Skies of Change: UAVs in Energy, Mines, and Resources Management

In addition to being a critical and proliferating reconnaissance and attack instrument, Unmanned Aerial Vehicles (UAVs) have emerged as transformative tools with diverse applications across industries including critical infrastructure and resources management covered in this report. As we navigate the skies of change together, let’s look at each industry category and explore the most interesting use cases before turning to investments and challenges.

Energy & Utilities

Solar Panel Inspection:

Continuous growth of the solar industry (Market Size worth $168B in 2021 and forecasted $370+B by 2029 with a CAGR of 6.9%) brings an ever-expanding base of solar installations. Quality assurance is vitally important for solar panels, as they are designed to last for 20 years.

Over time, solar panels may develop defects and can cause a severe drop in energy production and accidents if left unchecked. Also, their performance declines over time as solar cells degrade due to UV exposure, thermal cycling, access heat, and humidity at a rate of at least 0.5% per year. Due to cell and interconnection failure and physical degradation, cells can start producing heat energy instead of electrical energy.

Traditional solar field assessments consist of inspecting each panel with handheld thermal imagers to check for defective cells or cables. UAVs, equipped with high-resolution cameras and thermal imaging technology, make solar inspections significantly faster, cheaper, safer, more effective, and more precise. Here is a summary of the potential benefits of deploying UAVs for the solar energy sector:

For a particular use case, check out the IF1200A by Inspired Flight, a reliable, durable drone ideal for solar panel inspections. With a maximum payload of 19 pounds, it reaches speeds up to 51 MPH and provides a maximum flight time of 43 minutes even with a loaded payload. This drone ensures thorough inspections, allowing for adjustable altitude and customizable flight paths. It's recommended for its safety, efficiency, and affordability. Inspired Flight drones are American-made, NDAA compliant, Blue UAS certified, and approved for military use by the US government.

Wind Turbine Maintenance:

The offshore wind market is projected to reach $56.8B by 2026 from an estimated $31.8B in 2021, at a CAGR of 12.3%.

Now that wind farms have larger portfolios, turbines are more complex, and downtime remains as costly as ever, modern wind turbines have more demanding inspection requirements, must optimize output, and identify any issues before they become costly problems. Maintenance and repair of wind turbines is a critical activity for wind power generation facilities. Despite their high investment cost, low operating cost, and minimal environmental impact, the performance of wind turbines directly impacts the value of electricity production.

Damage inspection of turbines has evolved from tower crane access, rope access, camera viewing, and other applications to manual drones over the years. This is where UAVs or drones come in as a more effective, faster, and safer option. From cheaper hardware to the rise of autonomous drone software, drone inspections have become more accessible for in-house teams, highlighting the advantages of insourcing this process. We summarize the advantages of employing UAVs for wind turbines on the following slide:

To explore a particular case, take a look at Alerion's WEGOOI inspection drone which, equipped with advanced technology, performs wind turbine inspections in under 15 minutes. The inspection includes damage assessment, repair recommendations, and the creation of digital twins using photogrammetry and LiDAR point clouds. The drone, with cameras and an edge device at the front, utilizes autonomous navigation and AI damage detection to identify and assess turbine damage. The 3D LiDAR laser ensures consistent alignment, crucial for accurate inspections. Local edge devices, running deep neural networks, combine information from LiDAR and high-resolution images to produce detailed 3D images. The AI damage detection software automatically identifies even micron-level damage in the turbine, eliminating the need for re-inspection.

Power Lines, Utility Poles & Telecommunications:

Utility poles & communication towers are essential for our interconnected society, supporting electricity, cooms, and vital services. The global utility poles market reached almost $46B in 2021 and is projected to rise to around $70B by 2030, with a CAGR of 3.8% from 2022 to 2030.

Power line and telco tower assessments still traditionally rely on foot patrols, a slow and error-prone process, especially considering the vast number of local distribution systems in place. This method, involving thousands of workers, is time-consuming and risky due to the need for climbing gear and equipment. Drones automate grid inspections, ensuring timely repairs, mitigating safety risks, and minimizing downtime associated with infrastructure maintenance. To sum up, the benefits of UAVs are described here:

With vHive, you can effortlessly monitor thousands of kilometers of overhead power lines using autonomous drones, gaining a comprehensive view of your transmission lines, towers, and insulators. vHive’s advanced AI-based fault detection enables you to identify potential issues and receive timely, actionable insights to proactively address faults before they escalate, avoiding costly outages and ensuring maximum grid availability.

Hammer Missions provides specialized software for cell tower inspections, prioritizing precise mission setups for vertical operations. Utilizing Hammer's tower mapping feature, users can easily mark GPS points to generate automated flight paths, ensuring accurate tower capture with optimal distance and overlap. Additionally features like 'Circles' mode facilitate efficient imaging for towers of varying dimensions. Hammer's automatic gimbal adjustment streamlines the process by calculating optimal gimbal pitch based on drone height and tower distance. Furthermore, Hammer Hub enables seamless data management, allowing users to upload, process, annotate, and share drone data in 3D with stakeholders.

Agriculture

The global population growth presents a significant challenge for agriculture, requiring considerable time and investment. Drones are revolutionizing this sector by providing precise monitoring, spraying, sensing, and mapping capabilities. No wonder the autonomous drones sector within the global agriculture drone market is projected to grow rapidly, reaching approximately $2.2B by 2028, compared to $0.5B in 2020.

The benefits are numerous. Drones offer real-time insights into crop health, soil conditions, and irrigation, enabling early issue detection. Equipped with AI and machine learning, drones enable predictive analysis for sustainable farming. Their cameras and sensors facilitate rapid data collection, aiding quick decision-making by farmers.

By accurately applying resources like fertilizers, drones minimize waste and environmental impact, promoting crop growth. They contribute to eco-friendly farming by being flexible, cost-effective, and covering large areas. As drone technology advances, it promises to profoundly transform farming, enhancing efficiency, productivity, and environmental friendliness.

In Agriculture, Rantizo flew almost 200k acres in 2023 alone and managed the largest network of spray drone operators in the US. They enable industry-leading drone applicators by selling drones, software, support, and training services, and their platform connects demand for acres to be sprayed to local operators. Rantizo operators fly and apply in 35 states, providing qualified, licensed, and insured precision application services. With a 7.93-gallon spraying tank, their DJI Agras T30 takes aerial spraying efficiency to new heights, enabling more effective spraying, especially for fruit trees. Using DJI digital agriculture solutions, the T30 helps reduce fertilizer use and increase yield with effective, data-driven best practices.

Hiphen designs plant imaging solutions for both indoor and outdoor, and custom-made image analytics applications tailored to tackle very specific agronomic challenges. PhenoScale is their ready-to-use solution to help access frictionless phenotyping with drones to help scale crop assessments and access phenotyping traits & outputs. PhenoMobile helps make ultra-precise plant assessments with very high-resolution imaging equipment. Ground-based phenotyping offers, at least, the ability to detect and quantify diseases and also to make early-season yield estimations. PhenoStation brings crop image analytics to greenhouses with a range of custom-made systems that adapt to specific conditions, with data that can be easily integrated into databases and management software.

Mining, Quarries, and Aggregates

UAVs have become a staple in mining operations. The Drone for Mining Market was worth $1.18B in 2023 and is expected to reach $5.54B by 2030, with a projected CAGR of 22.6% from 2024 to 2030.

Drone mapping revolutionizes various aspects of mine operations, simplifying tasks from exploration to reclamation. It provides precise maps of rough terrain for excavation planning and enhances safety by identifying hazards. Drones monitor haul roads, inspect underground environments, and manage water movement, ensuring cost-effectiveness and safety. They offer detailed views of drill patterns and blasting results, enabling accurate volume measurements without risking personnel safety. Drone surveys also aid in preventing leaks and unexpected activity.

In this category, ISS Aerospace Beyond Visual Line Of Sight (BVLOS) drones are capable of capturing high-quality orthoimages by spanning entire mining operations faster and more economically than any other method. Each drone is equipped with high-resolution cameras which can be used for surveying purposes to create 3D maps of mining sites, helping companies to better understand the layout and composition of the reserves they are extracting. They are also used to inspect mining infrastructure such as pit walls, haul roads, or tailings dams and to provide detailed images and data on the condition of equipment. Sensors monitor mining operations, measure stockpiles, and emissions, and provide real-time data on factors such as ore quality or volume and movement to optimize production or detect potential problems. Additionally, drones are used to monitor potential safety hazards including rockfalls or unstable slopes without putting workers or staff in danger.

Construction & Infrastructure

Advancements in drones and sensors are revolutionizing data collection and analysis in construction. The construction drone market has experienced rapid growth in recent years. It is expected to increase from $6B in 2023 to $12B billion in 2028, with a CAGR of 15%.

As the construction industry expands, the need for automation and intelligent technologies such as UAVs grows to boost efficiency, cut costs, and ensure safety. Unmanned aerial vehicles (UAVs), or drones, stand out as a key technology enhancing sustainability in construction and infrastructure.

In construction, UAV usage has surged by almost 240%, surpassing other commercial sectors. Hardware-wise, fixed-wing UAVs offer long endurance and range for large-scale mapping but require specialized training and infrastructure, whereas multi-rotor UAVs, like quadcopters, are highly agile and ideal for precise positioning but have limited range and payload. Hybrid UAVs combine features of both, excelling in versatile missions but are costlier and more complex to operate.

On the software side, UAV-based AI technologies offer specific advantages in construction software. These include enabling detailed 3D modeling of sites and structures for planning and measurements. They also facilitate non-destructive testing through thermal imaging and ultrasonic sensors to spot structural problems. Additionally, these technologies enhance safety monitoring and material inspection by using deep learning algorithms for object detection.

Let’s look at some use cases.

Field Group is a leading provider of comprehensive geomatic services, specializing in surveying, land acquisition, and building application services for the construction and infrastructure sectors. From land acquisition and legal support to cadastral surveys, Field's expertise extends to mobile mapping and geophysical services, employing laser scanners on cars to acquire detailed point clouds for 3D vector models. Their cloud-based software products, such as Mapspace and Fabriken, enable access and utilization of data, providing insights for planning, construction, and maintenance in the digital age.

Traditionally, the industry relied on divers for underwater documentation, but with the Blueye Pioneer underwater drone, construction companies can conduct their own efficient and cost-effective inspections. Operating in waters varying from shallow to open ocean (305m), their systems allow multiple data streams to be easily, rapidly, and safely captured, processed, and shared. The Blueye Pioneer, equipped with powerful LED lights and a full HD camera, excels in challenging underwater conditions, ensuring clear visibility even in poor water visibility. Construction projects near or in water, such as ferry lane and bridge construction, benefit from the drone's ability to conduct inspections, plan future work and verify completed projects.

Oil & Gas

Drones play a crucial role in oilfield operations, especially in hazardous environments like deepwater platforms, and tasks such as monitoring methane emissions and repairing subsea pipeline leaks. The oil and gas drones market, valued at $3.7 billion in 2020, is forecasted to grow to $97 billion by 2032, with a notable CAGR of 31.3%.

The increasing adoption of drones in the oil and gas industry underscores their growing significance. They are utilized for inspecting offshore platforms, detecting pipeline leaks, emergency response, and more, and equipped with advanced sensors for visual, infrared, or LIDAR imaging. Recent advancements in drone technology have expanded their applications, from capturing images to sensing asset conditions like weathering and rust.

In Oil & Gas, TEKEVER, a leading drone technology company, has secured a contract with Phoenix Heli-Flight, a prominent Canadian helicopter charter company for the deployment of TEKEVER's AR3 UAS for monitoring and assessing critical oil and gas infrastructure. The AR3, equipped with a customized sensor package, is designed to conduct pipeline inspections in tandem with manned helicopters, effectively navigating challenging terrains and harsh environmental conditions. With an impressive operational endurance of 16 hours and a reduced logistics footprint, the AR3 offers an ideal solution for demanding missions.

Forestry

Forests account for a little over one-third (38%) of habitable land area and are crucial for the planet's well-being as the primary source of air for other ecosystems. Unfortunately, there is a lack of awareness of their significance. To address this, drone technology is actively used to enhance forest sustainability.

Drones offer a solution to the challenges faced by forests, including deforestation, urbanization, climate change, and biodiversity loss. With their capacity for aerial surveillance and efficient monitoring, drones play a vital role in wildlife conservation, providing valuable data on forest health and identifying areas at risk. This technology enables timely responses to threats like illegal logging and forest fires, contributing significantly to the preservation of essential ecosystems and overall planetary sustainability. UAVs tackle industry challenges by streamlining inventory management after harvest, enhancing safety in hazardous environments, and aiding regulatory compliance in forestry management, despite the significant costs involved.

AirForestry revolutionizes forest thinning with its aerial approach, using electric harvesting drones to minimize environmental impact. Unlike conventional 15-ton machines that damage plants, and roots, and cause mercury runoff, AirForestry's 6.2-meter diameter drones thin forests without ground disruption. The drones swiftly and precisely remove branches, leaving nutrients for forest growth. The process, controlled by an operator station, protects trees, soil, and plants, improving the overall forest environment and adjacent waterways.

Nordic Drones specializes in drone systems designed for efficient forest mapping and imaging. With extended flight times, their UAVs offer a seamless solution for imaging large areas, making the process both easy and efficient. The precision of their camera system ensures each tree is accurately placed on the digital forest map, facilitating detailed forest plans. Nordic Drones excel in analyzing challenging terrains and vast areas of up to 100 hectares. Their focus on long-flight drones enhances the accuracy of forest measurements, contributing to the overall efficiency crucial in the forestry sector.

Deep Forestry offers a fully autonomous drone that allows users to effortlessly measure their entire forest with just a push of a button. Capable of accurately scanning 1000 trees every 20 minutes, the drone provides comprehensive data on individual tree locations, species, height, diameter, trunk volume, curvature, and terrain type. This valuable information, generated with AI, aids in precision planning and optimization of profitability for harvesting and sawmilling operations. The drone creates a detailed 3D digital twin of the forest, enhancing visualization and decision-making.

INNOVATION LANDSCAPE AND A LIST OF ACTIVE PLAYERS

Based on the public information gathered from Crunchbase, Pitchbook, and other open sources, we have compiled a list of companies and startups that build UAV hardware and/or software. They empower the mentioned industries and constitute today's UAVs in Energy, Mines, and Resources Innovation Landscape 2024.

In the table below, we’ve collected a list of active UAV companies in their respective categories, their funding amount, and the investors backing them.

Remaining challenges and limitations

The utilization of UAVs in energy, mines, and resources presents undeniable benefits, yet significant challenges persist. These include costs, regulatory barriers, technical limitations, data processing complexities, training requirements, and safety concerns.

Before committing to the transformative potential of UAV technology, companies must carefully assess their Return on Investment, considering factors such as hiring skilled professionals, ongoing maintenance, and the necessity for technological upgrades.

However, despite these challenges, the trajectory of UAV technology appears promising, with ongoing advancements in sensors, battery power, and software capabilities, alongside integration with other industry technologies. Furthermore, the increasing deployment of artificial intelligence promises further automation and new applications, suggesting a bright future for UAVs in these sectors.