UAV & Drones
Volatus Aerospace Secures Major Multi Year Utility Drone Contract
Volatus Aerospace wins a CAD 15M contract for drone inspections across 100,000 miles of power lines, boosting its role in utility infrastructure management.
Volatus Aerospace Inc. has secured a transformative multi-year agreement with one of North America’s largest electricity transmission and distribution utilities, positioning the company to capture significant market share in the rapidly expanding drone infrastructure inspection sector. The contract, valued at CAD $15 million (approximately USD $11.1 million) and extending through August 2028 with a potential two-year extension, covers drone-based inspection services across approximately 100,000 miles of transmission and distribution lines. This landmark deal arrives at a pivotal moment when the global drone inspection and monitoring market is projected to grow from USD $11.6 billion in 2022 to USD $23.0 billion by 2027, representing a compound annual growth rate of 14.6%. The agreement underscores the utility sector’s accelerating adoption of drone technology to address critical infrastructure challenges while reducing costs, improving safety, and enhancing operational efficiency across vast electrical networks that form the backbone of North-America‘s power grid.
The drone infrastructure inspection market is experiencing rapid growth, driven by the need for efficient, safe, and cost-effective solutions for maintaining critical infrastructure. As more utilities recognize the value of drone-based inspections, companies like Volatus Aerospace are poised to play a central role in reshaping the industry. This article explores the significance of Volatus’s new contract, the state of the drone inspection market, and the broader implications for utilities and the energy sector.
The multi-year agreement represents a watershed moment for Volatus Aerospace, demonstrating the company’s ability to secure large-scale, recurring revenue contracts in the competitive utility inspection market. Under the agreement terms, Volatus will provide comprehensive drone-based services including line inspections, vegetation management, substation assessments, emergency storm response, and advanced data acquisition to enhance overall system reliability. The contract’s scope encompasses an extensive network of approximately 100,000 miles of transmission and distribution lines, highlighting the massive scale of North America’s electrical infrastructure and the corresponding opportunities for drone service providers.
Glen Lynch, Chief Executive Officer of Volatus Aerospace, emphasized the significance of this partnership, stating, “We are proud to be selected to support the safe and reliable operation of one of the continent’s most critical electricity grids. This agreement reflects the increasing role of drones in utility asset management and provides Volatus with recurring opportunities to deliver value at scale.” The CEO’s comments underscore how this contract validates Volatus’s strategic positioning in the utility sector and provides a foundation for future growth in recurring revenue streams.
The agreement is structured to generate revenues estimated at CAD $15 million over the full contract term at margins consistent with the company’s normal margins for similar contracts. This financial structure provides Volatus with predictable cash flows while maintaining profitability levels that align with the company’s existing service portfolio. The potential for a two-year extension adds further upside, potentially extending the total contract value and duration through 2030.
“This agreement reflects the increasing role of drones in utility asset management and provides Volatus with recurring opportunities to deliver value at scale.”, Glen Lynch, CEO, Volatus Aerospace
Volatus Aerospace operates as a consolidator and integrator of aerial intelligence and logistics solutions, serving industries that require agile and streamlined data collection. The company’s business model includes commercial distribution and equipment sales, drones-as-a-service, and drone pilot training. Volatus’s operational infrastructure is anchored by its state-of-the-art Operations Control Center in Vaughan, Ontario, which coordinates complex, long-distance drone operations, critical for servicing utility infrastructure spread across large territories.
Financially, Volatus has faced challenges, reporting revenue of CAD $27.1 million in 2024 (a 22% decrease year-over-year) and a net loss of CAD $13.3 million. However, recent quarterly results show improvement, with Q2 2025 revenue rising 49% year-over-year and gross margins reaching 32%, reflecting the benefits of strategic consolidation and operational optimization. These figures highlight the importance of stable, long-term Contracts like the new utility agreement in providing recurring revenue and supporting financial recovery.
Operationally, the company has conducted over 7,000 flights, covering more than 20,000 kilometers, and can manage missions as far as 3,300 kilometers from its control center. This demonstrates Volatus’s ability to deliver scalable, remote drone operations, an essential capability for meeting the needs of large utility customers. The global drone infrastructure inspection market is experiencing robust growth, estimated at $2.5 billion in 2025 and projected to reach $8 billion by 2033. Drivers include the need for improved Safety, reduced downtime, and more efficient asset management across sectors such as power, oil and gas, and telecommunications. The adoption of drones allows for rapid, detailed inspections of difficult-to-access infrastructure, reducing reliance on expensive and hazardous traditional methods.
Technological advancements, such as enhanced sensors (thermal, LiDAR), autonomous flight systems, and AI-powered data analysis, are making drone inspections more effective and attractive. These tools enable utilities to identify faults or maintenance needs more quickly and accurately, supporting a shift from scheduled to predictive maintenance strategies.
North America and Europe currently dominate the market, accounting for approximately 70% of global share, while the Asia-Pacific region is witnessing the fastest growth due to infrastructure development and supportive government policies. The inspection drones market specifically is expected to nearly triple in size by 2032, reflecting the sector’s strong momentum.
“The market is expected to remain concentrated in the coming years, as leading companies continue to invest heavily in technology development and expand their global presence.”, Industry Report
Power line inspection is among the fastest-growing applications for drone technology. The global drone power line inspection market is projected to reach between $7.7 billion and $15 billion by 2030-2033, with annual growth rates ranging from 14% to over 36%. This growth is propelled by the need to maintain aging grid infrastructure, address extreme weather risks, and comply with regulatory and reliability standards.
Traditional inspection methods are costly, labor-intensive, and sometimes dangerous, often involving helicopters, bucket trucks, or scaffolding. Drones can reduce inspection costs by up to 50%, minimize downtime, and improve worker safety by eliminating the need for personnel to access hazardous locations. For example, a drone-equipped utility support operation can cost a fraction of helicopter-based inspections, with faster turnaround and less environmental impact.
Utilities such as New York State Electric & Gas (NYSEG) and Rochester Gas and Electric (RG&E) have adopted drones for comprehensive visual inspections of thousands of miles of transmission lines. The New York Power Authority (NYPA) has received FAA waivers for beyond visual line of sight (BVLOS) operations and invested over $37 million in its drone program through 2028, training more than 100 employees as drone pilots. These developments highlight the sector’s commitment to integrating drone technology at scale.
The regulatory landscape for drone operations is evolving rapidly, with significant implications for utility inspection. The FAA’s forthcoming Part 108 rule will standardize BVLOS commercial drone operations, enabling drones to fly outside an operator’s visual range, a critical capability for inspecting extensive power lines and remote assets. A recent executive order has accelerated the timeline for these regulations, requiring prompt rulemaking and performance metrics for BVLOS safety and operations.
Regulatory improvements are expected to enhance the operational capabilities of companies like Volatus Aerospace, allowing for more efficient and cost-effective inspection programs. Volatus has already demonstrated its ability to secure regulatory approvals for advanced operations, including urban drone deliveries and routine flights in and out of international airports. These achievements underscore the company’s expertise and industry standing. The integration of AI tools, clear safety metrics, and expedited waiver processes are poised to further streamline drone operations in the utility sector, supporting the industry’s transition toward fully autonomous, large-scale inspections.
Modern inspection drones are equipped with advanced imaging technologies such as LiDAR, thermal sensors, and high-resolution cameras. These tools enable utilities to detect faults, hot spots, or vegetation encroachment with greater accuracy and speed than manual inspections. Automated flight paths and AI-powered analysis further increase efficiency, allowing for faster report generation and more precise maintenance planning.
The economic benefits of drone-based inspections are substantial. Drones can reduce inspection costs by up to 50%, eliminate the need for expensive equipment rentals, and minimize planned outages. For instance, drone solar inspections deliver savings of over $1,900 per megawatt after implementation, and large-scale fields can realize labor cost reductions exceeding $19,000 over five years. Additionally, drones help mitigate revenue losses from underperforming assets by enabling earlier detection and repair of faults.
The environmental impact is also notable: drones consume less fuel, produce fewer emissions, and operate more quietly than Helicopters. These advantages, combined with improved safety for workers, make drones an increasingly integral part of utility asset management strategies.
“Using drones in infrastructure inspection in the energy sector can result in up to a 50% reduction in cost compared to traditional methods.”, Industry Analysis
Despite strong growth drivers, the drone inspection market faces challenges including regulatory hurdles, technological limitations in extreme environments, and data security concerns. Addressing these issues will be essential for unlocking the market’s full potential and enabling broader adoption across the utility sector.
Continued Investments in research and development, as well as strategic partnerships and acquisitions, will likely shape the competitive landscape. Leading companies are expanding their global reach and enhancing their technology portfolios to capture emerging opportunities in Europe, Asia-Pacific, and beyond.
Looking ahead, the integration of swarm technology, cloud-based analytics, and AI-driven defect detection will further increase the value proposition of drone inspections. As regulatory frameworks mature and operational capabilities expand, drones are set to become indispensable tools for utilities worldwide.
Volatus Aerospace’s multi-year agreement with a leading North American power utility marks a significant milestone in the evolution of drone-based infrastructure inspection. The contract not only provides Volatus with stable, recurring revenue but also signals a broader industry shift toward technology-driven asset management. As the utility sector faces mounting pressures to optimize operations, reduce costs, and enhance reliability, drone solutions offer a scalable and effective answer. The broader implications extend beyond Volatus’s immediate financial gains. With the regulatory environment becoming more supportive and technology advancing rapidly, the stage is set for drones to play a central role in the future of utility infrastructure maintenance. Companies that combine operational excellence, regulatory expertise, and technological innovation, like Volatus, are well-positioned to lead this transformation.
What is the value and duration of Volatus Aerospace’s new utility contract? What services will Volatus provide under this agreement? Why are drones becoming popular for utility inspections? What are the main challenges facing the drone inspection market? How is the regulatory environment changing for drone operations?
Volatus Aerospace Secures Landmark Multi-Year Utility Contract Amid Explosive Growth in Drone Infrastructure Inspection Market
The Strategic Significance of Volatus Aerospace’s Utility Partnership
Volatus Aerospace’s Business Model and Capabilities
Drone Infrastructure Inspection Market Trends
Power Line Inspection: A Critical Application Driving Market Growth
Regulatory Environment and BVLOS Operations
Technology Innovations and Economic Impact
Challenges and Future Prospects
Conclusion
FAQ
The contract is valued at CAD $15 million (approximately USD $11.1 million) and runs through August 2028, with a potential two-year extension.
Volatus will deliver drone-based inspections, vegetation management, substation assessments, emergency storm response, and advanced data acquisition across approximately 100,000 miles of transmission and distribution lines.
Drones improve safety, reduce inspection costs (by up to 50% in some cases), and enable faster, more comprehensive assessments of hard-to-reach infrastructure compared to traditional methods.
Regulatory hurdles, technological limitations in harsh conditions, and data security concerns remain key challenges as the market grows.
The FAA is accelerating the adoption of BVLOS (beyond visual line of sight) regulations, which will enable more efficient, large-scale drone operations for utility inspections.
Sources
Photo Credit: Volatus Aerospace
UAV & Drones
SwissDrones Sells First SDO 50 V3 Unmanned Helicopter in Japan
SwissDrones delivers first SDO 50 V3 turbine drone to Sanwa Gikou in Japan for industrial inspections and disaster logistics.
This article is based on an official press release from SwissDrones.
SwissDrones, a manufacturer of long-range unmanned helicopters systems, has announced a significant expansion into the Asia-Pacific market with the first sale of its SDO 50 V3 aircraft in Japan. The launch customer, Sanwa Gikou Co., Ltd., a specialized civil engineering firm based in Kitakyushu, intends to utilize the heavy-lift drone for industrial inspections, disaster response, and logistics across the Kyushu, Yamaguchi, and West Shikoku regions.
According to the company’s announcement, the transaction was facilitated by HIEN Aero Technologies, the strategic partner and distributor for SwissDrones in Japan. This acquisition marks a pivotal moment for Sanwa Gikou as it establishes a new “Large Drone Business” division, aiming to leverage autonomous aviation to address regional labor shortages and infrastructure maintenance challenges.
Sanwa Gikou, traditionally known for pipe rehabilitation and specialized industrial coatings, is diversifying its operations to include advanced aerial capabilities. The company plans to deploy the SDO 50 V3 for a variety of critical missions, including aerial surveillance, search and rescue (SAR), and the inspection of vital assets such as pipelines and bridges.
In a statement regarding the acquisition, Sanwa Gikou leadership emphasized the potential for integrating air and land logistics.
“The SDO 50 V3 provides new opportunities to strengthen regional public services… and explore innovative air–land integrated models.”
Isao Umebayashi, President of Sanwa Gikou Co., Ltd.
The deployment is closely tied to the “Regional Collaboration & Future Hybrid Logistics Council,” an initiative aiming to create a resilient supply chain network. By combining ground transport with high-capacity drones, the council hopes to ensure the delivery of essential supplies to isolated villages and mountainous areas, particularly during natural disasters when roads may be impassable.
The SDO 50 V3 distinguishes itself from common battery-powered quadcopters through its turbine-based propulsion and intermeshing twin-rotor design (Flettner system). Designed for heavy industrial use, the aircraft runs on Jet A1 fuel, allowing for rapid refueling and extended operational uptime compared to battery-dependent systems. According to technical specifications released by SwissDrones, the SDO 50 V3 offers the following capabilities:
HIEN Aero Technologies will oversee the importation, pilot training, and ongoing technical support for the aircraft, ensuring compliance with Japanese aviation standards.
The timing of this acquisition aligns with broader socio-economic shifts in Japan, specifically the “2024 Problem”, a term referring to the critical labor shortages in logistics and construction due to an aging population and stricter overtime regulations. The Japanese government has responded by updating the Civil Aeronautics Act to allow “Level 4” autonomy, which permits fully autonomous flights beyond visual line of sight over populated areas.
This regulatory framework is essential for the commercial viability of long-range drones like the SDO 50 V3. By automating inspections and emergency transport, companies like Sanwa Gikou aim to maintain infrastructure integrity and public safety with fewer human personnel.
The Turbine Advantage in Complex Terrain
While battery-electric VTOLs (eVTOLs) often dominate the headlines, the sale of the turbine-powered SDO 50 V3 highlights a persistent gap in the market: energy density. For missions in Japan’s Kyushu and Shikoku regions, characterized by steep mountains, heavy winds, and scattered islands, battery technology often struggles to provide the necessary range and payload endurance.
We assess that the choice of a turbine helicopter is a pragmatic decision for Sanwa Gikou. The ability to refuel in minutes rather than recharge for hours is a decisive factor for disaster relief scenarios where every minute counts. Furthermore, the Flettner rotor design provides superior stability in high winds compared to traditional tail-rotor helicopters or multi-copters, making it uniquely suited for Japan’s coastal environments. This deal suggests that despite the push for electrification, liquid-fuel systems remain the superior choice for heavy-duty, long-endurance industrial aviation in the near term.
What is the primary use for the SDO 50 V3 in Japan? Who is the manufacturer of the drone? What makes this drone different from standard battery drones?
SwissDrones Secures First Japanese Buyer for SDO 50 V3 Unmanned Helicopter
Strategic Deployment for Civil Engineering and Safety
Technical Capabilities: The SDO 50 V3
Key Performance Metrics
Market Context: Japan’s “2024 Problem”
AirPro News Analysis
Frequently Asked Questions
Sanwa Gikou will use the aircraft for infrastructure inspection, disaster response, search and rescue, and emergency logistics in the Kyushu and Yamaguchi regions.
The drone is manufactured by SwissDrones, a company based in Zurich, Switzerland, specializing in unmanned helicopter systems.
The SDO 50 V3 is powered by a turbine engine using jet fuel, which allows it to carry heavier loads (40kg+) and fly longer (3+ hours) than most battery-powered equivalents.
Sources
Photo Credit: SwissDrones
UAV & Drones
Rotron Aerospace and LIG Nex1 Sign Deal to Develop Next-Gen UAVs
Rotron Aerospace and LIG Nex1 partner to co-develop hybrid VTOL UAV platforms for South Korea’s Army, emphasizing heavy-fuel rotary engine tech.
This article is based on an official press release from Rotron Aerospace and LIG Nex1.
On December 9, 2025, UK-based propulsion specialist Rotron Aerospace and South Korean defense prime LIG Nex1 formalized a significant strategic partnership. Signed at Rotron’s headquarters in Dorset, United Kingdom, the Memorandum of Understanding (MoU) establishes a long-term collaboration aimed at co-developing next-generation unmanned aerial vehicle (UAV) platforms. The agreement, which remains valid until 2032, focuses primarily on the Medium UAV Common Platform (MUCP), a tactical hybrid drone program designed for the Republic of Korea Army (RoKA).
According to the joint announcement, this collaboration leverages the specific strengths of both nations’ defense industries. Rotron Aerospace will supply its advanced heavy-fuel rotary propulsion systems, while LIG Nex1 will lead the system architecture, platform integration, and overall program management. The deal underscores the deepening defense ties between the United Kingdom and South Korea following the 2023 Downing Street Accord.
The centerpiece of this agreement is the MUCP, a hybrid Vertical Take-Off and Landing (VTOL) drone intended for Intelligence, Surveillance, and Reconnaissance (ISR) missions. LIG Nex1, having been awarded the tender by South Korea’s Defense Acquisition Program Administration (DAPA) in August 2024, is moving rapidly toward flight testing, which is expected to commence in 2026.
The platform utilizes a hybrid configuration featuring four fixed rotors for vertical lift and a single pusher propeller for forward flight. This design eliminates the need for runways while maintaining the endurance and speed associated with fixed-wing aircraft. According to technical specifications released regarding the program, the MUCP targets a Maximum Take-Off Weight (MTOW) of approximately 340 kg and a payload capacity of 30 kg.
Rotron’s contribution is critical to the platform’s performance. The company specializes in Wankel-type rotary engines, which are favored in the UAV sector for their high power-to-weight ratio and low vibration profiles, essential characteristics for stabilizing sensitive ISR sensors. Crucially, Rotron has engineered these engines to operate reliably on heavy fuels such as JP-8 and Jet-A1, meeting the NATO Single Fuel Policy requirements that simplify military logistics.
“Rotron is proud to partner with LIG Nex1… This agreement reflects our commitment to delivering high-performance propulsion and aviation systems that enhance the capability, reliability, and operational reach of next-generation unmanned platforms.”
Gilo Cardozo, CTO & Founder, Rotron Aerospace
While the immediate focus is the domestic South Korean market, both companies have explicitly stated their intention to target global exports, specifically within the Pacific Rim and Europe. The partnership allows LIG Nex1 to secure a sovereign supply chain for critical propulsion components while providing Rotron access to major Asian defense markets. Yoon Kwan-seob, Vice President of Aerospace & Drone Business at LIG Nex1, highlighted the synergy between the two firms in a statement regarding the signing:
“By combining our experience in integrated system development with Rotron’s leading propulsion technologies, we aim to advance the Medium UAV Common Platform and expand opportunities for both domestic Republic of Korea programmes and international exports.”
Yoon Kwan-seob, VP of Aerospace & Drone Business, LIG Nex1
The selection of Rotron for the MUCP program highlights a persistent engineering bottleneck in the tactical UAV sector: the heavy-fuel requirement. While battery technology has improved, it still lacks the energy density required for the 5+ hour endurance missions targeted by the MUCP. Furthermore, traditional piston engines often struggle with the combustion characteristics of heavy military fuels like JP-8, particularly in smaller form factors.
By integrating Rotron’s rotary technology, LIG Nex1 appears to be prioritizing reliability and logistical commonality over the simplicity of electric-only systems. This hybrid approach, using electric lift for VTOL and heavy-fuel combustion for cruise, is becoming the standard architecture for modern tactical drones (Group 3 UAVs) that require runway independence without sacrificing range.
Sources: Satellite Evolution Group
Rotron Aerospace and LIG Nex1 Sign Strategic Deal for Next-Gen UAV Propulsion
The Medium UAV Common Platform (MUCP)
Propulsion Technology
Strategic Implications and Export Goals
AirPro News Analysis
Sources
Photo Credit: Satellite Evolution Group
UAV & Drones
Unusual Machines Signs Supplier Deal with Dynamic Aerospace Systems
Unusual Machines becomes Tier-1 supplier to Dynamic Aerospace Systems, providing NDAA-compliant drone components for defense and commercial platforms.
This article is based on an official press release from Unusual Machines, Inc..
On December 8, 2025, Unusual Machines, Inc. (NYSE American: UMAC) announced a new strategic supplier agreement with Dynamic Aerospace Systems (DAS), a developer of next-generation unmanned aerial systems (UAS). According to the company’s official statement, this partnership positions Unusual Machines as a key Tier-1 domestic supplier of critical Drones components, specifically designed to meet strict U.S. regulatory standards.
Under the terms of the agreement, Unusual Machines will provide flight controllers, electronic speed controllers (ESCs), motors, and other subsystems to DAS. These components will be integrated into DAS’s commercial and defense platforms, marking a significant step in Unusual Machines’ efforts to onshore the drone supply chain and reduce industry reliance on foreign technology.
The core of this agreement focuses on compliance with the National Defense Authorization Act (NDAA) and “Blue UAS” standards. As stated in the press release, the components supplied by Unusual Machines are fully compliant with these federal requirements, which are essential for securing U.S. government and defense Contracts.
Dynamic Aerospace Systems, a DBA of BrooQLy, Inc. (OTCQB: BRQL), intends to integrate these American-made components immediately into its existing production lines. The announcement highlights two specific platforms that will utilize the new hardware:
“This agreement validates Unusual Machines’ strategy to become a Tier-1 domestic supplier in the drone industry and supports DAS’s expansion into international markets.”
, Unusual Machines Press Release
While the agreement bolsters domestic defense capabilities, the press release also outlines significant international implications. Dynamic Aerospace Systems is currently engaged in active commercial programs abroad that will benefit from this supply chain Partnerships.
According to the announcement, the collaboration supports DAS’s planned deployments in the United Arab Emirates with the noon Group and in Greece with Drops Smart Hubs. These programs are focused on autonomous pilot delivery, commercial logistics, and infrastructure monitoring, demonstrating the dual-use nature of the technology for both defense and industrial sectors. This supplier agreement follows a period of rapid operational expansion for Unusual Machines. To provide context to the current deal, recent financial data indicates the company is scaling its infrastructure to meet rising demand.
According to recent market reports and company filings referenced in conjunction with this announcement, Unusual Machines reported its first profitability in Q3 2025, with revenue reaching $2.13 million. Furthermore, in October 2025, the company raised approximately $72.1 million via an “at-the-market” (ATM) offering. These funds appear to be fueling their physical expansion, including the addition of a 25,000-square-foot warehouse and fulfillment center in Orlando, Florida, announced on November 5, 2025.
From Hobbyist Roots to Defense Tier-1
We view this agreement as a pivotal moment in Unusual Machines’ corporate evolution. Historically known for its consumer-facing brands like Fat Shark and Rotor Riot, the company is aggressively pivoting toward the high-value defense and industrial sectors. By securing a supplier role for kinetic interceptors (The Breacher) and ISR platforms (The Sentinel), UMAC is effectively validating its thesis that the U.S. drone industry requires a bifurcated Supply-Chain, moving away from Chinese-dominated components toward NDAA-compliant domestic alternatives.
The timing is also notable. With the recent $25 million strategic Investments in XTI Aerospace closed in November 2025, Unusual Machines is consolidating its influence across the broader Aerospace sector, moving beyond simple component retail into complex systems integration support.
Sources: Unusual Machines Press Release, Unusual Machines Investor Relations
Unusual Machines Secures Strategic Supplier Deal with Dynamic Aerospace Systems
Strengthening the Domestic Supply Chain
International Expansion and Commercial Applications
Corporate Context and Recent Growth
AirPro News Analysis
Sources
Photo Credit: Unusual Machines
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