Here is why Skydio, drone manufacturer, is valued at 1BUSD
Here is why Skydio, drone manufacturer, is valued at 1BUSD
Drones are getting cheaper and reliable. Currently, DJI has 75% of the market share in both consumer and enterprise, followed by Yuneec and Parrot. All of them manufacture drones and associated autopilot software. Most drone manufacturers are building AI-based applications for aerial inspection, telecom tower surveys, forest fires detection, delivering food and packages. Skydio is a recent entrant, founded at the right time and experiencing exponential growth for the below reasons:
Relaxing Drone regulations
Current regulations require a pilot to fly the drone, and the drone should be seen by the pilot all the time. But the government is giving exceptions to perform trials for few companies. Technology to fly the drone on autopilot already exists; regulation needs a lot of catching up. There is a saying in the drone world, “Dams are going to break in 2023,” i.e., the government will allow the drones to go on autopilot.
Product-led growth
Skydio was founded in 2015 by the same people who co-founded the Project Wing at Google. Several companies tried building drones after DJI, but none can compete with the powerhouse. Skydio founders started with a consumer version, packed with necessary features, expanded to US government organizations and specific industries to provide “Made in US” technology. This led to building trust and growth in the USA.
Enterprise & Government adoption
With people working remotely during the COVID, enterprises and governments rely on drones ranging from construction monitoring, powerline inspections to detection of forest fires.
Regulations, reliability, and security will define the decade of the drones.