Back in 2015, drone photography was a relatively new concept. Because of this, finding a drone operator who could take high quality photographs was not so simple. It’s easy to understand how drone operators like Andy Trench were able to make upwards of $2,000 a day. Trench, using a custom drone that he created, found extraordinary success taking aerial photographs along the East Coast. Based out of Rhode Island, Trench is an entrepreneur who has been operating drones for more than a decade now.

The drone industry has come along way since Trench first started. There are many more drone operators available now, so an operator who may have been making $2,000 a day back in 2015 may now only make around $200. With that being said, it is still a growing industry. Three years after the FAA began allowing commercial drone operations, the frenzy to cash in on the industry has transformed into an intense business battle. Prices for taking aerial photos, videos, and data have plunged as the competition has steadily increased. New service providers are now available and most are equipped with cheap, yet high quality drones affixed with 4K resolution camera technology that essentially fly themselves.

The difficulty for many drone operators is figuring out how to make a profit in this market. Businesses are working to grab market share in an industry that is growing daily. Intel Corporation, General Electric, Verizon and other startups including Airware and PrecisionHawk are among the companies working with small entrepreneurs to grow the industry. They’re all fighting for the same customers who are still restricted by laws such as staying in the line of sight and flying below 400 feet.

If smaller drone companies are able to break even, they will have to figure out a way to compete in an industry that is increasingly favoring larger companies with deeper pockets who can afford to develop new technology. PrecisionHawk took over AirVid and Droners in 2017 to rebuild its network of pilots. Airware is a software service company for drones and bought Redbird a French data analytics company.

More drone startups may leave behind their business models as the FAA changes regulations and moves toward allowing long distance flights including drone deliveries. At the moment, the restrictions that companies face under the current laws are hindering business progress and many of these firms may run out of cash before the FAA makes any significant changes to drone regulations.  One thing is for sure, the demand for these drones will only increase overtime.