Draganfly – Will this drone manufacturer take off in 2021?
The commercial drone industry is expected to be one of the fastest growing markets in the world over the next few years.
According to a recent report from Grand View Research, the global market for these innovative products is expected to surge by 57.5% every year from 2021 to 2028, reaching a total value of $501.4 million.
This comes as improving technologies help to advance the capability of drones, new regulations have clarified the legal landscape for businesses and as the industry finds more new ways to improve people’s lives.
As a result, the drone – or unmanned aerial vehicle (UAV) market – is seeing increasing adoption across a range of industries including real estate and construction, media and entertainment, health, public safety and agriculture, to name but a few.
In the midst of this expected growth, one industry leader is set to benefit massively over the coming years.
Founded over 20 years ago, Draganfly Inc. is a leader in the professional drone industry.
The company doesn’t only sell the drone hardware but whole systems, providing a full solution to its clients.
Its offerings include enterprise drone solutions, contract engineering services, custom software, data analytics, professional UAV services and many more.
By providing the full solution, this also helps Draganfly to earn higher margins, leading to long-term recurring revenues.
Given its long history Draganfly has been responsible for a number of drone industry firsts.
It was responsible for creating the first quadcopter, the first drone with a camera and even the first drone inducted into the Smithsonian Museum.
In 2013, the company’s Draganflyer was the first drone to save a human life, with the Royal Canadian Mounted Police successfully finding and rescuing a man whose car had crashed into a remote wooded area in freezing temperatures.
To date, Draganfly has sold over 9,000 drones in over 50 countries to a strong customer base.
Its clients are mainly based in the large North American market, with partnerships with US military contractors.
Reflecting its position in the North American market, of the 10 drones authorized for commercial use in Canada, six out of ten were built by Draganfly.
Other clients include blue-chip names including GMC, Ford, Warner Bros, Red Bull, Shell, and in the public sector, the Canadian government.
Providing strong barriers to entry, Draganfly has a wide patent portfolio with 19 patents granted and 40 pending.
New applications drive growth
To name but a few, new innovative applications for drones include crop spraying, aerial monitoring of assets, filming aerial shots, delivering products to hard to reach areas and law enforcement.
On the latter point, Draganfly itself has a long history of using drone technology to aid the police in keeping the public safe.
In 2009, Ontario Provincial Police’s Forensic Identification Unit used the Draganflyer X6 UAV to collect evidence in a homicide investigation, making this the first use of a commercial UAV for emergency services in North America.
Draganfly also has a legacy as a global leader in designing commercial drones for agriculture.
Its solutions provide crop monitoring and analysis systems that allow clients to assess inventory, manage yields & environmental factors and ultimately maximize production.
Through its recently purchased Vital Intelligence assets and Varigard partnership, Draganfly has added health monitoring and prevention to its product and service offering.
The company has also been helping in the fight against the current coronavirus pandemic.
In December last year Draganfly was selected by Coldchain Technology Services to develop and provide flight services of a robust vaccine delivery payload for use in critical regions for drone delivery of the COVID-19 vaccine.
What’s more, the Alabama State Senate recently adopted the Draganfly Smart Vital System, a screening system that can detect potential COVID-19 cases by taking contactless temperature, heart rate and respiratory rate readings.
2021 has been another year of significant progress for Draganfly
In March the company announced the signing of an exclusive strategic partnership with Woz ED, the K-12 Education program of Apple co-founder Steve Wozniak.
This will see Draganfly be the exclusive supplier of drones to Woz ED’s drone program across its national K-12 curriculum.
There is an expected deployment of approximately 3,000 drones in 2021 to expose young people to booming career opportunities in the drone industry.
More recently, the company announced the launch of its Draganflyer Commander2 drone system.
Exclusively designed, developed, and manufactured in Canada, this new model improves operational capabilities and payload options, as well as offering new North American built and sourced flight controllers, sensors and communications.
New commercial deals have been flowing through to the financials too.
In its most recent earnings release Draganfly revealed that sales had hit record levels in the second quarter of the year.
Revenues for Q2 2021 surged by 113.9% to $1.98 million, up from $0.93 million in Q2 last year.
Gross profit increased by $297,246, or 68.9%, for the second quarter over the same period last year.
This came after product sales rose by 103% and customer engineering services rose tenfold.
Operational highlights included Draganfly implementing its health security and public safety services for its NASCAR tripleheader weekend at Nashville Superspeedway and Integrated Launcher Solutions finalizing their definitive agreement to have Draganfly develop a drone-based non-lethal air support system.
Complementing its existing stock market quotes in Canada and Frankfurt, the company recently completed a listing on the NASDAQ in the US under the ticker DPRO.
Not only has this helped to boost liquidity in the shares and widen the investor base, it has provided access to a huge capital market.
Draganfly boasted a cash balance of $17.3 million at the end of June 2021, boosted by the completion of a public offering in the US which has since raised a total of $20 million.
This sets the scene nicely for further product investment and delivery of its new contracts.
To find out more about Draganfly and its investment potential download our free report.
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