Drone regulation: Drone airspace closes the gap between authorities and technology

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  Quantumrun Foresight
• May 6, 2022

Insight summary

Drones are becoming more accessible due to falling costs, prompting both individuals and companies to explore their varied uses including security enhancement and small-scale deliveries. In response, the US and UK governments are implementing strict regulations to oversee drone usage. While these measures raise concerns regarding privacy and potential misuse of personal data, they can also pave the way for a more mature and secure drone industry, fostering innovation and facilitating the development of drone-related educational programs and eco-friendly manufacturing practices.

Drone regulation context

Dramatic cost declines are seeing drones becoming increasingly accessible to the public. Likewise, companies have sought to leverage their unique mobility attributes to perform commercial tasks, such as enhancing security or making small-scale deliveries. As drone technology becomes increasingly commonplace, authorities in the US and the UK have introduced new measures to curtail the activities of drone owners, so they fall within a set regulatory framework.

In the UK, all drone and model aircraft operators using a drone that weighs between a quarter of a kilogram and 20 kilograms must be registered and pass an online safety test, with operators fined £1,000 if they do not comply. In addition, the Civil Aviation Authority (CAA) has imposed a £16.50 annual licensing charge that operators must pay as part of the UK's drone registration scheme, which was made compulsory in November 2019. The fee covers IT hosting and security expenses, CAA staff and helpline costs, identity authentication, nationwide education and awareness programs, and the price of future drone registration service enhancements. 

Meanwhile, the US government plans to require every new mass-produced drone weighing more than a quarter of a kilogram to broadcast its whereabouts by 2022. Users will also have to transmit (in real-time) their drone’s identification number, speed, and altitude while in use, which law authorities may cross-reference with their monitoring platforms. These regulations all form part of a new "Remote ID" standard meant to provide the Federal Aviation Authority (FAA) and law enforcement with a more comprehensive understanding of air traffic.

Disruptive impact

The Remote ID requirement will not just apply to brand-new drones; starting in 2023, it will be illegal to fly any drone without broadcasting the required information. There are no preexisting conditions for vintage drones, no exception for home-built racing drones, and it does not matter if a person is flying the drone for recreational purposes. The laws under the auspices of the FAA will ensure that people modify their drones with a new broadcast module or only fly it in a specifically designated drone flying zone called an "FAA-Recognized Identification Area." 

The decision taken by the FAA has many potential privacy complications. While operating a drone, broadcasting personal and location information may place consumers at risk, especially from cyberattacks. Hackers may get access to critical information about individual drone operators, such as their addresses and personal identification data. In addition, the US government's registration fees might discourage young people from purchasing drones.

However, increasingly regulated drones may assist air traffic officials and governments in reducing air traffic in restricted zones and areas, thereby reducing the threat of injury or illegal activity. Penalties for operating drones outside the bounds of government oversight could be used to upgrade government monitoring systems, while other fees could be used to communicate with different stakeholders regarding the creation of advertising- and public event-focused air spaces, which could allow different brands and companies to capitalize on new ways of reaching consumers. 

Implications of increased drone regulation 

Wider implications of enhanced drone regulations may include:

• Stricter drone regulations leading to the continued maturation of the drone industry so that late adopters among the public and private sectors can make more informed decisions about their drone investments.
• The government establishing new laws to balance technological advancements and data privacy protection, leading to enhanced consumer trust.
• Increased investor funds flowing into drone manufacturers as regulation makes the industry increasingly safe for investors, potentially leading to a surge in financial backing for research and development projects.
• Commercial operators of drones having to update their operating activities to fall within new regulations, especially for future drone delivery services, potentially leading to the development of more sophisticated and secure aerial transportation networks.
• Cybersecurity firms creating custom software and devices to enhance drone security so that they are not hacked by hostile parties, potentially leading to a burgeoning sector within the cybersecurity industry that specializes in drone protection.
• The potential for drone regulations to encourage educational institutions to develop programs focused on drone technology and regulation, fostering a knowledgeable workforce adept at navigating the complex regulatory landscape.
• Stricter drone regulations potentially encouraging drone manufacturers to adopt circular economy principles, leading to more sustainable consumption and production patterns where drones are created with eco-friendly materials and energy-efficient technologies.

Questions to consider

• Do you believe the growing regulation of drones may impede the industry’s commercial growth?
• Do you think the use of drones should be banned in residential areas or their use restricted to certain times? Alternatively, do you believe the personal use of drones should be prohibited outright?