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Flying high
Drones to drive jobs in
the construction sector
Table of contents
Foreword..................................................................................................... 4
Preface........................................................................................................ 5
Executive summary.................................................................................... 6
1. Introduction............................................................................................ 7
Global drone industry.............................................................................. 7
Application of drones in various sectors................................................. 8
2. Indian drone industry........................................................................... 10
Policy and regulations............................................................................. 9
Impact of policy on ecosystem............................................................. 12
3. Construction industry.......................................................................... 15
Global construction industry................................................................. 15
Indian construction industry.................................................................. 16
Construction lifecycle............................................................................ 17
4. Application of drones in the construction industry............................ 18
Pre-construction................................................................................... 19
Construction.......................................................................................... 20
Post-construction.................................................................................. 21
Contribution of drones in the construction industry.............................. 22
5. Employment opportunities.................................................................. 23
6. Way ahead............................................................................................ 25
The growing use of drones will exponentially boost the demand for qualified
professionals who can build, manage, service and operate them. This
segment will be a booster shot for the job market, as the construction sector
alone is expected to create around 2.5 lakh jobs. To meet the demand for
professionals and experts in this area, it is imperative for the country to
start investing in training and education. Moreover, further advancements
and innovation in drone technologies will require large investments and
focused efforts towards building the required infrastructure for skill upgrade
and capacity building.
Happy reading!
1. Economics Time article “India fastest growing market for unmanned aerial vehicles”
Infrastructure Agriculture
$45.2 bn $32.4 bn
Transport Security
$13.0 bn $10.5 bn
Media and Entertainment Insurance
Market value Market value
$8.8 bn $6.8 bn
Telecommunication Mining
$6.3 bn $4.3 bn
2. Office of Director General of Civil Aviation, Government of India. “Requirements for Operation of Civil Remotely Piloted Aircraft System
(RPAS).”, F. No. 05-13/2014-AED Vol. IV. (August 27, 2018)
3. Infinium Global Research. “Commercial Drones Market: Global Industry Analysis, Trends, Market Size & Forecasts to 2023.”
4. PwC Poland report on “PwC global report on the commercial applications of drone technology”
Healthcare Mining
• Epidemic control • Mineral scouting
• Cleanliness & hygiene • Managing encroachment
• Healthcare delivery • Contract monitoring
5. P
wC Poland report on “PwC global report on the commercial applications of drone technology”
Security Mining
Equipped with enhanced tools such as Mining sites are unsafe and environmentally
cameras and facial recognition systems, unfit for human activities. Drones can
drones can play an important role in replace humans to do perilous tasks and
checking theft and tracking thieves. There increase effectiveness at mining sites. They
are also a number of security applications are also currently used to acquire geo-
which drones can support and real-time technical and hydrological data for open-pit
surveillance with a dynamic view can mines. Moreover, they help in remote soil
provide additional security insights. In sampling and tool delivery in exploration
critical situations such as fires, drones can sites as well as to track changes in
intervene and inspect the surroundings for vegetation due to mining activity, and report
associated danger. Moreover, sensor-based this by using digital models.
drones can detect illegal transportation of
drugs in border areas.
Along with the sectors mentioned above, many others technologies to solve problems, help in real-time
such as energy and utilities, telecom and insurance monitoring, and enhance safety and cost-effectiveness
are exploring the use of drones and other emerging of their businesses.
9 PwC | Flying high: Drones to drive jobs in the construction sector
Indian drone industry
India is a developing economy and requires Policy and regulations
harmony between its economic, social and
On 27 August 2018, India achieved a major milestone in
environmental needs in order to achieve sustainable
the techno-legal sphere by releasing ‘Requirements for
development. A key enabler for building a sustainable
Operation of Civil Remotely Piloted Aircraft’, also known
economy is through technological intervention in
as India’s Drone Policy 1.0.8 The policy, which will go
market development. Currently, India is transitioning
into effect on 1 December 2018, lifts the blanket ban on
into a tech-enabled economy. And while it has
UAV-related activity and authorises the use of drones for
emerged as one of the top importers of UAVs for
commercial purposes. Once this policy comes into effect,
military services, there is a consistent demand
drones will be widely used in the country.
for commercial activities including construction,
agriculture, mining, surveillance, infrastructure
management and monitoring, amongst others. Digital Sky platform
The Indian UAV market is expected to reach US$ 885.7 The Digital Sky platform, planned to go live in December
million (nearly 4 percent of the global market at US$ 2018, will form the foundation of India’s drone policy.
21.47 billion) during 2017-23 at a CAGR of 18%. With It is a national Unmanned Traffic Management (UTM)
22.5% of the world’s UAV imports, India tops the list of platform, designed to automate the entire chain of
drone-importing countries.6 The country’s major imports approvals required to own and operate a drone.
in drones currently include products required for military The platform facilitates registration, operation and
purposes. Commercial drones are expected to display a management of drones through a single-window
steady climb as well. However, according to BIS research, mechanism, while eliminating any paperwork.
the commercial drone market is projected to supersede
the military market by 2021.
7. O
ffice of Director General of Civil Aviation, Government of India. “Requirements for Operation of Civil Remotely Piloted Aircraft System
(RPAS).”, F. No. 05-13/2014-AED Vol. IV. (August 27, 2018)
8. Article on “After drone regulations, India’s Digital Sky system takes shape”
Other countries such as the US, the UAE, China, Australia clearances, etc. continue to be processed and issued
and India also have similar online portals for registration manually. In comparison, India’s proposed Digital Sky
and licensing, but most of their flight approvals, would be ambitious, complex and impactful.
9. Article on “After drone regulations, India’s Digital Sky system takes shape”
Training requirements
Pilots of civil drones are required to be at least of 18
years old with a 10th standard qualification in English.
They need to undergo training at approved Flight
Training Organisations (FTOs). The training programme
should include live or simulated components to replicate
operating conditions, along with a theoretical curriculum
that is similar to the one undertaken by the aircrew of a
manned aircraft or a holder of a private plane license.
Classification
<=250 g >250 g<=2kg >2 kg <=25kg >25 kg <=150 kg >150 kg
criteria
UIN
UAOP
NPNT
Approval time for
UIN UAOP
2 days 2 days/7 days 2 days/7 days 2 days/7 days
Equipment
standardisation
200 ft. (above
50 ft. (Above 50 ft.
Max. height 200 ft. not
not exempt from 400 ft. 400 ft. 400 ft.
allowed (AGL) exempt from
requirements)
requirements)
VLOS
Day operations
Flight plan
ADC/ FIC
Local police
Area of operation Uncontrolled Uncontrolled Controlled and Controlled and Controlled and
airspace and airspace uncontrolled uncontrolled uncontrolled
indoor airspace airspace airspace
Security
clearance
Import clearance
Training for pilots
All responsibility
with operator
10. Office of Director General of Civil Aviation, Government of India. “Requirements for Operation of Civil Remotely Piloted
Aircraft System (RPAS).”, F. No. 05-13/2014-AED Vol. IV. (August 27, 2018)
Eastern Europe
US$521 bn 2.6%
North America Western Europe
US$1.6 trn 1.9% US$2.1 trn 2.4%
India
Latin America
US$646 bn 2.1% Asia Pacific
US$4.8 trn 3.3%
Region
Output 2021 % change 2017-21
“Construction is likely to be one of the most dynamic translates to the creation of vast numbers of new jobs and
industrial sectors in the next fifteen years and is utterly significant wealth in certain countries across the globe,”
crucial to the evolution of prosperous societies around the said Fernando A. González, Chief Executive of the global
world. The numbers within this report are huge and that building material-manufacturing company CEMEX.13
11. PricewaterhouseCoopers. “Global Construction 2030: A Global Forecast for the Construction Industry to 2030.” PwC.
14
Crisil Projections- Infrastructure spending (% of GDP) 2018 (INR lakh crore)
60 8%
7%
7%
50
5.80%
6%
40
5%
5.30%
30 4%
50
3%
20
37
2%
24
10
1%
0 0%
2008-12 Actual 2013-17 NITI Aayog est. 2018-22 CRISIL est.
16. India Brand Equity Foundation. “Indian Infrastructure- Industry Analysis.” 2018.
Step 1: Pre-construction:
The pre-construction phase starts with evaluation of the
project by identifying its objective or need, addressing a
business problem or capturing a business opportunity.
This phase comprises designing, planning, surveying the
site, site mapping and estimating capital requirement.
This leads to preparation of a feasibility study. This step
also includes identification of terrain conditions, risks
associated with the investment and pre-verification of
site. Thus preparing the blueprint of drawings/sketching
of shapes, spaces in the area during the inspection of the
condition of the site.
61%
More accurate
measurements
65%
Improved communication
and collaboration
*
21. DroneDeploy. “2018 Commercial Drone Industry Trends.” May 2018.
According to the Economic Survey 2017-18, construction The Construction Industry Development Council (CIDC)
employed a workforce of 40 million in 2013, and is has conducted a study to assess the impact of drones
projected to employ 67 million by 2022.24 However, over on employment generation across 13 sub-sectors in
80% of those employed in the sector are either unskilled the construction and maintenance industry. The study
or minimally skilled. The advent of drones has the power estimates the manpower requirement for people with
to bring in a shift in this paradigm. The demand for drones UAV operating skills to be approximately 2.5 lakhs in the
on construction sites is expected to trigger an exponential coming years, with highways, roads, bridges and housing
increase in the demand for skilled manpower in drone taking the lead. According to the CIDC, future deployment
operations. This will include professionals for data of UAV technology and its greater acceptance in a
collection (drone pilots) and data processing number of different applications across a diverse
(with data scientists who use information stakeholder base has the potential to boost the demand
collected by drones in various ways). for professionals who are skilled in using this technology.
22. Thomas, Jayan Jose. “India’s Labour Market during the 2000s Surveying the Changes.” Economic & Political Weekly,
51st ser., XLVIL (2012).
23. Planning Commission, Government of India. Employment by Sector - Industries. 2015. Raw data.
24. “Realty, Construction to Generate 15 Million Jobs by 2022: Economic Survey.” The Economic Times. January 29, 2018.
Commercial Building
Thermal Power
Mineral Plants
Medium Industry
Transmission
Petrochemical
Waterways
Aviation
Other Sectors
2008-12 Actual Construction Maintenance
Source: Projected manpower requirements for In addition to operations, there will also be a
UAV related skills in Construction & Maintenance; significant demand for qualified professionals, in
Construction Industry Development Council drone manufacturing and maintenance. This category
(CIDC Survey)Permissible Variant ± 5% of professionals will include engineers, technicians,
assemblers, machinists, etc. The influx of such
Note:
professionals may also be successful in reversing the
1. The estimates do not cover other allied fields, such as
attrition of engineers and other qualified individuals in the
agriculture, forestry, defense, etc., and only pertains
construction industry.
to core construction sub sectors.
In order to fulfil this huge demand for skilled
2. The figures would need an upward revision, based on
professionals, putting in place of a robust skill
the enhanced investment in the infrastructure sector.
development framework is imperative. The foundation
3. The figures only relate to skilled, trained, tested and for this, which was laid by the Director General of Civil
certified Remote Pilot License holders. The analysts’ Aviation guidelines, outlines the training curriculum to
estimate has not been included (in Level I only). be completed by UAV pilots.2 Such training is currently
offered at a number of DGCA-approved FTOs. However
the current educational infrastructure is likely to be
CASE STUDY insufficient for meeting the impending demand. There
is now a need for the Government and private sector
ANDHRA PRADESH REAL ESTATE entities to enter this niche market and fill the gap between
REGULATORY AUTHORITY (APRERA) demand and supply.
CIDC and APRERA recently signed an MOU for
real time monitoring of 2,950 construction projects
across Andhra Pradesh. For effective deployment
of UAV related technology, an average of three
persons are deployed on each of these projects,
resulting in the employment of 8,850 drone
operators in the state.
Extrapolating these numbers for Pan-India,
translates into a demand for 1,68,000 drone
operators for monitoring alone.
25. “NHAI to Use Space Technology, UAVs for Highway Projects.” The Economic Times. January 13, 2016.
26. NMCG brainstorms on G-governance of Namami Gange programme through Geospatial technology
Investment: Governance:
The Government and private sector Public Private Partnership (PPP) models for
will need to take an active role in employing drones need to be set up. The
attracting Foreign Direct Investment to Directorate General of Civil Aviation, along
supplement domestic capital in order with industry-specific organisations such
to accelerate the growth of the industry. as the Construction Industry Development
Skill development: More institutes need Council, should develop safety guidelines,
to be empanelled by the DGCA to provide best practices and quality standards for
drone pilot certifications and training the use of drones.
to meet the impending demand. Large
institutions in the construction sector need
a specialised curriculum that is focused
on the use of drones in the construction
industry for data collection and mining.
Contact us
Neel Ratan
Partner and Government Sector Leader
neel.ratan@in.pwc.com
NSN Murty
Partner, Smart Cities
nsn.murty@pwc.com
Sreeram Ananthasayanam
Partner, Government and Public Sector
sreeram.ananthasayanam@pwc.com
Amit Singh
Director, Smart Cities
amit.v.singh@pwc.com
Rajinder Banyal
rajinder.banyal@pwc.com
Abha Dhaka
abha.dhaka@pwc.com
Mandeep Singh
mandeep.x.singh@pwc.com
Mehaque Kohli
mehaque.kohli@pwc.com
pwc.in
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