Malaysia-headquartered Aerodyne Group, a a DT3 (Drone Tech, Data Tech, and Digital Transformation) drone-based enterprise solutions provider is expanding its geographical penetration and technological capabilities.
Japan’s Terra Drone, a provider of inspection and surveying drones, is expanding in the Middle East, capitalizing on its recent fundraising from a Saudi fund.
The companies placed first and second globally among remote sensing drone providers in a ranking published in November by Drone Industry Insights, a German researcher, based on indicators such as estimated revenue and amount of funding. The researcher said top companies in the remote-sensing field — those that provide aerial images and live views — are in a “very competitive” environment.
Aerodyne founder and CEO Kamarul Muhamed in late February told Nikkei Asia in Tokyo that the best strategy for them is to have strong local partners citing that having local partners that takes care of the regulations allows them to penetrate the market faster.
Kamarul said the company also targets acquisitions that have specific technologies, such as drone delivery. “That’s the next big thing with drones,” he said. “So we are looking at making strategic investments in” the logistics niche.
Geographically, Australia, the Middle East, the U.S. and Malaysia are Aerodyne’s core markets.
However, Kamarul said India and Indonesia would be key markets in the long run.
Industry peer Terra Drone also aims to lead the expanding industry. In a separate interview with Nikkei Asia in late February in Tokyo, founder and CEO Toru Tokushige noted that the drone industry will pick up steam by 2030, stressing that his company must “be in the top tier when that wave comes.”
The 7-year-old company, backed by Japanese oil company Inpex and trading house Mitsui & Co., offers survey and inspection services to the construction and energy industries and has strongholds in Indonesia, the Netherlands and Belgium.
Tokushige said he sees a massive opportunity for drone services in Middle Eastern markets, saying his company can play a role in transforming the oil-reliant economy. He added that Saudi provides “a friendly environment for experimenting with new technologies and the money to support emerging businesses.”
While companies develop safer and more efficient technologies, regulators create more industry-friendly rules, like the recent revision to the aviation law in Japan that allowed flights over residential areas without a direct line of sight.
Tokushige said Terra Drone was “getting close” to becoming a unicorn and could reach that milestone in two to three years.
Regarding exit plans, Aerodyne’s Kamarul said the company aims for an initial public offering in 2024 or 2025. “We are looking at Japan, Nasdaq, Hong Kong and Malaysia,” he said of his listing options. “We are exploring [the possibilities].”
Terra Drone’s Tokushige said an IPO was on the “to do” list, but the timing was important.
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