Last September, there was a 2023 analysis suggesting a downturn in Drone growth. This topic has led to some discussions, and it got me thinking. Is there really a downturn happening and it’s all doom and gloom, or is it more an opportunity for companies to adapt to changes in the industry? Perhaps these changes actually present business growth potentials for those who are willing to adjust.

As OEM’s and drone service providers seek to remain profitable and relevant, a crucial question arises: How can they continue to add value and command profitable sums for their work? The answer lies in strategic diversification and differentiation.

In other words, technology companies and drone service providers must find ways to stand out from their competitors by offering unique capabilities and services that align with customers’ needs and budgets. It’s not that the market is rejecting drone technology, they still want it and they all continue to look for ways to cut costs, increase safety and increase revenue across their enterprise.

Are you interested in learning about the crucial factors that can lead to sustainable growth in this current commercial drone industry? Let’s explore the key insights that I have seen work that can provide valuable guidance and help you chart a successful course forward.

Dominate A Market: Leveraging Niche Specialization

If you’re looking to make a name for yourself in the drone industry, it’s essential to find a way to stand out in a crowded marketplace. A great way to do that is by offering specialized capabilities that cater to a specific niche. Be the subject matter expert!

By becoming an expert in a particular service, industry vertical or use-case, you can position yourself as the go-to solution for targeted clientele. This approach enables you to deliver customized capabilities that address specific pain points, creating a loyal customer base that values your expertise (if you do it right!). By diving deep into the customers’ needs and solving harder problems, your value proposition as an OEM or service provider increases along with your profit margin.

Focusing on a specialized niche fosters differentiation, which is crucial in an industry that is rapidly evolving and competitive. By delivering tailored services that cater to specific needs that you have identified with your customers, you can establish a unique identity that sets you apart from your competitors. This approach is particularly relevant in today’s business landscape, where companies must stand out to thrive.

“Niche down and become the experts. Focus on a specific service or industry.“

Image provided by Unmanned Aerial Services Inc

For example, Underground mining is a very difficult environment with a lot of very specific challenges for drone usage. Dusty, dark, no GPS, confined spaces and a customer base that has very specific, time-sensitive needs and risks and is ultra safety conscience. UAS Inc has done a great job of ‘going deep’, pun intended.

One could apply many of the same equipment and drone skills to other industries, but by demonstrating expertise and understanding of a specific industry you have the opportunity to become higher value and more trustworthy. This requires knowing your customers needs and environment well and deeply.

Enhance Your Specialized Offering

It is worth noting that drone service providers and technology OEM’s can differentiate themselves by offering a range of additional capabilities that are specifically tailored to meet the evolving needs of their clients. Think about capabilities that could allow your current capabilities to add deeper value to your customers. What services or capabilities can you add around your focus to broaden the value proposition and expand your scope of work. Consider building a complete solution that your customer can not live without.

For example.. some ideas..

Expanding data processing capabilities to interpret and analyze captured data with precision and efficiency. Don’t just collect data, help them understand it. It will also make you better at collecting data.
Consider collecting data with other, non-drone tools and equipment as long as it compliments and supports your primary focus. Be data focused, rather than drone focused.
By synthesizing complex data sets into clear and concise recommendations, the service provider goes deeper into the workflow and increases their value. This may allow clients to optimize their operations, mitigate risks, and capitalize on opportunities with confidence in ways the raw data could not.
Consider project management and implementation support for a given project as a way to expand offering with potentially minimal change to your business. This includes planning, coordination, execution, and post-project evaluation.
As a technology provider, what configurations and capabilities can be productized to allow an easier customer deployment experience? Onboard compute, payloads, transportation features.. Find out how your customers are customizing and applying your technology and explore adding that to your product line.
As a technology provider, are their licenses and regulatory hurdles required for operation of your product? Consider helping your customers over that hurdle for a fee. OEM can get really efficient at it and it may be perceived as a high value service to customer and deciding factor in purchase decisions.

“Build a complete end to end solution that your customer can not live without.”

Image provided by Censys Technologies

Not trying to do an advertisement, but Censys Technologies comes to mind as a company that has a focus around enabling BVLOS and while they provide a platform, they also provide several other services and capabilities around enabling BVLOS for their platform.

Executing Your Growth Strategy

The path to growth in the commercial drone industry is a complex one for sure. Every changing. To succeed, businesses must have a well-crafted strategy, meticulous planning, and a deep understanding of market insights. Additionally, they must be willing to adapt to changing trends, embrace new technologies, and acquire relevant skills to stay ahead of the curve.

Despite the challenges, there are lucrative opportunities available for those who are willing and able to innovate and adapt. Whether businesses choose to specialize in a niche area, diversify their offerings, expand their services, or some blend, the ability to navigate the competitive landscape is essential.

Therefore, businesses must connect, explore synergies, and chart a course towards success together. With proactive implementation and sustainable strategies, UAS companies can unlock new avenues for growth.

So, what are you waiting for? If you’re ready to grow your UAS business, schedule a free consultation with me using the Calendly link below to and we can discuss your situation and explore paths forward.

https://calendly.com/danfuller-clarifyconsulting/30min

Connect with me on Linkedin: https://www.linkedin.com/in/danieldfuller/