Drone Stocks Snapshot: Significant UAV Growth Expected as Coronavirus Drives Deployment (NASDAQ: $AVAV) (CSE: DFLY.C) (OTCQB: $DFLYF) (TSXV: $FLT.V) (NASDAQ: $AMZN)
Point Roberts WA, Delta, BC - March 17, 2020 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering UAV and drone stocks releases a sector snapshot featuring Draganfly, Inc., (CSE: DFLY) (OTCQB: DFLYF), reporting on how drone and UAV companies are accelerating production and solidifying contracts in anticipation of a significant growth year for the industry.
According to the "Drones in the Global Power and Utilities Industry, Forecast to 2030" report, "Drones or unmanned aerial vehicles (UAVs) are currently finding application opportunities across various commercial businesses and are poised to impact multiple industry verticals in various capacities. Drone applications are emerging in various sectors such as agriculture, mining, oil and gas (O&G), construction, utilities and safety & security."
The report continued, "Technological advancements are making it easier to execute complex and diverse data gathering exercises. Innovation in packaged software products and data visualization makes the process more accessible, efficient and convenient to end-users. The evolution of drones over the last 5 years and the convergence of AI, technological innovations, analytics, and IoT will drive the widespread adoption of drone technology over the course of the next decade."
This, combined with the coronavirus (COVID-19) global pandemic which is forcing many governments and companies to re-evaluate the usefulness and necessity of unmanned aerial devices as global populations are being forced indoors, is driving the industry to boost production and shore-up purchase contracts in anticipation of a year full of high demand.
Breaking news comes from AeroVironment, Inc. (NASDAQ: AVAV), a global leader in unmanned aircraft systems (UAS) with a market cap of over $1 Billion and Draganfly, Inc. (CSE: DFLY) (OTCQB: DFLYF) (FSE: 3U8), an award-winning, industry-leading manufacturer within the commercial unmanned aerial systems ("UAS"), remotely piloted aircraft systems ("RPAS"), and unmanned vehicle sectors. They just announced a teaming agreement for Draganfly's distribution of AeroVironment's Quantix Mapper systems to commercial markets worldwide. The agreement also includes the continuation of other contract engineering services provided by Draganfly to AeroVironment.
Under the teaming agreement, AeroVironment will provide Draganfly with sales, marketing collateral and product technical support for the Quantix Mapper system. Draganfly will provide e-commerce, enterprise and direct sales operations, and oversee development of a network of resellers and strategic distribution partners worldwide.
Draganfly and AeroVironment completed this teaming agreement in advance of the fast approaching agricultural season in the Northern Hemisphere. Draganfly plans to expand commercial distribution of Quantix Mapper to the Southern Hemisphere over the next year, and to other industries including environmental resource management, oil & gas, construction, insurance, and public safety.
"Quantix Mapper represents the combination of drone operation, high-resolution imaging and geo-tagging into the first 'drone as an app' solution that makes data collection as easy as using a tablet computer," said Rick Pedigo, AeroVironment Vice President of Sales and Business Development. "As a leader in the commercial and first responder drone market, Draganfly is uniquely positioned to deliver the value of Quantix Mapper to customers in multiple market segments to help save lives, protect property, increase productivity and enhance safety."
"Draganfly has been manufacturing and distributing innovative, multi-rotor and fixed wing drones for commercial applications around the world for 22 years. We were truly impressed with the ease of use, performance, and reliability of AeroVironment's hybrid Quantix Mapper system," said Patrick Imbasciani, Draganfly's Chief Operating Officer.
Patrick Imbasciani, went on to say "Flying 400 acres in less than 45 minutes on one battery is remarkable. Programming flights by simply drawing a shape on a tablet screen map, selecting an altitude, and following a few prompts, is so easy. Built in visual and multispectral sensors and the ability to take off and land almost anywhere, allow this drone to be used for a variety of applications right out of the box. Equally exciting, is the competitive price."
Quantix Mapper is a simple to use drone, empowering users through its fully-automated operation and instant insight. Its hybrid design allows the aircraft to launch vertically and transition to horizontal flight, maximizing aerodynamic efficiency and range. Users can immediately view high resolution imagery on the included Operating Tablet - no other devices, internet connection or additional software required. With the touch of a button, users can quickly and safely generate up-to-date maps for infield assessment. Whether assessing crop health during key stages, or damage from storm, flood or fire, Quantix Mapper makes it easy to gather accurate images across a large area and assess and react to the situation with precision and speed.
For more information and to order Quantix Mapper, please visit:
Drone Delivery Canada Corp. (TSXV: FLT)(OTCQX: TAKOF) announced on March 4, 2020, further to its press release dated October 23, 2019, that implementation of the DSV Air & Sea Inc. Canada project is well underway and is expected to be operational in March 2020.
On October 23, 2019, DDC announced that it had entered into a commercial agreement with DSV, through its sales agent Air Canada, to provide its drone delivery platform for the use of DSV commencing at DSV's head office in Milton, Ontario. Infrastructure equipment (including DroneSpotTM depots, Battery Management Systems, and Sparrow drones) is currently being installed and numerous successful test flights have already been conducted. The Company expects to begin full operational and revenue-generating flights pursuant to the terms of the Agreement in March 2020. After the initial on-premises route is operational, the Company expects multiple subsequent inbound/outbound routes for DSV's customers with time-sensitive cargo.
"This will be a major milestone for the Company - our first operational, commercialized customer and first revenue. DSV is a global leader in the logistics industry and a perfect fit as a long-term, scalable customer for us," said Michael Zahra, President & CEO of DDC. "DDC continues to lead the drone logistics industry and we have a very strong funnel of global opportunities and expect to see continued customer announcements in 2020 for deployment & revenue generation this year."
Customers pay DDC a monthly fee for each drone route deployed, pursuant to the terms of their respective agreements.
Northrop Grumman Corp (NYSE: NOC) recently announced that the company is pushing for Australia to acquire Triton maritime surveillance drones earlier than planned, after a draft US defence budget proposed a two-year pause in production.
Australia is the only foreign customer for the remotely piloted aircraft, after Germany scrapped a plan in January to buy the Triton drones.
"The proposed pause provides options for Australia to buy the drones cheaper, and hasten opportunities for local suppliers, if it helps to fill the production gap," said Doug Shaffer, the Vice President of the firm's Triton program.
"The price is a significant savings to Australia," he told reporters, but gave no further details.
A spokesman for Australia's defence department said it was aware of the budget request to the US Congress and was discussing the impact of the proposed pause with the US Navy and Northrop Grumman.
"Until the legislation is approved, the pause on Triton funding is not confirmed," the spokesman added.
Budget papers for fiscal 2021 that were released last month for the US defense department include a two-year production pause for the US Navy in FY2021 and FY2022.
The drones would help boost monitoring activities by Australia, which has the world's third-largest exclusive economic zone after France and the United States, and the world's largest maritime search and rescue region, sprawling over a tenth of the earth's surface.
In 2018, Australia announced plans to invest A$1.4 billion ($921.48 million) to acquire the first of six of the remotely piloted aircraft to step up its anti-submarine warfare and maritime strike capability, alongside its fleet of manned Boeing Co P-8A Poseidon planes.
As part of its investment, Australia entered into a A$200 million cooperative program with the US Navy to develop, produce and maintain the Triton aircraft.
At the time, Australia said it expected the first aircraft to be introduced into service in mid-2023 and all six delivered by late 2025.
"The proposed pause in US production raises the risk that the US Navy will not complete its order for 68 aircrafts, leading to a higher cost for Australia with future improvement costs spread over a far smaller fleet," said defence analyst, Marcus Hellyer.
"The sunk cost fallacy suggests it could be better to cut our losses and get out now, even if we have spent hundreds of millions already," Hellyer, a senior analyst for Defence Economics and Capability at the Australian Strategic Policy Institute (ASPI), said on its website.
"As of yet, Australia has made no decision to defer any portions of the Triton programme," the defence spokesman said.
"There are no Australian Tritons currently in production, and no decision has been made by the Australian government to defer elements of the Triton programme," he added.
While overall stock markets have been plummeting, Amazon.com Inc. (NASDAQ: AMZN) stocks have seen a rise as the world seeks to prepare for months indoors. This company has set itself up well for such a crisis with drone delivery, which was discussed in a recent article as governments and companies assess the feasibility of this approach, and nearly fully automated fulfillment centers are placed strategically around the world.
As climate conditions change, global pandemics force a reassessment of security and safety, and technology becomes more affordable and diverse, drone delivery technology companies stand to have an aggressive year in 2020. However, this will depend heavily on these companies taking the proper steps now with regards to production and deployment. 2020 very well could be the year where unmanned vehicles finally take center stage, rather than hovering on the sidelines.
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