’s along
the lateral axis of the aircraft. Fixed wing UAVs consists of a rigid
wing that has an aero foil shape which makes flight capable by
generating lift caused by the UAV’s forward airspeed. This airspeed is
generated by forward thrust usually by the means of a propeller
(explained in later modules) being turned by an internal combustion
engine or electric motor.

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Rotary Wing Drones:
A rotorcraft or rotary-wing aircraft is a heavier-than air flying machine
that uses lift generated by wings, called rotary wings or rotor blades
that revolve around a mast. A rotor is a setup of 2 to 8 blades mounted
on a mast. The mast is a shaft connected perpendicular to the rotation
plane of the rotor blades, connected to a power source (engine).
Multi Rotor Classification:
 Quadcopter (4 rotors)
 Hexacopter (6 rotors)

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 Octocopter (8 rotors)
 Decacopter (10 rotors)
 Dodecacopter (12 rotors)
Different number of Rotors
Classification of Drones Based on Weight
Weight Classification Drone Category
<=250 gm Nano Drones
>250 gm and <=2 kg Micro drones
>2 kg and <=25 kg Small drones
>25 kg and <=150 kg Medium drones
>150 kg Large drones

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Important Drone Sensors for Working
A sensor is a device that detects and responds to some type of input
fromthe physical environment. The specific input could be light, heat,
motion,moisture, pressure, or any one of a great number of other
environmentalPhenomena. It converts physical data to electronic data.
Accelerometer
 Accelerometers are used to determine the orientation of the
drone in flight
 Accelerometer measures the proper acceleration
 Accelerometer values help determine the roll and pitch
movements of the drone.

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Barometer
 Barometer measures air pressure. This air pressure is used to
measure the height of the drone above the MSL.
Magnetometer
 A magnetometer is an instrument that measures magnetism—
eitherMagnetization of magnetic material like a Ferro magnet, or
the strength and, the direction of magnetic field at a point in
space. The magnetometer is used as a digital compass that
helps identify the magnetic north. This helps in obtaining more
precise readings for headings.
Distance Sensors
Distance sensors can be used for various purposes. One can design a
GPSenabled drone which can reach a specific location. Collision
avoiding drones also use distance sensors.
 Light-Pulse Distance Sensing (Laser)
 Light Detection and Ranging (LiDAR)
 Radio Detection and Ranging
 Sonar-Pulse Distance Sensing (Ultrasonic)
Time of Flight (ToF) Sensors (Range Imaging)
Depth sensors of the ToF camera sensor emit a short infrared light
pulse. The pixels of the camera sensor measure the time in which the
infrared light pulse returns back to the drone.

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DOMESTIC MARKET ANALYSIS
A major thrust will be given by the willingness of the present Indian
government to use drones for a variety of purposes, including crop
mapping and surveillance of infrastructure projects, pushing the
projected value of the domestic industry to approximately US$900
million (~6500Cr INR) by end of 2021 as per ORF (Observer Research
Foundation) as compared to USD $21.47 billion global market.
DEFENCE SECTOR
UAV forms a critical layer in the integrated defense system that the
three defense services are now implementing in coordination with one
another. Though UAV’s have been in service with tri services since
late 1990’s, their mass scale adoption and integration has begun only
in last couple of years, thus we can say that Indian UAV market is still
in early stages of lifecycle.
Source: www.defproac.com (UAV Market)

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Indian Army was the first to procure UAV’s in late 1990’s from Israel
followed by IAF and IN. Currently inventory of approx. 500 UAV’s of
Indian Armed Forces comprises of mainly Israeli SEARCH-II and
HERON-II in reconnaissance role and about 90 Harpy Fire and Forget
Ground Attack Drones.
Apart from this foreign procurement, Indian Army and IAF have
inducted DRDO’s developed indigenous LAKSHYA and NISHANT
respectively. Armed forces use them for operations, disaster
management and aid to civil power.
With growing importance of UAV’s in 21st
century battlefield, Indian
Armed Forces are looking forward to reduce the high ratio of manned
platforms from present 95% to 50% by 2027 and beyond in phased
manner.
0
10
20
30
40
50
60
70
80
90
100
2012-2017 2017-2022 2022-2027
Un-Manned
Manned

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CIVILIAN MARKET
There are number of applications for UAV’s in the Civilian market. The
demand in commercial market arises from the low manufacturing and
operating cost of the system and the flexibility of these aircrafts to
adjust to the particular needs of consumer.
Also, Due to ease of operations, limited human intervention and
accuracy of results generated, drones have widespread civilian
applications. They are currently being used across the world for
bringing transformational changes in the fields of agriculture, urban
planning, disaster management, infrastructure, transport, surveillance,
mining, forestry and many others.
Presently, Civilian Market is estimated to be at only 3% of total UAV’s
market and the market is expected to grow exponentially based on
eased drone regulation norms in 2021

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Applications of Drones
Defense Sector Applications
UAV’s have high endurance, which allows a high success rate for
search and strike missions. Following are the applications
 Anti-Terror : Detect threats and identify risk prone areas from a
remote location
 Border Security: Conduct reconnaissance missions and track
illegal activities.
 Counter Insurgency: Conduct surveillance and gather actionable
intelligence.
 Crime Control: Enhance law enforcement with remote situation
assessment and crime scene analysis.
Civilian Sector Applications
Apart from wide range of applications in Defense preparedness,
Drones are atechnology platform which has wide-ranging applications
from photography to agriculture, from infrastructure asset
maintenance to insurance. Drones range in size from very small and
those that can carry multiple kilograms of payload.

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 Agriculture
 Drones are able to provide live data from a range of sensors
(including multispectral, NIR and lidar) and help in precision
agriculture. In supporting precision farming, drones can do
soil health scans, monitor crop health, assist in planning
irrigation schedules, apply fertilizers, estimate yield data
and provide valuable data for weather analysis. It can be
used for assessment of crop loss for insurance claims
Example:Deployment of drones allowed under PM
―FasalBimaYojana‖ to study losses.Companies such as
―Skymet‖ are using drones to provide agriculture survey
services to insurance companies and the stategovernments
of Maharashtra, Gujarat, Rajasthan and Madhya Pradesh.

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 Healthcare
 Delivering quick access to drugs, blood, and medical
technology in remote areas, transportation of harvested
organs to recipients (through drone’s corridor), etc.
Example:Companies like Zip line International have
especially designed drones to deliver medical services in
rural areas throughout in countries like Africa and other
remote parts of the world
 Disaster Management
 Surveillance of disaster-affected areas to assess damage,
locates victims, and delivers aid. Drones can scan affected
areas with their thermo graphic cameras to locate missing
persons.
 Urban Planning
 Instant mapping and survey of the land which has to be
developed avoiding congestion and increasing green cover.
Example:Can help city planners to decide which areas may
benefit most from green space, without causing further
congestion.

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Recently, the ―Greater Chennai Municipal Corporation
(GCMC)‖ became first Municipal Corporation to map
Chennai using drones.
 Conservation of Endangered Species
 Drones fitted with high definition thermal cameras are used
to track, inspect and monitor livestock remotely.
Example:Gujarat Government has decided to deploy more
than 50 drones, after successfully experimented the
technology for the Wild Ass census.
The government of Assam has partnered with ―Tata
Consulting Services (TCS)‖ to use drones to conduct
surveillance, identify unauthorized settlements and to deter
poachers in Kaziranga National Park.
 Weather Forecasting
 Drones can physically follow weather patterns as they
develop to understand the environment and imminent
weather trends in a better way.
Example:A company called ―Saildrone‖ has developed
autonomous sailboat drone that can collect oceanic and
atmospheric data from the ocean surface which can be
used aftermath to understand the environment and
imminent weather trends.

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 Waste Management
 Identify where the garbage is so that it can be picked up
the garbage picking vans. Drones can be used to clean
ocean waste as well.
Example:UAV like Roomba by ―Ran-Marine‖ operates at the
vanguard of these initiatives and have helped to clean
oceans in the past.
 Mining
 Drones in mining can be used in volumetric data capturing
of ore, rock and minerals storage which is extremely
difficult to measure manually.
 Inspections
 Many systems such as power lines, wind turbines, and
pipelines can be checked by drones.
 Surveillance
 A drone allows recording and monitoring from the sky, and
therefore, they are suitable to monitor public events,
protests, or any suspicious happening without being heard
and seen.

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 Science & research
 They help scientists a lot in research works to observe
different occurrences in nature or a particular environment
from the sky. For example, drones are used to document
the archaeological excavations, in nuclear accidents
(measuring contamination), in glacier surveillance, to
observe a volcanic eruption, etc.
 Ease of governance
 Innovative use of drones cost effectively monitors both the
implementation and impact of various welfare schemes.
Example:A pilot project was taken up to identify and
champion the use of drones for all ―MGNREGA‖ projects of
the Government. It can capture fine-scale spatial data such
as the status of catchments, map the existence and
condition of infrastructure, and help assess the impact of
floods, droughts and erosion.
 Traffic Management
 Potential uses for drones include everything from traffic
management to inspections of traffic signals after
installation or sampling vehicle speed along particular
corridors.

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 Internet Connectivity
 Facebook experimented with a solar-powered drone called
Aquila, which was envisioned as helping to provide internet
access to rural parts of the world.
CURRENT USE TRENDS IN INDIA
There have been a number of Indian Governmental Agencies
And PSUs that have piloted and even scaled up operations of
Drone’s for their construction and operations. A few examples
Are as follows:
 An autonomous agency of the Government of India, responsible
for management of a network of National Highways has
employed the use of drones for 3D digital mapping for Detailed
Project Report (DPR) for road widening for Raebareli – Allahabad
Highway. Data collected is being utilized for calculation of
compensation of citizens with property rights along the highway.
 National Railway System in have used drones to monitor the
construction of its railway lines by 3-D mapping of dedicated
freight corridor network of 3,360 Km project is envisioned (at bid
planning stage). The entire corridor will be mapped using UAS
technology.
 An Indian state-owned electric utilities company has obtained
approval and started working towards implementing UAS for
project monitoring in hilly terrains.The primary reason for PGCIL
investing in deploying UAS is its cost efficiency.

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 An Indian Public Sector Undertaking, engaged in the business
generation of electricity and allied activities has undertaken the
consideration of UAS for monitoring, inspection, intrusion
detection and surveillance for its solar power plants. The
organization has planned for UAS powered execution of infrared
detection in solar Photo-voltaic to efficiently move towards its
goal of enhancing Indian solar capacity by 100GW by 2022.
 Indian state-controlled coal mining company has started aerial
surveys of coal blocks for assessment of greenery restoration
post excavation from mines.
 An agency for coordinating response to natural or man-made
disasters has deployed UAS for rescue and relief operations
(locating of trapped citizens, providing relief packages etc.)
 The Government of Andhra Pradesh is deploying drones to
monitor the development activities of the capital city region, i.e.
Amaravati, through dronebased outputs such as geo-referenced
ortho-images, digital elevation models and 3D models at periodic
intervals. This covers the progress of multiple projects in and
around the capital city area, such as roads, buildings and other
infrastructure-related activities.
 As a pilot project, the Government of Karnataka& Tamil Nadu is
deploying drones for property tax estimation and creation of base
map of a city/town for detailed planning and sustainable
governance.
 In August 2015, the Union Ministry of Environment, Forest and
Climate Change cleared a project14 by the National Tiger
Conservation Authority (NTCA) and Wildlife Institute of India (WII)
to deploy drones in select forests around the country for
monitoring and surveillance

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DRIVERS AND ENABLERS
Implementation of drone technology requires an inclusive and
collaborative approach that involves aspects like governance,
strategic planning, security, regulation and proper awareness.
Successful implementation requires participation from various
stakeholders main factors which are going to drive the drone powered
solution business are mentioned below
Developed and Implemented Regulatory Framework
The regulatory aspect of commercial drone operations is currently one
of the most important factors affecting the pace of drone powered
solutions’ adoption by businesses and government entities.
Today many organizations are considering testing and using drones in
their business operations, but are wondering about the legal aspects.
They see the benefits of using drones, but they need transparent rules
on how and where they can use them, what they should do to
guarantee the safety and efficiency of drone operations, and the
grounds on which authorities issue licenses or permits for commercial
drone applications. National and international aviation authorities
have started developing regulatory frameworks to guarantee that
drones will be used in secure and business-friendly ways.

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Growing Demand for High Quality Data
Companies have been using satellites, planes and helicopters to
gather photogrammetry and geospatial data for many years. Both
fields belong to the broader category of science known as geo-
informatics, which deals with the structure and nature of spatial
information used for urban planning, agriculture, infrastructure
development, mining and many other applications.
Applying photogrammetry and geospatial analysis gives companies
access to valuable information regarding topography, hydrography,
vegetation structure, soil types, land development and other
characteristics to enhance their business operations. However, aerial
images collected in the traditional way are still very expensive, and
may not provide the necessary level of detail due to usually low quality
of those images. Drones are much more cost-effective and guarantee
high data quality. That’s why growing demand for data will increase
the use of drones for commercial purposes.
Enhancing Data Processing and Accessibility
Data acquired during drone operations has to be processed in order to
deliver substantial value for businesses. The insights and
recommendations based on that information have to be provided as
fast as possible in an understandable, cohesive and comprehensive
way. Customers expect the data to be available on every type of
device (mobile or desktop), anytime, anywhere in the world

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DRONE REGULATIONS IN INDIA
Drone Regulations 1.0
Drone regulation 1.0 by DGCA came into effect from 1st Dec 2018 and
it classifies a remotely piloted aircraft (RPA) and delineates how they
can be flown and sets the restrictions under which they will operate.
Classification of Drones
 Nano : Less than or equal to 250 grams
 Micro : From 250 grams to 2kg
 Small : From 2kg to 25kg
 Medium : From 25kg to 150kg
 Large : Greater than 150kg
Ministry of Civil Aviation announced following protocols for all drone
holders across the country Need to register their drones with
government (except Nano)
Registration Process of Drones
Ministry of Civil Aviation announced for voluntary registration of all
drones and their operators. On successful submission of voluntary
disclosure of possessing drone, a Drone Acknowledgement Number
(DAN) and an Ownership Acknowledgement Number (OAN) will be
issued online.
A newly launched, first-of-its-kind national unmanned traffic
managementMechanism called the ―Digital Sky Platform (DSP)‖, a live
platform for registration of manufacturers and operators ofdrones.This

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platform allows operators to apply for a Unique Identification Number
(UIN) that needs to be issued for all drones through DSP.
Operating Protocol
 Unmanned Aircraft Operator Permit (UAOP) to be obtained from
DGCA
 Drones to be flown in visual line-of-sight daytime only and
maximum of up to 400ft altitude.
 The Digital Sky Platform divides the Indian airspace into three
broad categories
— Red, Yellow and Green.
 Red denotes ―no fly zone‖ (includes airspace near
international borders, vital assets like Parliament
House, nuclear installations, major airports)
 Yellow signifies airspace requiring Air Defense
Clearance or Air Traffic Control clearance
 Green signifies unrestricted airspace zones. However,
even for the Green zone, there is a need to get
clearance from the DSP.
 Foreigners are currently not allowed to fly drones in India. For
commercialpurpose, they need to lease the drone to an Indian
entity who in-turn will obtainUnique Identification Number (UIN)
and UAOP from DGCA.

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Drone Regulations 2.0
This policy was introduced in January 2019 and is successor to drone
regulation 1.0 and following points were relaxed and few new were
introduced
 Beyond VLOS and beyond the current limit of 400 feet allowed.
 Drone corridors to keep commercial UAS operations out of non-
segregated airspace in which manned aircraft operate.
 Drone ports to facilitate the landing and take-off of drones.
Maximum life cycle for drones
 Drones Directorate within the Directorate General of Civil
Aviation (DGCA).
 Night time drone flights allowed
 It proposes 100% FDI under automatic route.
Key Points in Drone Regulations 3.0
 The cost of a remote pilot license has been reduced for all
categories of drones, regardless of size, and will be valid for 10
years
 No permission required for operating RPAs in green zones. In
yellow zones, drone operations are restricted and shall require
official permission. Drone activity in red zones to be permitted
only under exceptional circumstances
 No requirement for micro drones (for non-commercial use) and
Nano drones, as was earlier the case with the CAR.
 No requirement for security clearance before issuance of any
registration or licence.
 No restriction on foreign ownership in Indian drone companies.

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CURRENT CHALLENGES
AND CONSIDERATIONS
This section of the report talk’s about some of the challenges which
companies and UAS service providers are currently facing when it
comes to executing a UAS project.
Policy Challenge
 Current regulations of Government of India:
Director General of Civil Aviation (DGCA) has issued draft
guidelines on UAS through the circular titled ―Requirements for
Operation of Civil Remotely Piloted Aircraft System (RPAS)‖. The
intent of the government is clear – to put in place a regulatory
framework in order to encourage the commercial use of drones in
areas as diverse as industrial monitoring to disaster
management. The draft policy is expected to be formalized soon.
Once approved, it would provide the existing players a
momentum to further their scope of activities. It would, however,
be a boost to the segment if a few basic points, including the
ones below, are considered while formulating the final policy.
 Broadening the classification
The current draft policy classifies UAS as Micro (< 2 kgs), Mini
(>2 kgs, <20 kgs), Small (>20 kgs, <150 kgs) and Large (>150

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kgs). Given that Micro and Mini classifications encompasses a
wide range of toys and mini drones. As this is a low risk
category, there is scope for further re-categorizing Civil RPA in
accordance with Maximum Take-off Weight (MTOW). The current
draft policy enumerates an MTOW-based classification where the
micro category comprises UAVs weighing up to 2 kg and the mini
category consists of UAVs weighing up to 25 kg.
 AGL restrictions
The policy proposes that for operations at or above 200ft Above
Ground Level (AGL) in uncontrolled airspace, the Unmanned Air
Operator shall file a flight plan and obtain necessary clearances
with concerned Air Traffic Services (ATS) unit. In many
applications, for example in Power and Utilities, transmission
towers have a height of upto 350 feet. A limit of 400 feet AGL is
more practical threshold than the current 200feet levels. A 60-
meter ceiling level is a bare minimum and might restrict the
application for UAVs. This would then also be in line with the
policies of other countries like US, Which has 400 feet AGL
threshold.
 Ease of Doing Business
The draft policy should also promote the concept of ease of
doing business. The mechanism of single window is no
encouraged and the users are required to approach multiple
government agencies such as Wireless Planning & Coordination
Wing, Ministry of Home Affairs, Local Police, ATS provider etc. to
take approvals and clearances.

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 Responsibility
As per the draft policy, owner/ operator will be held responsible
for the safe custody, security and access control of the RPAS.
Role of other stakeholders such as RPAS Manufacturers,
Importers, DGCA, Security Agencies for implementing Anti- Drone
technologies etc. are not clearly highlighted in ensuring Security/
Safety aspect of RPAS operations.
Market Challenges
 Building an ecosystem
As seen before, today, only a handful of companies are
manufacturing UAV in India. These companies may not be able to
meet the demand once UAS regulations get finalized. Further,
these companies have not yet fully explored the usageof UAS
across industries leveraging emerging technologies like AI,
AR/VR, IoT and 3D modeling. UAS companies are still focusing on
primary applications for UASs such as real-time monitoring which
involves communicating information in real-time.

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PORTER FIVE FORCES
ANALYSIS
Competition from Substitutes
The degree of rivalry among competitors in the drone industry is
varied. It will likely depend on the area of service and product being
offered. For example, in the area of military applications, the
COMPETTITION
NEW
ENTRANT
THREAT OF
SUBSTITUTE
POWER OF
CUSTOMER
POWER OF
SUPPLIER

DRONES 31
landscape is dominated by large defense contractors and various
government organizations and competition is high. However, many of
the newly created services like mapping or cell tower inspection have
very few providers currently.
Potential of New Entrants
The main barrier to new entrants seems to be regulation. The
hardware itself is easy and cheap to procure. Access to technology
and the selling/licensing of technology among competitors allows
companies to acquire innovation easily. Any investment case would
have to consider the most recent regulations and how that may impact
the business being considered.
Power of Suppliers
Suppliers for drone hardware vary greatly by geographic location. The
competition available in the local supply base may be significantly
impacted by the location of the service business. However, if we
assume that the supply base is compared globally or if the location of
the business is in a country with a significant number of
manufacturers, then there would be more competition among the
supply base. The enterprise drone market is the fastest growing
segment and therefore new competition is always becoming available.
Power of Customers
Since drone hardware is reasonably priced, one would expect
consumer’s ability to bargain to be a function of the type of service
provided. Similar to the computer industry, the drone industry would
be dependent on the interest and intention of the end user. Global

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suppliers of innovations like higher definitioncameras or
specialsensors are making acquisitions and investments to make sure
the hardware wanted by end customers is available to everyone.
However, because many of the drone services being offered are very
new and have significant cost savings to traditional methods, it is
reasonable to expect buyers' power to be low.
Threat of Substitutes
Drones are effectively a new technology. They are versatile,
disposable, and cost effective. In many cases they are performing
services that were either not provided before or were provided at a
very high cost. Drones are less expensive than flying alternatives like
helicopters. They also provide major time saving benefits when
compared to other alternatives like an ambulance for medical rescue.
While there always will be the possibility of customers returning to
older services, the threat of this in the future is low.

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MARKET OPPORTUNITY
ASSESSMENT
According to 6Wresearch, the Indian Unmanned Aircraft Vehicle
market is projected to grow at a CAGR of 20.9% by 2026 (as per
Researches and Markets report) from existing approx. market of
US$900 million (~6500Cr INR)
When the Drone Rules were announced this August 2021, industry
players projected that India’s drone market could grow to INR 500
billion (US$6.8 billion) in the next five years. This is because India’s
regulatory norms were finally aligning with global trends, and opening
prospects for commercial use and participation of foreign investors.
On its part, the Civil Aviation Ministry projects that India’s drone
industry could see total turnover worth INR 120 billion to 150 billion
(US$1.63 billion to US$2.04 billion) by 2026 assisted by the PLI
Scheme, which has a budget allocation of INR 1.2 billion (US$16.32
million) spread over three years (information on how the scheme
works is covered in a later section below).
During upcoming years, there will be huge requirement of small UAVs
by defense services, Indian presently eyeing to acquire almost all type
of UAVs,
 Tactical UAV (TUAV)
 High Altitude UAV (HALE)
 Vertical Take-off and Landing (VTOL)
 Medium Altitude Long Endurance (MALE)

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Armed forces also wants to induct large number of man portable UAVs
(Mini & Micro) for short range surveillance and operations.
Already issued/to be issueddata is mentioned below
RFIs/RFP Issued/To be
Issued
Quantity Likely Cost
Mini & Micro for Army 500 $85 Million
HALE ------ Over $175 Million
UAV Mission
Simulator for Army
1 $30 Million
Unmanned Combat
Aerial Vehicle for
IAF
------ Over $30 Million
Micro unmanned
Aerial System for IAF
& IN
95 $10 Million
Small VTOL MINI UAS
for IAF
------ Over $30 Million
HALE for IN ------ $150-$200 Million
VTOL for IN ------ Over $30 Million
NRUAV 3 $290 Million
SR UAV (Short Range) ----- Over $30 Million
Mini UAV for High
Altitude
20 $ 1 Lakh
Hand Held UAVs for
TAC training
3 -----

DRONES 35
UAVs in Civilian Market
There are number of applications for UAVs in Civil industry/market.
The demand for these products in commercial industry is increasing
exponentially.
Sectors like infrastructure, agriculture, transport, telecommunication,
security, usage in smart cities etc. are only few of opportunities which
can be explored in Civilian Market.
Landscape of addressable market opportunities in next 5 years
Civilian Sector is shown below,
Source: Indshine report on ―Indian Startup’s and drones‖
Unlike in the past where UAVs were always associated with
military, recent data shows that the future of drones will actually

DRONES 36
be shaped by military as well as by practical commercial
applications.
In civilian sector alone, surveillance of big construction projects
for highways and railways which will push the value of domestic
industry to approximately US $421 Million (~INR 3100Cr) by 2021-
2023.

DRONES 37
Formulation of Business
Model
A typical drone business revolves around various types of operation or
activities performed by drones, such as physical operation,
surveillance, maintenance of drones, ground activities of UAV
operations and analysis of post-flight data etc. These activities can be
segregated based on stakeholder requirements, and various elements
of the value chain can be integrated with the help of technology layers
over and above the basic functioning of drones in order to create
business.
Note: Revenue split up of drone based businesses
Multitudes of business models can be built around other elements of
the value chain, such as sensors, cameras and methods of data

DRONES 38
analysis however Value added services is the most dominant and
evolving business segment in future, related to that lets see few
business models.
Drone-As-A-Service Business Model (DaaS)
It is one of the most evolving one among various other businesses in
UAVs which is growing at an exponential rate. Users are always
interested in how to reduce their purchase/operating expenses.
Owning a drone is attractive yet for some the attraction may not last
due to additional costs. Prices are dependent upon payloads, software
and accessories. For example, drone manufactures, such as,
DJI(https://store.dji.com ) list the Matrice 600 Pro on their website for
$4,999.00. This excludes purchasing batteries, chargers, controllers,
kits and flying time.
Solution for that isDaaS. In this model various type of services, leasing
etc. can be provided to user.
Various global vertical application companies such
as ―www.floridaprofly.com‖,‖www.kespry.com‖ and www.measure.com
offer DaaS to industries. That includes in agriculture, construction,
environmental, mining, transportation and mapping and surveying.
These type companies offer expertise in the form of customized
equipment and/or vertical specific software based services For
example, Kespry offers ―data software packages.‖ shifting the focus
away from drones to software.

DRONES 39
Data-As-A-Service Business Model (DDAS)
Various data collected has huge applications at the backhand.
Drone Services Market,
By Type
Platform Service
Maintenance Repair Overhaul (MRO)
Simulation & Training etc.
By Application
Inspection & Monitoring
Mapping & Surveying
Transport & Delivery etc.
By Industry
Construction & Infrastructure,
Agriculture
Defense & Law Enforcement
Transport, Logistics & Warehousing etc.
By Application
Inspection & Monitoring
Mapping & Surveying
Transport & Delivery etc.

DRONES 40

DRONES 41
Drone data service providers are expected to gain prominence by
empowering companies globally to utilize UAV’s imagery in a better
way, which can be achieved by converting it into actionable
information in the form of simple 3D models, Digital Elevation Models
(DEMs), and maps. An increasing number of companies are now
seeking to enter the UAV software space and develop software to
provide aerial imagery analysis and mapping solutions for the
commercial sector.
Based on platforms, the drone data services market has been
bifurcated into following
 Cloud-based services
 Operator software services
At present, the drone industry appears to be rich with a wide range of
UAV imagery-based services. The industry comprises various cloud-
based services that are packaged together with drones, such as
SiteScan, Kespry, and Aerotas. On the other hand, there are numerous
server and desktop-based data analytic solutions, such as Pix4D,
SimActive, and Drone2Map. Both platforms form an integral part of the
overall market.
Cloud-based UAV data services are expected to witness the fastest
growth over the next eight years. These services extend the power of
aerial images by leveraging a growing suite of third-party applications
within their interfaces on both mobile as well as desktop devices,
thereby making it easy for the businesses to sum up, analyze, and
share the information within their organization.

DRONES 42
CASE STUDY OF ABUSINESS MODEL ―MONITORING
USING SMART AUTONOMOUS DRONES IN SMART
AGRICULTURE‖
As we have seen previously, agriculture is one of the fastest growing
field of business for UAVs, hence let’s a case study of a business
model ―monitoring using smart autonomous drones in smart
agriculture‖
AUTONOMOUS DRONE USING IN SMART AGRICULTURE
The agriculture continues to expand with the use of information and
communication technology (ICT). Smart agriculture is focused on
providing a more efficient and sustainable production while optimizing
human labor by utilizing advanced technology to monitor and analyze
the agricultural industry. Autonomous vehicles developed for farming
purposes are equipped with various loads such as sensors, high
resolution, and multispectral cameras, tracking and positioning (GPS).
Farmers using autonomous drones get better insights about the
agricultural field with the help of theimages they have obtained and
provide more accurate and consistent data to make better decisions.
MATERIALS AND METHODOLOGY
 Drones
Using drone in smart agriculture is an increasing trend. Most of
the countries started to use drone in agriculture. At this stage,
our autonomous drone helps farmers by providing daily reports
and analysis about what is happening in their field. With

DRONES 43
autonomous drones, people do not need to control the drones
manually. Drone act with commands given through an application
and move towards the selected area through the application.
 Autonomous Flight System
The purpose of the autonomous flight software is to scan the
agricultural area independently of the human. First, the
boundaries of the agricultural land are determined by the user
with this software. This software creates a route based on where
the drone is located. It allows the drone to move independently
of the human on this route. There are many features in
applications developed for autonomous drones. These
applications include automatic routing, defining specific tasks
and viewing terrain.
 Multispectral Camera
Multispectral camera is a camera that is used to monitoring
places invisible to the human eye with spectral bands. By
integrating multispectral cameras with drones, the health status
of plants can be measured instantly. The tool that enables these
measurements to be made is the multispectral bands.

DRONES 44
There are thousands of wavelengths to be recorded in the
electromagnetic spectrum. To deal with all these wavelengths,
the imaging spectrum divides the spectrum into groups of
wavelengths called bands. There are 4 most known bands and
these bands are Blue, Green, Red and NIR (Near infrared) what
these bands distinguish is Chlorophyll.
Chlorophyll absorbs light strongly and reflects strongly in green
light, with wavelengths in the range 450-520 nm (blue) and 630-
690 nm (red), so it appears as healthy vegetation green.
In the near infrared, healthy plants in the range of 700-1000 nm
are observed and therefore highly reflect light.Whether the plant
is healthy is calculated using data in the red and near infrared
bands and it is called NDVI (Normalized Difference Vegetation
Index). NDVI is considered to be the key measure of plant
biomass quantity and leaf area index value and is used for plant
growth monitoring and yield forecasting throughout the growth
cycle.
 Server-Side
Servers connect devices that communicate with each other via
internet. The server enables the data sharing of the drone with
the mobile application in the smart agriculture system and at the
same time, it performs image processing, reporting and
autonomous flight planning since the processing capacity of the
drone is low.
The mobile app creates a route for the drone to move according
to the agricultural area whose location is determined by server.
Server generates reports by processing the images taken by the
drone along the route with the help of special software. It
ensures that these reports are sent to the mobile application.

DRONES 45
The user can access these reports via the mobile app. In this
way, the user can transfer the productivity of the agricultural
area from the drone to the mobile application by using the server.
 Mobile Application
Mobile application provides users with daily data flow over the
internet. It stores long-term data in the cloud system, thus
allowing users to access their old data whenever user wants. It
offers users the drone's battery percentage, whether it can fly
according to the weather and drone damage status.
It shows the soil fertility analysis chart of your field, the
chlorophyll density map of the plants and such graphics and can
provide daily feedback.

DRONES 46
BUSINESS MODEL CANVAS
Let’s examine the business model canvas on ―monitoring using
autonomous drones in smart agriculture‖.
BUSINESS CANVAS ON AUTOMATIC SMART AGRICULTURE
Key Partner
 Drone equipment
suppliers.
 Multispectral
camera suppliers.
 IoT Software
developers for
Agricultural
Management
Key Activities
 Drone
manufacturing
 Mobile
application
development
 Server setup
Value
Proposition
 Chance to view
the land
 Chance to make
productivity
analysis of the
land
 Instant view
from the field
 High return on
investment
 Extra profit for
the farmer as it
save time of
farmer.
Customer
Relationship
 Social Media
 E-mail
Contact
 Sectoral
Magazines
 Agricultural
Exhibitions
Customer
Segments
 Government
 Individual
 International
Companies
 Agricultural
Companies
 Farmers
Key Resources
 Autonomous
Drone
 Multispectral
Camera
 Agricultural
imaging
analysis
Channels
 Social Media
 Sectoral
Magazines
 Agricultural
Exhibitions
Website
Cost Structure
 Advertisement Cost
 Manufacturing Cost
 Logistic Cost
 Office Cost
 Taxes
Revenue Streams
 Customers
 Potential Investors
 Net present value
 Total cost of ownership
 Government incentive
 Public offering

DRONES 47
KEY STRATEGIC
RECCOMENDATIONS
These suggested action plan may help organisation to fundamentally
transform and address key problems through the use of drone
technology in a cost-effective way and to deliver high-quality solutions
thereby can help in development of business.
Focus Area for Business
 While it may be tempting to focus on drone applications that are
making headlines, industry players such as manufacturers and
software providers might achieve better returns through less
flashy investments, such as drones that help companies
automate manual tasks. OEMs and component providers should
also determine which areas of the value chain are already
crowded with competitors, since they may achieve better returns
elsewhere. OEMs should try to determine what drone elements
they would like to build and what they would like to outsource, as
well.
Drone Allied Services Business
 Winning companies should consider how they will use drone data
as they design their initial strategies. For instance, drones
images may show how remote physical assets typically
deteriorate, allowing companies to develop better predictive-
maintenance schedules, similarly other ―Daas‖ based services
may be thought of in developing drone business strategy.

DRONES 48
Investors/Partners
Drones sometimes require more time to deliver value than typical
investments do from business point of view, so we need to think about
the long game as we develop strategies. One may also benefit from
focusing on areas of the UAS value chain that have received relatively
little investment, such as infrastructure, and provides decent returns.
Regulators
As regulators begin to shape guidelines, Organisation could build their
understanding of the evolving UAS market by collaborating with a
broad range of stakeholders, ranging from traditional aviation leaders
to drone specialists to end users in the private sector. This outreach
will give them a better perspective on potential UAS uses, product
development, and technological or infrastructure constraints.
State- and local-government officials
At all levels, organisations should consider the government’s role in
the UAS world, including the use of public funds for infrastructure. The
plans and budgets that they develop today should consider the
potential role that drones will play in new mobility models over the
next 5-, 10- and 15-year horizons, as well as the associated
infrastructure needs. During these early days, officials might benefit
by investigating creative partnerships with private companies to
design and fund critical projects, such as in smart cities.

DRONES 49
References:
 ―Data on Wings‖ Report by PWC
 ―Indian UAV Market‖ by 6wresearch.com
 ―A Flight of Opportunity‖ Report by ORF
 ―Drone Regulations in India‖ Report by ilearncana.com
 ―Major Pros & Cons of UAV‖ by equinoxsdrones.com
 ―Indian UAV Market‖ by RESEARCH AND MARKETS
 ―Clarity From Above‖ Report by PWC
 ―Make in India for Unmanned Aircraft System‖ Report by FICCI
 ―Investing in India’s Drone Industry‖ by India Briefing.com
 ―Preparing for Take-off‖ by Pwc
 Google Browsing

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