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Survey of Uav Applications in Civil
Survey of Uav Applications in Civil
5. Electronic Warfare (EW) and SIGINT reached $80 million in the year of 1997 [6].
(SIGnals INTelligence). The military market revenue was $2.22 where
6. Special and psyops. as the revenues for the civil market were only
7. Meteorology missions. $0.08 billion.
8. Route and landing reconnaissance support.
9. Adjustment of indirect fire and Close Air
Support (CAS). Despite the fact that the civil UAV market is
10. Battle Damage Assessment (BDA). responsible for only 3% of the total market
11. Radio and data relay. revenue, after 2000 it is expected to expand
rapidly.
The potential uses of Unmanned Aerial TABLE 1. REGIONAL MARKET BREAKDOWN FOR PERIOD
Vehicles in the civil industry are: 1997 TO 2004.
MARKET
REGION
1. Border interdiction. Patrol of the borders PERCENTAGE (%)
by aerial platforms. EUROPE 25-30
2. Search and rescue. Looking for survivors NORTH
from shipwrecks, aircraft accidents etc. 35-40
AMERICA
3. Wild fire suppression. UAVs equipped
with infrared sensors can detect fire in PACIFIC RIM 15-25
forests and notify the fire brigade on time. MIDDLE
10
4. Communications relay. High altitude EAST
long endurance UAVs can be used as AFRICA 5-6
satellites.
5. Law enforcement. VTOL UAVs can take OTHER 6-8
the role of police helicopters in a more
cost effective way.
C. Target marketing for civil UAV industry
6. Disaster and emergency management.
Aerial platforms with cameras can provide
real time surveillance in hazardous The first step towards target marketing is to
situations such as earthquakes. prioritise the segments according to their
7. Research. Scientific research of any attractiveness. In that way we can later analyse
nature (environmental, atmospheric, the characteristics of each segment and take
archaeological, pollution etc) can be competitive decisions about the products and
carried out by UAVs equipped with the markets [7]. Carrying out a Pareto analysis will
appropriate payloads. derive the segment attractiveness with results
8. Industrial applications. Such as shown in Table 2.
applications can be crops spraying,
TABLE 2. PARETO TABLE FOR CIVIL UAV INDUSTRY FOR
nuclear factory surveillance, surveillance
THE YEAR 1997.
of pipelines etc.
($ million)
($ million)
CUM/VE
CUM/VE
CUM/VE
CUM/VE
REGION
RE/NUE
RE/NUE
RE/NUE
RANGE
RANGE
(in %)
(in %)
POTENTIAL
ENTRANTS
It is clear that North America and Europe are
by far the largest markets for the civil UAV
industry today. More specifically those two
countries are responsible for 60% of the total
SUPPLIERS
BUYERS
market revenue. The reasons behind the fact INDUSTRY
that North America and Europe are the two COMPETITORS
dominant forces in the civil UAV market, lay
behind the technological superiority and long
Burgeoning Burgeoning
UAV history of those two regions. Power of Power of
Suppliers Buyers
SUBSTITUTES
Most of the UAV manufacturers and suppliers Fig. 1. Porter’s five forces [8]
come from those two regions, thus it is logical
that industries from North America and B. Industry competitors
Europe, encouraged by their Governments and
Armed Forces, are the first to see the potentials Looking at the on-going projects in the
and applications of such systems. It would be military UAV industry today, we can identify
fare to characterize the North American and more than 100 companies with each of them
European industries as highly competitive having a variety of products corresponding to
forces in the civil UAV market. Any different market requirements. It would not be
breakthrough at UAV technology is first an exaggeration to say that almost all of them
developed and tested in USA and Europe and are planning to enter or have already entered
if it is successful it moves on to the rest of the the civil market. This will result in an
world. Thus those two regions are naturally the increasingly competitive market and the
market leaders whereas other countries are the number of manufacturers will be forced to
market followers. decline.
at lower costs, and access to less customer would consider before acquiring the
expensive raw materials. product from the manufacturer.
2. Limited supply barriers, such as control
over key raw materials supplies and TABLE 3. “EVALUATION MATRIX” FOR A UAV SYSTEM
PURCHASE.
limited access to distribution channels.
3. Marketing barriers, such as those
possessed by the holders of strong Evaluation Participants
distribution consumer franchisers. External
Internal Factors
4. Legal and/or political barriers, such as Factors
import quotas [9].
department
department
affected by
Companies
Purchasing
Operations
committee
committee
Technical
Financial
guidance
purchase
Political
Evaluation Stages
The absolute cost and limited supply barriers
can be associated with large corporations in the
UAV industry, who due to their larger scale
of production volumes compared to other Requirement
companies attain better prices and better Specifications ! ! ! !
treatment from their suppliers. They have the System
Evaluation ! ! !
luxury of ordering material fitting to their Manufacturer
individual requirements whereas others have to Evaluation ! ! !
compromise to what is available in the market. System Support ! ! ! !
Marketing barriers appear especially in the System
segment of very long range and endurance Maintenance ! ! ! !
Operator
UAVs, where the loyalty of the product and ! !
Training
the credibility of the company play a very Alternative
important role. Systems ! ! ! ! ! !
Cost of System ! !
Porter’s study indicates that in some industries Cost of Support ! !
there are significant barriers to exit. He has Cost of
shown that it is very difficult to withdraw from Maintenance ! !
some industries in a profitable basis due to
several structural implements [10]. Those
As can be observed the evaluation process is
structural implements in our case are the high
not simple at all. There is a detailed study on
capital intensity requirements. When a new
behalf of the company and there are many
company enters the market, it is required to
bases upon which the consumer can negotiate
invest money on developing the entire UAV
with the manufacturer. Also another important
system that it is planning to promote. Thus
point given by the matrix is the fact that there
money for research and development has to be
are external factors affecting the purchasing
spent in the areas of aircraft technology,
process. Another factor supporting the
telecommunications and aircraft control
burgeoning power of the buyers is the size
station. We all know how costly R&D
concentration of the purchases. The loss of a
operations can be and especially in the area of
customer can have a significant impact on the
general aviation. Also there is a high risk of
company’s future carrier. This is due to the
uncertainty about the outcome of an R&D
nature of the industry, where the
operation. Will the aircraft fly? If it flies, does
supplier/buyer ratio is very high and it would
it fly in the way the market requires? Have I
be hard for the manufacturers to find
achieved a competitive UAV system?
somewhere else to sell their products or
services. Also the total profit of a UAV
D. Buyers-Suppliers company usually comes from three or four
different buyers thus a single customer
When a company or a government contributes a large amount to the company’s
organization is about to acquire a UAV system annual turnover.
the purchasing one person does not make
decision only. Instead, a comity comprising E. Substitutes
many individuals is given the responsibility of
assessing the product, the company and the
In the civilian surveillance market, UAVs are
profitability of the purchase. One approach to
those considered to be the substitutes. There is
understand the roles of each member of the
an existing market possessed by commercial
organization in the purchasing decision process
aircraft and UAVs are the alien products trying
is through the “evaluation matrix” in Table 3,
to break in.
which is a theoretical scenario of what a
6
B. Experience curve effects two main parts. The first part is concerned with
the internal strengths and weaknesses of the
In many industries one of the major factors company. At this stage we are considering
affecting the competitive business strategy, is factors such as the financial status, the
the “experience curve effects” a term created resources, the capabilities and the
by the Boston Consulting Group (BCG). This competencies of the company. The second part
concept states that every time the total industry is concerned with the external environment of
volume doubles the total constant-dollar-per- the company and more specifically with the
unit cost of producing, distributing and selling marketing threats and opportunities associated
a particular product will decline by a constant with the industry. For the purposes of this
percentage (usually 15-30%) [15]. In Figure 3 project we are only interested at the issues,
we can see that the unit-cost/industry-volume which affect the industry’s future progress,
relationship is exponential. thus only the marketing threats and
opportunities have been considered.
Not a well-established No need for consideration by any authority) or they attain a special permit
industry, thus it is hard for in the performance of the from the airspace regulating authority. For
manufacturers to attain aircraft for human
certain parts. tolerances (g-loading example, to fly a UAV in the National
sustained by the pilot.). Airspace System (NAS) in the USA, the user
has to obtain a certification form the Federal
Aviation Administrator (FAA). This kind of
B. Airworthiness and certification issues approval is given in a case-by-case basis and is
granted by the region of operation. As we can
When a new aircraft is designed, its safety and see, the only organization today who is able to
reliability has to be tested and certified before use UAVs to their full potential is the army.
it reaches production. This procedure is called The commercial users are either unable to use
airworthiness, and the organization responsible them or they have to struggle in order to attain
for such issues is the Civil Aviation Authority a temporary permit.
(CAA) of the country of origin. Also, before
It is easy to understand why the lack of
the aircraft is introduced into the production
airworthiness standards is the most important
stage, the manufacturer is assessed in quality
problem that the commercial UAV industry is
issues in order to ensure that each aircraft
currently facing. Over the last few years, the
produced will be identical. Finally, when it is
industry has been dealing with this problem, by
sold and launched into the market, the user is
contacting the CAAs of various countries and
forced to follow certain rules and procedures in
by suggesting regulations that could be applied
all areas of aircraft operation (maintenance,
as UAV airworthiness standards. A very
spare parts, crew training, etc.), in order to
important effort towards this direction has been
ensure the safest possible functioning of the
initiated by the EURO-UVS. This organization
aircraft. All of these issues are regulated by
has managed to bring together members of the
CAAs worldwide and the Joint Aviation
industry and members of the CAA in order to
Authority (JAA), who publish rules and
discuss potential solutions and future strategies
procedure manuals that every manufacturer
that the industry should follow. This was
and operator must follow. As we understand,
achieved by the development of several
conducting business in the general area of
working groups comprised by members of the
aviation is a process associated with many
industry, military and CAAs, of which their
difficulties. The first concern is public safety,
main purpose is to identify, analyze and
thus everybody has to play by the book. The
propose solutions for the major problems that
manufacturers have to spend a lot of their time,
the industry is facing today. The countries the
money and resources in order to comply with
working groups are currently operating are:
the existing safety standards. Since it is so
Austria, Belgium, Finland, France, Germany,
difficult for conventional aircrafts to be
Greece, Italy, Norway, Spain, Sweden, and
granted fit for production and operation, we
Switzerland.
can imagine how hard it would be for
unconventional ones such as UAVs. Up to The most challenging task of these efforts is to
now, no rules and regulations have been manage and make the various government
assigned for the operation of UAVs in organizations (CAA, JAA, FAA, etc.) to get
controlled airspace. involved. What we have seen up to now is the
interest shown by many individuals working
Bringing up the subject of airworthiness and
for the CAAs worldwide, the FAA and the
flight certification for UAVs in controlled
JAA, who through their proposals try to
airspace, one may wonder how after 50 years
contribute to the solution of the problem.
of operation, UAVs have not yet been granted
However, there have been very few signs yet
with such standards. The answer to this
that these organizations are actually concerned
question is that during all of these years, UAVs
and are ready to take initiative.
have been manufactured for the armed forces,
which use their own individual aviation From conversations between the industry and
system. In the case of military UAVs, the government officials there have been a lot of
product has to comply with the individual feedback data on how UAVs could be granted
standards of each customer. Sometimes these as fit to fly in controlled airspace. Putting aside
standards are different, depending on the the technical aspect of these feedbacks, the
nationality and the body of operations of each bottom line is that the reliability of UAVs has
service (air force, navy, army, etc.). In the to be increased and demonstrated to the
cases of the ongoing commercial UAV appropriate authorities. Up to now
projects, the users either fly the aircraft in manufacturers working under military projects
uncontrolled airspace (airspace not protected were putting aside the safety issues associated
9
to the UAV operations. This is not the case any commercial UAV industry, when the
more. If we want UAVs to be treated equally airworthiness and certification issues are
as manned aircraft, we must realize that the resolved, this demand for R&D funding will
safety issues have to come first. This means rise. The manufacturers will have to prove to
that R&D programs have to be directed the CAA that their products are safe, airworthy
towards the improvement of safety and and also that their manufacturing process can
reliability issues. Also R&D funding has to be sustain a uniform production. Thus additional
increased and joint or risk-sharing programs costs will emerge in the form of product
have to be initiated. What the CAA is asking licensing, testing and quality assurance. To
from manufacturers is a UAV equipped with ensure that these changes will be implemented
all the safety features of a manned aircraft. in the most efficient and cost effective way
This brings up a lot of technical problems, possible, companies will have to expand their
since this issue has not been considered in the R&D operations to the area of production.
design of most unmanned aircraft.
Manufacturers may have to modify their One of the biggest cost-raising factors that
products and in some cases in order to produce manufacturers have to deal with in the UAV
a more safe system, they may have to sacrifice industry is the purchasing of parts. The small
some of their aircraft capabilities number of suppliers in relation to the
manufacturers gives them the opportunity to
Finally, closing this chapter we come to the suppress the market by providing their
conclusion that the industry is on the right products at high prices and low variety. Also
track for dealing with this problem, but we the fact that most of the UAV suppliers mainly
should have in mind that there is still a lot way conduct business in the general field of
to go. Still, a lot of changes have to be made aviation makes them non-dependable on the
and manufacturers have to collaborate with UAV market, they can thus negotiate with the
each other in order to achieve a new trouble- manufacturers on their own terms. Also, a lot
free commercial UAV market. Also of the sub-assembly parts come from the area
government agencies have to be pressured to of high technology, which makes them
take a more active part in the development of expensive to acquire by nature. The reaction of
the industry and must realize that there are a the manufacturers to these problems is to
lot of things to be gained from their point of design and manufacture some of the sub-
view as well. assemblies themselves by using their own
resources. However, this solution does not
C. Cost-effectiveness of UAVs in the civil always work since sometimes the reliability
market and capabilities of the product are depressed.
To overcome these problems, the industry
In order to determine whether operating UAVs should find ways to strengthen the buyer-
in the civil industry is a more cost-effective supplier relations. This could be achieved by
solution than the one offered by manned the initiation of a supplier’s organization
aircraft, we first have to consider other factors whose main aim will be the collaboration
such as the nature, length and complexity of between the two parts and the support of the
the mission they are asked to undertake. UAV supply chain. Also the information flow
between suppliers and buyers needs to be
The fact that the success of UAVs in the strengthened. The industry should support
market relies heavily on the technological activities such as UAV exhibitions,
advances related to the industry and the conventions and the advertisement of UAV
scientific certification of the product, makes parts/products on the Internet, magazines, and
the R&D process a vital part of the UAV industry publications.
production. As in many technology-dependent
industries, UAV manufacturers are required to D. UAVs & elimination of risking human
buck up their products with strong scientific lives
documentation and an extensive experimental
research in order to prove their product’s It is a fact of life that modern society is no
operational capabilities. To do so, a longer companionate to the losses of human
considerable amount of money and attention lives. Whether or not these losses come from a
has to be invested in the area of Research and war or a hazardous accident; the mentality of
Development. This is an unpreventable the global citizen cannot easily accept death in
requirement for every company that is aiming the technologically advanced society that we
to a successful career in the general field of live in. The aviation industry since the day of
aviation. Looking at the near future of the its birth, it has been very closely related to
10
accidents involving human loss. No mater how aviation industry today. UAV manufacturers
much money and attention the aviation have to identify these high-risk operations that
companies are spending in order to provide a only their products can undertake, and make
safe flight, accidents will always continue to them the first priority in their future strategy.
occur. It is very unlikely even in the future for In this way UAVs can gain recognition and be
a 100% safe flight to exist, because factors the market leaders in a sector, which rightfully
such as human error and unsafe situations are belongs to them.
impossible to be controlled. The elimination of
the operator from the cockpit gives UAVs the E. Integration of UAV systems
benefit over manned aircraft that at no time
during flight human lives are at stake. This Looking at the evolution of UAV systems
advantage gives them the ability to carry out throughout their history, we realize that as the
operations, which their manned competitors years pass by, UAVs are becoming more
are unable to. UAV manufacturers should sophisticated. Today, the industry can provide
make use of this driving force in the a wide variety of systems, ranging from
commercial sector as they have done earlier in aircraft not longer than 15 cm in span, which
the past, in the military industry. In this way can enter buildings and retrieve information, to
the UAV industry can move competition away aerial platforms that can fly to the limits of the
from the basis of cost-effectiveness. When a atmosphere for more than 30 hours. In chapter
mission is considered to be dangerous for the II, we saw that there are several types and
pilot, the issue of cost does no longer exist. classifications of UAVs in accordance to their
The customer is forced to choose the safest capabilities. Not all UAVs are the same,
solution available no matter how expensive it therefore not all of them will be treated equally
may be. by the market. It is almost certain that in the
In the commercial sector there is a numerous near future, some systems will gain recognition
of missions which can be classified as unsafe. and government support in the civil sector,
These missions are: whereas others will have to wait for their turn
in the future.
1. Surveillance over nuclear reactors.
2. Surveillance over hazardous chemicals. The systems that will most likely attract
3. Fire patrol. attention in the near future are the High
4. Volcano patrol. Altitude Long Endurance (HALE) UAVs,
5. Hurricane observations. which are by far more technologically
6. Rescue missions over adverse weather advanced than any other UAV system. It is
conditions. almost certain that these systems will be the
first to attain the airworthiness and flight
The inability of manned aircraft to carry out certification license from the CAA and
this type of missions has been proven therefore be the first to fully exploit their
throughout history many times. There have potentials in the civil market. These systems
been many examples where survivors from a have gained support from the government of
sea accident were drown just because the aerial the United States of America over the years,
rescue operation was delayed in tracking them who have invested a lot of money in their
due to bad weather. In the past, UAVs have R&D. These systems are required to fly at very
been given the opportunity to test their high altitudes (stratosphere) for more than 24
capabilities against operations, which were hours (most of them go up to 40 hours of
considered too dangerous by manned aircraft flight). A flight requirement of longer than 24
to carry out. For example in 1998 the hours is chosen due to the fact that the
Aerosonde UAV was given the task to fly limitations of a human crew in flight are no
around the tropical cyclone Typhoon, located longer than 24 hours. HALE UAVs such as the
in the western coast of Australia. The mission Dark Star and the Global Hawk are designed to
was completed with success and it was the first provide an aerial platform, which can be used
time in history where meteorologists had the for data relay. In other words they are offering
opportunity to take readings from an aerial a less costly alternative to the expensive
platform so close to the cyclone [16]. services provided by satellites. Market future
could reveal a number of UAVs orbiting
UAVs have proven to be capable and reliable around the earth’s atmosphere transferring data
enough to carry out complicated and such as telephone, TV, and Internet, in all over
challenging operations with success. Also their the world, very cheaply.
ability to be expendable in certain missions
acts as major advantage in the commercial
11
What is interesting about these UAVs, is the [5] Research Publication, World Markets for Military,
Civil and Commercial Unmanned Aerial Vehicles.
fact that two of the biggest ongoing HALE
Frost & Sullivan, 1998.
UAV projects (Global Hawk and Dark Star), [6] K. Herrick, Highlights of Trends and Growth in Civil
have been developed by two of the world’s UAV Markets. 1998.
larger aviation manufacturers and systems (http://www.auvsi.org/auvsicc/faaisg/ppt/markets.ht
m).
providers: Boeing and Northrop Ghrouman.
[7] D. Adcock, Marketing Strategies for Competitive
The fact that these companies have chosen to Advantage. England, WILEY, 2000.
be actively involved in the UAV industry may [8] M. E. Porter, Competitive Strategy. New York, Free
be an indication that the future of aviation is Press, 1980.
[9] C. W. Hofer & D. Schendel, Strategy Formulation:
directed towards the area of systems
Analytical Concepts. USA, West Publishing co,
integration. Maybe the future challenge of 1978.
UAVs will be to act as a part of a system [10] M. E. Porter, Please Note Location on Nearest Exit:
comprised by manned aircraft and satellites. Exit Barriers and Strategic and Organizational
Planning. Harvard Business School Working Paper,
1975.
[11] Lax and Sutherland, Wing Commanders MRB, (), An
VII. CONCLUSIONS External Role for Unmanned Aerial Vehicles in the
Royal Australian Air Force. RAAF Air Power
The Civil UAV industry is a relatively new and Studies Center, 1996.
[12] G. W. Goodman, Flying High: Airforce Finally
unexplored area with little academic literature. Embraces Unmanned Aerial Vehicles. Armed Forces
There were various difficulties in researching Journal International, 1995.
the subject area, as references were rare and [13] Air Chief Marshal Sir Michael, Unmanned Aircraft.
hard to find. From the references that existed, Bassey Defense Publishers, 1988.
[14] A. H. Anderson & H. Dobson, Effective Marketing:
some of them were unavailable to the public, A Skills and Activity-Based Approach. Oxford,
whilst others were compiled as industry reports Blackwell Publishers, 1994.
and therefore expensive to obtain. [15] Boston Consulting Group Staff, Perspectives on
Experience. The Boston Consulting Group, 1968.
The most valuable conclusions derived from [16] Senator H. I. Mackdonald, An Innovative Robot
Aircraft for Atmospheric Monitoring. Parliament
this project are: house, 1998.
VIII. REFERENCES