brian smith courtesy of imco exploring commercial drone ... · the commercial drone market in...

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OCT 24 – 26, 2017LAS VEGASexpouav.com

20 – 22 JUNE 2017 BRUSSELSexpouav.com/europe

Brian Smith courtesy of IMCO

Exploring Commercial Drone Opportunities and Regulation Across Europe in 2017By Jeremiah Karpowicz

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EXPLORING COMMERCIAL DRONE OPPORTUNITIES AND REGULATION ACROSS EUROPE IN 2017

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Civil Infrastructure

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WHAT DOES IT MEAN for a surveyor in Germany to utilize a drone? Do

farmers in France think about the technology in the same way that farmers

in the United States do? How are professionals across the world in oil &

gas able to overcome regulation challenges? These are just some of the

questions that need to be sorted out if anyone is going to make sense of

the worldwide drone market that’s taking shape in 2017.

The commercial drone market in Europe is set to be an especially lucrative one, as some have estimated it could employ more than 100,000 people and have an economic impact that could go over €10 billion per year over the next 20 years. The viability around those sorts of predictions is easy to debate and even discredit, but few deny the tremendous potential drones will have in areas like construction, precision agriculture, process & utilities, mining & aggregates, law enforcement and civil infrastructure.

How this market will take shape in Europe is directly related to the way in which regulatory issues play out. As of right now, there is not a single set of European UAS rules, which means commercial drone regulation is on a country-by-country basis. Different rules around drone weight limits, operating within visual-line-of-sight and restricted airspace have created confusion for enterprise operators in every sector around what they can and cannot do with a drone.

That hasn’t stopped many of those professionals from utilizing drones in an efficient and effective manner though. Many operators have been able to see the economic impact of the technology, which is why they’re willing to work through challenges that relate not only to regulation, but also to privacy and safety. Europe will be a key location for this worldwide drone market and industry, and the regulatory and economic conditions on the continent in 2017 are of critical importance for operators across the globe.

By Jeremiah Karpowicz


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A Patchwork of Regulation

THE FACT THAT THERE IS NOT a single set of European UAS rules has created a

fragmented regulatory environment across the continent. It’s meant that many operators

from one country often find it difficult to work in another country because of different

restrictions and permissions. The European Aviation Safety Agency (EASA) is working to

change that in the near future though.

EASA has put a proposal in front of the European Parliament and the European Council, and if it’s accepted the organization will become responsible for the certification of all aircrafts across the European Union (EU), but the timetable they’ve placed around that process stretches to 2019. What kind of an impact will that delay have on the industry?

Timothy van Langeveld, Aerialtronics’ Legal Counsel, is optimistic about the progress we’ll see this year which will eventually lead to that milestone. He mentioned he was pleased to hear about plans to introduce a new type of airspace for drones called the Urban Airspace, but progress on the regulatory front won’t completely dictate the development of the market.

“Although there is no harmonization of regulation, there is an emerging EU market,” said van Langeveld. “The EU is putting a lot of time and effort into a level playing field in Europe for drones. And despite the differences, there are plenty of similarities between Member States to be able to speak of an EU market.”

To formalize those similarities, EASA will first need to be given the proper authority to do so. Right now, EASA is only responsible for drones that are above 150 kg, which is to say their focus is around manned aircraft, even though they are tasked with regulatory and executive responsibilities in the field of civilian aviation safety as a whole. This delay might be a barrier to some, but it hasn’t stopped many organizations from moving forward with the technology.

Sky-Futures is a leading global provider of specialist oil and gas UAV inspection services. They’ve been able to work with some of the biggest companies in the oil & gas sector across the world while dealing with various and challenging regulatory issues. Their success goes back to a simple approach when it comes to sorting through such challenges.

“ The EU is putting a lot of time and effort into a level playing field in Europe for drones. And despite the differences, there are plenty of similarities between Member States to be able to speak of an EU market.”


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“Sky-Futures would never operate in a jurisdiction without having gone through the proper regulatory process (if one exists), or without having notified the aviation authority prior to commencement of operations,” said Nick Rogers, Co-Founder at Sky-Futures who looks after regulations and training. “Thus, our initial workload looks at the regulatory process for any given country. This approach has led to many positive outcomes around the world. In many cases, we have been able to act as a sort of ‘subject matter expert’ and have very meaningful dialogue with the aviation authorities to actively help them with regulatory design based on how we operate in the USA and UK.”

While efforts are underway to create a single set of rules for Member States of the EU, how things change within the EU, for EASA and with drone technology itself over the next few years is impossible to say. Organizations have been able to leverage the technology in this uncertain regulatory environment though, and that fact should be the priority for operators of all types and sizes, regardless of when or if that single set of rules materializes.

Making UAVs Work in the Present and Future

THE ESTIMATES AROUND the economic impact drones could have across Europe range

in size and scale, but those numbers aren’t what operators have been wholly fixated on.

Many are intently focusing on demonstrating how these tools can drive costs down,

efficiency up, and most importantly, make an industry fundamentally safer.

How exactly are professionals working in a given sector going to see those efficiencies though? What are they using the drone to do, and how is that different from the way they had been working? Will drones change something about the fundamental approach professionals can take?

Christian Janke is an Assistant Professor at the College of Aeronautics bei Embry-Riddle Aeronautical University. He became familiar with manned and unmanned systems during his 14-year military service as a helicopter pilot and officer for Public Affairs. He is also an accredited trainer and consultant for the German Civil Aviation Authority and has seen how

“ Many operators are intently focusing on how drones can drive costs down, efficiency up, and most importantly, make an industry fundamentally safer.”



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drones are and will be used by professionals in a few different industries.

“Agriculture sensing for soil data and crop data are just a couple examples of the things you can do with a drone,” said Janke. “In my personal opinion, the two largest growth areas will be logistics and agriculture, because we have scalable business models there and once certain operations like beyond visual-line-of-sight (BVLOS) are allowed from a regulatory perspective, there will be a lot of business cases opened up.”

That piece around scalability and operating BVLOS is part of the reason the telecom industry is looking into this unmanned world, and many in that sector have mentioned that sorting out regulatory concerns will lead to bigger things. Once all of this is in place operations like parcel deliveries will be possible, but today, that kind of integration doesn’t exist. Nonetheless, as a quick example, the amount of bridges, dams and railways that need to be monitored and maintained which are spread across the entire continent showcase the kind of opportunities that currently exist for the technology.

The present and future of how drones will be able to create these efficiencies is really a question of their safe integration into the airspace to operate alongside manned aircrafts. First and foremost, UAVs are aircraft and need to be treated as such. It’s the reason so many stakeholders are focused on the logistics associated with how these devices will function in that airspace, which includes being able to eventually operate BVLOS.

Jürgen Verstaen is the co-Founder and Chief Business Development Officer at UniFly nv, a software company that creates aviation-related solutions for drones and manned aviation. Their team has recognized the challenge around ensuring the safe cohabitation of manned and unmanned aircraft.

“The biggest challenge with BVLOS is the integration with manned aviation,” said Verstaen. “There are so many red flags popping up. In addition to avoiding other airspace uses, you also need to take into consideration forbidden areas and obstacles. The use of geofencing is an answer to some of the issues. We need to focus on an all-in-one solution. This means that software and hardware need to be paired as a single solution.”

Sorting out how drones can be utilized to create efficiencies isn’t just a regulatory issue, because the logistics associated with safe operation in the airspace are distinct and nuanced. Those logistics need to be worked through from a technology and safety perspective.

Accessing Risk and Addressing Privacy Concerns

THE PRIVACY CONCERNS associated with drones are nothing new. Regardless of the

specific rules of a particular country, people across the world have expressed worries

about drones invading their privacy because of a UAVs’ ability to capture photos and

video. Since drones have the ability to fly above and around private property, these

privacy concerns might be addressed in several ways across Europe.

For example, in the UK, recording a person without their consent could be interpreted as a violation of the Data Protection Act, or of the CCTV code of practice. In Germany, a section of the German Criminal Code prohibits the production and transmission of unauthorized recorded images of persons who are located in their home or a location protected from view.

Some have suggested the creation of a similar set of drone privacy rules, but others have argued that the best way to address these concerns is to increase awareness of what drones can and are doing in the sky. Public awareness campaigns created by utility organizations that are using drones have been successful in terms of showing members of the public that

“ The two largest growth areas will be logistics and agriculture, because we have scalable business models there and once certain operations like beyond visual-line-of-sight (BVLOS) are allowed from a regulatory perspective, there will be a lot of business cases opened up.”


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these tools are being used for specific purposes that are not at all related to invasions of their privacy.

Additionally, the British Security Industry Authority (BSIA) estimated there are up to 5.9 million closed-circuit television cameras in the country. These cameras along with satellites can often take pictures and photos that are just as good or even better than any drone.

The risk associated with drones isn’t limited to potential privacy issues and lawsuits though. What operating a drone means for the organization in terms of the risks posed on all sides is an ongoing concern because it’s such a new field, and there are no historical markers or data.

“Risk assessment works with probabilistic historical data,” said Janke. “If you want to figure out how dangerous it is to fly a plane, you can look back 20 years and find out how many planes haven’t landed correctly, which gives you specific numbers and allows you to calculate the risk. We can’t do that with drones because we don’t have historical data, so you need to look into the crystal ball and be reasonable with common sense.”

That assessment of risk ties into the issues that are playing out across Europe on the manned front as well. Without that historic data, many are wary of what it will mean to take drones into the airspace and are acting accordingly.

“In most of the cases, the conservative manned aviation world acts against the unmanned world, because it still is an unknown technology,” said Verstaen. “And what is unknown could be dangerous.”

That danger is one professionals are working to quantify and qualify, but a proper assessment of those risks along with being able to properly mitigate privacy concerns will open up tremendous opportunity. That process has been an active one, and will continue to be so in 2017.

“ In most of the cases, the conservative manned aviation world acts against the unmanned world, because it still is an unknown technology.”



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Value Propositions Today and Tomorrow

A SINGLE SET OF RULES that spans Europe is clearly a priority for professionals on every

side of the drone industry, but it’s not the only development that’s on the horizon. The

creation of a UAS Traffic Management (UTM) system, essentially air traffic control for

drones, is something that will allow drones to enter and operate in the airspace with

manned aircraft that much more safely. That’s something Verstaen mentioned that he

feels will begin to come together in a real way in 2017, especially as it relates to how

permitted BVLOS operations will take shape.

The establishment of a UTM will certainly help with BVLOS operation and safe integration of drones in the airspace, but it isn’t holding up the creation of a sustainable drone infrastructure and ecosystem. What’s really exciting to think about is how that system will eventually open up brand new markets since the availability of the technology will spur critical innovation. However, they’ll only be successful if they have the full supply chain of information and service, which is something that can be enabled and created right now.

“It’s not enough to go to the farmer and say you can fly on their soil and then fly and hand them a USB stick,” Janke said. “You have to give them the full cycle of service, and then you will have a revenue generator. This is the same in every country. You need to automate for something that was previously done with a manned solution, or on the ground, and it’s something you can calculate.”

Janke mentioned these sorts of specific details were ones he was able to document and detail in the work he’s done in logistics. He looked at the land and drone dollar-per-mile costs with things like transportation by car. He also looked at comparisons for urban distribution logistics. Ultimately, these are the elements clients want and need to understand before a project ever even begins.

Those opportunities all come back to creating a relevant value proposition for stakeholders on every side of a project. It doesn’t make sense to focus on a regulatory environment that may or may not coalesce in a meaningful way in a couple years when there are commercial implications to taking action today.

“The requirements for safe commercial usage are now clear,” Rogers concluded. “It’s not just about the hardware anymore. Fit-for-purpose training, safe and compliant professional services to industry and cloud-based software that can securely house lots of data is the end-to-end process that needs to be supported for clients to get the most value out of drone technology. Without the full solution, the value proposition to clients becomes quickly blurred which is why winning business will have a solution that involves the best hardware, intuitive software and great people.”

Being able to change the status quo across Europe regarding how drones are and will safely integrate in the airspace is something that will continue to develop in 2017. What’s exciting is that those developments are already enabling and creating value for clients across several different industries.

“ It’s not enough to go to the farmer and say you can fly on their soil and then fly and hand them a USB stick. You have to give them the full cycle of service, and then you will have a revenue generator. You need to automate for something that was previously done with a manned solution, or on the ground, and it’s something you can calculate.”

About the Author:

Jeremiah Karpowicz is the Executive Editor for Commercial UAV News. He has created articles, videos, newsletters, ebooks and plenty more for various communities as a contributor and editor. He is also the author of a number of industry specific reports that feature exclusive insights and information around how drones are being used in various markets. You can read all of those reports here.

http://www.expouav.com/news/reports/

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About Commercial UAV Expo

Commercial UAV Expo is a conference and exhibition exclusively focused on the commercial drone market. Launched to great success in the US in 2015, the organizers are bringing their winning formula to Brussels in June, 2017 with a European-centric event.

In the conference program, UAV industry experts share key insights into the issues large enterprise asset owners face when implementing UAS, including systems selection and integration; developing enterprise workflows, guidelines and policies; data management and integration; and legal, safety and regulatory considerations. Plenary sessions and panels cover topics of interest to all end-users regardless of industry while breakout sessions focus on UAV technology, applications and opportunities in the vertical markets listed above.

The international exhibition includes airframe manufacturers, component suppliers, software suppliers and service companies.

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brian smith courtesy of imco exploring commercial drone ... · the commercial drone market in...

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