How will BVLOS drone delivery ops impact the Indian logistics industry?

With the Indian e-commerce market expected to reach $200 billion by 2026 and last-mile delivery costs accounting for 41% of total supply chain costs, BVLOS drones offer a promising solution to longstanding challenges in supply chain management and last-mile delivery

Imagine a world where life-saving medicines reach people in minutes, not hours. Picture a future where your online orders arrive at your doorstep without a single delivery truck on the road. This isn't science fiction—it's Beyond Visual Line of Sight (BVLOS) drone operations, a technology that has the potential to transform India's logistics landscape.

BVLOS drones are the next evolution in unmanned aerial vehicles. Unlike traditional drones that must remain within the pilot's sight, BVLOS drones can fly autonomously over long distances, guided by navigation systems and monitored from remote control centres. This capability opens up a world of possibilities, especially in a country as vast and diverse as India.

With the Indian e-commerce market expected to reach $200 billion by 2026, according to India Brand Equity Foundation’s e-commerce industry report 2024 and last-mile delivery costs accounting for 41% of total supply chain costs as per the Capgemini Research Institute, BVLOS drones offer a promising solution to longstanding challenges in supply chain management and last-mile delivery. It can slash delivery times, reduce operational costs, and extend service to areas that traditional logistics find challenging to reach.

One of the leading companies in the market is Skye Air Mobility, a drone logistics solution provider. The company recently etched its name in the record books by executing the world's longest BVLOS medicine delivery flight. In collaboration with Flipkart Health, they orchestrated a drone journey spanning 104 km between Baruipur and Medinipur in West Bengal. It resulted in a staggering 80% reduction in delivery time compared to conventional methods.

To unravel the complexities of this game-changing revolution and its implications for Indian logistics, The STAT Trade Times spoke to Ankit Kumar, the founder and CEO, Skye Air Mobility. Kumar painted a picture of a future where BVLOS drones could slash last-mile delivery costs by 20-30%. However, he also emphasised the need for robust infrastructure, including advanced Unmanned Traffic Management (UTM) systems and ground control centres, to make this vision a reality.

Edited Excerpts:

What level of infrastructure investment is required to support widespread BVLOS operations in India?
One of the most critical needs is the development of advanced airspace management and UTM systems, which are vital for real-time tracking, flight planning, and the safe integration of drones into the national airspace. Skye Air’s proprietary UTM system exemplifies the potential of such technologies, serving as a unique selling point in the emerging drone delivery industry.

Ground infrastructure is equally important, with command-and-control centres playing a pivotal role in facilitating and monitoring BVLOS operations. These centres must be equipped with advanced communication systems, data analytics tools, and skilled personnel to ensure efficient and safe operations. The reliability of these centres is essential for maintaining the effectiveness of BVLOS activities.

Developing operational procedures and safety protocols that address the complexities of BVLOS operations is critical. A collaborative effort between the government and private sector is essential to build the necessary infrastructure. This cooperation will pave the way for the next generation of drone logistics, urban air mobility, and other innovative applications in India.

What specific regulatory hurdles do you anticipate encountering in India for BVLOS operations?

Managing urban airspace is a significant hurdle, as navigating complex airspaces with multiple stakeholders, including manned aviation, requires seamless coordination. Permissions for drone operations in cities can be difficult to obtain due to dense air traffic and regulatory concerns. Integrating UTM systems like Skye UTM, Thales UTM etc. with the Digital Sky platform can help streamline these processes and ensure safety.

Another critical area is the certification and standardisation of BVLOS drones and pilots. The current certification process needs to be more streamlined to avoid delays and inconsistencies across different regions. Establishing clear and consistent standards is essential to support the growth of BVLOS operations.

Finally, regulatory alignment and standardisation across different jurisdictions are necessary to facilitate BVLOS operations nationwide. Varying regulations across states and cities can create obstacles, making it difficult to standardise operations. Establishing uniform guidelines, particularly for logistics drones, is vital for ensuring smooth and legal operations throughout the country.

What primary challenges are there for BVLOS operations in India?
In addition to regulatory hurdles, several operational challenges must be addressed for the successful deployment of BVLOS operations in India. Infrastructure development is crucial, requiring the creation of Skye Pods, Vertiports, charging stations, and robust communication networks. Reliable power supply, secure communication links, and effective data management systems are essential for scaling BVLOS operations in the logistics industry.

Maintaining secure and reliable communication between drones and control centres over long distances is vital, relying on networks like 4G/5G and/or satellite links, which may not be consistently available across all regions. Establishing drone corridors and Skye tunnels for safe and efficient operations within and between cities is very critical, necessitating coordinated planning among urban planners, aviation authorities, and logistics companies.

Ground control centres must be strategically located to provide continuous coverage, particularly in urban areas where interference and signal loss are higher. Integrating drone logistics with existing supply chains and transportation networks is essential to create a cohesive logistics network, ensuring that drones complement the current form of logistics operations.

Weather and environmental challenges, such as India's diverse climate and seasonal monsoons, pose significant risks to BVLOS operations. Developing a hybrid model for companies to operate and ensuring real-time weather monitoring will be crucial for maintaining operational safety and efficiency. Addressing these challenges requires collaboration between government bodies, industry stakeholders, and technology service providers, focusing on UTM systems, drone corridors, and a supportive regulatory framework to enable widespread BVLOS logistics operations in India.

What are the potential revenue growth opportunities with expanded BVLOS operations?
With BVLOS capabilities, service providers/companies can explore new markets and services, significantly enhancing its offerings. In logistics, BVLOS enables faster, cost-effective deliveries, particularly in urban and semi-urban areas, expanding into last-mile delivery for e-commerce and pharmaceuticals.

What is your estimate of the potential cost savings for logistics operations with widespread BVLOS adoption?
By reducing last-mile delivery costs, BVLOS drones have the potential to lower expenses by 20-30%, making deliveries far more cost-effective compared to traditional methods. This reduction in delivery costs, coupled with decreased reliance on ground vehicles, can lead to substantial savings in fuel and vehicle maintenance. Additionally, integrating with the current form of last mile logistics, the traditional 2-wheeler riders may switch to Walkers reducing their service area thus saving expenses while generating better income.

Furthermore, lower vehicle usage and fewer accidents could potentially reduce insurance premiums by 10-20%, adding another layer of cost efficiency. Overall, the cumulative impact of these savings could significantly enhance the profitability and operational efficiency of logistics companies in the highly competitive Indian market, with total annual savings potentially reaching substantial levels.