This is a progress update of a case study from 2022, which we recommend reading first for background and context.
Read the 2022 case study Read the full report
In our last report, we emphasised that the full potential of drone technology could only be realised if data capture was fit-for-purpose and seamlessly integrated with business as usual. Cyberhawk embodies this approach, and it is likely to have been a key factor in their impressive progress over the past three years, with global revenue increasing by more than 100% from 2021 to 2023 and headcount reaching around 200. However, the primary drivers of growth have been the US and Middle East, rather than the UK, where Cyberhawk feels constrained by the regulatory approach. They note that the UK’s regulatory approach has become less progressive compared to other regions and has deteriorated since 2021, making them the only case study respondent to report a decline in the regulations barrier to growth. That said, they are optimistic about the UK’s new regulatory direction, including the implementation of SORA, and believe that BVLOS (Beyond Visual Line of Sight) could help reduce costs in the UK, as it has in the USA.
A key message in Skies Without Limits V2.0 was that successful drone implementation necessitates a precise focus on capturing fit-for-purpose drone data and integrating it with business as usual. We often describe this as “starting at the end”; not turning a propeller until there is a crystal-clear understanding of the specification of data capture required, how it will be processed into actionable information and how the information will be shared or integrated with business as usual. This is captured in our 4-step drone workflow which remains as relevant now as it was when we first drafted it in 2018.
Drone Service Provider Cyberhawk was one of the emerging companies that embodied this approach with their iHawk Visual Asset Management (VAM) software and a focus on end client requirements. This philosophy, embedded in Cyberhawk for many years, may be a key part of their success and they have grown their global business by more than 100% from 2021 to 2023, reaching a headcount of around 200.
The story is, perhaps, less encouraging when we consider that this growth is mainly in the USA and Middle East rather than the UK and take account of Cyberhawk’s comments on the differing regulatory approach between these countries as well as the associated impact on investment decisions.
“The ability to scale in the US with BVLOS and automation and difficulties in obtaining permissions in the UK that support growth has led to the majority of our investment being driven outside of the UK. The CAA has been far too slow to look at what they can do to influence market growth now and sadly they are inhibiting the industry and investment. In the US it feels like the FAA wants us to succeed and the attitude is how can we make this happen safely. In the UK it feels like we have to constantly argue the case as to why we should be operating. Thankfully there are signs that changes at the CAA are being made to improve the situation.”
Cyberhawk
That said, Cyberhawk believes that “The UK market is close to commercial volume in some areas” implying that market saturation may be the limiting factor for UK growth in their focus areas of Oil and Gas, Utilities, Renewables and Construction, rather than solely regulations. However, price-sensitive markets such as distribution tower inspection (Utilities) could be more effectively addressed if BVLOS was attainable, as this would improve unit economics, a benefit Cyberhawk observed in the USA. The company also states that BVLOS can improve public perception due to less land access being required.
These points are reflected in Cyberhawk’s perception of UK barriers to growth below.
The 2024 colour indicator shown is based on Cyberhawk’s current perception of the associated barrier (red indicates an 'issue' and green 'no issue'). The trend shows the degree to which they feel this barrier has changed since 2021. To see a summary of how this organisation's views compare to others, see the chart on page 8 of our main report.
If we start with the “elephant in the room,” Cyberhawk are the only Skies Without Limits V3.0 respondent to note a downward trend from 2021 to 2024. This is in Regulation (down – red).
“We have less flexibility to operate close to people than 3 years ago despite a long track record of documented safety. Regulations have become overly complex and do not facilitate real world practical operations.”
Cyberhawk
When asked about the biggest changes since 2021, Cyberhawk continue:
“Regulatory oversight in the UK is not as progressive as other regions such as the US. Permissions we have held for over 15 years are now being eroded in the UK and we have gone backwards in some areas. Conversely, the ability to operate in atypical airspace in the US has accelerated our BVLOS operations and demonstrated a clear path to scaling our operations and delivering cost reductions. There is a clear difference in who is accountable for risk between the UK and US. In the UK it feels like the CAA owns the risk whereas in the US the operator holds the majority of the risk. For example, we applied for a countrywide BVLOS permission in the US (in atypical airspace) and the submission was <50 pages and took 2 months to gain approval. In the UK our routing submission for an operational authorisation is 1600 pages. 5 months on we are working through the CAA Oversight Report.”
Cyberhawk
Cyberhawk’s view on Perception (up – green) is encouraging and reflects a growing willingness from their client base to trial new technology and collection methods. Given the introduction to this case study, it will come as little surprise that Cyberhawk remains positive about Implementation (flat – green) due to successful integration with client workflows. They consider Technology to be somewhat of an issue (flat – yellow) and note that the combination of tech (including UTM) required for BVLOS is more advanced in other countries. Skills have the same perception as Technology (flat – yellow).
Cyberhawk notes that skilled pilots and engineers have been difficult to find, resulting in them training the former. We expect that increasing drone and analytics automation will ease these Skills issues in the future.
We’ll close with Cyberhawk’s thoughts on the changes they would like to see in the UK. Although positive about the upcoming changes in regulation, including the introduction of SORA, Cyberhawk think their growth would be maximised if the UK attitude to risk were adjusted and the regulatory approach was consistent year on year.
“The introduction of SORA methodology will help provide more consistency across applications for operational authorisations but there needs to be a shift in mindset at the CAA as to how they can support businesses to grow.
There also needs to be a fresh look at the level of risks involved in operating drones, particularly in rural areas. CAA inspectors need to spend time with commercial operators to gain a better understanding of where the greatest risks occur. On our risk register, the greatest risk of harm is the pilot driving to site! Proportionately, how many drivers cause physical harm to uninvolved people compared to drone operators?
We need to stop trying to have zero risk and instead accept and manage the risk. They are not passenger carrying aircraft and therefore the level of risk and subsequent harm is very different.”
“It would be useful to get some consistency in assessments of our submissions to the CAA from year to year. Each time the assessment is different and asks for something else even though the permission has been in place for years. Suggested ways forward presented by the CAA are then taken back in subsequent oversight reports.
In the US a consistent and progressive message from the FAA means we can go to market knowing exactly what services we can offer in the years to come. In the UK we have less of an idea of what will be possible and our expectation now is our operational flexibility will continue to reduce further despite our continued improvements in procedures, training, safety management, and maintenance.”
Cyberhawk
An insight into the progress of the UK drone industry from 2021 to 2024
Skies Without Limits v3.0
