Weather update Analysis
Is the drone market at a tipping point?
Like a bolt from the blue, the French drone company Airinov announces that it will immediately cease its activities. Parent company Parrot is pulling the plug. The reason for the sudden stop is the disappointing financial figures.
The French Airinov, which was founded as a startup in 2010, had clear ambitions: to become the biggest. With 12.000 customers, they say that that goal has probably been achieved, even though the entrepreneurs have not been able to enjoy it. Drone manufacturer Parrot took a majority stake in the company in 2014. This did not lead to much further development.
Netherlands preceded
Airinov . also went to the Netherlands flying started in 2016. It immediately closed a large number of dealers with major suppliers in our country to fly parcels. Wheat first and then other crops, such as potatoes. Dutch arable farmers were not eager for such a service, which was mainly offered as a bulk product. A selective group of drone users opts for detailed images of high-yielding crops. For example, the brand quickly disappeared in our country again, after it first shook things up considerably.
A short time later, Airinov took a different approach. At the Sima show in 2017 spoke we with employee Damien van Eeckhout. At the time, the message was that farmers themselves could purchase a relatively cheap drone to fly their crops. That fits better with Parrot's vision, which relies on its drones, cameras and software.
Ambition stranded
This ambition also went into the trash. The last known figures from the Parrot Group, for the first quarter of 2019, show this. Subsidiary Airinov then had a turnover of €200.000. 1% of Parrot's total business. Compared to the first quarter in 2018, the decline was almost 70%. The other daughters MicaSense (sensors), SenseFly (eBee drone) and Pix4D (drone software) fared much better. MicaSense even doubled its turnover.
As the reason for the sharp decline in Airinov's turnover, Parrot reports that the company was hit by unfavorable conditions in the sector. The rapeseed acreage has fallen sharply in France, as a result of which much fewer hectares have been scanned. The weather conditions were also unfavorable for Airinov's business. There was mention of an expansion in the service package, but that was no longer to be of any avail.
Drone market under pressure
The drone market worldwide has been under busy† Sales of consumer drones have plummeted. Market leader DJI has even taken its most popular model, the Phantom, off the shelves and only offers it in a business version. The 'wow effect' is over. The thing that mainly affects hobbyists is the increasingly strict legislation, which makes it increasingly difficult to fly freely. DJI and competitors are focusing on the business market to maintain their turnover. There are still plenty of opportunities, also in agriculture. In the Netherlands, as mentioned, this mainly concerns specialist tasks. Satellite services have not stood still either. In the field of bulk advice, they can operate cheaper and faster.
Airinov has 28 employees who are still active until the end of July to help existing customers. After that, users have to manage on their own. The question is whether it is a signal for the future. Is the drone sector in agriculture thinning out again? Getting every farmer flying is unthinkable. The technology is too laborious for that and a high degree of knowledge is required. It therefore remains a specialist job. Scanning with a drone is not cheap, partly due to additional costs at the provider. The hype is definitely over. Anyone who has aerial images taken consciously chooses this. Management at plant level is usually not yet an option in arable farming. The technology on the ground is not yet sufficient for this. In addition, growers are more likely to invest in their soil than that last 5% profit by applying at plant level. Development continues, but at a lower gear.
Legislation is also hindering the agricultural sector. Spray drones are still a step too far and stricter no-fly zones, such as the area around Lelystad Airport, also create new challenges for the sector to tackle.
Niels van der Boom
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