By Colin Snow, CEO and Founder, Skylogic Research

This is the first in a new series of Skylogic Research white papers, intended to provide an introduction to drone use in specific industries. Our goal is to help drone-based service providers and business users maximize the value that drones can bring to operational groups. This year, we are building on the analysis we did for the 2017 Five Valuable Business Lessons Learned papers by providing guidance and industry-specific resources that will help you kick-start your practice.

Drones are now one of several new technologies that are transforming all stages of the engineering and construction process. As we’ve detailed in The Truth about Drones in Construction, hundreds of firms across the globe have put in place projects for drones across the entire building lifecycle, from de-sign and construction to operation and demolition.

There is no longer any question that drones save time and reduce costs compared with traditional ground and aerial techniques: drones can provide accurate site surveys in a fraction of the time, as well as fast aerial data capture, photos, videos, thermal signatures, gas detection, and other useful informa-tion.

The simple truth is small drones—multirotors, in particular—can fly lower and closer than traditional aircraft and can capture more detailed information. As a result, aerial surveys of projects that were too small for manned aircraft operations are now com-monplace.

That said, what we are hearing from AEC firms about the value of their drone programs is not about the drones themselves. While they are happy about the advancements in drone technology and sensors,

Introduction

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their excitement has been about the contextual value of the information they glean from the data their drones collect. That contextual information includes:

• Collaborative maps

• Quick and accurate measurements

• Interactive 3D models of projects

• Integration of aerial data into everyday tools

The Drone Market and Major Solution Providers

There is a diversity of opinion among research and analyst firms about the size of the drone construction market. Most of these are top-down forecasts. As we have written here, there are some pretty fantastic and unrealistic forecasts for how fast the commercial drone industry will grow overall. We see the demand and growth projections for drones varying by use case and industry vertical, but we believe construc-tion is a sector that will do better than others.

Goldman Sachs’s top-down approach estimates that, of the total market value for drones in the commercial market, the construction industry will generate about USD $11.2 billion over the next five years, with $1.3 billion in the U.S. alone. We’ve also seen other total addressable market (TAM) forecasts that indicate drones in building and con-struction inspection alone could generate about USD $6 billion in value.

Our analysis takes a different approach. We fore-cast market value from the bottom up. We start by looking at the immediate return on investment in the current year (what construction firms are doing now) and project the market’s growth based on issues such as regulatory hurdles and the adoption rate among AEC firms. We calculate the value as the economic benefit of using a drone versus not using a drone to do the same work. Our analysis shows that this year in the U.S. alone, drone-based

Construction Drone Market

services will provide a value of $1.4 billion. We project that value to grow about 15% per year over the next five years and total more than $9.4 billion. Suffice it to say we believe the opportunity is good, and the potential for growth in this sector is very high.

“This year in the U.S. alone, drone-based services will provide a value of $1.4 billion. We project that value to grow about 15% per year over the next five years and total more than $9.4 billion.

“Construction Drone Solutions

If you are just now looking into drones, you’ll find the market for construction drone solutions to be a diverse space with overlapping offerings. There is no easy solution, and new software and sensor offerings appear weekly. In this section, we’ll at-tempt to simplify the landscape and point you to the vendors we think are worth exploring to see if they meet your particular needs. Many construction firms have benefited from au-tonomous drone operations, in which a remote pilot-in-command inputs a flight plan in a ground control station program, which then sends it to the autopilot on board the drone aircraft. Once it’s uploaded, the operator pushes the “go” button and the drone executes the pre-programmed flight

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to capture the data. During automated flight, flight control inputs are made by components on board the drone, not by the ground control station. After the flight, the captured data is processed by software that creates usable, actionable information.

In our opinion, a key value drones bring to con-struction is the ability to fly the exact same mission over and over. With most automated mission-plan-ning software, once the initial flight plan is devel-oped, any pilot with a similar aircraft can load a mission and replicate the original flight.

Many companies offer an end-to-end solution that integrates flight planning, mission control, and post-processing. Some companies include a drone (and even sensors, in some cases) that they designed and built themselves. Here’s a partial list of vendors with drone and software solutions (along with their taglines) that target the AEC industry (see below).

3DRThe complete drone software solution for AEC

AirwareSite management reinvented

BentleySolutions for surveying, reality modeling, and map-ping

Drone2Map for ArcGISTurn your drone into an enterprise GIS productivity tool

DroneDeployThe Complete Mapping Experience

Identified TechnologiesOptimize your jobsites

KespryFly, measure, and manage earthwork projects

Pix4DDocumenting and measuring sites from an aerial perspective

PrecisionHawkA turn-key platform that uses drone data to automate and optimize decision-making on the job

PropellerMeasure and manage your construction site using visual tools based on drone data

SenseFlyProven drone solutions simplify the collection and analysis of geospatial data, allowing professionals to make better decisions, faster

SkycatchEverything you need on one platform, from automat-ing flights to one-click data processing and enter-prise-wide hosting

TopconTools to be more efficient, improve your accuracy, and better manage your data, machines, and crew.

TrimbleInnovative technology for planning, design, construc-tion, and operation, from the office to the jobsite

Keep in mind that many of these solutions are based on DJI Enterprise drones—and for good reason. DJI is the clear market leader in drone aircraft sales and almost every software category, and has been for some time now. Our data shows DJI is the dominant brand for drone aircraft purchases, with a 72% global market share across all price points. By building on top of its existing technology platform, DJI can fast-track development and benefit from economies of scale. By migrating the successful tech-nology stack and feature sets upmarket, DJI never has to reinvent the wheel—just improve upon the original design, and save engineering cycles for real innovation.

Why is this significant? To stay relevant, other ven-dors have had to partner with them—3DR, Bentley, DroneDeploy, PrecisionHawk, Propeller, Skycatch, to name a few. What this means for operators or businesses is that you can perform services on a

Construction Drone Vendors

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standardized platform and choose from an ecosystem of compatible software.

Drone Use in Construction

Use in Design

As noted in the Introduction, the value of a drone program is the contextual value of the information gleaned from the data collected by drones. The list of all use cases that provide that value is too long for this paper, but we’ll explore the major ones.

Drone imagery and data have been useful tools in design and pre-construction workflows for commer-cial construction and architectural firms like The Beck Group, Brasfield & Gorrie, and DPR Construction. A simple use is to take an aerial shot of what potential tenants and investors would see when they look out from, say, their east-facing, tenth-floor office. These visuals could include:

• Future building face/reface views for development

• Building models in the neighborhood context

• 180- or 360-degree visualizations from each floor

Another use for drone aerial imagery and data is Building Information Modeling (BIM). BIM is the process of designing a building collaboratively, using one coherent system of computer models rather than separate sets of drawings. It involves generating and managing digital representations of physical and functional characteristics of places. The digital rep-resentation becomes a shared knowledge resource for a facility and forms a reliable basis for decisions during its entire lifecycle.

Use on the Jobsite

Construction jobsite monitoring can involve using drones to capture pictures for daily, weekly, and monthly progress reports, or as site survey maps that provide a foundation for work plans. Drone images used in daily progress reports are great for change detection: they can help identify issues that allow jobsite managers to quickly resolve problems such as improper sequencing that can lead to performance delays. Most plans start with accurate current topog-raphy maps, with elevation contour lines and detailed 2D and 3D models.

Work plans can include:

• Georeferenced cut and fill and earthwork hauling specifications

• Asset management including materials, equipment, temporary roads, and structures

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• Stockpile volumes for labor and time estimates to move/remove

• Egress and on-site logistics for vehicles and heavy machinery

• Quality control (CAD plan vs. actual)

• Regulatory compliance and progress reporting

Site survey maps and work plans require more skills than simple aerial photography—they require knowl-edge of orthomosaic photography and photogram-metry. See the Appendix / Resources section for lists of references to learn more about the skills involved.

Challenges

Sometimes getting the green light for a particular drone use case can be challenging, and while mak-ing the business case, you may find resistance and roadblocks. Concerns about safety, security, and liability risks are real, and are best addressed by documenting regulatory requirements, training, safety protocols, and emergency procedures.

The BIM concept has generated tremendous interest: when rigorously applied, it can relieve many of the in-dustry’s pain points. The big idea is to provide a cen-tral project management repository where 3D build-ing models can be linked to time- or schedule-related information (called BIM 4D), plus cost estimates and budgets (BIM 5D), plus ongoing maintenance after construction is completed (BIM 6D).

BIM offers enormous gains in time and cost savings, much greater accuracy in estimates, and avoidance of error, alterations, and rework due to information loss. But adopting BIM—outside of incorporating data from drones—involves much more than simply chang-ing the software you use. To achieve all the benefits BIM offers, everyone in the architecture, engineering, and construction industries will have to learn to work in fundamentally new ways. Put another way, BIM requires a culture of collaboration—the exact oppo-site of throwing the plans over the wall to the team downstream.

A SWOT analysis is a strategic planning technique used to help a person or organization identify the strengths, weaknesses, opportunities, and threats (SWOT) related to business competition or project planning. We’ll borrow the concept and apply it to the use of drones in construction. The goal is to fair-ly assess the factors that we believe are relevant in each of these four areas, so that the resulting strategic adoption of drones is realistic.

See next page for SWOT Analysis: Use of Drones in Construction-->

SWOT Analysis

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SWOT Analysis: Use of Drones in Construction

Strengths Weaknesses

• Solution maturity: Although it is constantly improv-ing, out-of-the-box data-capture accuracy by most drone solutions today is very good. If greater accuracy is needed, you can choose from readily available real-time kinematic (RTK)- or post-processed kinematic (PPK)-based solutions.

• Cost: The cost of prosumer drones, the broad-based support from a range of software developers, and the pric-ing plans of subscription-based drone mapping services have never been more competitive.

• Availability of resources: From drone-specific avi-ation insurance to commercial drone industry trade shows, to flight training, webinars, and how-to guides, there is a plethora of resources available to anyone starting up a construction drone practice.

• Data processing bottlenecks: Most solutions (not all) require that you upload images from the drone aircraft to a mobile device, a laptop, or a cloud service, where they are stitched together to create a base map and the underlying data is processed into usable layers. In most solutions, you have to wait for that information—sometimes for hours.

• Airspace restrictions: Piloting drones over construc-tion sites in cities, urban districts, airport zones, or critical areas can sometimes be a real challenge due to flight permissions, weather conditions, legal restrictions, and job site obstructions.

• IT and data governance: In some use cases (e.g., inspections), a single drone can collect 50 to 100 giga-bytes of data. Managing these large data sets has to be worked out with IT departments.

Opportunities Threats

• Worksite safety: Changes from the structure’s design—introduced during construction, or approved or unapproved modifications that altered the original design—can create safety risks. Drones provide a cost-effective way to perform assessments of objects that otherwise require ground crews and a human to perform risky climbs. In most cases, a single pilot can easily fly around whatever it is that needs to be inspected and record a live feed of high-quali-ty video for engineers on the ground.

• Collaborative workflow: Use of drone data de-mands that you set up new data integration workflows for your existing ecosystem of software solutions (e.g., CAD and project management software) and learn how to manage daily project software workflows from constantly changing sets of new images. Workflows need to focus on how to both communicate and manage change—in the feedback to design, in the feedback to production, or to both at the same time.

• Automation: We are beginning to see more soft-ware automation such as object recognition and artificial intelligence (AI). These algorithms are starting to be embed-ded on drones to minimize the amount of human effort to distill the vast amount of information and focus on action-able inference.

• Doing nothing: When every AEC business incorpo-rates drones into its processes and operations, the question for leaders becomes how to differentiate their organization from competitors. A decision on this investment might be dif-ficult to justify solely based on ROI, because the immediate impact on business outcome is not known. But inaction or a delay in taking action might enable another company to position itself as the industry leader—an obviously unac-ceptable result.

• Underqualified/illegal operators: Drone hobby-ists and pop-up drone companies offering professional services for bottom dollar with no expertise or licensing in the field can lead to disappointed one-time customers, who expect unreasonably low rates or don’t trust the quality and accuracy of the data after having had a bad experience.

• State and local regulations: Depending on where you live, state or local regulations can hamper high-value operations. Although the FAA’s UAS Integration Pilot Pro-gram attempts to address this, we may end up seeing more regulatory red tape—producing a patchwork quilt of rules that further restrict airspace and takeoff and landing points.

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Getting your start / What you need to know

Here is the information you’ll need to get started with Federal Aviation Administration (FAA) commercial drone regulations, pilot certification, insurance, and more.

RegulationsRegulations for commercial drone pilots in the U.S. (aka Part 107) came into effect in August 2016. The rules outlined by the FAA cover unmanned aircraft systems (UAS) flown for “routine non-hobbyist use.” You can check out the FAA’s full summary of the Part 107 regulations, but here are the main points:

• Pilots must be at least 16 years old and hold a “remote pilot airman certificate” issued by the FAA.

• Commercial UAS operation must take place within visual line of sight (VLOS) of the operator.

• Operations are allowed only during daylight hours or within the hours of civil twilight (immediately before sunrise and immediately after sunset).

• Must not exceed a maximum groundspeed of 100 mph or a maximum altitude of 400 feet.

• Air Traffic Control approval is required before flying in controlled airspace.

• Flight is not permitted directly over non-participating people.

• Drones weighing between 0.55 lbs. and 55 lbs. must be registered with the FAA.

Pilot certification Drone operators must be certified, similar to a driver’s license written test. The test covers everything from aviation weather, the national airspace system, and regulations, to aircraft loading, performance, and operations. Tests are administered at FAA-approved Airmen Knowledge Testing Centers. Existing certified pilots (under Part 61 of the Federal Aviation Regulations) may take an online training course available on FAASafety.gov to have a remote pilot certification with a small UAS rating added to their existing pilot privileges. To maintain currency as a remote pilot under Part 107, you will be required to take a knowledge test every two years.

InsuranceThough not required, it is highly recommended that you obtain drone hull and liability insurance. Hull insurance covers damage to the drone itself. It’s generally separate from liability policies. Liability insurance covers damage caused to a third party by your drone operations, including bodily injury and property damage. Most clients, espe-cially larger businesses, require proof of liability insurance before letting a drone take off at their site. The average drone service provider carries a $1M liability insurance policy.

Training and forumsThere are many drone training schools and online forums. They all provide a great starting place for you to learn the nuances of flying drones and using the technology. While we can’t recommend one above another, we list a few in the Appendix / Resources section and recommend using the following criteria to evaluate them:

• Offers self-paced online training courses and educational content

• Gives FAA test preparation courses

• Offers industry or use case–specific courses like mapping and 3D modeling

• Has worked with everyone from pilot entrepreneurs to big companies to public organizations like police and fire departments

• Offers a weekly digest of important news• Provides access to a community forum and a Facebook group where you can connect with others

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Lessons Learned/ Cautionary Tales

Find a Quick WinOne lesson learned by the early adopters is the value drones provide managers of large construction sites. In this example, project managers at an oil storage con-struction site project complained that they couldn’t get their oversight work done—meaning they did not have enough time in the day to properly oversee their many construction projects. On a typical duty day, a project manager visits various construction sites and verifies that the workers have all required equipment, checks general progress, and sees that things are generally being done such that the company can meet the minimum standards of tolerance set by law. It turns out that a simple data capture and quick 3D models were an invaluable re-source for these projects.

Be Clear About Customer Value When drone business service providers talk publicly about the differentiation of drones, you’ll often hear them say: “It’s all about the data.” But one of the lessons learned from the early adopters of drones in construction is that it isn’t just about the data. It’s about getting good information that provides value for the construction or architectural firm. So whether teams are collaborating around one daily map for a construction site as “the single source of truth,” or providing floor-by-floor visual-ization views for a future building site, the ultimate goal is to provide valuable information for downstream cus-tomers—and drones alone cannot do that. What drones can do is offer a much quicker way of capturing different types of data, digitizing it, and making it something you can analyze immediately or over time to support con-struction variance analysis.

Plan for SafetyWhile a programmed drone can fly a more precise mission than a pilot, Part 107 requires a licensed remote pilot in command to oversee every flight. The pilot is responsible for ensuring that the aircraft is properly main-tained and flight ready, that conditions are safe, and that the pilot has any necessary waivers. Every drone opera-tor and mission should be operated within the rules and regulations stipulated by the governing bodies appli-

cable to you and your specific equipment. Safety plans should encompass not only the drone aircraft’s airworthi-ness, but also the following:

• Area and environment – hazards, weather, air space restrictions, bystanders

• Mission plan – contingency planning for safe exit routes in the event of a system failure, degraded performance, or lost communication link

• Public awareness – notification to nearby prop erty owners of your intentions (permissions)

• Preflight/run-up – verification that all ancillary equipment is operating to specifications

• In-flight – proximity of other aircraft and pilot intentions to land

Take small steps with BIM/drone projects

BIM offers enormous gains in cost and time savings, much greater accuracy in estimation, and the avoidance of errors, alterations, and rework due to information loss. But adopting BIM itself—outside of incorporating data from drones—involves much more than simply changing the software you use. To achieve all the benefits BIM offers, everyone in the architecture, engineering, and construction industries will have to learn to work in fun-damentally new ways. BIM-plus-drones is a whole new paradigm, so we recommend that you take small steps when implementing a BIM/drone data project. Choose which steps are appropriate for your firm and tackle them one at a time: Do a test run on a pilot project, see how your firm does, and then use the pilot project to prepare for wider BIM/drone data implementation.

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and get answers to pressing questions

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Training and CertificationDrone Certification: A Step-by-Step Guide to FAA Part 107 for U.S. Commercial Drone PilotsDrone License Step-by-Step Guide So You Can Make MoneyDARTdronesDrone Pilot Ground SchoolUnmanned Vehicle University15 Best Drone Training Colleges

Waivers and AuthorizationsFAA Part 107 Waiver (COW) – What Drone Pilots Need to Know (2018)FAA’s LAANC System – (Low Altitude Authorization & Notification Capability)Applying for a Waiver Under the New Drone RulesRequest a Part 107 Waiver or Operation in Controlled Airspace

Appendix/Resources

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ABOUT SKYLOGIC RESEARCHSkylogic Research, LLC, is a research, content, and advisory services firm supporting all participants in the com-mercial unmanned aircraft systems (UAS) industry. We provide research-based insights to help you make critical investment decisions with confidence. Drone Analyst® is the brand name and registered trademark of Skylogic Research.

Attorneys5 Tips on Finding a Good Drone AttorneyAntonelli LawDrone Law ProHogan LovellsLeClairRyanRupprecht Law P.A.

Professional AssociationsAmerican Institute of Architects (AIA)Construction Management Association of America (CMAA)American Society for Photogrammetry & Remote Sensing (ASPRS)Association for Unmanned Vehicle Systems International (AUVSI)

Media / Social MediaCommercial Drones FM (podcast)Drone Analyst® (blog)Drone Law Today (iTunes podcast)Drone Radio Show (podcast)DRONELIFE (news)DronePilots Network (forums)sUAS News (news)UAV Coach Community (forum)Unmanned Aerial Online (news)

Advocacy GroupsCommercial Drone AllianceProperty Drone ConsortiumSmall UAV Coalition

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