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DRONESM E X I C O ’ S

E C O S Y S T E M

BUSINESS INTELLIGENCE UNITUIN

Business Intelligence Unit:

Marco Erick Espinosa Vincens, Head of UnitClaudia Esteves Cano, Executive Director of StrategyMiguel Ángel Riego Alrich, Project Consultant (Author)Luisa Regina Morales Suárez, Project Consultant

With the support of the Global Business Promotion Unit:

Sergio Javier Ríos Martínez, Mid-West Regional CoordinatorAna Luisa Cuellar Aranda, State Director in JaliscoStaff of the ProMexico Representative Office in JaliscoGilberto Macías Zavala, Northwest Regional CoordinatorAdriana Montes Beltrán, State Director in Baja CaliforniaStaff of the ProMexico Representative Office in Baja California

Our gratitude to the following experts who kindly agreed to be interviewed:

Marco Antonio Lepe CisnerosLuis Eduardo Salazar EnriquezLuis González PérezEdwyn Gómez Torres and Fabián AyalaMartínez José Luis Ortega Rivera

January 2018, ProMexico ®

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Contents

Introduction

Understanding the world markets and the ecosystem

Drones as a transforming force in services

Challenges

Opportunities

Concluding remarks

References

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Introduction

Relatively cheaper drones are increasingly being used to offer services such as video-surveillance, topographic mapping, structure analysis, and aerial photography, among others. Drones are no longer seen as an end product by consumers, but rather have now become a fastgrowing service platform.

ProMexico presents this document with the goal of providing insight into the industries and markets that constitute the UAV ecosystem in Mexico and the world, as well as describing some development opportunities in the country.

In order to strengthen this analysis, interviews were conduc-ted with experts in organizations that are currently developing and/or using the technology in Mexico. The knowledge shared in these interviews has been included in the different sections of this document, which contains information related to the development, manufacturing, and support institutions requi-red for the ecosystem to develop in a healthy manner, achie-ving the benefits expected from the use of UAVs.

Formally known as Unmanned Aerial Vehicles (UAVs), dro-nes have been used in a wide range of industries in re-

cent years. Nowadays, there are fixedwing and rotary wing drones; drones that use batteries, petrol, solar power, and even hydrogen fuel cells; drones whose flight is done close to the operator or miles away from a control centre. Similar-ly, drone prices vary greatly: Market prices range between U$ 100 for a basic quadcopter with camera and up to U$ 20 million for an MQ-9 Reaper - used by the USA Army for intelligence activities and military interventions.

Drones, as we know them, started in the military sector, which, to this date, keeps receiving most of the net invest-ment and development efforts in drones. In the last de-cade, however, smaller and simpler drones have become increasingly popular for both recreational use and profes-sional services. At the beginning of the decade, many tur-ned their attention towards Mexico and the United States as 3D Robotics – a company created by Chris Andersen, former editor of WIRED magazine, and Jordi Muñoz, a Mexi-can entrepreneur who started to develop drone components as a hobby, decided it would develop and produce drones for personal use.

More than five years later, the market has changed. Drone hardware manufacturing is a much more mature sector, and taking part in it involves high risk, even for those with high investment levels and innovative products. Despite all this, many third parties have found profitable models developing hardware and software for its use in the more popular dro-nes - something akin to the smartphone ecosystems.

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Understanding the world markets and ecosystem

Firmware,Middleware, andoperating system

1.Goldman Sachs. Drones, Reporting for Work, 2016.2.Better known by the English acronym HDR, this technology enables to take pictures that better reflect the details of the environment, regardless of the level of light and shadow.

The drones market can be divided into four sectors: military, civil, commercial and personal. Goldman Sachs estimates that by 2020, the market reach a total value of U$ 100 million dollars, with a 70% share for the militarily sector, 17% for personal use, and the remaining 13% for commercial and ci-vil use.1 These sectors are made up of several levels of com-ponents and activities, which can be summarized as follows:

Original hardware:Are the complete drones and components that constitute them. The main components are the frame, main body, ba-tteries, internal sensors, computers, radio controls, rotors and propellers. These can vary depending on the use and the type of drone (i.e.: rotatory wing vs fixed wing drone).

Third party hardware:These individual components modify or increase the drones’ capabilities and include equipment ranging from professio-nal cameras and advanced flight controllers to augmented reality systems and more efficient propellers. Nowadays, it is relatively easy to buy and assemble a drone by using in-dividual components. Complete and semi-complete kits are also available for end users, which include everything but ra-dios, on-board computers, and some add-on components like cameras.

Some companies offer highly specialized components. One such company in Mexico is currently working on a solution that includes cameras, a mount, custom transmission equi-pment, and the necessary software that enables a drone to record high dynamic range images in real time over long distances.2 These products offer a higher margin for their developers, due to the high demand for such technologies and the difficulty inherent in their development.

Firmware is the software layer closest to the drone CPU and it controls the physical components. Original developers modify this software through official packages, usually to in-corporate safety features or fix bugs.

Middleware is the software in charge of controlling flight and transmission parameters in the drone. It includes navigation systems, flight controllers and radios. In its simplest integra-tions, it allows the operator to use the equipment manually, but it can also automate operations such as emergency ma-noeuvres and flight routes, allowing the operator to focus on other aspects of the mission. It also defines if the equipment signal is transmitted to a handheld remote control, a cell phone, a tablet, or more specialized equipment. It can also offer additional features like encryption.

The operating system is possibly the most interesting pie-ce of software for commercial uses, since it allows the inte-raction between operator and drone. This software usually resides in the hardware used to control the drone, and is the reason why third-party applications can be developed for smartphones and tablets, (like Pix4D and DroneDeploy’s solutions), increasing the existing capabilities of compatible drones without the need for additional hardware. Among other functions, these solutions enable flight route automa-tion, programmatic data recollection, flight conditions moni-toring, and even the use of augmented reality technologies.

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Processing and data analysis software

Support instructions

Besides the software inside the drone and the control devi-ce, there are solutions that compile post-flight data into data products, which can be focused on specific industries. An example of this is the Pix4D’s professional software, which allows for the creation of 3D maps based on images co-llected by the drone. Further specialized software enables a new range of uses, such as volumetric calculations for struc-tures and the inspection of worksites in construction; crop evaluation and treatment in agriculture; and virtual property tours for real estate.

The drones ecosystem is complicated due to many reasons: firstly, it deals with technologies that require a significant le-vel of previous knowledge; secondly, it is a technology that occupies not only the regulated airspace, but also public spaces; thirdly, it has the potential to cause real and sig-nificant damage if used in an irresponsible manner. In this regard, it is quite possible that important limitations to the industry come not only from the technology itself, but also from social, economic, and regulatory aspects.

Support institutions are those that deal with indirect yet key elements for the ecosystem. Some examples include the training of pilots and analysts who can recollect and process data; legislation that enables the use of the equipment wi-thout endangering people or property; insurance for drones and payloads (like professional cameras); and the mecha-nisms that allow for investment, development, manufacture and commercialization of drones in Mexico.

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Recent advances in the different technologies that make up a drone have made it possible not only to increase the equipment’s capabilities, but also to reduce

costs. This trend, along with the advancement of computing techniques, such as artificial intelligence, have transformed drones from an expensive and exclusive te-chnology into a disruptive tool that can be used to offer many services.

In this context, much of the value of a drone resides on how individuals and orga-nizations can collect information that used to be inaccessible in a reliable and safe manner. According to CBInsights, some of the companies receiving the most invest-ment in the industry are those focused on business solutions and industrial inspec-tion. These companies offer software that accelerates, standardizes and turns data into maps and metrics (Precision Hawk, 3D Robotics, Airware, DroneDeploy).3

In addition to the advantages already mentioned, companies that use these tools find great value in the transparency generated by the data and the reduction of wor-kload from low-value added activities. It is also worth mentioning that the software can be used on drones with prices starting at U$1.000. Many of the drones at this price point are considered “prosumer” grade, because the combination of their ca-pacities and price makes them ideal for both recreational use and providing services. According to some estimates, the company Da-Jiang Innovations (DJI) has almost 70% of this market in North America, with the different versions of their Mavic and Phantom drones.4

Drones as a force for transformation in services

3. CBInsights. The State of Drones Technology, 2017.4. Recode.net. DJI is Running Away with the Drone Market, 2017.

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Main uses of drones in services

This is possibly the most widely known commercial use. It takes pictures and uses georeferencing information to map areas. This information can be complemented with data co-llected by additional sensors, or it can be aggregated with third party data to generate more sophisticated analyses.

DIGITAL MAPPING:

Thanks to the current software, rotatory wing drones such as the DJI Phantom can also be used to collect data to compile 3D maps. This is possible because, unlike a per-son with a camera, drones can easily adjust their height and calculate structural dimensions.

ORTHOIMAGERY:

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Progress made both in cameras and image processing sof-tware enables drones to detect, watch and follow objects and living beings. This application is not only useful in secu-rity and defence activities, but is also becoming increasin-gly popular in areas such as ecology, archaeology, geology, and disaster response.

IDENTIFICATION OF OBJECTS AND LIVING BEINGS:

In addition to standard sensors, drones can also be equi-pped with advanced equipment, such as multispectral cameras, chemical, pulse, magnetic, and radiation sen-sors.5 These are particularly useful in the analysis of infras-tructure such as wind turbines and oil platforms.

IN SITU ANALYSIS USING ADVANCED SENSORS:

5. Allerin Tech, 4 Sensors that are Being Used in Drone Technology, 2016.

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Available world marketper industry by 20206

CONSTRUCTION:

Drone use in the construction industry is expected to increase as they become more integrated to activities such as planning, monitoring and property sales. Beyond simply analysing the components of a structure, they can also be used to monitor construction site progress and detect anomalies, facilitating better decision-making and risk mitigation. In the future, drones could also be used for the construction itself, if the legislation and technologies allow it.

INSURANCE:

Drones have become a key element in the workflow of many insurance companies in the United States. According to a report by Cognizant, property valuation done by a claims adjusters can become 40% to 50% more efficient with drones. Drones can also reduce the claims adjuster’s risks during inspections of damaged property.7 Similarly, data collec-ted with drones can be used to produce better risk prediction models, reduce losses to fraud, and speed up payment response times.

OIL EXTRACTION:

In the case of upstream operations, early fault detection and preventive maintenance are critical. If, despite all this, failures happen, drones can help minimise damage without en-dangering more lives. Applications in the extractive industry include preventive analyses by using sensors and equipment networks (including marine drones) and the real time analysis of malfunctions in extreme risk conditions.

AGRIBUSINESS:

Competitors in the agribusiness sector look for reliable solutions to monitor and tend to their crops. Drones can be used in the efficient treatment of crops through the precise management of resources such as water, fertilizers, and pesticides – many of which can be applied by the drone itself.

U$ 11,164 million dollars

U$ 5,922 million dollars

U$ 1,418million dollars

U$ 1,110million dollars

6. Valores de Goldman Sachs. Drones, Reporting for Work, 2016.7. Cognizant. Drones: The Insurance Industry’s Next Game-Changer?, 2014

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REAL STATE:

In real state, drones are mainly used for pictures and video, guiding both surveyors and potential buyers. This is relevant with the current boom of online real state, where users can view houses and offices and the surrounding areas with a level of detail that was pre-viously impossible. Virtual tours increase property exposure and gives prospective buyers a better idea of the property before deciding to physically visit.8

INFRASTRUCTURE AND PUBLIC SERVICES:

UAVs offer more efficient inspection and surveillance services for a fraction of the cost of traditional methods that make use of helicopters or on-site inspectors. Examples of drone applications include power line inspections, leak detection, emergency assessments, and surveillance, among others.

MINING:

The mining industry depends greatly on moving large areas of earth and worksite deve-lopment. The profitability of these companies often depends on their ability to optimise these tasks while keeping costs low. Drones can be used to this end by generating 3D maps, volumetric analyses, and other type of site assessments.

FILM INDUSTRY:

The film industry may appear as the smallest market for drones in this ranking due to several reasons: (1), technologies used for filming are already mature, and their use is currently more cost-effective than that of a drone. (2) Unlike other industries, where drone application is analytical, its use for camera manipulation is relatively replaceable. (3) Insu-rance policies for mounting cameras that cost thousands of dollars on unmanned aerial vehicles are very expensive, which may further discourage drone use in the industry.

U$ 265 million dollars

U$ 134 million dollars

U$ 40million dollars

U$ 21million dollars

8. The Orange County Register. How Drones are Changing the Real Estate Business, 2017.

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Challenges

REGULATORY FRAMEWORK AND SAFETY:

Although the fourth version of the Mexican Drone Regula-tion Memorandum (CO AV-23/10) serves as a guideline for the use of drones, some experts say that the country re-quires a robust and binding regulatory framework.9 This is why on November 1st, 2017, Congress proposed changes to the Civil Aviation and Airport Act, which would allow the Secretariat of Communications and Transport to change the status of the memorandum into Law.10 This should, in turn, facilitate the definition and execution of better-defined stan-dards, also fostering the attraction of investors looking for clear rules into the country. It would be convenient, however, to carry out a thorough analysis on how regulatory changes in other countries have affected both their citizens and the industry.11

AIR ROUTES ADMINISTRATION:

As drone purchases and use become more widespread, so does the need for solutions that allow their flights to be mo-nitored. To use the current air traffic control systems could mean, however, that operator capacity is quickly exceeded, resulting in unacceptable response times for users in Mexi-co. In addition, there is no standard that enables the iden-tification of drones nor their operators in public air spaces.

If the aforementioned changes take place, it will be neces-sary to develop and implement a scalable solution that mo-nitors these devices without exception. NASA, in the Uni-ted States, has proposed a system called Unmanned Aerial Systems Traffic Management (UTM) to coordinate flight routes, without manual intervention. Similarly, DJI has also presented their Aeroscope solution, enabling government officers to scan for operating drones, as well as their, alti-tude, speed, direction, and operator’s location within 5 km, but only for drones developed by the company.

Although this may sound intrusive, the number of drones already doubles the number of traditional aircrafts in the United States.12 Without appropriate regulation and imple-mentation; inappropriate drone use could become a rising national security issue in Mexico.

COUNTERMEASURES AGAINST ILLICIT USES:

Another problem posed by drones is their undue use for activities that jeopardize the wellbeing and privacy of the population. Although these cases had been relatively rare, homemade and commercial drones have been used to spy on people, enter restricted air spaces, and carry illegal payloads. The reasons why drones are so popular for crime are clear: walls do not limit them, they are easy to replace, and the operator remains away from most hazards. In addi-tion, it is more than reasonable to think that, as technology evolves, the risks of undue use will also increase. A drone used to collect construction site information could also be programmed to systematically spy. A drone that could be used to distribute Internet access in remote villages, could also be used to intercept information sent through the wi-reless networks. This creates the need for an adversarial industry, similar to cybersecurity, focused on stopping cri-minals from using these new technologies in an illicit way. According to Grand View Research, such “anti-drones” industry could represent 1.85 million dollars by 2024.13 It would be ideal, however, if the industry itself takes control of the situation, agreeing on standards that would minimise the risks caused by the wrong use of drones.

9.A21 Mx. A circular is not enough to regulate the use of drones, 2017. 10.The Economista. Members of Congress agree on regulating the use of drones, 2017.11.GoPro announced in January 2018 that it will stop producing its drone “Karma” due to international competition and regulatory changes in the United States and Europe, that may reduce market size drastically in following years. The Verge. GoPro quits the drone business. 201812.The Verge. DJI Shows Off its Take on a Simple ‘License Plate’ Reader for Drones, 2017. 13. Grand View Research. Anti-Drone Market Size to Reach USD 1.85 Billion by 2024, 2016

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Opportunities

T he gathered information shows that direct competition with already established companies in mature sectors, such as

personal drones, is not the best strategy for most companies wanting to grow in the industry. Several opportunities have been identified, however, in the development of more specialized bu-sinesses, which represent great growth potential for companies that manufacture hardware and develop software in Mexico.

The opportunities for hardware, software and support services are listed below.

HARDWARE:

According to the information collected from the interviews,both complete drones and original hardware are the most mature and competitive sectors in the ecosystem. Nevertheless, two trends with greater future opportunities have been identified:

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Specialized components

Some companies provide their services with highly speciali-zed drones, whereas others use more general-purpose dro-nes. These general-use devices tend not to be as efficient as their more specialized counterparts, but they are more cost-effective. They are also more popular, given their versa-tility and the fact that they can be adapted to different types of missions.

Although there is a wide range of components and acces-sories for drones, those produced for service provision tend to result in higher margins. As new standards are adopted, and brands consolidate in the industry, the risk of developing such components is reduced and the expected income from selling such products increases. Nowadays, many compa-nies offer components that are much more expensive than the drone itself. An example of this is the Sequoia multispec-tral camera manufactured by Pix4D for agriculture.14

This certainty has also enabled companies that were not originally related to drone hardware to have a reference fra-mework they can use to design solutions, like high definition cameras and long-distance transmission systems.

In addition, the development of open-source components and systems by third parties is growing, which brings even greater integration capabilities among components made by different developers.

All this reduces the entry barriers for Mexican manufacturing companies, especially those focused on producing electro-nic components and advanced materials. As with the auto-motive industry, international companies could produce part of the drones in Mexico instead of importing components from distant countries.

Development/Packaging of focused equipment

Despite the versatility and cost of general use devices, their effectiveness for service provision depends greatly on the industry requirements. For example, in agriculture it may be better to use a long endurance fixed wing drone, than a ro-tatory wing one, since battery duration for the latter tends to be insufficient for this type of missions. In addition, if the goal is to fertilize or fumigate specific areas, a specialised qua-dcopter with larger batteries, components and specialized software may perform the task better than any conventional equipment.

The development of specialized drones is usually carried out in countries whose business reality is different from that in Mexican sectors. One such example is agribusiness: Lan-downers in the United States may find much value in a drone being able to send real time data to a tractor or workers on the field, whereas Mexican farmers do not usually have the economies of scale to justify the same investment. Therefo-re, the development of more cost-effective devices repre-sents a real opportunity for Mexico and other Latin American countries. Mexican companies can take advantage of the demand for specialized products when buying and assem-bling already existing components with their own innova-tions. Therefore, they can offer solutions which are not yet available in the country.

Another way of applying this strategy is through researching and developing flight materials and technologies in order to offer capabilities which do not currently exist globally, or which are not currently cost-efficient. The Mexican Graphene Institute, for example, is conducting joint research activities that will make possible to offer devices with more focused and better capacities than those of the competition, such as batteries with longer lifespans and lighter and more resistant platforms. However, these higher capacities would not make any sense without a previous analysis of potential markets that justifies their development. Because of this, the Institute has developed several possible business models in order to provide different services in varied markets.

...the development of more cost-effective devices

represents a real opportunity for businesses in Mexico.

14. U$ 3,500 when preparing his document.

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SOFTWARE:

Open Innovation / software access

Most progress in drones at the beginning of the decade was achieved thanks to communities that started to disassemble components from other electronic devices and repurposed them through microcontrollers such as the Raspbe-rry Pi and Arduino.15 With the sharing of their code and knowledge in forums like DIY Drones, the progress made by each individual pushed the joint development efforts further. This situa-tion fostered the creation of several ventures, such as 3D Robotics, which would later make much of its source code available to the pu-blic. On the other hand, companies such as DJI, which started with a closed source device, do not allow access to their software, althou-gh they do allow development around specific aspects of it through the use of a Software De-velopment Kit (SDK). Despite this more insular approach, their devices are the most popular in several price ranges and are widely used for providing services.

Generally speaking, this means that anyone with a concrete idea and programming knowle-dge can learn and experiment with a drone to create new code and increase its functionali-ty. This could be particularly attractive in some Mexican regions, which are already specialized in mechatronics and software development.

As already mentioned in the previous section, some of the companies with more investment do not develop their own devices. Instead, they develop software that makes it possible to au-tomate and coordinate the efforts of existing devices, generating valuable information for companies, organizations and even govern-ments. Since this sector is not yet as mature as the hardware sector, it offers many entry oppor-tunities for new competitors. It will be more complicated to enter, however, as the value of the sector increases and more companies with higher market power become consolidated.

15. Forbes. Jordi Muñoz, de ‘nini’ a millonario, 2014.

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SUPPORT INSTITUTIONS:

Training

Drone operations necessitate trained pilots and proper authorization. Despite this, official UAV training programmes seem to be concentrated in a few cities around the country. The Compulsory Memorandum (CO AC-23/10) from the Civil Aeronautics Board determines that, when flying UAVs for non-recreational use, the pilot must have an authorization if the drone weighs more than 2 kg, and a license in case the drone is heavier than 25 kg.16

At the moment of writing this article, the Civil Aeronautics Board has certified three organizations as authorized training centres: AERONACIONAL, AMACUZAC, and CRAMEX. In addition, organizations such as Drone Project have shown that there is great potential in training adults and young people to configure and operate custom drones for diverse applications.

Open innovation

Drone events do not only have a recreational aspect; they are also useful for promo-ting knowledge, fostering creative uses, and generating commercial projects in the industry. Two examples of this are hackathons and drone races:

The most important flying competitions, such as the Drone Racing League, have gathered great sponsorship and specialized teams. Both their technologies and the skill of their pilots increase every year. These same technologies could be imple-mented in new commercial products, in a manner not unlike Formula 1. Although these competitions are not fully established in Mexico as they are in other countries, the current events represent an opportunity to create and strengthen communities, which can attract talented individuals and promote the development of specialized solutions with potential commercial uses.

Hackathons have also been an innovative way of solving real problems in an open collaborative environment. At these events, that usually take place during a full wee-kend, developers gather in teams that compete against each other with the purpose of programming concept tests as possible solutions to challenges presented by the organizers. In the case of drones, their use can be encouraged within these hacka-thons. Also, more specialized events can be organized. This enables the creation of concept solutions that, if feasible, can be adopted by existing organizations, or further developed as independent projects. In both cases, the effort made by the teams can result in solutions that will increase the value of the ecosystem in a tangible manner.

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16. For further information, please read the Com-pulsory Circular and applicable legislation. The most recent version is the 4th reviewed document that can be found at: http://www.sct.gob.mx/file-admin/DireccionesGra- les/DGAC-archivo/modu-lo3/co-av-23-10-r4.pdf.

Insurance

Many of the experts we interviewed made it clear that the use of drones is a risk activity. Their operation is further complicated when there is a need to carry cameras or instruments worth several thousand dollars. Therefore, there is a demand for insurance products specifically tailored for the drone industry in Mexico, with characteristics such as hourly coverage, covera-ge for civil liability and equipment carried by the drone, and damage to third parties. In the United States it is relatively easy to mitigate drone fai-lure: even companies like DJI offer insurance through their website, which covers repair or replacement costs for most of their products. In Mexico, however, the process to find a reliable insurance product is unclear and costly. As a result, many of our interviewees told us they usually insure their equipment as part of general insurance policies.

Capital investment

Another important aspect that supports the ecosystem has to do with joint ventures and other investment strategies that speed up the development capabilities of companies. In an industry where innovation is key to winning market share, the pressure on resources and time tend to favour agile com-panies. Given the market innovation speed and the integration capacities of larger international companies, the ecosystem is currently at a consoli-dation stage. Both domestic and external giants like Google, Amazon and Intel have been investing and merging with smaller competitors in a sys-tematic way.17 As is the case with any other high technology industry with network effects, this represents an important risk for start-ups and smaller companies trying to market their innovations both in Mexico and in the rest of the world.

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17. Drone Industry Insights. Drone Market: M&A Activity until Today, 2016.

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Concluding remarks

The drones ecosystem allows new competitors to acquire physical components and software which can be used to develop solutions in a quicker and more efficient manner. This turns

drones into a platform that can be used to offer high margin, disruptive business services. In the same sprirt, the industry allows third parties to make a profit by developing new solutions for existing devices, further strengthening their position in the market. These network effects create more competition and strengthen demand for software manufacturing and development. As explained throughout the document, Mexico should use this opportunity to explore and stren-gthen strategies that integrate the country into global drone production chains and devices by manufacturing advanced components and software. There are also opportunities in the develop-ment of support institutions like training and insurance.

Within the country, growth of the ecosystem will be spurred primarily through the use of drones as a means of providing services. In turn, business models and technologies that rely on such services will also cause the market to expand further. Advancements in basic components, like motors and stabilizers are also important. However, the high supply and lack of differentiation among competitors reduce the margins for both manufacturing and selling these components.

Both companies and institutions can benefit from conducting tests in sectors where the use of drones has already generated proven returns on investments. Similarly, the country could benefit itself from the structuring of regional plans, coordinated with software and hardware developers and industry experts.

If Mexico wants to have a place in the drone global ecosystem, it will have to design and imple-ment plans that will enable the country to not only meet the technological requirements of the industry, but also to foresee the future trends that drones bring with them. These trends include disruption of existing industries, changes in security and privacy laws, airspace availability and transmission frequencies, and effects on environment. The effects of these trends are increasingly tangible, and Mexico still has time to integrate these technologies and turn them into a source of growth for Mexican companies.

Such plans should result in a competitive framework that will enable industry growth and the correct use of these devices in Mexico. Said framework will be key in establishing clear rules and attracting future business opportunities to the country.

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If Mexico wants to have a place in the

drone global ecosystem, it will

have to design and implement plans that

will enable the country to not only meet

the technological requirements of the industry, but also to

foresee the future trends that drones

bring with them.

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A21 Mx. A circular is not enough to regulate the use of drones, 2017. Available at http://a21.com.mx/normatividad/2017/08/10/ no-basta-una-circular-para-regular-el-uso-de-drones

Allerin Tech, 4 Sensors that are Being Used in Drone Technology, 2016. Available at https://www.allerin.com/blog/4-sen- sors-that-are-being-used-in-drones-technology

Balderton Capital. A Primer on Drones and UAVs (Part 2): Where are the Investment Opportunities?, 2016. Available at http:// www.balderton.com/news/a-primer-on-drones-and-uavs-part-2-where-are-the-investment-opportunities

Business Insider. THE DRONES REPORT: Market forecasts, regulatory barriers, top vendors, and leading commercial applica-tions, 2016. Available at http://www.businessinsider.com/uav-or-commercial-drone-market-forecast-2015-2

CBInsights. The State of Drones Technology, 2017. Available at https://www.cbinsights.com/reports/CB-Insights_State-of- Drones-Tech.pdf

Cognizant. Drones: The Insurance Industry’s Next Game-Changer?, 2014. Available at https://www.cognizant.com/Insi- ghtsWhitepapers/drones-the-insurance-industry’s-next-game-changer-codex1019.pdf

Civil Aeronautics Board. Compulsory Circular CO AV-23.10 R4, 2017. Available at http://www.sct.gob.mx/filead- min/Direccio-nesGrales/DGAC-archivo/modulo3/co-av-23-10-r4.pdf

DroneAnalyst.com. The Prosumer Drone Will Never Die, 2016. Available athttp://droneanalyst.com/2016/10/26/the-prosu- mer-drone-will-never-die/

Drone Industry Insights. Drone Market: M&A Activity until Today, 2016. Available at https://www.droneii.com/drone-mar- ket-ma-activity-2011-today

Dronelife. Why I think the Prosumer Drone Will Never Die, 2016. Available at https://dronelife.com/2016/10/24/prosumer-dro- ne-will-never-die/

The Economista. Members of Congress agree on regulating the use of drones, 2017. Available at https://www.eleconomista.com.mx/politica/ Diputados-aprueban-regular-el-uso-de-drones--20171101-0054.html

Forbes. Jordi Muñoz, de ‘nini’ a millonario, 2014. Available at https://www.forbes.com.mx/jordi-munoz-de-nini-millonario/ Goldman Sachs. Drones, Reporting for Work, 2016. Available at http://www.goldmansachs.com/our-thinking/technology-dri- ving-innovation/drones

Grand View Research. Anti-Drone Market Size to Reach USD 1.85 Billion by 2024, 2016 Available at http://www.grand- viewre-search.com/press-release/global-anti-drone-market

The Orange County Register. How Drones are Changing the Real Estate Business, 2017. Available at http://www.ocregister. com/2017/08/05/heres-how-drones-are-changing-the-real-estate-business/

Recode.net. DJI is Running Away with the Drone Market, 2017. Available at https://www.recode.net/2017/4/14/14690576/ drone-market-share-growth-charts-dji-forecastThe Verge. DJI Shows Off its Take on a Simple ‘License Plate’ Reader for Drones, 2017. Available at https://www.theverge.com/2017/10/25/16537320/dji-aeroscope-drone-id-faa-law-enforcement

The Verge. GoPro quits the drone business, 2018. Available at https://www.theverge.com/2018/1/8/16862680/gopro-dro- nes-business-stopped-layoffs-exit

References

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