Small wonder interest in drone stocks is on the rise. Experts predict the market for commercial UAV’s is expected to grow at a compound annual growth rate of nearly 20% over the coming years. A report released by the Association for Unmanned Vehicle Systems International (AUVSI) forecasts the total domestic economic impact of drones will exceed $82 billion within the decade.
There is little doubt the commercial drone industry is on the verge of exploding. UAV tech has been compared to cell phone technology. And to top it all off, we’re seeing huge investments coming from major tech companies like Google, Facebook and Amazon, as FAA restrictions are expected to ease. Some of the focus areas in the sector are:
For drones to work effectively, they need a wide range of internal components. This includes micro-electro-mechanical systems or MEMS sensors, which is the technology of very small devices. This includes accelerometers, gyroscopes, magnetometers, or pressure sensors), GPS modules, powerful processors and a range of digital radios. Together, these components tell a drone where to go, how to orient itself and how to avoid collisions, among other functions.
Drones provide a level of insight that’s invaluable to industries like agriculture, construction, mining, land and resource management, or for gathering data for any area that needs to be looked at closely and often. They allow you to get this data cheaply, easily and quickly, with less risk and more frequency and detail than manned flight or satellite imagery.
For example, extensive consolidation of farmland has led to massive fields that cannot easily be traversed by land in a timely manner. Farmers now need to view their land from the sky.
This point of view can be obtained with satellite imaging, planes or helicopters. These methods provide low resolution images and/or are expensive. Autonomous imaging drones, which can take off, fly and even land without human assistance, offer a better service at a cheaper price, which is exactly why AUVSI expects precision agriculture to see substantial growth in the next two decades.
Last but not least are the actual drone manufacturers themselves. These are the most obvious investments in the drone industry. Drones can now be obtained “mission ready” – multi-rotor UAV’s that perform a broad range of commercial functions. As drones proliferate, the uses will become more specialized.Your portfolio should be prepared to reap the rewards when the UAV boom hits. It is one opportunity you simply shouldn’t pass up.