Published: Oct, 2018
The global drone surveillance market for the energy industry was valued at around US$ 130 Mn in 2017 and is anticipated to expand at a CAGR of more than 20.0% from 2018 to 2026, according to a new report by Transparency Market Research (TMR) titled ‘Drone Surveillance Market for Energy Industry – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.’ Drone can be defined as an unmanned aircraft. It is formally known as unmanned aerial vehicle (UAV) or unmanned aircraft system (UAS). In simpler terms, drone is a flying robot. It can either be remotely controlled or flown autonomously using software-controlled flight plans in its embedded systems, working in conjunction with onboard sensors and GPS.
Requirement of Monitoring, Data Collection, and Data Analysis of Energy Industry Assets Driving Market Growth
The energy industry consists of capital intensive assets. These include power plants and associated distribution lines, wind turbines, solar panels, oil and gas distribution pipelines, mines, ports, and onshore and offshore platforms. These assets need to be in working condition in order to maximize their value and justify the investment. Monitoring and inspecting them on a regular basis helps detect minor issues. So far, this task was being carried out manually by employees of companies that specialize in providing such monitoring services. However, manual monitoring and inspection is a slow process that often takes months to complete. Drones can significantly reduce the time taken to monitor assets, gather relevant data, and analyze the same. This also lowers the costs required to carry out these activities.
Regulations Have Fallen Behind Market Adoption of Drone Surveillance, Affecting Long-term Growth
Countries are still developing regulations specifying the usage of drones. For instance, just a few countries allow drones to transport goods. Many countries do not allow drones to be flown beyond the visual line of sight of pilots. Countries also restrict the areas in which drones can be flown in order to protect national assets such as nuclear power plants, dams, and refineries. Governments are also concerned about the invasion of privacy in case of improper usage of drones. The limited flying duration supported by majority of drones is also a cause for concern. These concerns have compelled governments to restrict the usage of drones. The usage of drones needs to be governed by regulations in order to encourage aspects such as security, safety, privacy, accuracy, and market competition. Implementation of regulations is also likely to encourage energy companies to adopt new technologies.
Automation and Analytic Capabilities Present Major Opportunities for Drone Surveillance Providers
Majority of drone surveillance companies can provide comprehensive asset monitoring and data collection services. However, these companies need to have separate software and skillsets for data analysis. Companies can buy a drone from manufacturers and provide monitoring and data collection services; however, not all of them can develop the required software to comprehensively analyze the gathered data. In the long term, companies in the energy industry can be expected to develop their own teams of drones and drone pilots. However, companies are unlikely to develop the necessary analytical software to analyze the collected data. The ability to provide specific services under analytics, predictions, and forecasts is projected to be the major differentiator among drone surveillance companies. Similarly, automation is likely to help companies survive in the long term. Drones can be programmed to take off, fly, and land. However, their short flight durations require them to have the capability to recharge on their own. Drones are expected to be given this capability too in the near future. Automation of data collection and analysis is likely to go a long way in helping companies outperform competitors. Companies with such capabilities are anticipated to complete projects in less time and at lower costs.
Global Drone Surveillance Market for Energy Industry Segmented Based on Type, Application, and Region
In terms of type, the global drone surveillance market for the energy industry can be divided into fixed wing, multirotor, and hybrid. The hybrid segment is expected to expand at a rapid pace during the forecast period. This type of drone is at the nascent stage in the market. Based on application, the global drone surveillance market for the energy industry can be segregated into pipeline monitoring & inspection, offshore platform inspection, power plant inspection, inspection of power distribution lines, wind turbine inspection, solar panel inspection, and others. Inspection of power distribution lines is anticipated to be a common application of drone surveillance services. In terms of region, the global drone surveillance market for the energy industry can be classified into North America (the U.S. and Canada), Latin America (Brazil, Mexico, and Rest of Latin America), Europe (Germany, the U.K., France, Italy, Spain, Russia & CIS, and Rest of Europe), Asia Pacific (China, India, Japan, ASEAN, and Rest of Asia Pacific) and Middle East & Africa (GCC, South Africa, and Rest of Middle East & Africa).
Many Players in Highly Fragmented Market
More than 200 drone surveillance providers operate in the market. This number is increasing at a rapid pace. The market is still in the nascent stage; no player has yet gained a strong foothold. Currently, revenues of market players are highly volatile. Key players operating in the global drone surveillance market for the energy industry include Aerodyne Group, Azure Drones SAS, Cyberhawk Innovations Limited, Martek Aviation, and Sharper Shape Inc.
Drone Surveillance Market for Energy Industry, by Type
- Fixed Wing
Drone Surveillance Market for Energy Industry, by Application
- Pipeline Monitoring & Inspection
- Offshore Platform Inspection
- Power Plant Inspection
- Inspection of Power Distribution Lines
- Wind Turbine Inspection
- Solar Panel Inspection
- Others (Slope Stability, Emission Tracing, Monitoring Sea Ice, etc.)
Silicones Market, by Region
- North America
- Latin America
- Rest of Latin America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- South Africa
- Rest of Middle East & Africa
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