New-Tech Europe Magazine | March 2018

Picture 1: FMCW radar operation.

Heavily regulated and restricted- The FAA has strict rules that limit the use of drones in public air space. A 2015 ruling stipulates that drones weighing less than 55 pounds may only operate during the day and within the visual line-of-sight of the operator. These drones are not allowed to operate autonomously, reflecting the FAA’s safety and security concerns. From the government’s standpoint, the risk posed by most drones, not equipped with reliable and accurate sensors, is too high to allow operation in open public spaces. While exceptions are granted (e.g., in large open agricultural areas), in the majority of cases, due to limited sensor technology and unproven sensor reliability, the FAA has taken a more conservative stance to ensure safety and security. Competitive threats and commoditization - In addition to regulatory hurdles, the drone market is increasingly competitive, which creates pricing pressure. Drawn by UAVs’ attractive growth potential and “cool” factor, more than 400 companies worldwide are already involved in drone-related

development. The focus for most of these companies is differentiated hardware, rather than emphasizing the value-added services their drones may enable. Limited RF and microwave expertise - To achieve widespread use, commercial and consumer drones must be equipped with navigational sensors that ensure safe and reliable autonomous operation. As in the automotive and industrial equipment markets, many of these wireless sensors use RF and microwave technology. Yet most commercial companies developing drones are startups with limited expertise in RF and microwave design. Even well-established industrial equipment manufacturers with some RF experience are hard-pressed to quickly evaluate, design and manufacture radar sensor solutions for the fast changing UAV market. The lack of RF expertise and readily available radar solutions creates a challenging cycle for the industry: the UAV market’s inability to offer reliable sensors to help ensure safe and reliable autonomous operation prevents government agencies from

to grow to about $21 billion by 2022.1 Today, about 82 percent of the market is focused on military applications. Commercial drones are expected to account for about $2.5 billion in revenue by 2021, representing a 19 percent year- over-year growth rate. The use cases in commercial and industrial markets range widely. Drones are being explored for applications such as precision agriculture (e.g., crop spraying), terrain and environmental monitoring, infrastructure monitoring (e.g., bridges and dams), public safety surveillance, commercial freight, border control and oil and gas pipeline monitoring. Each month, dozens of new companies introduce products and services using drone technology to solve business problems. The prospects for commercial UAV applications are virtually limitless. Unfortunately, even though the drone market is becoming widely popular, with multiple companies exploring many use cases (e.g., Amazon and Alphabet’s Google), the industry faces challenges limiting its growth.

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