Drone Analyst Research Unveils Impact of FAA Regulations on Small UAS Businesses

Research finds unfavorable rules will disintegrate an already fragile market for small unmanned aerial systems in the U.S., but significant market growth awaits once FAA regulations allow

REDWOOD CITY, CA May 05, 2014


Drone Analyst (http://www.droneanalyst.com) today released a report detailing the findings of its newest research called "Impact of FAA Rules on sUAS Business." The research examines the economic impact of current FAA policies for small unmanned aerial systems (sUAS) operating in Class G uncontrolled airspace and evaluates how commercial service providers and operators perceive those rules and assess their importance.

Since 2007, the FAA has essentially banned commercial use of sUAS in the U.S. through a series of statements and policies aimed at controlling activity until actual regulations are put in place. The Federal Aviation Administration Modernization and Reform Act of 2012 authorizes the FAA to issue licenses for commercial drone use in the U.S. The FAA modernization law was widely expected to result in tens of thousands of commercial drones being licensed to fly over U.S. airspace. So far, however, it has produced only uncertainty: a combined 71% of participants in the survey say current rules are unclear and indicated confusion around conditions under which it is currently legal to operate sUAS for commercial purposes in the U.S. In fact, when offered 12 possibilities for conditions conducive to legal sUAS operation, the third most-checked condition was "the FAA does not regulate Class G air space."

This research investigates the potential economic impact of both favorable and unfavorable future regulations, including revenue growth forecasts and hiring plans. Participants clearly identified five types of FAA regulations that would be unfavorable for their businesses, with 61% indicating they would simply not start or shutter their existing business operations if those unfavorable FAA regulations were in place.

"In light of our findings, we conclude the overall market for sUAS in the U.S. would disintegrate if unfavorable regulations come into being," said Colin Snow, CEO and Founder of Drone Analyst. "All the positive economic impacts like revenue, job creation, and tax base creation-not to mention the practical benefits of U.S.-based drone business services-would not be realized."

Research results will be presented at the Small Unmanned Systems Business Exposition May 8th and 9th, 2014, in San Francisco, CA. Drone Analyst, a leading sUAS research and advisory services firm, provides a summary and a complete report of the research and other consulting services based on key findings from the study.

To learn more about the Impact of FAA Rules on sUAS Business study, please visit http://www.droneanalyst.com/research.

Tweet this: @droneanalyst research says U.S. sUAS market will falter without favorable FCC regulations #drones #UAS http://bit.ly/1moE6A8

About Drone Analyst

Drone Analyst provides industry analysis and survey-based research that focuses on the UAS industry ecosystem, market dynamics, and business economics. It aims to help owners, principals, and employees -- as well as prospective start-ups and investors -- of those providing small UAS commercial products and services for U.S. public and civil markets.

Unlike many UAS / UAV analyst firms, Drone Analyst does not offer 'reasoned forecasts' or 'scenario-driven market extrapolations.' Its focus is on the needs of two constituents: the buyers of sUAS technology, to help inform their acquisition decisions; and suppliers of that technology, who need research and insight into buyer needs. This focus, plus research as a foundation and reach into a community of more than 80,000 business executives and innovators through social media and media partnerships, allows Drone Analyst to deliver a high-value, low-risk method for achieving optimal insight. For more information, visit http://www.droneanalyst.com, or connect with Drone Analyst on Twitter at http://www.twitter.com/droneanalyst.

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