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@Vickier0729

@Gartner_Inc

Vickie Romanchuk

Gartner

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Email
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How Will Commercial Drones

Change Your Business?

Gerald Van Hoy

Senior Research Analyst

Brady Wang
Principal Research Analyst

17 years at Gartner, 26 years industry experience

Responsible for the semiconductor device market share data and
inventory analysis.

9 years at Gartner, 16 years industry experience

a member of the Semiconductor and Electronic Research team,
particularly responsible for covering emerging memory technologies
(including 3D XPoint, STT-MRAM, ReRAM) and mobile memories.

https://www.linkedin.com/in/gerald-van-hoy

For a broader insight into Gartner you can find us: @Gartner_inc on Twitter and Gartner on LinkedIn.

By 2020 there will be over 10x

more commercial drones than
manned aircraft

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues
1. What is the current status of drones?
2. What are the real benefits and risks of commercial drone use?
3. How can commercialized drones change your business?

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Drone Types and Segmentations

Helicopter

Multirotors

High payload, High vibration

High power consumption but easy to

Mostly used in agriculture

maneuver
Used in parcel delivery, photography and

inspection

Fixed-Wing
Low power consumption and vibration
Long flight time but low payload
Used in industrial inspection

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Drone Segmentations
Personal Drone:

Unit Shipment

Photography or Entertainment

High

Most weight below 2Kg

Most price below $5000.

Commercial Drone:

Personal Drone

Designed for specific functions

Large payload and long flight distance.
Redundant system

Commercial Drone

Military Drone:
Weaponized

Military Drone

Used for battlefield, espionage, logistical

support of troops/equipment, troop

movement
5

Low
Low

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Average Selling Price

High

What You Need to Know About Commercial Drones

History
Commercial Drones have been flying for 30 years.

The Yamaha R-50 started crop dusting in 1987.

Leading industry adopters

Agriculture; Oil & Gas; Mining; Utilities; TV & Film; Real Estate;

Transportation; Government; Insurance; Retail

Commercial use cases

Inventory Management, Search & Rescue; Building Inspection;

Security; Surveillance; Crop Dusting; Package Delivery, Mapping

6

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Recent Regulatory Changes

United States (FAA)
No BVLOS; No nighttime flight; 400ft ceiling, Below 25kg
Pilot certification; operator best practices
Drone registration
Waiver process

China
No BVLOS, 120m ceiling
Pilot certification
Cloud Control

UK
No BVLOS, 400ft ceiling; 500m horizontal; 50m from people, buildings, vehicles; CAA

permission; not flown over crowds

7

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues
1. What is the current status of drones?
2. What are the real benefits and risks of commercial drone use?
3. How can commercialized drones change your business?

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Case Study 1: Whitaker Stockpiles Volume Measurement

Walking on top of stockpiles is risky and time consuming.

Drone Inspections
Fully automated process
Accurate to track inventory of material
Less hazardous employee conditions

Takeaway
Cost and risk reduction by drone show

extreme value

Measurement Time
Inspections / year
Manpower
Man Hours per Year
Total Cost

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Manual
3 wks.
4

Drone
9 hrs.
12

More

Less

576

144

$5,500

$3,000

Case Study 2: Tseuzier Dam inspection

Manual Dam inspection is inefficient

Drone Inspections
Two people operating 2 multirotors
High-resolution pictures
Instant comparison with historical data

Takeaway
Drone has better capability to perform

labor intensive and environment

constrained job.

10

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Preparation Time
Inspection Time

Manpower

Manual
More
More

Drone
Less
Less

More

Less

Frequency
Low
High
Environment Constrain More
Less
Data to Cloud
Manual Automation

Benefits and Risks

Benefit

Risk

Increased efficiency

Security & Safety

Increased quality

Privacy

Lower risk to employees

Immature Technology

Fast data collection

Limited battery life

Better than human results

Collision avoidance

Automated process

11

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Reliability

Future Technology Developments

Benefit: Collision avoidance
"On Drone" analytics are essential for image recognition, non-GPS positioning, Machine learning

and 3D map allow guarantee safety and reliability.

Benefit: Extended Range
High-speed and long-distance communications allow drones to handover between sites.
Combination sensors or SoCs for smaller electronics footprint
Benefit: Safety

Radar, LIDAR and 360 camera ensure safety in the air.

Redundant failure-safe subsystems
Multiple and advanced sensor help for environment detection.

12

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Drone Vendor Landscape

13

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues
1. What is the current status of drones?
2. What are the real benefits and risks of commercial drone use?
3. How can commercialized drones change your business?

14

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Poll Q1: Are you planning to use drones in your business

within the next 2 years?
1. Yes
2. No

15

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Drones Impact Your Business Processes

1. Identify the nature of the process
2. How much material is moved
3. Identify all points of transfer

4. What happens at each transfer

5. Go past the origin and end
6. What can be automated

7. What else might be automated

16

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Drone Value Stream Process

Source: Gartner, Business Moment: Drones Expand Network Capabilities G00274071

17

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How Can Drones Help to Change Your Business

Increase quality control efforts and processes
Increase safety for employees and subsequently reduced insurance

costs for employees working in hazardous conditions

Reduced the need for operational shutdowns
Reduced operation cost by increasing efficiency and process time
Upgrade to or acquire new systems

18

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommendations
Assess if drones are best Now? ROI vs. infrastructure and acquisition cost
Evaluate costs, TCO and infrastructure needs

Look for ALL repetitive tasks in the process but also close to the process.
Look for internal B2B delivery uses (i.e., between campus buildings, remote

locations and worksites).

Get personnel inspired to look at this technology and think of what they could do

on the job if they had use of it.

Consider security, it is a connected device and therefore, just like all other devices

on your network, can be a threat if compromised.

Know the regulations, including country, state, county and city regulations.

19

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Poll Q2: What kind of process are you looking to use

deploy drones within the next 2 years?
1. Data collection (photographic and/or video)
2. Data collection (non-optical or from fixed remote sensors)
3. Security

4. Delivery
5. Other

20

CONFIDENTIAL AND PROPRIETARY I 2016 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommended Gartner Research

Competitive Landscape: Personal Drones, 2015 (G00290953)

Market Trends: Multirotor Drone Evolution Will Demand Increased Semiconductor

Content (G00292562)

Predicts 2016: Drones Drive New Silicon Opportunities (G00294397)

Business Moment: Drones Expand Network Capabilities (G00274071)

Top 10 Strategic Technology Trends for 2016: Autonomous Agents and Things
(G00296577)

Business Moment: Drones a Vital Asset in Search and Rescue (G00296633)

Upcoming:

Gartner's first drone forecast in October, 2016

21

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22

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 Top trends and predictions

Mastermind guests and Gartner keynotes
Face-to-face analyst consultations
Unparalleled peer connections

In-depth interactions with leading solution providers

An agenda mapped to your priorities

Thank you
Dont forget

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