Drones for development The current state and future prospects of UAS for sustainable and green growth in Brazil September 2023 1 Acknowledgements and disclaimer 4 Glossary and acronyms 5 1 Introduction and context 7 1.1 Overview of the report 10 Contents 2 Overview of the drone ecosystem in Brazil 13 2.1 Maturity of the drone ecosystem in Brazil 17 2.2 Ecosystem stakeholders 20 2.3 Regulation 26 2.4 Enablers and barriers for the drone ecosystem 32 3 Economic potential of drone services 40 4 Drones for social development and environmental protection 61 5 Drone ecosystem development roadmap 83 Lessons learned from a drone-based proof of concept for environmental 6 93 monitoring in Tocantins Annex 1 101 Annex 2 111 2 Boxes 1.1 History of Aviation in Brazil 2.1 Overview of the UAS History in Brazil 2.2 ANAC Simplifies the Rules for Drones Utilised in Agricultural Operations 3.1 Agriculture Industry Outlook 3.2 Healthcare Industry Outlook 3.3 Environment and Culture Industry Outlook 3.4 Forestry Industry Outlook 3.5 Utilities Industry Outlook 3.6 Mining Industry Outlook 3.7 Safety and Security Industry Outlook 3.8 Oil and Gas Industry Outlook 3.9 Media and Entertainment Industry Outlook 3.10 Telecommunications Industry Outlook 3.11 Public Infrastructure Industry Outlook 3.12 Insurance Industry Outlook 3.13 Transportation and Logistics Industry Outlook 5.1 Unmanned Traffic Management (UTM) systems Figures 2.1 Timeline with Key Drone-Related Events in Brazil 2.2 UAS Services Regional Market Value and Forecast Growth by Country, 2021-2026 2.3 Number of Drones per State 2.4 Drone Ecosystem of Brazil: Main Market Players 2.5 Brazil Drone Operator’s Journey from Drone Purchase to Flights 3.1 Market Potential and Size of Commercial UAS Services in Brazil, 2021-2026 3.2 UAS Services Market Value and Growth by Industry, 2021-2026 3.3 Forecast of the Number of Commercial UAS, 2021-2026 3.4 Forecast of the Number of Recreational UAS, 2021-2026 3.5 Estimated Number of Direct Jobs Created 3.6 Estimated Number of Indirect Jobs Created 5.1 Selected Drone Ecosystem Development Incentives for Brazil 5.2 Strategic Drone Development Incentives for Brazil 5.3 Illustrative Development Roadmap for Drone Ecosystem in Brazil Tables 2.1 Brazilian UAS Ecosystem Maturity Assessment Compared to Selected Regional Benchmark Countries 4.1 Maturity and Relevance of Drones Use Cases for Social Development and Environmental Protection 4.2 Public Sector Stakeholders to be Involved in Drone Pilot Projects for Social Development and Environmental Protection in Brazil 3 This report was prepared by PwC Drone Powered Solutions - Global Centre of Excellence in Drone Technology in its advisory capacity to the World Bank Group and the Global Infrastructure Facility (GIF) in collaboration with PwC Brazil. This report was prepared by a team led by: • Agnieszka Gajewska, Partner, Global Government & Public Services Leader • Aleksander Buczkowski, Director, PwC Drone Powered Solutions • Simone Furegato, Director, PwC Brazil • Fabio Pereira, Director, Director, PwC Agribusiness Center of Excellence • Maria Sanchez Arrieta, Senior Advisor and Regional Specialist, PwC Drone Powered Solutions The team is grateful for the support and contributions provided by: Acknowledgements • Konrad Górski, Manager, PwC Drone Powered Solutions • Anhelina Kamenska, Senior Consultant, PwC Drone Powered Solutions and disclaimers • Agnieszka Lisonek, Senior Consultant, PwC Drone Powered Solutions • Anna Drabarek, Senior Advisor, PwC Drone Powered Solutions • Dominik Muła, Consultant, PwC Drone Powered Solutions • Marta Khemich, Consultant, PwC Drone Powered Solutions • Paweł Łochowski, Consultant, PwC Drone Powered Solutions • Isabela Capuano, Senior Associate, PwC Brazil The team would like to express gratitude for the guidance and inputs provided by: • Lucio Jorge, Researcher at Embrapa in AI and Drones • Giovanni Amianti, BoD Chairman and CEO at XMobots • Manoel Coelho, CEO at Speedbird Aero The team consulted as well with World Bank Group colleagues, valuable data inputs and support for the report were provided by the following World Bank and Global Infrastructure Facility staff: • Charles E. Schlumberger, Lead Air Transport Specialist • Carlos Murgui Maties, Transport Specialist • Fabian Hinojosa, Senior Transport Specialist • Carlos Bellas Lamas, Senior Transport Specialist • Adriana Ormazabal Caballero, Transport Consultant • Javier Montero Vivas, GIF, Research Analyst • João Reye Sabino, GIF, Senior Infrastructure Finance Specialist Thanks to: • GIF for financing this analytical work that will support the development of the drone industry in the LAC region and potentially opening up future scope for more private capital mobilization in these innovative sectors. Always at the forefront of innovation, their trust in the World Bank team and the consultants made this effort possible. This Report has been prepared in collaboration with PricewaterhouseCoopers (PwC) in its capacity as advisor to The World Bank Group and the Global Infrastructure Facility. Some information, statements, statistics, material, and commentary (together the “Information”) in this Report have been prepared by PwC from publicly available material and from discussions held with a range of stakeholders. PwC has relied upon the accuracy, currency and completeness of the Information provided by the stakeholders and takes no responsibility for the accuracy, reliability or correctness of the Information and acknowledges that changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and PwC is not in any way liable for the accuracy of any information used or relied upon by a third party. Furthermore, PwC has not independently validated or verified the Information provided to it for the purpose of the Report and the content of this Report does not in any way constitute an audit or assurance of any of the Information contained herein. PwC has provided advice solely for the benefit of The World Bank Group, the Global Infrastructure Facility and disclaims all liability and responsibility (including arising from its negligence) to any other parties for any loss, damage, cost, or expense incurred or arising out of any person using or relying upon the Information. The majority of picture credits belongs to Shutterstock.com. In the specific cases where pictures from other sources were utilised in the report, the appropriate references were provided. 4 Acronyms ABM The Brazilian Association of Multi-rotors AI Artificial Intelligence ANAC National Civil Aviation Agency of Brazil ANATEL The National Telecommunication Agency ANEEL The National Electric Energy Agency Anvisa The Brazilian National Health Surveillance Agency AOI Area of Interest APP Permanent Preservation Areas Glossary and acronyms ARARA Glossary and and Radio-Assisted acronyms Autonomous Reconnaissance Aircraft ATC Air Traffic Control ATM Air Traffic Management BR-UTM Brazilian Unmanned Traffic Management System BVLOS Beyond Visual Line of Sight CAA Civil Aviation Authority CAAR Course for Remote Aeroagricultural Application CAER Special Airworthiness Certificate for RPA CAGR Compound Annual Growth Rate CAVE Experimental Flight Authorisation Certificate CI Conservation International CMA Aeronautical Medical Certificate DAC Department of Civil Aviation DECEA Department of Airspace Control DNIT The National Department of Transport Infrastructure EESC-USP São Carlos School of Engineering of the University of São Paulo Embrapa Brazilian Agricultural Research Corporation EVI Enhanced Vegetation Index EVLOS Extended Visual Line of Sight eVTOLs Electric Vertical Take-Off and Landing Aircraft FIMS Flight Information Management System FPSOs Floating Production Storage and Offloading Systems FVA Vitória Amazônica Foundation GCF Green Climate Fund GDP Gross Domestic Product GHG Greenhouse gas GNI Gross National Income GPR Ground-Penetrating Radar GPS Global Positioning System IBAMA The Brazilian Institute of the Environment and Renewable Natural Resources ICMBio The Chico Mendes Institute for Biodiversity Conservation IDB Inter-American Development Bank INPE Brazil’s Institute for Space Research IoT Internet of Things IUCN The International Union for Conservation of Nature LAC Latin America and the Caribbean 5 Acronyms LATAM Latin America LiDAR Light Detection and Ranging MAPA The Ministry of Agriculture, Livestock, and Food Supply MD The Ministry of Defense MTOW Maximum Take-Off Weight NASA National Aeronautics and Space Administration NDC National Determined Contributions NDVI Normalised Difference Vegetation Index NGO Non-Governmental Organisation NIMBY Not In My Backyard NOTAM Notice to Air Missions OECD The Organisation for Economic Cooperation and Development PAHO Pan American Health Organisation PMRv Santa Catarina Highway Police PNATRANS Brazilian National Plan for the Reduction of Traffic Deaths and Injuries PoC Proof of Concept R&D Research & Development REDD+ Reducing Emissions from Deforestation and Forest Degradation RGB Red, Green, Blue RPA Remotely Piloted Aircraft SARPAS Remotely Piloted Aircraft Access Request SAVI Landsat Soil Adjusted Vegetation Index SDGs Sustainable Development Goals SEAGRO Agriculture Secretariat SEMARH Environment and Water Resources Secretariat SIPEAGRO Integrated System of Products and Agricultural Establishments SISANT System for Unmanned Aircraft SME Small and Medium-sized Enterprise SubTI The Sub-Secretariat of Information Technology UAS Unmanned Aerial System UAV Unmanned Aerial Vehicle UFPR Federal University of Paraná UFSCar Federal University of São Carlos UN United Nations UNICEF United Nations International Children's Emergency Fund USAID United States Agency for International Development USFS United States Forest Service USS UAS Service Suppliers UTM Unmanned Traffic Management VARI Visible Atmospherically Resistant Index VLOS Visual Line of Sight VTOL Vertical Takeoff And Landing Aeroplane WWF World Wide Fund for Nature 6 1 Brazil is the largest country in South America and has one of the world's largest economies. It reached a gross domestic product of more than $1.6 trillion in 2021.1 Moreover, it is also the largest consumer market in Latin America and the Caribbean (LAC), with the second-largest population in the Western Hemisphere.2 Brazil is renowned for its high levels of biodiversity, as the country possesses the most remaining rainforest area globally3 and the Amazon – the river with the most discharge volume in the world.4 This makes the nation an important natural reservoir and a net carbon sink for the world that needs to be preserved.5 Introduction and As an upper-middle-income country with a Gross National Income (GNI) per capita of $17,200 USD in 2022,6 and estimated real context Gross Domestic Product (GDP) growth of 3.1% in 2023 and projected 1.7% in 2024 and 1.9% in 2025,7 Brazil is striving to enhance productivity, continue the diversification of its economy to achieve sustainable growth, and become a member of the Organisation for Economic Co-operation and Development (OECD),8 while managing inflation, public debt and poverty reduction.9, 10 The country is rich in natural resources which remains one of the key sources of income and a critical component of the country’s economic development. Agriculture represented 27.4% of Brazil’s total GDP in 2021, with meat, soy, coffee, sugar, orange juice, and others forming the majority of exports.11 The sector has become a regional benchmark due to its increasing adoption of sustainable and precision agriculture practices. Outside of agriculture, Brazil has also made proactive efforts to integrate sustainability into its economic development, safeguarding and preserving over 66% of its territory and fostering a thriving renewable energy industry that supplies 48% of the country's energy.12 In recent years, Brazil's economy has witnessed significant diversification, expanding into various tertiary service activities that capture larger segments of the value chain. This transformation has enabled Brazil to transition from being a raw materials economy to one capable of processing, marketing, and selling key products and services in global markets. However, the country continues to deal with constraints related to human capital, product market distortions, low competition, as well as land, capital, and labour market distortions, coupled with insufficient infrastructure and investment.13 These challenges collectively contribute to a low-productivity economy with high costs that is known as the Custo Brasil.14 Hence, to transform its economy and establish a prosperous and sustainable development path for all, Brazil must transition from a growth model based on factor accumulation (such as labour, capital, and land) to one that is productivity-led, and that is driven by innovation, knowledge, and skills – all critical components to enhance competitiveness and productivity across key industries and sectors,15 as well as safeguarding the country’s natural heritage. 7 Brazil faces many challenges on this path, with the first being that of climate-related shocks. The country’s demographics and economic characteristics make it vulnerable to specific climate risks (such as droughts, floods, and extreme temperatures) that directly impact economic performance and the livelihoods of millions of Brazilians, especially the most vulnerable. In fact, according to the latest Brazil country climate report from the World Bank for 2023, climate shocks have the potential to drive an additional 800 thousand to 3 million Brazilians into extreme poverty by 2030.16 These climate-related impacts include reductions and fluctuations in agricultural outputs and income, adverse weather events, variations in food prices, health impacts, and decreased labour productivity caused by extreme temperatures. These factors not only have the potential to increase extreme poverty but also to negatively affect the overall well-being of the Brazilian population.17 Estimates indicate that, depending on the chosen development path and growth strategy, the resulting increase in extreme poverty could range from 0.4 to 1.3 percent of the population by 2030. This could undermine the significant progress already made to reduce extreme poverty over the past three decades.18 Similarly, shifts in temperature and rainfall patterns have a non-trivial impact on crucial sectors and services like agriculture, hydropower, and urban water accessibility. These changes also pose a threat to Brazil's rich biodiversity, particularly within the Amazon and Cerrado Biomes.19 Extreme weather events such as droughts, flash floods, and riverine floods in urban areas are not just leading to an average loss of USD 2.6 billion per year, equivalent to 0.1% of the 2022 GDP,20 but they also are causing significant disruptions to the already strained transportation and power infrastructure.21 These issues are compounded by other developmental challenges around poverty, inequality, healthcare, education, transportation, and logistics along with incremental environmental degradation, biodiversity loss, and natural disasters. For example, despite 87% of the population living in urban areas,22 road infrastructure, transportation, and logistics remain issues that slow growth.23 The country faces challenges related to providing timely access to services and deliveries of people and goods. With just over 13% of the road network paved,24 Brazil’s transport system is costly and inefficient, resulting in greater Greenhouse Gas (GHG) emissions.25 Structural pressures and the unique characteristics of the Brazilian economy, combined with the recent increase in deforestation mean that “the country is no longer on track to meet its National Determined Contributions (NDC) targets” and its ambitious climate goals.26 Unlike many other countries, Brazil’s GHG emissions are primarily driven by land use (46% of total emissions in 2021), followed by agriculture (27% of total emissions in 2021). In contrast, the energy sector represents just 18% of the emissions for the same year, with nearly half of the country’s energy coming from renewable sources.27 Therefore, it is crucial for Brazil's climate ambitions that they strengthen the already-established components of environmental protection and monitoring, as well as implement a sustainable development strategy that connects remote communities, fosters green growth, and reduces GHG emissions from land use. The ambitious goals of halting illegal deforestation by 2028 and achieving net-zero deforestation by 2050 represent a cost-effective opportunity.28 These goals not only serve to safeguard Brazil's environmental heritage on a global scale but also offer the potential to enhance carbon sinks while preserving ecosystems for future generations and supporting relevant economic activities. In fact, by prioritising efforts to curb deforestation, Brazil can also facilitate the gradual decarbonisation of other sectors and prevent the Amazon from reaching a tipping point.29 However, despite positive demographic trends, social development, and economic sectors adopting innovation in their daily activities, structural bottlenecks in Brazil have resulted in weak GDP growth over the last decade (0.6 percent).30 Productivity levels remain low, particularly due to “a complex tax system, a cumbersome business environment that discourages entrepreneurship, slow and unequal human capital accumulation, ineffective State intervention policies (at the sectoral level), low savings, and compressed public investment to accommodate higher current spending and increasing pension obligations”.31 8 Despite the challenges, Brazil can transition to economic growth that is led by Box 1.1 History of Aviation in Brazil incremental productivity and innovation while still meeting its climate commitments. If the country works towards implementing a viable long-term Brazil has a rich history in aviation, dating back to 1906 when the Brazilian aviation pioneer Alberto growth strategy and an agenda that balances the interests of the poor and the Santos-Dumont successfully flew the world’s first airplane which could take off on its own power. Since environment while ensuring public finance sustainability and economic growth,32 then, the extensive development of the aviation industry in the 20th century has led to a wide range of then it can move closer to its goal of becoming a high-income country. This will notable events including the first commercial airline launched in 192733 and the establishment of require a transition to a greener, more sustainable, and more resilient economic Embraer in 1969, the third world’s largest producer of civil aircraft after Boeing and Airbus.34, 35 model, where innovation and entrepreneurship are at the forefront. The Brazilian aviation sector is one of the largest in the Southern Hemisphere today, having a considerable impact on the country's overall economy and bringing in sizable earnings. In 2017, the The prospect of green growth in Brazil hinges on strategic collaboration among contributions added to Brazil's GDP were estimated to be USD 18.8 billion, and more than 800 thousand stakeholders and strategic investments in new technologies. For example, jobs were created.36 harnessing emerging technologies like drones can drive positive social, environmental, and economic outcomes, as long as the public sector, private The economic environment and continuous industrial development positioned Brazil as a strong aviation enterprises, and international partners collaborate effectively. If done well, this hub for training centres, research and development activities, testing, manufacturing, and the operation approach can fuel entrepreneurship, attract investment, and bolster innovative and export of airplanes. Following a culture of airspace innovation, Embraer opted to enter the drone startups, thereby catalysing transformation within the drone industry and beyond. industry through its innovation branch and incubator EmbraerX. To explore opportunities in the The enabling conditions for advancing developments in Brazil is underpinned by automated commercial air cargo market, EmbraerX inked a deal with drone manufacturer Elroy Air in its advanced UAS regulatory framework and ecosystem. This positions the country January 2020.37 The same year, the first company graduated from the EmbraerX incubator – Eve, the as a frontrunner in drone technology within the LAC region. Brazil's proactive urban air mobility company and Embraer subsidiary.38 stance towards enacting new legislation or adapting existing regulations to Two years later, in 2022, Embraer acquired a minority share in XMobots intending to accelerate the accommodate market demands underscores its commitment to fostering future of the autonomous drone market, as well as expand solutions for the geotechnology, agriculture, innovation. Well-crafted regulatory frameworks serve as pillars of safety and environmental, inspection, defence and public security, logistics, and urban mobility markets.39, 40 security, providing a robust foundation for current and future operations and processes. Brazil has over 3,300 registered airfields across the country, nearly 500 of which are public, providing connectivity to various regions and cities within Brazil as well as international destinations, with 16 This report showcases how the integration of drones into diverse industries can national airlines and hundreds of international ones providing regular and non-regular flights.41, 42 To help reimagine logistics, transportation, environmental protection, and more. While ensure safety and improve the quality of services, the aviation processes are controlled by the National Unmanned Aerial Vehicles (UAVs) are already supporting smart agriculture Civil Aviation Agency of Brazil (ANAC), a body that is responsible for the regulation, inspection, and practices in the country, they have the potential to significantly improve certification of aircraft, manufacturers, aircraft maintenance organisations, aerodromes, aviation schools, environmental protection and monitoring efforts as well. As drones reshape and civil aviation professionals. Furthermore, ANAC was made responsible for establishing rules for the traditional practices, they can assist in curtailing GHG emissions, streamlining operation of civilian unmanned aircraft, also known as drones, and continues to work on a new updated operations, and pioneering new means of economic advancement. By nurturing a regulatory framework according to the pace of technological development in the country.43 conducive ecosystem for innovation and sustainable growth, Brazil can steer its trajectory towards a future where prosperity and environmental stewardship go hand in hand. Considering the fact that the country had already established a strong drone ecosystem, this report focused on an analysis of the UAV ecosystem and a deeper exploration of how the country might unlock the wider potential of drone technology in order to transition to a greener, safer, and more inclusive economy. This is possible through increased adoption in critical use cases such as environmental protection, transportation and logistic challenges, road resilience, and disaster management. 9 1.1 The purpose of this report is to assess the present state of Brazil's drone ecosystem, while also investigating and analysing potential opportunities to broaden the utilisation of drones for commercial and developmental purposes within the nation. Simultaneously, the report provides recommendations to encourage broader drone adoption and to enhance Brazil's standing as a regional hub for UAS technology and its applications. To this aim, a comprehensive assessment was undertaken to understand the status of the drone ecosystem, including a review of the regulatory framework, an analysis of the market potential of UAS commercial services, and an exploration of its developmental, social, and environmental applications. Ultimately, the study entailed identifying key initiatives for fostering the expansion of the drone ecosystem over the next five years. Structure of the Report Overview of the Report The first part of the report The second part describes The third part explores how The fourth part provides an The last part examines a gives an overview of the the current and forecasted drones can be used to overview of strategic pillars case study of a drone drone ecosystem in Brazil, market potential for drone address key social and and key initiatives that Proof of Concept identifying the level of services and gives a environmental challenges need to be implemented to implemented in the state of maturity of different detailed look at the most in Brazil. 14 potential use ensure the development of Tocantins. The chapter components in comparison relevant industries that cases are identified and the drone ecosystem and details the lessons learned to selected benchmarked have significant potential categorised by maturity the wider adoption of UAVs as well as key insights countries in the LAC for investment and and relevance levels. across key sectors in about how drones can region. Additionally, the sector development. Brazil. Recommendations support environmental section explores the Forecasts on job creation are made in order to monitoring efforts, stakeholders, identifying and the number of increase digitalisation, especially related to their main categories, and commercial and raise drone awareness, inspections and mapping of regulations that support the recreational drones are and accelerate economic protected areas and water implementation of UAVs also included in the growth - all of which play a sources. across the country. chapter. role in improving economic, social, and environmental prospects in the country. 10 Endnotes 1. Federal Ministry of Economic Cooperation and Development, “An emerging economy experiencing difficult times,” 19. The World Bank. 2023. “Brazil: Country Climate and Development Report.” Website: Text/HTML, Federal Ministry of Economic Cooperation and Development, 20 May 2023, https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb https://www.bmz.de/en/countries/brazil. ank_EN_EXT. 2. International Trade Administration, “Brazil - Country Commercial Guide,” Website: Text/HTML, International Trade 20. The World Bank. 2023. “Brazil: Country Climate and Development Report.” Administration, 20 May 2023, https://www.trade.gov/knowledge-product/brazil-market-overview. https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb ank_EN_EXT. 3. WorldAtlas, “5 Countries With The Largest Rainforest Coverage,” Website: Text/HTML, WorldAtlas, 20 May 2023, https://www.worldatlas.com/articles/5-countries-with-the-largest-rainforest-area.html. 21. The World Bank. 2023. “Brazil: Country Climate and Development Report.” https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb 4. Federal Ministry of Economic Cooperation and Development, “An emerging economy experiencing difficult times,” ank_EN_EXT. Website: Text/HTML, Federal Ministry of Economic Cooperation and Development, 20 May 2023, https://www.bmz.de/en/countries/brazil. 22. The World Bank, “Urban population (% of total population) - Brazil, ”Website: Text/HTML,The World Bank, 20 May 2023, https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=BR. 5. World Resources Institute, “Carbon Flux: How Forests Serve As Carbon Sinks — or Carbon Sources,” Website: Text/HTML, World Resources Institute, 20 May 2023, 23. IDB, “Infralog: A route for the decarbonization of the transport sector in Brazil,” Website: Text/HTML, IDB, 20 May https://www.wri.org/insights/amazon-carbon-sink-indigenous-forests#:~:text=The%20Amazon%2C%20the%20worl 2023, d's%20largest,more%20carbon%20than%20it%20sequesters. https://blogs.iadb.org/sostenibilidad/en/infralog-a-route-for-the-decarbonization-of-the-transport-sector-in-brazil/. 6. The World Bank, “GNI per capita, PPP (current international $) - Brazil,” Website: Text/HTML, The World Bank, 20 24. IDB, “Infralog: A route for the decarbonization of the transport sector in Brazil,” Website: Text/HTML, IDB, 20 May May 2023, https://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD?locations=BR. 2023, https://blogs.iadb.org/sostenibilidad/en/infralog-a-route-for-the-decarbonization-of-the-transport-sector-in-brazil/. 7. IMF, “The risks to global growth are broadly balanced and a soft landing is a possibility,” Website: Text/HTML, IMF, 20 May 2023, 25. IDB, “Infralog: A route for the decarbonization of the transport sector in Brazil,” Website: Text/HTML, IDB, 20 May https://www.imf.org/en/Publications/WEO/Issues/2024/01/30/world-economic-outlook-update-january-2024. 2023, https://blogs.iadb.org/sostenibilidad/en/infralog-a-route-for-the-decarbonization-of-the-transport-sector-in-brazil/. 8. The World Bank. 2023. “Brazil: Country Climate and Development Report.” https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb 26. The World Bank, “The World Bank In Brazil,” Website: Text/HTML, The World Bank, 20 May 2023, ank_EN_EXT. https://www.worldbank.org/en/country/brazil/overview. 9. OECD, “Brazil Economic Snapshot,” Website: Text/HTML, OECD, 20 May 2023, 27. OAE Publishing, “Perspectives on carbon footprint of agricultural land-use in Brazil,” Website: Text/HTML, OAE https://www.oecd.org/economy/brazil-economic-snapshot/. Publishing, 20 May 2023, https://oaepublish.com/cf/article/view/4790#:~:text=Total%20gross%20GHG%20emissions%20reached,mining%20 10. The World Bank, “The World Bank In Brazil,” Website: Text/HTML, The World Bank, 20 May 2023, activities%2C%20and%20urban%20expansion. https://www.worldbank.org/en/country/brazil/overview. 28. The World Bank. 2023. “Brazil: Country Climate and Development Report.” 11. AgNews, “Observations of Brazilian agricultural input supply chain, Website: Text/HTML, AgNews, 20 May 2023, https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb https://news.agropages.com/News/NewsDetail---44879.htm. ank_EN_EXT. 12. Balanço Energético Nacional. 2021. “Summary report: reference year 2020.” 29. The World Bank. 2023. “Brazil: Country Climate and Development Report.” https://www.epe.gov.br/sites-en/publicacoes-dados-abertos/publicacoes/PublicacoesArquivos/publicacao-231/BEN https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb _S%C3%ADntese_2020_EN.pdf. ank_EN_EXT. 13. The World Bank. 2023. “Brazil: Country Climate and Development Report.” 30. The World Bank, “The World Bank In Brazil,” Website: Text/HTML, The World Bank, 20 May 2023, https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb https://www.worldbank.org/en/country/brazil/overview. ank_EN_EXT. 31. The World Bank, “The World Bank In Brazil,” Website: Text/HTML, The World Bank, 20 May 2023, 14. The World Bank. 2023. “Brazil: Country Climate and Development Report.” https://www.worldbank.org/en/country/brazil/overview. https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb ank_EN_EXT. 32. The World Bank, “The World Bank In Brazil,” Website: Text/HTML, The World Bank, 20 May 2023, https://www.worldbank.org/en/country/brazil/overview. 15. The World Bank. 2023. “Brazil: Country Climate and Development Report.” https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb 33. Brazilian Airlines, “Former Airlines,” Website: Text/HTML, Brazilian Airlines, 20 May 2023, ank_EN_EXT. https://brazilianairlines.com/airlines-from-the-past/. 16. The World Bank. 2023. “Brazil: Country Climate and Development Report.” 34. Embraer, “About us,” Website: Text/HTML, Embraer, 20 May 2023, https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb https://embraer.com/global/en/about-us#:~:text=Embraer%20emerged%20in%20Brazil%2C%20but,commercial%2 ank_EN_EXT. 0aircraft%20in%20the%20world. 17. The World Bank. 2023. “Brazil: Country Climate and Development Report.” 35. The International Trade Administration, “Brazil - Country Commercial Guide,” Website: Text/HTML, The https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb International Trade Administration, 20 May 2023, ank_EN_EXT. https://www.trade.gov/country-commercial-guides/brazil-defense-aviation-and-security. 18. The World Bank. 2023. “Brazil: Country Climate and Development Report.” 36. IATA, “The Importance of Air Transport to Brazil,” Website: Text/HTML, IATA, 20 May 2023, https://www.worldbank.org/en/programs/lac-green-growth-leading-the-change-we-need/brazil?cid=ECR_LI_worldb https://www.iata.org/en/iata-repository/publications/economic-reports/brazil--value-of-aviation/. ank_EN_EXT. 11 Endnotes 37. Embraer, “EmbraerX and Elroy Air Sign Agreement to Collaborate on Unmanned Air Cargo,” Website: Text/HTML, Embraer, 20 May 2023, https://embraer.com/global/en/news?slug=1206682-embraerx-and-elroy-air-sign-agreement-to-collaborate-on-unm anned-air-cargo. 38. Eve Air Mobility, “Eve, an Embraer company, to List on NYSE Through Business Combination with Zanite Acquisition Corp.” Website: Text/HTML, Eve Air Mobility, 20 May 2023, https://eveairmobility.com/eve-an-embraer-company-to-list-on-nyse-through-business-combination-with-zanite-acqu isition-corp/. 39. The Brazilian report, “Embraer enters drone market,” Website: Text/HTML, The Brazilian report, 20 May 2023, https://brazilian.report/liveblog/2022/09/21/embraer-enters-drone-market/. 40. Embraer, ”Embraer announces investment in XMobots, a reference company in the development of mobile robotics and drones,” Website: Text/HTML, Embraer, 20 May 2023, https://embraer.com/global/en/news/?slug=1207096-embraer-announces-investment-in-xmobots-a-reference-comp any-in-the-development-of-mobile-robotics-and-drones. 41. ANAC, “Aeródromos,” Website: Text/HTML, ANAC, 20 May 2023, https://www.anac.gov.br/acesso-a-informacao/dados-abertos/areas-de-atuacao/aerodromos. 42. ANAC, “Empresas Aéreas - Consulta,” Website: Text/HTML, ANAC, 20 May 2023, https://sas.anac.gov.br/sas/empresasaereas/view/frmEmpresas.aspx. 43. ANAC, “Drones,” Website: Text/HTML, ANAC, 20 May 2023, https://www.anac.gov.br/en/drones. 12 2 The global drone market for commercial use cases has Chinese manufacturer that offers high-quality, general-purpose, and experienced rapid expansion in recent years and the total revenue cost-effective multirotor UAS platforms. Many local companies have for the industry is expected to reach $34 billion in 2023.1 The used this foundation to build tailored solutions for specific increased adoption of this technology worldwide has been led by applications. several international companies that provide Unmanned Aircraft System (UAS) hardware, software, and related services as well as However, the country has also been developing a strong domestic local companies that offer tailored solutions for the unique drone industry with a growing number of native players. By applying conditions in different regions. localisation that aligns with the country’s specific needs, these companies have specific innovations that can be exported globally. The adoption of this technology for developmental purposes has Examples of this include tropical service mapping systems that also increased over the last few years, both globally and in the LAC require minimal maintenance2 and precision agriculture tools that Overview of the region. Drones are serving as valuable tools to address various humanitarian, environmental, and social issues. In many cases, can be tailored to local landscapes.3 Drone Ecosystem they are stepping in where poor transportation conditions and a lack of infrastructure make it difficult to provide quality and timely This two-fold approach that incorporates global perspectives while also developing solutions rooted in the local context is key to the in Brazil services utilising traditional means. They are also a safer and more cost-effective solution to specific local challenges. long-term development of the drone ecosystem. This is what will allow the local Brazilian industry to contribute meaningfully to global innovation through these specific use cases. In Brazil specifically, international players have played a significant role in growing the drone landscape, with one example being a 13 Brazil has the most developed drone ecosystem in the region, The revenue generated by the drone industry and related having been at the forefront of adopting drone technology over the commercial services is estimated to see significant growth in the past few decades. In 2022, there were already over 6,400 coming years due to increased adoption. This is attributable to a companies registered for commercial drone usage in the country.4,5 progressive regulatory framework and the work done by research institutions and innovation accelerators. Research institutes like the Although the initial development of UAS was attributed to military Brazilian Agricultural Research Corporation (Embrapa) have been application, the ecosystem expanded to usage in agriculture and instrumental in this regard, having executed various pilot projects environmental protection in the late 2000’s.6 Drones were swiftly across the country to map important aspects of vegetation and the integrated to monitor vast farmlands, offering farmers valuable wider environment. These efforts contribute to a growing insights into crop health, pest infestations, and irrigation needs. awareness of drones and their practical applications. In April 2022 there were more than 93 thousand UAS units registered, of which Much of this work was undertaken by public universities and over 40 thousand were registered for commercial use.12 governmental institutions that were focusing on use cases such as vegetation image mapping, forest biodiversity management, and The success of drone adoption in agriculture has spurred other wildlife conservation. This initial foray marked a shift that enhanced industries to start introducing drone applications in activities such precision agriculture practices and elevated agricultural productivity as power line maintenance, mining surveys, road monitoring, and more generally. surveillance, to name a few. And as large companies have expanded their commercial UAS operations, many local players Regulatory scrutiny followed as the drone and aviation industry have also started to develop their own customised hardware and started to grow and in 2005, the National Civil Aviation Authority software solutions. Hence, the number of market players has (ANAC) replaced the Department of Civil Aviation (DAC) and was increased steadily and Brazil now has more than 20 local made responsible for supervising and inspecting all aviation manufacturers and the 15th largest company in the segment activities, including drones. This required setting up new laws and (XMobots).13 This bodes well for the future as there is significant regulations that aimed to protect the interests of the public while still potential for the drone ecosystem to grow as new applications trying to support the burgeoning industry. mature and end-user awareness increases. ANAC is supported by the National Telecommunication Agency (ANATEL), responsible for approving UAS technology in terms of norms and conditions related to radio frequency use, and the Most impactful use cases for drones in Brazil14 Department of Airspace Control (DECEA) which is responsible for approving drone take-offs and landings. Agriculture: Drones are used for crop health monitoring, crop spraying, and optimising resource utilisation in agriculture. The Brazilian drone ecosystem in numbers Environmental protection and monitoring: Drones are 93k registered UAS units as of April 2022 7 employed in forest protection, reforestation efforts, and wildlife conservation. 40k registered UAS for commercial use Infrastructure resilience and maintenance: Drones as of April 20228 perform inspections for power lines, railways, highways, mining, and hydroelectric power plant infrastructure. 75k registered UAS operators as of April 20229 Logistic and delivery solutions: Drones are starting to be employed for fast and efficient goods delivery (both medical 6375 legal entities registered as UAS operators as and commercial) in urban, peri-urban, and remote areas. of April 202210 Safety and security: Drones are used to enhance public More than 600k airspace access requests safety during large events, control forbidden activities and processed by SARPAS by September 202211 to detect security violations 14 Drone technology has been a net positive for Brazil with commercial Box 2.1 Overview of UAS History in Brazil drones allowing various industries to operate more efficiently, in shorter time frames, and without needing to put workers into The history of UAVs in Brazil dates back to the 1980s with technology applications first emerging in the military unnecessary danger. These cost savings have been passed down sector.17 It took almost two decades until the civilian use of drones gained momentum with AGX Tecnologia being to the consumer through more competitive prices and the increased the first local company to pioneer its usage in 2002.18 Three years later, that same company piloted the first 100% economic activity has created new jobs which is an important Brazilian fixed-wing UAV in collaboration with the University of São Paulo and Embrapa.19 component of the industry’s success. In addition to commercial applications, governmental agencies at In 2007, XMobots was established, receiving financial support from research institutes and public universities during the federal and state levels are starting to use drone technology to its early stages.20 As interest in commercial drone applications grew throughout the 2010s, various regulations gather various types of data. This information will help public sector started to be implemented. DECEA released AIC No. 21/10 to replace AIC N29/09 which was better suited to departments and agencies make more informed decisions that managing the usage of UAVs in Brazilian airspace.21 In 2012, ANAC released IS No. 21-002 to regulate the ultimately benefit the Brazilian populace. Although the usage of authorisation process22 and the following year XMobots become the first company to obtain civil authorisation for drones varies across different states, a good example of beneficial drone use in precision agriculture.23 The company has since gone on to become Brazil’s leading drone company implementation was seen back in 2020, when reforestation efforts and the 15th largest drone manufacturer in the world.24 were made in the Amazon rainforest.15 At the time, deforestation was at its highest level in over a decade and it represented an environmental crisis that threatened Brazil’s biodiversity, Brazil soon became a regional hub for drone conferences and expos and they leveraged this to open the first drone ecosystems, and the livelihoods of the people in those remote pilot training centre in the LAC region. The growing interest in drones led to a surge in the number of civil UAVs areas.16 The implementation of drone technology helped to receiving permission to operate in Brazilian airspace.25 The increased scale resulted in further legislative changes significantly speed up the planting of new trees thanks to improved including the deployment of the beta version of the Remotely Piloted Aircraft Access Request (SARPAS) system at analytics and surveillance of the affected areas. the end of 2016.26 This system streamlined the authorisation process for drone flights and by 2022 it had processed over 600,000 airspace access requests. It has since been updated to SARPAS NG.27 The Brazilian drone ecosystem continues to evolve and has significant potential for further development which can contribute toward solving economic, social, and environmental challenges In 2015, ANAC presented a draft of new drone regulations that were available for public consultation, receiving over across the country. In fact, the future of Brazil’s drone industry is 270 contributions.28 Two years later, ANAC passed RBAC No. 94 which formalised many key aspects of drone expected to continue growing steadily. Advancements in artificial operations in the country.29 Additionally, the System for Unmanned Aircraft (SISANT) was introduced by ANAC as a intelligence (AI), autonomous flight, and battery technology are all mandatory and free drone registration system.30 By the end of 2017, around 30,000 drones were registered and by expected to greatly enhance drone capabilities, making them safer, April 2022 this number had tripled.31 more efficient, and more versatile. This should enable the potential applications for drones to expand widely across every industry, driving greener growth and development. ANAC initiated another public consultation to gather input from the sector and improve the regulations for unmanned aircraft in 2019.32 Drone operators, having gained meaningful experience, were wanting to take on more challenging operations and more nuanced use cases. In response, the Ministry of Agriculture opened a public consultation in 2020 to regulate the use of UAS for agricultural spraying, establishing standards for drones weighing up to 25kg.33 In September 2021, an ordinance was approved, outlining specifications for spraying operations such as the registration of chemical agents and qualification requirements for operators.34 There has also been a growing interest in beyond-visual-line-of-sight (BVLOS) operations and flights above 400ft. The first drone to receive BVLOS authorisation from ANAC was one developed by FT Sistemas in 2018. 35 This has spurred many other companies to start experimenting with drone-based delivery services which have captured the attention of users all across the world. These deliveries have primarily been done in urban areas to overcome Brazil’s transportation challenges and reduce delivery times. Speedbird Aero became the first drone delivery operation to receive regulatory approval in 2020.36 Following the rapid pace of development in Brazil’s drone sector, governmental bodies are actively working on regulations that are well-suited for current needs. In 2023, DECEA updated the instruction ICA 100-40 for drones to access the airspace, facilitating the flight request process and reducing response time for pilots.37 DECEA also released a compiled manual MCA 56-5 for UAVs’ "Special Air Operations", including emergency, defence, and public security.38 Additionally, ANAC published resolution Nº 710 to simplify the rules for the use of drones in agricultural operations such as dispersing fertilisers and pesticides.39 15 Figure 2.1 Timeline with Key Drone-Related Events in Brazil ANAC starts a public consultation to understand widely-held opinion to simplify and reduce bureaucracy in drone registrations.59 ANAC publishes a resolution to EDP is the first simplify operational company in the requirements for electricity sector to agricultural drones.64 be certified by ANAC to monitor networks ANAC publishes a DECEA publishes a using drones.60 DECEA updates the decision to complementary instructions for RPAS authorise the The first drone instruction for Claro signs an to access the Federal Police pilot training centre Remotely Piloted agreement for airspace, Department to in the LAC region Aircraft Systems facilitating the flight ANAC initiates Speedbird Aero to utilise drones, opens its doors in (RPAS) and the request process and open public carry out deliveries establishing specific Brazil.47 access to Brazilian reducing response discussions on by drone using the provisions for airspace, including time.65 how to improve 4G and 5G flights.44 flight parameters and drone networks.61 XMobots obtains prohibited zones.50 regulations.56 the first civil DECEA publishes a The first drone authorisation to fly ANAC reaches the ANAC changes compiled manual for Pioneering Leading conference in the drones for First regulations ANAC approves mark of 79,000 registration UAVs’ "Special Air Brazilian drone Brazilian drone LAC region takes precision are drafted and RBAC No. 94, registered drones processes of UAS Operations" company AGX company place where a agriculture for a made available for establishing the main in Brazil, of which classes 2 and 3 in including Tecnologia is XMobots is fixed-wing UAV is commercial public consultation characteristics of 29,000 are order to reduce emergency, defence, created.40 created.42 presented.45 company.48 by ANAC.51 UAS operation.53 commercial.57 bureaucracy.62 and public security.66 2002 2005 2007 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 First flight of a First regulatory ANAC publishes The first drone SARPAS is The first BVLOS iFood and Drone regulations Brazilian act on drones is a supplementary expo in the LAC launched as the drone flights are Speedbird Aero are revised and an fixed-wing published by instruction setting region takes place first unmanned approved.54 partner to provide updated version drone.41 DECEA.43 requirements for in Brazil.49 traffic food delivery via was issued.63 drone flight. management drone.58 authorisation.46 system in Brazil.52 Brazil becomes the world’s tenth-largest market for agricultural drones.55 General events Regulatory events Source: PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second semester 2022. 16 2.1 Brazil has the largest and most advanced drone ecosystem in Formal and comprehensive regulations have been in place since the region in terms of the three components covered in this 2017 (RBAC. No 94),68 and the first requirements for piloting RPAs maturity assessment.67 In comparison with other countries in were issued in 2012.69 Since then, Brazil has been developing a LAC the industry is amongst the most mature, in terms of its dynamic drone sector, supported by the most advanced and supply and demand, its regulatory framework, and its digital comprehensive drone regulations in the region.70 This framework readiness (Table 2.1). has enabled a range of commercial drone operations to be established and the introduction of more complex UAS applications The Brazilian market for drone services is characterised by a strong across different industries. presence of international producers and a broad supply of local manufacturers for most of the key industries, especially in There is still a need for further advancement in the regulatory agriculture, mining, and infrastructure. Although the adoption of framework however to expedite operations such as BVLOS while Maturity of the UAS in all other sectors is comparatively lower, R&D institutions, associations, and universities are working together with companies improving digital readiness (section 2.3), and UTM systems. drone ecosystem in to explore the full potential of this technology to boost economic growth and address development challenges in the country. Brazil Table 2.1 Brazilian UAS Ecosystem Maturity Assessment Compared to Selected Regional Benchmark Countries Component Maturity C Industry Readiness Early adopters Selected companies Wide Adoption C Supply & Demand Access to UAS Operators Mainly hobbyists Limited Wide, professionals C Training & Education Not available Available Widely available C Insurance Not available General Dedicated C Marketplace & Other Not available Basic Advanced C Execution of Regulations Regulations Low Medium High C Approach to BVLOS Not available Waivers Allowed C Licensing & Examination Not available Operated by CAA Certified centres C Registration Not available Analog Digital Digital Readiness C Flight Authorisation Time 2+ weeks 1-2 days Instant C Airspace Maps No access Descriptive Digitalized C Identification & Tracking Not available Digital flight plan Remote ID C Caribbean Source: PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second semester 2022. 17 Regional Outlook Figure 2.2 UAS Services Regional Market Value and Forecast Growth by Country, 2021-2026 Brazil's growth trajectory combined with innovation among key sectors has created Estimated Market Value in 2021, Forecasted Market Value in 2026, CAGR a prosperous environment with several opportunities for the development of drone Country [USD Mn] [USD Mn] ’21-’26 technology. As a result, Brazil has become the leading market for commercial drone services in the region. By 2026, the market value generated by UAS Brazil 67.0 321.6 37% commercial services is estimated to reach USD 321.6 Mn, with a projected compound annual growth rate (CAGR) of 37% until 2026. (Figure 2.2). Mexico 19.1 100.2 39% Brazil is closely followed by Mexico and Argentina, and then Colombia and Peru to a Argentina 18.8 94.7 38% lesser extent, and these six nations are expected to continue representing over 75% of the regional market value for UAS services until 2026. This is despite varying economic Colombia 11.9 67.8 42% conditions, local infrastructure development, and other barriers and enablers that play a role in these countries. There are several opportunities to incorporate advanced drone Peru 11.7 64.3 41% technology into various industries to improve efficiency, cost reduction, and revenue generation. Bolivia 7.6 39.3 39% The market for UAS services in Mexico is growing steadily and this technology has Venezuela 7.3 36.4 38% already been integrated into business operations, primarily in the agricultural and surveillance fields. With a rapid pace of growth projected, Mexico is forecast to be the Chile 6.3 30.9 39% second-largest contributor in the LAC region and its market value is expected to grow at a CAGR of 39% (2021-2026), reaching over USD 100.2 Mn by 2026. Despite this positive Paraguay 3.4 15.9 36% forecast, the restrictions of BVLOS operations and the prohibition for non-Mexican citizens to operate drones are relevant barriers to the full development of the UAS service C Caribbean 2.6 13.5 39% market. Ecuador 2.4 11.9 38% In Argentina, the adoption of drones has also been expanding significantly, transforming the way that businesses conduct their activities in the country, particularly in the Suriname 2.2 10.7 37% agriculture and oil and gas sectors which are seeing consistent growth in drone adoption. The number of emerging tests, research initiatives, and pilot projects in different areas Uruguay 1.6 7.8 37% indicates a growing recognition of the potential benefits presented by drones. Consequently, Argentina is ranked as the third-largest country in terms of drone services Nicaragua 1.3 6.4 37% with the market value estimated to be USD 94.7 Mn in 2026. Guyana 1.1 5.9 39% Colombia has also experienced rapid growth over the past 5 years. Agriculture, oil and gas, and power and utilities are the sectors in which market players most often use Guatemala 1.0 5.3 39% drones for surveillance, monitoring, and mapping. The projected market value for UAS services in Colombia is expected to grow at a CAGR of 42% (2021-2026) to reach 67.8 Honduras 0.9 5.1 43% million USD in 2026. However, the value of potential revenue could be much higher if drone regulations are improved in order to enable technological innovations and Panama 0.8 4.2 39% advanced drone operations. Costa Rica 0.6 3.1 39% The growth of drone services in Peru is mostly based on the increasing usage of drones for precise crop health monitoring and pesticide spraying in agriculture, as well as for Haiti 0.5 2.6 40% survey conductions to discover geological deposits and minerals in the mining sector. The adoption of drones is also growing in both environmental and legal compliance as the El Salvador 0.4 2.0 38% technology helps law enforcement officers identify illegal loggers, prevent prohibited actions, and protect endangered areas. In Peru, the market value of drone services is Belize 0.2 1.1 39% estimated to increase reach approximately USD 64.3 Mn in 2026. Total 168.6 849.4 38% C Caribbean Source: PwC analysis on market size and market potential, second semester 2021. 18 Distribution of Registered Drones per State in Brazil* Drones Registration Across Brazilian States Figure 2.3 Number of Drones per State as of April, 2022 Drone adoption for both recreational and commercial purposes has experienced a notable surge in Brazil. This growth has been particularly pronounced in sectors such as agriculture, Roraima infrastructure, safety, and security. Additionally, there has been a widespread proliferation of research projects, proof of concepts, and Amapá the gradual integration of drones into social and environmental processes across the nation. However, despite the increasing adoption and expansion of UAS technology, the availability and usage of drones by public and private entities throughout the country also is conditioned by the significant social, economic, technological, and environmental disparities, as well as the varied Amazonas Pará Rio Grande realities that exist both between and within Brazilian states. Maranhão Ceará do Norte As such, the number of drones is steadily growing and this trend is Paraíba projected to continue. As of April 2022, the number of unmanned Pernambuco vehicles reached 93,729, of which 40,823 (44%) were being used Piauí for professional purposes, and the remaining 52,906 (56%) were Acre Alagoas being used recreationally.71 The number of registered drones varies Sergipe significantly across different states in the country and is influenced Tocantins by Brazil's population distribution, the level of economic Rondônia MatoGrosso development driven by leading industrial sectors, and the maturity of Bahia adopted drone-based applications for commercial or recreational purposes. These drones are highly concentrated in two states: Sao Distrito Paulo (31,500 units) and Minas Gerais (10,000) States (figure Federal 2.3).72 Goiás Sao Paulo is known for its strong economy and has the highest GDP at the state level at around 30% of the total.73 Drone Minas Gerais technology has become an integral part of the state’s agriculture, Espírito Santo MatoGrosso safety and security, as well as forestry industries, with their do Sul permanent deployment driven by constant testing of new use cases São Paulo Rio de Janeiro through research and pilot projects. The state is also one of the main hubs for drone hardware and software developers, UAS service providers, and other companies operating in the field. Number of drones per state: Paraná Minas Gerais has the second most commercial and recreational drones and this is mostly driven by agriculture and livestock which 100 - 499 hit the record and generated USD 15.3 billion in 2022.74 In order to Santa Catarina provide technical assistance to rural producers and give farmers 500 - 999 access to timely and accurate data, drones have been used to map crops, identify degraded areas, monitor pests, and spray 1 000 - 4 999 Rio Grande pesticides.75, 76 do Sul 5 000 - 9 999 Rio de Janeiro follows closely behind with over nine thousand 10 000 - 29 999 drones as of April 2022. Here UAS have been mostly implemented for commercial use in safety and security to reinforce police patrols 30 000 - 39 999 and spot suspicious activities during highly crowded events.77, 78 Following Rio de Janeiro, Paraná is ranked to have the fourth *calculation based on the total number of drones,adding commercial and recreational units. highest concentration of drones in the country with over six thousand units. 19 2.2 Brazil’s drone ecosystem has gone through a period of significant To support the ecosystem further, various innovation centres have growth with many diverse stakeholders contributing to its emerged, often formed through public-private partnerships and development. Although the first implementations were military primarily focused on agricultural technology. Public universities and applications, they quickly expanded to public institutions, research centres like Embrapa play a critical role here in advancing universities, and private research centres that conducted the development of UAS technology and partnering with external experimental operations and research projects.79 This then led to companies to run pilot projects across different applications.82 the emergence of many new companies, that were able to leverage drones to serve local needs. In the commercial space, different business opportunities have been explored including consulting services, training, insurance, As an example, the availability of small UAVs dedicated to aerial maintenance, and the like. This is in addition to the resellers who filming has transformed the videography market as these drones cater to a wider customer base, and the drone service providers Ecosystem are cheaper and simpler to operate, leading to increased popularity amongst the general public who use them for recreational who offer tailored solutions for applications such as mapping, inspection, aerial photography, and videography. stakeholders purposes. International drone manufacturers and resellers have seized this opportunity to cater to the growing demand, offering a Ancillary players have also seen success offering consulting wide range of recreational drones. Some resellers have even services for complex operations like BVLOS flights – helping their started to invest in more expensive drones that are better suited for clients to obtain the necessary certifications and adapt their drones more complex operations such as BVLOS or high-altitude flights. accordingly.83 Apart from resellers, Brazil also boasts several companies that Although Brazilian regulation requires licenses, official provide customised drone solutions that are tailored to specific qualifications, and exams for drone pilots (depending on the type activities.80 Major companies across various sectors including and class of RPAS),84 many institutions offer separate modules and agriculture, mining, power, and utilities have shown interest in courses in areas such as mapping, site inspections, and adopting drones for monitoring and inspecting their facilities. The maintenance.85 The increase in the number of training providers agricultural sector has witnessed significant development with and variety of curricula has meant that ANAC has had to step in to hardware and software companies investing in precision provide some standardisation. They determine the acceptable agriculture, crop spraying, and mapping solutions. This has even criteria for issuing the appropriate license and qualifications for expanded to more advanced use cases such as spraying pesticides each type of operation and they now validate and certify those and sowing seeds from the air. As a result, the country has become obtained through external course providers. the largest hardware supplier in the region, and several Brazilian To summarise, Brazil’s drone ecosystem is fuelled by collaborations companies are starting to export their technology and services. between public institutions, universities, innovation accelerators, Delivery companies have also recognised the latent potential to use and private companies. From recreational drones to specialised drones as a transportation solution. Local drone manufacturers are solutions for various industries and development purposes, the actively seeking partnerships with large companies who are market is growing steadily. If the country can continue to innovate interested in investing in this area, attempting to develop through strategic partnerships and a diverse range of services, it specialised aircraft that are better suited for these sorts of can strengthen its position as a regional hub and enhance its deliveries.81 presence as a global reference point for the drone industry. 20 NON-EXHAUSTIVE Figure 2.4 Drone Ecosystem of Brazil: Main Market Players Companies Operating Across Multiple Categories Associations Regulators Hardware and Software Developers End-Users Drone Services Providers Training and Education Innovation Accelerators Source: PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the first quarter of 2023. 21 In Brazil, precision agriculture applications have greatly benefited from the integration between images obtained with drones and artificial intelligence. Most approaches involve the detection of animals or fruits, feature extraction for plant counting, line detection of crops, recognition of plantation gaps, segmentation of weeds, phenology, detection of phenotypes, and many others. These applications offer numerous possibilities for this type of mapping, especially since most of these tasks are also conducted manually by human visual inspection. As a result, they can help precision farming practices, returning predictions with quick, unbiased, and accurate results, influencing decision-making for systems management agriculture. Lucio Jorge, Researcher at Embrapa in AI and Drones The use of drones in Brazilian agriculture has proven to be a promising tool to increase the efficiency and sustainability of the industry. By collecting data through built-in sensors, drones can monitor crop growth, identify disease, detect nutrient deficiencies, and assess plant health more accurately and in real-time. In addition, they allow the precise application of agricultural inputs, such as fertilisers and pesticides, saving up to 96% of water and minimising environmental contamination. This results in the conservation of natural resources and the preservation of local biodiversity. In terms of market growth prospects, the adoption of drone technology is expected to continue to expand as more farmers realise the benefits to both higher crop productivity and the environment. With the development of increasingly sophisticated and accessible solutions, Brazilian agribusiness has the opportunity to lead technological innovation in agriculture and support the modernisation of the countryside. Giovani Amianti, BoD Chairman and CEO at XMobots 22 Delivery drones are poised to be a game-changer for addressing Brazil's logistics challenges, presenting innovative solutions to age-old problems. In response, regulatory bodies, local governments, and businesses in Brazil are actively rallying behind the gradual adoption of a scalable and sustainable drone delivery system. Brazil's forward-thinking regulatory framework emphasises safety and responsible drone operations. Specifically, the implementation of Drone Delivery and Advanced Air Mobility regulations is paving the way for a harmonious coexistence among all stakeholders. In six major capital cities, we are witnessing the rise of multiple daily drone delivery services, encompassing a wide spectrum from food and beverage deliveries to transporting crucial laboratory samples. The secret to their success lies in a pragmatic approach that connects major distribution centres to strategically placed urban hubs, eliminating between 80 and 90% of the complexities and congestion in delivery routes. This optimised use of existing infrastructure not only vastly improves delivery times and slashes costs but also reduces carbon emissions. Simultaneously, it supports job creation and opens up exciting business prospects within the local communities where this sustainable form of drone delivery is taking flight. The surging adoption of delivery drones is poised to be a pivotal force, propelling Brazil forward as it overcomes its logistical hurdles, transforming the transport of goods, enhancing efficiency, cost-effectiveness, and contributing significantly to the nation's overall progress. Manoel Coelho, CEO at Speedbird Aero 23 The Brazilian drone ecosystem has developed through the drones. Their seamless integration of drones with Altave Harpia collective efforts of a diverse array of stakeholders, each software provides global clients with connectivity and video Companies Operating Across Multiple playing a pivotal role in driving its growth and success. monitoring solutions. Altave's services cater to sectors including Categories With over 130 active native players and a strong presence telecommunications, defence and security, agriculture, of international drone hardware and software providers, the environmental monitoring, mining, and construction – enabling There are several companies operating across multiple drone industry in Brazil has shown significant growth and incident investigation, surveys, inspections, and navigating categories, which is typical in a drone ecosystem of this potential for partnerships and innovation.86 challenging terrains.90 maturity, showcasing their versatility and comprehensive offerings (Annex 1). The analysis has identified eight categories of stakeholders in the Brazilian drone ecosystem, with each group playing a key One example is XMobots, a prominent player in the industry role in accelerating technology adoption across several with a strong presence locally and within the wider region. industries and development use cases. The regulators have Drone Service Providers XMobots specialises in hardware manufacturing, software taken a proactive approach to create and update the regulatory development, and drone services primarily focused on framework, enabling UAS use, promoting industry development, agriculture and environmental applications.94 Additionally, they and ensuring safety. Drone associations have been The Brazilian market of drone service providers is dynamic aim to expand their operations to include logistics for instrumental as facilitators for knowledge sharing and and diverse with a wide range of specialised companies humanitarian causes, oil and gas, and mining. They also aim to collaboration. Hardware and software providers have offering innovative solutions. These providers offer a provide expertise in unmanned traffic management (UTM), propelled technological advancements in many forms. Drone variety of services and expertise, leveraging drone ensuring safe and efficient drone operations.95 service providers offer specialised services that align with technology to meet the unique needs of their clients across local and global needs. Training and education institutions different sectors in Brazil (Annex 1). They are actively involved in global drone events, they have play a vital role in equipping individuals and organisations with established partnerships with companies worldwide, and they essential skills. Innovation accelerators foster Arpac, established in 2015, is an example of a drone service continue to export their drones to countries like Angola, Chile, entrepreneurship and offer support along the journey. And provider in the agricultural sector. They specialise in providing Argentina, and Peru, contributing to Brazil's representation and end-users stimulate demand, contributing to the industry's custom-developed hardware and software solutions tailored visibility in the global drone ecosystem.96 expansion. specifically to the needs of Brazilian crops. Arpac distinguishes itself by exclusively utilising locally manufactured hardware Another crucial player is Speedbird Aero, who pioneered the components, ensuring quality and supporting the Brazilian drone delivery market with a strong focus on regulatory manufacturing industry. Their drones can be personalised and compliance and technological innovation. They are tailored to meet the specific requirements of each customer.91 ANAC-certified and focuses on transforming logistics with their Hardware & Software scalable drone transportation.97 In addition to Arpac, there are several other drone service providers in Brazil catering to specific sectors. Plimsoll UAV Brazil leads the region in drone hardware and software specialises in inspecting Floating Production Storage and development with a strong presence of international Offloading Systems (FPSOs),92 while Ulstein Belga Marine producers like DJI, XAG, HEMAV, Flyability, Sensefly, offers UAV inspections for various offshore structures.93 These Parrot, and ISI. Local developers are also emerging, driven companies provide domain-specific expertise for the oil and gas by affordable solutions for specialised local use cases and maritime industries in Brazil. (Annex 1). One of the largest and most established players in the Brazilian drone industry is FT Sistemas, established in 2005.87 They were among the first local manufacturers, specialising in tactical and light UAVs for civil and military applications. FT Sistemas has participated in various programs and projects with the Ministry of Defense, including their key security role during the 2016 Olympic Games.88 Their drones have been utilised in infrastructure, agriculture, logistics, and environmental conservation, showcasing their versatility and wide-ranging applications.89 Altave is an example of another Brazilian aerospace company. As a recognized strategic defence company, Altave specialises in real-time intelligent monitoring services using aerostats and 24 Training & Education Innovation Accelerators (R&D) Drone pilot training in Brazil is available both online and In Brazil, research and development (R&D) activities in the offline, facilitated by aviation schools and drone drone industry are primarily concentrated within public companies. While educational institutions are still universities and research institutes. These institutes play a exploring the integration of drone training into tertiary major role in advancing drone technology, boosting curriculums, short courses tailored to specific applications innovation, and supporting UAS pilots and proof of are already available (Annex 1). concepts (Annex 1). One relevant provider is ITARC, the oldest and most respected One example is the Brazilian Agricultural Research Corporation drone school in the country, offering comprehensive courses in (EMBRAPA), a renowned institution established in 1973.101 piloting, maintenance, data analytics, and various other EMBRAPA has been at the forefront of agricultural innovation applications. ITARC has also developed a mobile application for and has actively explored the integration of drones in interactive training and efficient drone management.98, 99 agriculture. They have successfully utilised drones for crop monitoring, precision agriculture, and remote sensing, One aspect that needs attention is the absence of a mandatory contributing to improved agricultural practices and increased license requirement for operating drones weighing up to 25kg productivity.102 and flying below 400ft.100 Without a standardised curriculum being established by ANAC and other stakeholders, there have Brazil has also undertaken projects like ARARA (Radio-Assisted been a wide range of course materials being developed which and Autonomous Reconnaissance Aircraft), which was a might lead to inconsistent pilot qualifications. There is an collaboration between the University of São Paulo, Purdue opportunity here to create standards and norms that training University (USA), and AGX Tecnologia. It aimed to demonstrate should abide by in order to protect the safety of the Brazilian the capabilities of the ARARA II drone in challenging End Users people and the industry’s commercial prospects. environments, showcasing its resilience and advanced features like a hyperspectral sensor.103 Various sectors in Brazil are benefiting from the maturing drone industry which is driving growth and progress. Industries such as forestry, mining, oil and gas, Associations infrastructure, and public entities are all leveraging drone technology to enhance their operations, nurture innovative solutions to particular industry and development Although there are a limited number of drone associations challenges, as well as to increase safety and security in Brazil, they remain a relevant channel to bring together measures (Annex 1). different stakeholders and UAS users, creating space for conversations and debates about the technology and its For example, Gerdau, Brazil's largest steel producer, has future (Annex 1). partnered with Embratel to leverage drones for intelligent monitoring, enhancing security measures and asset sensing in These associations serve as forums for industry professionals steel production. This innovative approach enables efficient to discuss important topics, leading to the refinement of management, remote equipment control, and real-time regulations over time and driving the advancement of the drone monitoring, contributing to the company's digitalisation and industry in Brazil. operational excellence.105, 106 For instance, the Brazilian Association of Multirotors (ABM), Additionally, in 2019, the Chico Mendes Institute for Biodiversity established in 2014, is the largest organisation dedicated to Conservation (ICMBio) partnered with Ecodrones, a multirotor equipment enthusiasts. ABM actively advocates for WWF-coordinated initiative, to utilise drones for assessing fire their interests, contributes to regulatory development, and risks in protected areas. Through drone data integration, a fire fosters collaboration and knowledge-sharing to support the risk zoning map was created for Brasília National Park widespread adoption of multirotor technology across various categorising varying risk levels, and guiding land management current and potential applications in Brazil.104 strategies such as fire prevention, controlled burns, and firefighting resource allocation.107 25 2.3 Although Brazil has some of the most comprehensive drone Additionally, due to the relevance of the agricultural sector, Brazil regulations in the LAC region, the country is constantly working introduced modifications in 2023 that simplified the regulations for toward optimising its legislation to allow commercial drone drones utilised to spread seeds, herbicides, and fertilisers. operations to fully expand to their potential. In 2015, ANAC Agricultural drones regardless of their weight have now been recognised the importance of regulating drones and, in designated as Class 3, therefore they must comply with this class’s collaboration with various specialised bodies and key stakeholders, operational requirements. That is, provided they operate within established a working group to develop a robust regulatory Visual Line of Sight (VLOS) or Extended Visual Line of Sight framework.108 These regulations were approved in 2017 and were (EVLOS), under 120m over uninhabited areas.112 considered an important milestone in the history of UAS in Brazil.109 To operate UAVs in Brazil, pilots must comply with regulations set Inspired by frameworks from the European Union and the United by ANAC as well as rules established by DECEA, ANATEL, the Regulation States of America, these new regulations introduced provisions regarding drone categorisation (based on weight and purpose), Ministry of Agriculture, Livestock and Food Supply (MAPA) and in specific cases the Ministry of Defense (MD).113, 114 drone registration, pilot licensing, operational limitations, and various safety and security measures.110 Since then, Brazil has All these entities play a key role in enabling a sophisticated drone been equipped with a well-defined, locally adapted, and constantly ecosystem that is not only safe and efficient for all stakeholders, but evolving regulatory framework to facilitate drone operations. A also one that creates opportunities for innovation and economic second wave of updates to the regulations was implemented in dynamism. Through partnerships with other public and private 2022, including the reduction of bureaucracy and simplification of entities, Brazilian regulators could aim to leverage their reach for registration processes for drones of Class 2 and 3 (flying BVLOS positive economic and social development of the technology. and/or over 120m) - enabling them to be registered through the System for Unmanned Aircraft (Sistema de Aeronaves não Tripuladas SISANT).111 Overview of regulatory bodies in Brazil ANAC (National Civil Aviation Agency) is the regulatory agency responsible for supervising and inspecting all activities in the sector of civil aviation and aeronautical infrastructure in Brazil, including drones. This includes regulations, inspections, certification of aircraft, manufacturers, aircraft maintenance organisations, aviation schools, aerodromes, and aviation professionals. SISANT is the digital drone registration platform through which all UAVs heavier than 250g must obtain a certificate of registration. ANATEL (National Telecommunication Agency) is responsible for regulating the entire telecommunications sector in the country. The Agency approves UAS technology in terms of norms and conditions on the radio spectrum use. If the drone hardware complies with the Agency’s regulations, a Homologation Certificate is issued. Without this approval, it is not possible to register the device with ANAC. DECEA (Department of Airspace Control) is responsible for approving take-offs and landings once a drone has been approved by ANATEL and registered at ANAC. Their role is to plan, manage, and control activities related to UAVs, providing airspace traffic services in a safe and efficient manner. Thus, any drone operation must be subjected to the rules of access to Brazilian airspace - and must request flight authorisation. However, in confined areas, the operator only needs the consent of ANAC and ANATEL and is not obliged to receive authorisation from DECEA. Other regulatory bodies are involved in the drone regulation process, depending on the circumstances. These include MAPA (The Ministry of Agriculture, Livestock and Food Supply), which establishes rules for the operation of drones for seeding, fertilisers’ and pesticides’ application in agricultural cultivation or the MD (Ministry of Defence), which in addition to the DECEA duties, holds the responsibility of authorising registered companies to conduct aerial surveying projects. 26 In Brazil, there are two primary systems that bolster the drone ecosystem and support the risk-based approach of the country’s regulations, ensuring safety and control over the airspace SARPAS NG Interface: Flight Permission Request123 users. The first system, SARPAS, is owned by DECEA and it enables drone operators to request access to Brazilian airspace. The second, known as SISANT, is provided by ANAC and serves as a UAS registration platform that also facilitates the issuance of airworthiness certificates. SARPAS (NG) At the end of 2016, DECEA introduced an innovative system for flight authorisation known as the Airspace Access Request System (SARPAS).115 This system was developed with the mandate of facilitating requests to access national airspace using drones as well as to authorise BVLOS flights after ANAC approval. During the first 18 months of operation, SARPAS processed around 37,000 airspace access requests with 75% being processed automatically, 17% within 2 days, and only 8% requiring the issuance of a Notice to Air Mission (NOTAM).116 The system evaluates the data submitted by the operator during flight planning, cross-references it with current regulations, and determines if an authorisation can be granted automatically (within 45 minutes) or if it needs to be manually analysed by an airspace expert. If the assessment requires this expert but not a NOTAM, the clearance can be obtained within a span of 2 days, as opposed to 12 days when such a notice is necessary.117 In July of 2022, the final version of the updated system was implemented - SARPAS NG (new generation). The new release provided multiple user-friendly features, such as synchronisation with the SISANT registration database - enabling automatic inclusion of data from both systems, the ability to login using a GOV.BR account, registration of organisations and the creation of teams.118 Eventually, DECEA aims to integrate both manned and unmanned aircraft into a single volume of airspace, using as much automation as possible to reduce request processing time. SISANT The SISANT system, a platform for drone registration and certification, was released by ANAC in May of 2017.119 The system is an owner register that adheres to general aircraft registration regulations, although the registration process for drones is significantly simpler. UAV registration can be done under the name of an individual or a company during which the owner submits various personal information. The information captured relating to the drone includes the name, model, manufacturer, serial number, and a picture that clearly identifies the specific drone. SISANT then provides a registration certificate that must be carried by the owner or pilot of the UAV during its operation.120 Starting from May 17th 2022, ANAC commenced the implementation of an upgraded SISANT system that seamlessly integrates with the entire ANAC data network. This integration allows for the unification of user profiles with other agency systems, ensuring enhanced security and stability of the service. Additionally the revamp introduced functionalities such as drone ownership transfers between users, drone registration for advanced uses, and issuance of special airworthiness certificates.121 Furthermore, the enhanced SISANT system was specifically developed to withstand future challenges, enabling the seamless incorporation of functionalities and information. It has been provided with the capacity to include components necessary for serving the upcoming Brazilian UTM system122 (pag. 31). 27 The journey of a future drone owner starts by choosing the type of SARPAS system follows a similar sequence, but it allows for the UAS that suits their requirements. However, during this stage, it is synchronisation of drone data from SISANT, automatically importing crucial to also consider the maximum takeoff weight of the drone registered drones into the SARPAS account. In addition, it is mandatory (including all payloads), as this is the primary factor that to have insurance covering damage to third parties, and to conduct an differentiates UAVs in Brazilian legislation. This weight operational risk assessment. consideration determines the subsequent steps that need to be taken before the drone can take off. Drones weighing less than 250g Furthermore, to operate UAS weighing more than 25kg, the pilot must are classified as aircraft models and do not have any specific obtain a licence and rating issued or validated by ANAC, along with an requirements to fly. Conversely, UAVs weighing more than 250g Aeronautical Medical Certificate.125 UAVs heavier than 25kg, as well as necessitate a series of steps to be completed before they can be those weighing less but intended for flying above 120m or beyond visual flown (Figure 2.5). line of sight must also be equipped with an Airworthiness Certificate.126 Drones weighing more than 250g are required to be registered in the To utilise agricultural drones it is necessary to comply with additional SISANT system.124 However it is necessary to register the operator first, requirements imposed by the Ministry of Agriculture, Livestock and Food as the UAS is linked to the individual undergoing the registration Supply (MAPA). It is mandatory for the UAS operator to register in process. The registration number generated by SISANT must be clearly SIPEAGRO - the Integrated System of Agricultural Products and displayed on the drone’s chassis, and the registration certificate should Establishments.127 be carried by the pilot during operations. The registration process in the Figure 2.5 Brazil Drone Operator’s Journey from Drone Purchase to Flights128, 129, 130, 131 For drones of weight more than 250 g Register* Register** Visibly mark Register* Synchronise Obtain drone operator in drone in drone with operator in SARPAS NG inscription SISANT SISANT registration SARPAS NG with SISANT certificate system system number system drone registry Register operator with MAPA through Pilot Licence*** (if required) SIPEAGRO Risk Assessment + Flight Manual Drone and pilot Drone Purchase Airworthiness Certificate*** (if applicable) are ready to fly Insurance*** Be at least 18 years old Mandatory for commercial and recreational Aeronautical purposes for drones heavier than 250 g Medical Certificate issued by ANAC or DECEA For classes 1 and 2 Agricultural drones Pilot registration Drone registration *User can create new account or login through gov.br page using CPF number (Individual Taxpayer Registration). **User can register drone on behalf of other legal entity (company, institution etc.). ***Does not apply to agricultural drones 28 Source: PwC analysis, ANAC Overview of regulations As a general rule, all UAV operations in Brazil must be carried out accordingly to DECEA ordinances: Box 2.2 ANAC Simplifies the Rules for • Ordinance ICA 100-40 regulates the procedures and responsibilities necessary for general UAVs Drones Utilised in Agricultural General Flight access to the Brazilian Airspace.132 Operations141 Parameters • Recreational uses of either drones or model aircrafts are regulated in Ordinance MCA 56-2.133 ANAC's Resolution No. 710 (May 2, 2023) • Special Air Operations conducted by bodies linked to the Federal, State or Municipal Governments reclassified drones used for applying fertilisers, related to public safety and emergency uses are standardised by Ordinance MCA 56-5.134 pesticides, and seeds as Class 3, eliminating the need for a project authorisation process. As long as In Brazil, it is prohibited to fly over certain areas such as government buildings, prisons, military the drone operates within specific parameters, facilities, and other critical infrastructure without prior authorisation from the responsible authorities. including distance from third parties and Geographical Flight parameters, as well as prohibited and restricted zones, are regulated by DECEA in ICA 100-40 VLOS/EVLOS up to 120m above ground, it can be Restrictions instruction.135 Flights over historical sites and national parks may also be restricted or require used without additional authorisation regardless of additional authorisation. Furthermore, individual municipalities within Brazil may impose their own their maximum take-off weight (MTOW). These specific limitations on the use of drones within their respective cities or towns. changes will undoubtedly enhance the flexibility of incorporating larger drone models into Brazilian agriculture. No UAV operations should occur within 30m of any people who are non-consenting.136 When it comes to parades, concerts, rallies, demonstrations, and other events – a drone can only be flown if it is a professional flight that meets specific requirements such as a risk analysis report, third-party Flying Over People insurance, and explicit authorisation from the event organisers. This does not apply to operations by a public institution (or an operator on their behalf) engaged in security, police, tax and customs inspection, searching for vectors of disease transmission, civil defense, or firefighting. Unmanned Aerial Systems are divided into three classes based on their maximum takeoff weight which includes the battery, fuel, and any possible payload. Сlass 1 - Drones with a maximum takeoff weight greater than 150kg. UAV Weight Сlass 2 - Drones with a maximum takeoff weight between 25kg and 150kg. Categories Сlass 3 - Drones with a maximum takeoff weight of up to 25kg: • Drones with a maximum takeoff weight greater than 250g and less than 25kg; • Drones with a maximum takeoff weight less than 250g; and • Since 2023, agricultural drones regardless of their maximum takeoff weight (Box 2.2).137 All operators of UAVs with a maximum takeoff weight greater than 250g are required to have insurance Insurance coverage for damage to third parties and to carry out an Operational Risk Assessment. The insurance requirement does not apply to drones owned by institutions controlled by the State.138 Registration of UAVs in the SISANT system is mandatory for recreational model aircrafts or non-recreational drones with a maximum takeoff weight of more than 250g. However, prior to registering the drone it is necessary to first register its owner. During drone registration process, it is also necessary to choose its final purpose: recreational or commercial use. Pilot - UAS An identification number comprising of nine digits is automatically generated by the SISANT system, Registration and upon completing the drone registration process. The number is prefixed according to the UAV purpose Identification - "PR" for recreational use and "PP'' for professional use. It is obligatory to mark drone’s fuselage with this number in a visible and readable manner.139 In addition, the new updates to the system mean that Class 3 drones operating in BVLOS or above 120m and all Class 2 UAVs can now also be registered in SISANT.140 29 The general requirement to operate drones weighing over 250g is to be at least 18 years old to pilot or Pilot License, support the operation as an observer. All UAV models operating with a maximum takeoff weight of up Qualification, and to 250g are considered licensed, without the need to have documents issued by ANAC. Aeronautical Medical Licences are mandatory for all pilots that are going to perform operations above 120m in altitude Certificate and/or BVLOS, or with drones from Classes 1 and 2. In addition, the Aeronautical Medical Certificate (CMA) is mandatory for pilots that perform unmanned operations with UAVs from Classes 1 or 2.142 Beyond Visual Line of Sight (BVLOS) flights are only allowed in Brazil if the aircraft is certified. Initially, the drone model must go through an authorisation process facilitated by ANAC as well as obtain an Airworthiness Certificate for that specific model. Since it is an arduous process, there are currently BVLOS only a few drone models that have had their design approved for BVLOS operations and/or above 400 feet. After that certificate has been acquired, flight permissions must be issued digitally via SARPAS NG to be approved by DECEA for flights within 12 days of the submission.143 To operate drones of specific classes or conditions, it is mandatory to obtain additional certification: • CAVE (Experimental Flight Authorisation Certificate), which is for authorising drones whose purpose is research and development. Airworthiness • CAER (Special Airworthiness Certificate for RPA), is required for UAVs in Class 2 or 3 that perform Certificate non-experimental operations in BVLOS or/and over 120 m. • CA (Certificate of Airworthiness), is required for non-experimental operations of Class 1 drones. Owners of drones which design was authorised by ANAC can issue their CAER in the SISANT system automatically.144 Agriculture UAS operators must be registered with MAPA through SIPEAGRO application, and for this: • If the operator is a legal entity, there must be a qualified technician, an agronomist or forestry engineer, registered in the respective Professional Council, in charge of coordinating the specific activities of its area of expertise. • A Remote Agricultural Air Applicator, who can also hold a role of Remote Pilot, must be over 18 years of age, and must have taken the Course for Remote Aeroagricultural Application (CAAR) at a Agricultural UAV training entity approved and registered with MAPA. Requirements • The operator and drone must be registered with ANAC. The operator must keep a record of the data related to each operation (date, time, coordinates, area, type of activity, drone model etc.). Additionally, it is not permitted to conduct aerial application operations within 20m of settlements, cities, towns, neighborhoods, dwellings, groups of animals, water sources, legal reserves and permanent preservation areas.145, 146, 147 UTM The Brazilian unmanned traffic management system (BR-UTM) is currently under further development. 30 Future Developments for Unmanned Traffic Management The UTM (Unmanned Traffic Management) system is a necessity for Brazil due to the growing presence and utilisation of UAS within the country. The primary purpose of the system is to manage and monitor the operations of drones and other unmanned aircraft to prevent conflicts so as to ensure the safety of manned and unmanned aircraft sharing the same airspace. The government and associated regulatory bodies are developing a framework that would enable BVLOS operations at scale as a part of the UTM concept without impacting the current air traffic management (ATM) system. The proposed approach to implement the UTM system in Brazil involves leveraging the existing infrastructure of the SARPAS system and modifying it with various new features that were suggested by drone manufacturers, service providers and end users. This resulted in the release of the SARPAS NG system. To test the new functionalities of SARPAS NG, DECEA has designated a restricted area for conducting the proof of concept of the Brazilian UTM. The DECEA has planned a series of tests, encompassing both simulated and real flights, to enable all stakeholders, including manned aviation, to interact with the UTM system and its services. These services cover registration, identification, flight planning, airspace authorisation, strategic deconfliction, airspace restrictions, and prioritisation.148 On September 8, 2022, DECEA approved Air Force Command Directive DCA 351-6,149 with the objective of disseminating the Operational Concept of the Unmanned Traffic Management system and guide actions towards compliance with its strategic implementation. The main objective of DCA 351-6 is to foster the integration of drone transport operations with conventional air transport utilising manned aircraft. Furthermore, it aims to lay the groundwork for future integration with electric vertical take-off and landing aircraft (eVTOLs). This directive aims to establish a contemporary regulatory framework that ensures the feasibility of drone operations and attribution of responsibility to all operators - both of UAS and manned aircraft. The directive defines the BR-UTM as a subsystem of the existing ATM framework. This subsystem is specifically designed to handle low altitude operations and aims to facilitate efficient, safe, and cost-effective management of UAS air traffic. The document envisions a robust operational architecture that is open to future UAS Service Suppliers (USS). The BR-UTM system is described as a cooperative traffic management system, where drone operators and UAS service supplier (USS) companies take responsibility for coordinating, executing, and managing operations based on predetermined rules.150, 151 The aim is to create a multi-UTM-provider system to cater for varying local needs and drone application potentials across different regions of Brazil. The cooperation is to reduce reliance on Air Traffic Control (ATC) while maintaining DECEA's authority in terms of management of the airspace and surveillance. (For more details on the general concept of Unmanned Traffic Management, see Box 5.1 on the page 86). 31 2.4 In order to fulfill the full potential of Brazil’s drone ecosystem, the However, on the other side, there are some barriers that can slow industry needs to leverage the key enablers that exist and, at the growth. For example, although the Brazilian regulatory framework is same time, navigate the barriers that stand in the way of further quite advanced, there are still some regulatory hurdles and expansion. Recent years have seen progress in the right direction processes that sometimes can hinder drone technology adoption in though due to the acknowledgement that drones offer high different industries. Furthermore, financing and essential economic potential and the ability to address a wide range of infrastructure availability are some of the other issues faced by national challenges. entrepreneurs, companies, and drone enthusiasts. Without access to these critical factors, the journey of maintaining, growing, and Brazil is likely to continue seeing increasing applications of drones successfully performing as a UAS entrepreneur can be hindered. for agriculture, mining, healthcare, construction, and many other industries, as well as social and environmental applications There is also a need for more highly qualified specialists whose Enablers and including environmental monitoring, disaster response, and wildlife conservation. The country’s richness in digital culture, constant skills are an important component of a robust and growing drone sector. To evolve with rapid technological advancements, Brazil barriers for the innovations, and technological availability stand as leading enablers for more advanced drone technology adoption, improving should aim to increase the availability of educational programs that offer this sort of training. drone ecosystem efficiency, productivity, and safety across commercial and non-commercial sectors. If Brazil can address the existing obstacles, public and private sector players can work together to accelerate the potential of drone In addition, the increasing number of large-scale and complex technology, finding a competitive edge and nurturing the most drone projects in specific industries, including agriculture, is also optimal solutions for the country’s social, developmental, and stimulated by the work of R&D institutions and other stakeholders environmental challenges. that work on new drone-related research projects, tests, and pilots in the country. The Brazilian public is starting to accept this innovation as they see how drones can support the national climate agenda, environmental protection, green growth, and other social challenges. 32 Enablers of drone technology adoption in Brazil Strong and internationally-positioned aviation industry Increasing drone adoption in key industries Brazil’s well-established aviation industry provides a solid foundation for the The constant search for innovative solutions has resulted in certain industries already development of native drone technology, as well as its adoption and integration into embracing drone technology successfully in Brazil. Hence, drones are widely used in the national airspace. As the world's fifth-largest airspace, and second-largest in terms agriculture for spraying activities and crop monitoring, in mining and construction for of private aircraft numbers,152, 153 Brazil benefits from an advanced aviation mapping, inspections, and site management, and in environmental conservation and infrastructure and experienced professionals, ensuring not just the safe and efficient reforestation efforts where drones are often used to prevent illegal actions and accelerate introduction of unmanned aircraft systems (UAS), but also the local development of tree planting activities. The positive results from these implementations showcase the hardware and software. The international positioning of the sector also creates practicality, efficiency, and cost-effectiveness of the technology, inspiring other sectors to possibilities for further advancements and cooperation with world-leading civil aviation explore and adopt UAS to enhance their processes and day-to-day operations. authorities to incorporate best practices. Increasing public awareness about UAS usage, benefits, and potential The growing public awareness and positive perception of drone technology has facilitated Availability of technologies its integration into various aspects of everyday life in Brazil, while also increasing the The Brazilian market is characterised by a wide spectrum of international and local regulatory compliance for commercial and recreational drone usage. As the regulatory vendors that present advanced drone solutions for diverse purposes and industries frameworks have evolved, concerns around safety, privacy, and security have been more including agriculture, infrastructure resilience, maintenance, and safety and security. proactively addressed. Examples such as the ‘Drone Legal’ campaign in 2015156 and the The increased availability of drone technologies makes sophisticated solutions more ‘Conscious Drone Campaign’ initiated by the DECEA in 2017 are the result of regulators accessible and cost-effective, allowing businesses from various sectors to and the drone community working to inform the public, drone pilots, commercial incorporate drones into their operations. As a result, the market potential for UAS enterprises, and relevant stakeholders on the importance of understanding the services is estimated to reach USD 1.9 billion by 2026, leading to a forecasted technology, its potential, as well as the safe use of UAS in the airspace.157 In fact, public demand of around 144,000 commercial UAS of various types.154 awareness campaigns in Brazil have brought together leading drone sector representatives in order to continue the dissemination of regulations and best practices on how to operate drones. Increasing entrepreneurial and innovation focus The local entrepreneurial spirit has led to the emergence of startups and companies Active collaboration and involvement of stakeholders in the ecosystem dedicated to drone technology that have been quick to identify potential applications development of drones across different industries and development purposes, including the Brazil’s UAS ecosystem development, including the regulatory framework, has been production of locally-led solutions for the domestic market as well as the exporting of characterised by the strong participation of several actors in the discussions and technology and services. Currently, the startups and larger ventures focusing on definitions of critical elements for drone adoption. The cooperation and coordination UAS technology development are growing substantially, and Brazilian ecosystem among actors including government agencies, industry players, academia, and the public, players are constantly creating cutting-edge solutions that could be further advanced has been playing a crucial role in fostering the technology’s growth, evolution, and and transformed into permanent applications for a diverse range of sectors. positioning of the industry regionally. For example, the public consultations in 2023 addressing proposals to change Brazilian Civil Aviation Regulations (RBAC), are critical for having a balanced and responsible regulatory framework.158 Another example are the Active testing and innovation in the UAS space free courses offered by a regional branch of SENAR in Mato Grosso on the use of drones in agriculture since 2016.159 Over the last two decades, the Brazilian market has seen an increase in the testing of innovative solutions and technology across different industries and for development purposes. This has contributed to the advancement of drone capabilities, fostering Relevance of R&D and innovations accelerators constant improvement and expanding the range of potential applications of UAS in the Investment in R&D, along with the presence of innovation accelerators and technology country. Since the early 2000s,155 different market players have quickly adopted, hubs, fosters the growth of the drone industry in Brazil. Many initiatives, such as The adapted, and created hardware and software capable of responding to market needs. Drone Technology Development Program for Precision Agriculture, which is a Hence, Proof of Concepts (PoC) and pilot projects have been common in Brazil collaboration between 3BL company, the Brazilian Agricultural Research Corporation across the private and public sectors. Testing and adoption – including permanent (Embrapa), and the Institute for Solidarity Socioeconomics (ISES) aims to innovate on implementation in some cases – have been seen in agriculture, mining, power and affordable drone technology that will be able to provide immediate, actionable agricultural utilities, environmental protection, as well as medical supplies and goods delivery. intelligence to small and medium farmers fostering collaboration, knowledge sharing, and skill development among researchers, engineers, and end-users.160 Source: PwC analysis of drone adoption and ecosystem maturity, first quarter 2023. 33 Barriers to drone technology adoption in Brazil Regulatory limitations and complex processes Human capital availability Although drone regulations are considered advanced in Brazil compared to regional The country faces some challenges regarding human capital and the availability of counterparts, the complex licensing procedures and the involvement of numerous specific UAS tertiary education programmes to cope with the speed of growth in the authorities pose challenges to the seamless integration of drones into various sector. The UAS industry requires skilled drone pilots who can perform drone industries. The decentralised decision-making process and the involvement of operations in different conditions, an increasing number of data processing multiple authorities can sometimes make it difficult for businesses to obtain the specialists, analysts, as well as engineers to manufacture drone-related hardware necessary certifications and approvals for drone operations quickly to be able to keep and software. Skilled specialists in the public and private sectors are also needed to up with the pace of industry development. unlock the potential of UAS for solving relevant problems. Bridging the skills gap requires the implementation of training programs, educational initiatives, and partnerships between academic institutions and the drone industry. Limited funding, financing, and investment availability Limited and uneven adoption of UAS by the public sector Limited financial support and access to funding and investment opportunities present There have been varying levels of UAS adoption in the public sector, with slow challenges for the growth and expansion of drone-related businesses and projects in adoption in different programmatic and sectoral areas across the country, a situation Brazil. Companies are often compelled to be registered abroad and Brazilian projects that can hinder – to some extent – the potential growth and acceptance of drones in are funded from foreign sources. For example, in 2022, United Airlines announced a Brazil. Due diligence processes, contractual frameworks, and performance indicators $15 million investment in Eve Air Mobility, a Brazilian subsidiary of Embraer which might generate some constraints when it comes to the introduction of new produces electric vertical take-off and landing aircraft and urban air mobility technologies and/or launch of proof of concepts and pilot projects that could embrace infrastructure.161 Improving access to funding and financing would be beneficial to UAS adoption for several use cases in the public administration. Hence, it is allow drone companies to scale up their operations and serve more industries locally necessary to encourage the adoption through awareness campaigns, demonstrations, and regionally, thereby contributing to the economic growth of Brazil. and technical assistance for the successful deployment and integration of UAS into policies and programmes for surveillance, emergency response, climate resilience, infrastructure monitoring, environmental monitoring, among other purposes. Limited digital readiness Increasing privacy concerns Brazil ranked 52nd out of 63 countries in 2020 in the World Digital Competitiveness Ranking.162 There are challenges in terms of digital infrastructure and connectivity, Brazil, along with most of the world, is showing higher levels of concern related to showing relevant differences and inconsistencies between different regions and privacy protection and how the use of new technologies such as drones could states. Digital readiness has an impact on real-time data transmission capabilities, interfere with this. Hence, privacy concerns and data protection issues might interfere which are essential for certain drone applications, and are particularly relevant for with public acceptance and regulatory approval for drone deployment, particularly in UAS usage in peri-urban and remote areas. Improving digital readiness and internet urban and residential areas in Brazil if there are no clear guidelines about privacy and connectivity in Brazil would significantly improve prospects for the drone industry in data protection. The public requires clarification on how drone technology will affect the country. their privacy and what the legal limitations are for drones. Clear regulations and guidelines on data protection and easy access to information are indispensable to address concerns and establish public trust in drone technology. Limited infrastructure Complex tax system and policies The existing Brazilian infrastructure does not have dedicated drone infrastructure, Tax policies may impose financial burdens on drone-related businesses, making it which might slow the growth of the sector. To improve operational efficiency and challenging for them to expand their operations in Brazil. The complexity of the tax ensure safe, secure, and scalable drone flights, there is a need to build and develop system is compounded by the fact that tax authority and regulation is divided between appropriate drone ports, charging stations, and reliable communication networks that the federal government, 26 states, and the federal district as well as over 5,000 can be later expanded to keep pace with a fast-growing industry. Smart infrastructure municipalities.163 This results in companies spending a lot of time and money on tax is key to enabling wider drone adoption that is not limited by the scope of potential compliance. Moreover, the process of getting funds and/or starting a business in applications. Brazil is also complicated from a financial perspective since the tax policies and regulations are strict. Source: PwC analysis of drone adoption and ecosystem maturity, first quarter 2023. 34 Endnotes 1. MundoGEO, “O crescimento do mercado de drones no Brasil,” Website: Text/HTML, MundoGEO, 20 May 2023, 20. XMobots, “Por dentro de uma das maiores fabricantes de drones do mundo, que fica no Brasil,” Website: https://mundogeo.com/2021/08/19/o-crescimento-do-mercado-de-drones-no-brasil/. Text/HTML, XMobots, 20 May 2023, https://xmobots.com.br/por-dentro-de-uma-das-maiores-fabricantes-de-drones-do-mundo-que-fica-no-brasil/. 2. Aerofoundry, “Köpari: for Mobile Missions, Operating under Harsh Conditions,” Website: Text/HTML, Aerofoundry, 20 May 2023, https://www.aerofoundry.com/ukopari.htm. 21. DECEA. 2010. “AIC No. 21/10 Veículos Aéreos não Tripulados.” https://www.camara.leg.br/proposicoesWeb/prop_mostrarintegra?codteor=1356635. 3. Aeroagri, “Dispenser,” Website: Text/HTML, Aeroagri, 20 May 2023, https://www.aeroagri.com.br/dispenser/. 22. ANAC. 2012. “INSTRUÇÃO SUPLEMENTAR - IS Nº 21-002A.” 4. Ariane Carvalho de Freitas, Marcelle Ferreira Mendes. 2021. “Drones como protagonista na Indústria e Logística https://pergamum.anac.gov.br/arquivos/IS21-002A.pdf. 4.0.” https://www.unaerp.br/documentos/4486-drones-como-protagonista-na-industria-e-logistica-4-0/file#:~:text=O%2 23. G1,”Anac concede 1ª autorização para drone particular e civil voar no Brasil,” Website: Text/HTML, G1, 20 May 0Brasil%20%C3%A9%20hoje%20o,2026%20em%20todo%20o%20mundo. 2023, https://g1.globo.com/sp/vale-do-paraiba-regiao/noticia/2013/05/anac-concede-1-autorizacao-para-drone-particula 5. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones, “Website: Text/HTML, Ministério da r-e-civil-voar-no-brasil.html. Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. 24. XMobots, “Por dentro de uma das maiores fabricantes de drones do mundo, que fica no Brasil,” Website: 6. MundoGeo, “Empresa pionera de drones en Brasil es vendida,” Website: Text/HTML, MundoGeo, 20 May 2023, Text/HTML, XMobots, 20 May 2023, https://mundogeo.com/es/2013/09/23/empresa-pionera-de-drones-en-brasil-es-vendida/. https://xmobots.com.br/por-dentro-de-uma-das-maiores-fabricantes-de-drones-do-mundo-que-fica-no-brasil/. 7. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da 25. CIMM, “Anac dá autorização para drone automático nacional operar no Brasil,” Website: Text/HTML, CIMM, 20 Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. May 2023, 8. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da https://www.cimm.com.br/portal/noticia/exibir_noticia/11393-anac-da-autorizacao-para-drone-automatico-naciona Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. l-operar-no-brasil. 9. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da 26. DECEA, “Departamento de Controle do Espaço Aéreo lança nova versão do sistema SARPAS,” Website: Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. Text/HTML, DECEA, 20 May 2023, https://www.decea.mil.br/?i=midia-e-informacao&p=pg_noticia&materia=departamento-de-controle-do-espaco-ae 10. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da reo-lanca-nova-versao-do-sistema-sarpas. Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. 27. Unmanned Airspace, “Brazil’s DECEA launches UTM sandbox and publishes implementation programme,” 11. Unmanned Airspace, “Brazil’s DECEA launches UTM sandbox and publishes implementation programme,” Website: Text/HTML, Unmanned Airspace, 20 May 2023, Website: Text/HTML, Unmanned Airspace, 20 May 2023, https://www.unmannedairspace.info/uncategorized/brazils-decea-launches-brazils-utm-sandbox-and-published-i https://www.unmannedairspace.info/uncategorized/brazils-decea-launches-brazils-utm-sandbox-and-published-i mplementation-programme/ mplementation-programme/. 28. ICAO. 2018. “Brazilian Regulatory Experience Dealing With Unmanned Aircraft Systems.” 12. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da https://www.icao.int/Meetings/anconf13/Documents/WP/wp_192_en.pdf. Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. 29. ANAC. 2017. “Regras da ANAC para uso de drones entram em vigor.” 13. XMobots, “Por dentro de uma das maiores fabricantes de drones do mundo, que fica no Brasil,” Website: https://www.gov.br/anac/pt-br/noticias/2017/regras-da-anac-para-uso-de-drones-entram-em-vigor/release_drone. Text/HTML, XMobots, 20 May 2023, pdf. https://xmobots.com.br/por-dentro-de-uma-das-maiores-fabricantes-de-drones-do-mundo-que-fica-no-brasil/. 30. ANAC, “ANAC apresenta novo sistema de cadastro de drones (SISANT),” Website: Text/HTML, ANAC, 20 May 14. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second 2023, https://www.gov.br/anac/pt-br/noticias/2022/anac-apresenta-novo-sistema-de-cadastro-de-drones-sisant. semester 2022. 31. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da 15. CNN, “Amazon tribes are using drones to track deforestation in the Brazilian rainforest,” Website: Text/HTML, Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. CNN, 20 May 2023, https://edition.cnn.com/2020/09/01/americas/amazon-drones-brazil-deforestation-cte-spc-intl/index.html. 32. Empresa Brasil de Comunicação, “Anac abre consulta pública para rever regras de uso dos drones no país,” Website: Text/HTML, Empresa Brasil de Comunicação, 20 May 2023, 16. Silva Junior, C.H.L., Pessôa, A.C.M., Carvalho, N.S. et al. 2021. “The Brazilian Amazon deforestation rate in https://agenciabrasil.ebc.com.br/geral/noticia/2019-11/anac-abre-consulta-publica-para-rever-regras-de-uso-dos- 2020 is the greatest of the decade.” Nat Ecol Evol 5, 144–145. drones-no-pais. https://www.nature.com/articles/s41559-020-01368-x#:~:text=In%202020%2C%20the%20Brazilian%20Amazon,r ate%20in%20the%20decade1. 33. MundoGeo, “Ministério da Agricultura abre consulta pública sobre drones para pulverização,” Website: Text/HTML, MundoGeo, 20 May 2023, 17. Splinter News, “Website: Text/HTML, Ministério da Infraestrutura, 20 May 2023,” Website: Text/HTML, Splinter https://mundogeo.com/2020/07/13/ministerio-da-agricultura-abre-consulta-publica-sobre-drones-para-pulverizaca News, 20 May 2023, o/. https://splinternews.com/the-scary-history-and-future-of-brazils-booming-drone-m-1793850208. 34. MundoGeo, “Ministério da Agricultura regulamenta uso de drones para pulverização,” Website: Text/HTML, 18. MundoGeo, “Empresa pionera de drones en Brasil es vendida,” Website: Text/HTML, MundoGeo, 20 May 2023, MundoGeo, 20 May 2023, https://mundogeo.com/es/2013/09/23/empresa-pionera-de-drones-en-brasil-es-vendida/. https://mundogeo.com/2021/09/24/ministerio-da-agricultura-regulamenta-uso-de-drones-para-pulverizacao/. 19. E-DOSSIER, “SISTEMAS AÉREOS NO TRIPULADOS DE DEFENSA Y SEGURIDAD EN LATINOAMÉRICA,” Website: Text/HTML, E-DOSSIER, 20 May 2023, https://www.infodefensa.com/file/download/24607. 35 Endnotes 35. UASVISION, “VTOL BVLoS Flight Testing Nears Completion in Brazil,” Website: Text/HTML, UASVISION, 20 53. ANAC. 2017. “RBAC-E No. 94 General Requirements for Unmanned Aircraft of Civilian Use.” May 2023, https://www.uasvision.com/2018/08/29/bvlos-flight-testing-nears-completion-in-brazil/. https://www.anac.gov.br/en/drones/files/rbac-e-no-94-amdt-00-english.pdf. 36. SUAS News, “Regulators Approve Brazil’s First Drone Delivery Operation to Company Using ParaZero Safety 54. UASVISION, “VTOL BVLoS Flight Testing Nears Completion in Brazil,” Website: Text/HTML, UASVISION, 20 System,” Website: Text/HTML, SUAS News, 20 May 2023, May 2023, https://www.uasvision.com/2018/08/29/bvlos-flight-testing-nears-completion-in-brazil/. https://www.suasnews.com/2020/09/regulators-approve-brazils-first-drone-delivery-operation-to-company-using- 55. AgNews, “Aerial Application in Brazil: Manned Aircraft and Drones Fly to New Highs, ”Website: Text/HTML, parazero-safety-system/. AgNews, 20 May 2023, https://news.agropages.com/News/NewsDetail---36863.htm. 37. DECEA. 2023. “Aeronaves Não Tripuladas E O Acesso Ao Espaço Aéreo Brasileiro.” 56. Empresa Brasil de Comunicação, “Anac abre consulta pública para rever regras de uso dos drones no país,” https://publicacoes.decea.mil.br/publicacao/ica-100-40. Website: Text/HTML, Empresa Brasil de Comunicação, 20 May 2023, 38. DECEA. 2023. “Aeronaves Não Tripuladas Para Uso Exclusivo Em Operações Aéreas Especiais.” https://agenciabrasil.ebc.com.br/geral/noticia/2019-11/anac-abre-consulta-publica-para-rever-regras-de-uso-dos- https://publicacoes.decea.mil.br/publicacao/mca-56-5. drones-no-pais. 39. ANAC, “Resolução Nº 710, De 31 De Março De 2023,” Website: Text/HTML, ANAC, 20 May 2023, 57. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da https://www.anac.gov.br/assuntos/legislacao/legislacao-1/boletim-de-pessoal/resolucoes/2023/resolucao-710. Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. 40. MundoGeo, “Empresa pionera de drones en Brasil es vendida,” Website: Text/HTML, MundoGeo, 20 May 2023, 58. SUAS News, “Regulators Approve Brazil’s First Drone Delivery Operation to Company Using ParaZero Safety https://mundogeo.com/es/2013/09/23/empresa-pionera-de-drones-en-brasil-es-vendida/. System,” Website: Text/HTML, SUAS News, 20 May 2023, https://www.suasnews.com/2020/09/regulators-approve-brazils-first-drone-delivery-operation-to-company-using- 41. E-DOSSIER, “SISTEMAS AÉREOS NO TRIPULADOS DE DEFENSA Y SEGURIDAD EN LATINOAMÉRICA,” parazero-safety-system/. Website: Text/HTML, E-DOSSIER, 20 May 2023, https://www.infodefensa.com/file/download/24607. 59. Ministério da Infraestrutura, “Simplificação para registro de drones entra em consulta pública,” Website: 42. XMobots, “Por dentro de uma das maiores fabricantes de drones do mundo, que fica no Brasil,” Website: Text/HTML, Ministério da Infraestrutura, 20 May 2023, Text/HTML, XMobots, 20 May 2023, https://www.gov.br/anac/pt-br/noticias/2021/simplificacao-para-registro-de-drones-entra-em-consulta-publica. https://xmobots.com.br/por-dentro-de-uma-das-maiores-fabricantes-de-drones-do-mundo-que-fica-no-brasil/. 60. ABRADEE, “EDP é a primeira empresa do setor elétrico certificada pela ANAC para monitoramento de redes 43. DECEA. 2010. “AIC No. 21/10 Veículos Aéreos não Tripulados.” com uso de drones,” Website: Text/HTML, ABRADEE, 20 May 2023, https://www.camara.leg.br/proposicoesWeb/prop_mostrarintegra?codteor=1356635. https://abradee.org.br/edp-e-a-primeira-empresa-do-setor-eletrico-certificada-pela-anac-para-monitoramento-de-r 44. ANAC. 2011. “Decisão Nº 127 Autoriza a operação aérea de Aeronave Remotamente Pilotada do Departamento edes-com-uso-de-drones/. de Polícia Federal.” 61. Teletime, “Claro assina acordo para realizar entregas por drones com rede 4G e 5G,” Website: Text/HTML, https://www.anac.gov.br/assuntos/legislacao/legislacao-1/boletim-de-pessoal/2011/48/anexo-i-2013-decisao-no- Teletime, 20 May 2023, 127-de-29-de-novembro-de-2011. https://teletime.com.br/15/04/2021/claro-assina-acordo-para-realizar-entregas-por-drones-com-rede-4g-e-5g/. 45. IDETEC, “Our Background,” Website: Text/HTML, IDETEC, 20 May 2023, https://www.idetec-uas.com/about. 62. 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ANAC, “Resolução Nº 710, De 31 De Março De 2023,” Website: Text/HTML, ANAC, 20 May 2023, https://g1.globo.com/sp/vale-do-paraiba-regiao/noticia/2013/05/anac-concede-1-autorizacao-para-drone-particula https://www.anac.gov.br/assuntos/legislacao/legislacao-1/boletim-de-pessoal/resolucoes/2023/resolucao-710. r-e-civil-voar-no-brasil.html. 65. DECEA. 2023. “Aeronaves Não Tripuladas E O Acesso Ao Espaço Aéreo Brasileiro.” 49. Mundo GEO, “Curso discutirá las aplicaciones y legislación para el uso de Drones,” Website: Text/HTML, Mundo https://publicacoes.decea.mil.br/publicacao/ica-100-40. GEO, 20 May 2023, 66. DECEA. 2023. “Aeronaves Não Tripuladas Para Uso Exclusivo Em Operações Aéreas Especiais.” https://mundogeo.com/es/2014/03/20/curso-discutira-las-aplicaciones-y-legislacion-para-el-uso-de-drones/. https://publicacoes.decea.mil.br/publicacao/mca-56-5. 50. DECEA, “Voos de RPAS (drones). Entenda a nova legislação do DECEA!” Website: Text/HTML, DECEA, 20 May 67. 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Interview with Speedbird Aero representative, conducted by PwC Poland: July 2023. https://www.fab.mil.br/noticias/mostra/28621/TR%C3%81FEGO%20A%C3%89REO%20-%20DECEA%20lan%C 71. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da 3%A7a%20portal%20para%20orientar%20usu%C3%A1rio%20de%20Drone/RPAS. Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. 36 Endnotes 72. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da 88. Army Technology, “Horus FT-100 Unmanned Aerial Vehicle (UAV),” Website: Text/HTML, Army Technology, 20 Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. May 2023, https://www.army-technology.com/projects/horus-ft-100-unmanned-aerial-vehicle-uav/. 73. Law School of Ribeirão Preto, “About the State of São Paulo,” Website: Text/HTML, Law School of Ribeirão 89. 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Ana Juvelina da Silva e DENADAI, Marcelo Scantamburlo. 2021. “Drone, A História Desta Tecnologia.” Tekhne e https://itarc.org/. Logos, Botucatu, SP, v.12, n.2, setembro, 2021. http://revista.fatecbt.edu.br/index.phap/tl/article/view/746/445. 99. ITARC, “ITARC Drone Academy,” Website: Text/HTML, ITARC, 20 May 2023, 80. ANBA, “O Brasil na corrida pela produção de drones,” Website: Text/HTML, ANBA, 20 May 2023, https://apps.apple.com/us/app/itarc-drone-academy/id1551490764. https://anba.com.br/o-brasil-na-corrida-pela-producao-de-drones/. 100. ANAC, “RPA Class 3 (maximum takeoff weight less than 25 kg) operated within visual line of sight (VLOS) up to 81. Valor, “Uso de drones já é realidade em testes de entrega no Brasil,” Website: Text/HTML, Valor, 20 May 2023, 400 feet AGL,” Website: Text/HTML, ANAC, 20 May 2023, https://valor.globo.com/publicacoes/suplementos/noticia/2022/12/21/uso-de-drones-ja-e-realidade-em-testes-de- https://www.anac.gov.br/en/drones/rpa-class-3-maximum-takeoff-weight-less-than-25-kg-operated-within-visual-li entrega-no-brasil.ghtml. ne-of-sight-vlos-up-to-400-feet-agl. 82. Qualcomm. 2019. “Drones for Precision Agriculture.” 101. EMBRAPA, “Research and innovation for Brazilian agriculture,” Website: Text/HTML, EMBRAPA, 20 May 2023, https://www.qualcomm.com/content/dam/qcomm-martech/dm-assets/documents/casestudy_brazil_dronproj_feb2 https://www.embrapa.br/en/international. 019.pdf. 102. EMBRAPA, “Embrapa, Qualcomm and ISES announce partnership to develop drone technologies,” Website: 83. MundoGeo, “Autorização de Projeto ANAC é primordial para escalabilidade de voos BVLOS,” Website: Text/HTML, EMBRAPA, 20 May 2023, Text/HTML, MundoGeo, 20 May 2023, https://www.embrapa.br/en/busca-de-noticias/-/noticia/13976303/embrapa-qualcomm-and-ises-announce-partner https://mundogeo.com/2021/09/02/autorizacao-de-projeto-anac-e-primordial-para-escalabilidade-de-voos-bvlos. ship-to-develop-drone-technologies. 84. ANAC. 2022. “REGULAMENTO BRASILEIRO DA AVIAÇÃO CIVIL ESPECIAL RBAC-E nº 94 Emenda nº 02.” 103. USP, “Parceria do ICMC tornou possível primeiro voo de drone brasileiro nos EUA,” Website: Text/HTML, USP, https://www.anac.gov.br/assuntos/legislacao/legislacao-1/rbha-e-rbac/rbac/rbac-e-94-1/@@display-file/arquivo_n 20 May 2023, orma/RBACE94EMD02.pdf. https://www5.usp.br/noticias/tecnologia-2/parceria-do-icmc-tornou-possivel-primeiro-voo-de-drone-brasileiro-nos- 85. Forbes, “Piloto de drone: profissão tem alta demanda e diárias do serviço podem chegar a R$ 15 mil,” Website: eua/. Text/HTML, Forbes, 20 May 2023, 104. ABM, “Quem Somos,” Website: Text/HTML, ABM, 20 May 2023, https://forbes.com.br/carreira/2021/08/piloto-de-drone-profissao-tem-alta-demanda-e-diarias-do-servico-podem-c https://www.abmultirrotores.org.br/quemsomos.php. hegar-a-r-15-mil/. 105. GERDAU, “Gerdau e Embratel assinam primeiro acordo no setor do aço na América Latina,” Website: 86. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second Text/HTML, GERDAU, 20 May 2023, semester 2022. https://www2.gerdau.com.br/noticias/gerdau-e-embratel-assinam-primeiro-acordo-no-setor-do-aco-na-america-la 87. DefesaNet, “FT SISTEMAS S.A. AT LAAD 2015,” Website: Text/HTML, DefesaNet, 20 May 2023, tina-para-implementar-uso-da-quinta-geracao-da-internet-movel/. https://www.defesanet.com.br/laad2015/noticia/18764/ft-sistemas-s-a-at-laad-2015/. 106. Folha de S.Paulo, “Drones e inteligencia artificial se unem a favor da eficiencia,” Website: Text/HTML, Folha de S.Paulo, 20 May 2023, https://www1.folha.uol.com.br/mercado/2017/06/1897189-drones-e-inteligencia-artificial-se-unem-a-favor-da-efici encia.shtml. 37 Endnotes 107. Ferreira, Manuel & Araújo, Ila & Spina Avino, Felipe & Vitor, João & Costa, Silva & da-Costa, Marcelo & 124. ANAC, “Registration, inscription and identification,” Website: Text/HTML, ANAC, 20 May 2023, Albuquerque, Rafael & Balbuena, Enrique. 2019. “ZONING THE FIRE-RISK IN PROTECTED AREAS IN BRAZIL https://www.anac.gov.br/en/faq/drones/registration-inscription-and-identification. WITH DRONES: A STUDY CASE FOR THE BRASÍLIA NATIONAL PARK.” 125. Ministério da Infraestrutura, “RPA Class 2 (maximum takeoff weight greater than 25 kg and less than 150 kg),” https://www.researchgate.net/publication/335352617_ZONING_THE_FIRE-RISK_IN_PROTECTED_AREAS_IN Website: Text/HTML, Ministério da Infraestrutura, 20 May 2023, _BRAZIL_WITH_DRONES_A_STUDY_CASE_FOR_THE_BRASILIA_NATIONAL_PARK. https://www.gov.br/anac/en/topics/drones/rpa-class-2-maximum-takeoff-weight-greater-than-25-kg-and-less-than- 108. ANAC. 2015. “Proposição De Um Regulamento Especial Para Sistemas De Aeronaves Remotamente Pilotadas 150-kg – RPAS E EMENDA AO RBAC 67.” 126. Ministério da Infraestrutura, “RPA Class 3 (maximum takeoff weight greater than 250 g and less than 25 kg),” https://www.anac.gov.br/participacao-social/consultas-publicas/audiencias/2015/aud13/justificativa.pdf. Website: Text/HTML, Ministério da Infraestrutura, 20 May 2023, 109. ANAC. 2017. “RBAC-E No. 94 General Requirements for Unmanned Aircraft of Civilian Use.” https://www.gov.br/anac/en/topics/drones/rpa-class-3-maximum-takeoff-weight-greater-than-250-g-and-less-than https://www.anac.gov.br/en/drones/files/rbac-e-no-94-amdt-00-english.pdf. -25-kg 110. FAO, “Brazil's National Civil Aviation Agency (ANAC) regulates drone's operations”, Website: Text/HTML, FAO, 127. SkyDrones, “Ministério da Agricultura publica normativa para operação com drones de pulverização,” Website: 20 May 2023, Text/HTML, SkyDrones, 20 May 2023, https://skydrones.com.br/blog/normativa-mapa-drones-de-pulverizacao/. https://www.fao.org/e-agriculture/news/brazils-national-civil-aviation-agency-anac-regulates-drones-operations. 128. Drone Experts, “Como cadastrar o seu DRONE no NOVO SISANT - TUTORIAL COMPLETO,” Website: 111. Ministério da Infraestrutura, “Guia Rápido Novo SISANT,” Website: Text/HTML, Ministério da Infraestrutura, 20 Text/HTML, Drone Experts, 20 May 2023, https://www.youtube.com/watch?v=69RyoN_6UCg. May 2023, https://www.gov.br/anac/pt-br/sistemas/sisant. 129. Drone Experts, “Como cadastrar o seu drone no NOVO SARPAS - TUTORIAL COMPLETO,” Website: 112. ANAC, “RESOLUÇÃO Nº 710, DE 31 DE MARÇO DE 2023,” Website: Text/HTML, ANAC, 20 May 2023, Text/HTML, Drone Experts, 20 May 2023, https://www.youtube.com/watch?v=YCGMqdxhZZo. https://www.anac.gov.br/assuntos/legislacao/legislacao-1/boletim-de-pessoal/resolucoes/2023/resolucao-710. 130. Ministério da Infraestrutura, “Classification of Drones,” Website: Text/HTML, Ministério da Infraestrutura, 20 May 113. ANAC, “Drones FAQ,” Website: Text/HTML, ANAC, 20 May 2023, https://www.anac.gov.br/en/faq/drones. 2023, https://www.gov.br/anac/en/topics/drones/classification-of-drones 114. The International Trade Administration, “Brazil Drones for Spraying,” Website: Text/HTML, The International 131. ANAC, “RESOLUÇÃO Nº 710, DE 31 DE MARÇO DE 2023” Website: Text/HTML, ANAC, 20 May 2023, Trade Administration, 20 May 2023, https://www.trade.gov/market-intelligence/brazil-drones-spraying. https://www.anac.gov.br/assuntos/legislacao/legislacao-1/boletim-de-pessoal/resolucoes/2023/resolucao-710. 115. Unmanned Airspace, “Brazil’s DECEA launches UTM sandbox and publishes implementation programme,” 132. DECEA. 2023. “Aeronaves Não Tripuladas E O Acesso Ao Espaço Aéreo Brasileiro.” Website: Text/HTML, Unmanned Airspace, 20 May 2023, https://publicacoes.decea.mil.br/publicacao/ica-100-40. https://www.unmannedairspace.info/uncategorized/brazils-decea-launches-brazils-utm-sandbox-and-published-i 133. DECEA. 2023. “Aeronaves Não Tripuladas Para Uso Recreativo – Aeromodelos.” mplementation-programme/. https://publicacoes.decea.mil.br/publicacao/mca-56-2. 116. Unmanned Airspace,” Special report – Brazil’s DECEA to integrate drone management within its ATM system,” 134. DECEA. 2023. “Aeronaves Não Tripuladas Para Uso Exclusivo Em Operações Aéreas Especiais.” Website: Text/HTML, Unmanned Airspace, 20 May 2023, https://publicacoes.decea.mil.br/publicacao/mca-56-5. https://www.unmannedairspace.info/uncategorized/special-report-brazils-decea-integrate-drone-management-wit hin-atm-system/. 135. DECEA, “ICA 100-40,” Website: Text/HTML, DECEA, 20 May 2023, https://publicacoes.decea.mil.br/publicacao/ica-100-40. 117. Unmanned Airspace, “Brazil’s DECEA launches UTM sandbox and publishes implementation programme,” Website: Text/HTML, Unmanned Airspace, 20 May 2023, 136. ANAC, “DRONES,” Website: Text/HTML, ANAC, 20 May 2023, https://www.anac.gov.br/en/drones. https://www.unmannedairspace.info/commentary/brazils-decea-launches-brazils-utm-sandbox-and-published-imp 137. Ministério da Infraestrutura, “Classes de Drones (RPA)” Website: Text/HTML, Ministério da Infraestrutura, 20 May lementation-programme/ 2023, https://www.gov.br/anac/pt-br/assuntos/drones/classes-de-drones. 118. Aeroflap, “Airspace Control Department launches new version of unmanned aircraft system,” Website: 138. ANAC, “Operations,” Website: Text/HTML, ANAC, 20 May 2023, Text/HTML, Aeroflap, 20 May 2023, https://www.anac.gov.br/en/faq/drones/operations. https://www.aeroflap.com.br/en/departamento-de-controle-do-espaco-aereo-lanca-nova-versao-do-sistema-de-a eronaves-nao-tripuladas/. 139. ANAC, “Drones FAQ,” Website: Text/HTML, ANAC, 20 May 2023, https://www.anac.gov.br/en/faq/drones. 119. Ministério da Infraestrutura, “ANAC apresenta novo sistema de cadastro de drones (SISANT),” Website: 140. Ministério da Infraestrutura, “Guia Rápido Novo SISANT,” Website: Text/HTML, Ministério da Infraestrutura, 20 Text/HTML, Ministério da Infraestrutura, 20 May 2023, May 2023, https://www.gov.br/anac/pt-br/sistemas/sisant. https://www.gov.br/anac/pt-br/noticias/2022/anac-apresenta-novo-sistema-de-cadastro-de-drones-sisant. 141. ANAC, “RESOLUÇÃO Nº 710, DE 31 DE MARÇO DE 2023,” Website: Text/HTML, ANAC, 20 May 2023, 120. LEXOLOGY. 2019. “Drone Regulation 2020.” https://www.anac.gov.br/assuntos/legislacao/legislacao-1/boletim-de-pessoal/resolucoes/2023/resolucao-710. https://www.studiopierallini.it/wp-content/uploads/2016/01/edition-828-200110161728380-drone-regulation-2020. 142. ANAC, “Pilots,” Website: Text/HTML, ANAC, 20 May 2023, https://www.anac.gov.br/en/faq/drones/pilots. pdf . 143. DECEA. 2023. “Aeronaves não Tripuladas e o Acesso ao Espaço Aéreo Brasileiro.” 121. Aeroflap, “ANAC presents new drone registration system (SISANT),” Website: Text/HTML, Aeroflap, 20 May https://www.decea.mil.br/drone/docs/ICA%20100-40%20-%20Aeronaves%20n%C3%A3o%20Tripuladas%20e% 2023, https://www.aeroflap.com.br/en/anac-apresenta-novo-sistema-de-cadastro-de-drones-sisant/?amp=1. 20o%20Acesso%20ao%20Espa%C3%A7o%20A%C3%A9reo%20Brasileiro%202023%20-%20BCA%20103%20 122. Ministério da Infraestrutura, “Novo SISANT,” Website: Text/HTML, Ministério da Infraestrutura, 20 May 2023, 06.06.23.pdf. https://www.gov.br/anac/pt-br/assuntos/drones/novo-sisant. 144. Ministério da Infraestrutura, “Registration and certificates,” Website: Text/HTML, Ministério da Infraestrutura, 20 123. DJI Forum, “Drone Strategy in Brazil,” Website: Text/HTML, DJI Forum, 20 May 2023, May 2023, https://www.gov.br/anac/en/topics/drones/registration-and-certificates. https://forum.dji.com/thread-188770-1-1.html. 38 Endnotes 145. Diário Oficial da União, “PORTARIA MAPA Nº 298, DE 22 DE SETEMBRO DE 2021,” Website: Text/HTML, 163. The World Bank. 2017. “BRAZIL: PUBLIC EXPENDITURE REVIEW.” Diário Oficial da União, 20 May 2023, https://documents1.worldbank.org/curated/en/643471520429223428/pdf/Volume-1-Overview.pdf. https://in.gov.br/en/web/dou/-/portaria-mapa-n-298-de-22-de-setembro-de-2021-347039095. 146. Éverton Imobiliária, “Reserva Legal,” Website: Text/HTML, Éverton Imobiliária, 20 May 2023, https://blog.evertonimobiliaria.com.br/reserva-legal/. 147. EMBRAPA, “Área de Preservação Permanente (APP),” Website: Text/HTML, EMBRAPA, 20 May 2023, https://www.embrapa.br/codigo-florestal/entenda-o-codigo-florestal/area-de-preservacao-permanente. 148. Portal AirConnected, “BR-UTM e a atuação do DECEA a estimular o mercado de drones nacional,” Website: Text/HTML, Portal AirConnected, 20 May 2023, https://portal.airconnected.com.br/2022/11/01/br-utm-e-a-atuacao-do-decea-a-estimular-o-mercado-de-drones-n acional/ 149. DECEA, “DCA 351-6 CONCEPÇÃO OPERACIONAL UTM NACIONAL,” Website: Text/HTML, DECEA, 20 May 2023, https://publicacoes.decea.mil.br/publicacao/dca-351-6. 150. Unmanned Airspace, “Brazil’s DECEA launches UTM sandbox and publishes implementation programme,” Website: Text/HTML, Unmanned Airspace, 20 May 2023, https://www.unmannedairspace.info/uncategorized/brazils-decea-launches-brazils-utm-sandbox-and-published-i mplementation-programme/. 151. Portal AirConnected, “BR-UTM e a atuação do DECEA a estimular o mercado de drones nacional,” Portal AirConnected, Website: Text/HTML, Portal AirConnected, 20 May 2023, https://portal.airconnected.com.br/2022/11/01/br-utm-e-a-atuacao-do-decea-a-estimular-o-mercado-de-drones-n acional/. 152. Simple Flying, “Why Brazil Represents The Greatest Market Opportunity In Latin America,” Website: Text/HTML, Simple Flying, 20 May 2023, https://simpleflying.com/why-brazil-represents-the-greatest-market-opportunity-in-latin-america/. 153. Simple Flying, “Which Country Has The Most Private Jets?” Website: Text/HTML, Simple Flying, 20 May 2023, https://simpleflying.com/most-private-jets-by-country/. 154. PwC analysis on market size and market potential, second semester 2021. 155. MundoGeo, “Empresa pionera de drones en Brasil es vendida,” Website: Text/HTML, MundoGeo, 20 May 2023, https://mundogeo.com/es/2013/09/23/empresa-pionera-de-drones-en-brasil-es-vendida/. 156. Presidência da República, “Drone Legal,” Website: Text/HTML, Presidência da República, 20 May 2023, https://www.gov.br/transportes/pt-br/pt-br/assuntos/transporte-aereo/drone-legal. 157. Drone Show, “Campanha Drone Consciente incentiva o voo seguro e seguindo as normas,” Website: Text/HTML, Drone Show, 20 May 2023, https://droneshowla.com/campanha-drone-consciente-incentiva-o-voo-seguro-e-seguindo-as-normas/. 158. Ministério da Infraestrutura, “ANAC extends public consultation on changes to Brazilian Civil Aviation Regulations #01, #21 and #61 until July 3rd,” Website: Text/HTML, Ministério da Infraestrutura, 20 May 2023, https://www.gov.br/anac/en/news/2023/anac-extends-public-consultation-on-changes-to-brazilian-civil-aviation-re gulations-01-21-and-61-until-july-3rd. 159. OECD, “Chapter 6. Fostering the digital transformation of the brazilian economy,” Website: Text/HTML, OECD LIbrary, 20 May 2023, https://www.oecd-ilibrary.org/sites/4f5ebe9d-en/index.html?itemId=/content/component/4f5ebe9d-en. 160. 3BL, “Brazil: Drone Technology Development Program for Precision Agriculture,” Website: Text/HTML, 3BL, 20 May 2023, https://www.3blmedia.com/news/brazil-drone-technology-development-program-precision-agriculture. 161. EVE, “Mobility reimagined,” Website: Text/HTML, EVE, 20 May 2023, https://eveairmobility.com/. 162. IMD. 2022. “WORLD DIGITAL COMPETITIVENESS RANKING 2022.” https://static.poder360.com.br/2022/09/Digital-Ranking-IMD-2022.pdf. 39 Brazil has the largest drone market in the LAC region and has The total market potential of UAS services (which represents the 3 experienced rapid adoption of the technology across many market value if all current applications was performed by drones) in different use cases. The ecosystem was initially made up of Brazil is forecasted to reach USD 1.9 Bn by 2026, growing at a military and agricultural applications, but now spans a wide range of compound annual growth rate (CAGR) of 9% during the 2021-2026 different industries, all of which are using drones to improve period (Figure 3.1). The driving factors behind this growth include efficiency, increase safety, reduce cost, and unlock new further development and maintenance of the country's infrastructure opportunities for value generation. and the utilisation of UAS services across other sectors that are vital to the Brazilian economy. Although, the market is mature relative to its peers with a mix of both local and international players that are in operation, In terms of the expected market size, drone services have the there is still significant economic potential for the industry to potential to generate significant revenue whether through in-house Economic Potential grow. With the right initiatives, it can continue to stimulate growth and job creation. operations or outsourced models. It is estimated that this revenue could reach USD 321.6 million in 2026, with a CAGR (2021-2026) of of Drone Services Similarly, drones can also play a big role in solving various 37%. The rapid adoption of UAS technology for more advanced services is the main driver of this growth.1 environmental and social challenges that are needed to assist Brazil’s transformation towards a greener economy. (For more details on the methodology used to estimate market size and market potential, see page 114 in Annex 2). Figure 3.1 Market Potential and Size of Commercial UAS Services in Brazil, 2021-2026 Market Commercial UAS Services: Total Market Potential, 2021 - 2026 [USD Mn] Potential +9% 1,904.9 1,752.9 1,604.1 1,368.6 1,434.2 1,230.2 2021 2022 2023 2024 2025 2026 Market Commercial UAS Services: Market Value, 2021 - 2026 [USD Mn] Size 321.6 +37% 240.0 174.8 128.4 94.1 67.0 2021 2022 2023 2024 2025 2026 Source: PwC analysis on market size and market potential, second semester 2021. 40 Figure 3.2 UAS Services Market Value and Growth by Industry, 2021-2026 CAGR Industry Forecasted Market Value in 2021, [USD Mn] Forecasted Market Value in 2026, [USD Mn] ’21-’26 Agriculture 35.29 147.2 33% Healthcare - 34.3 132% Environment & 7.71 31.9 33% Culture Forestry 6.83 27.9 32% Utilities 6.28 14.3 18% Mining 3.00 13.7 35% Safety & Security 2.19 12.2 41% Oil & Gas 1.88 11.3 43% Media & Projections indicate a rising demand for commercial UAS 1.14 7.8 47% Entertainment services across numerous industries in Brazil. Nevertheless, the agricultural sector is expected to maintain its leading role in adopting drone technology and driving demand for Telecommunication 0.93 6.0 45% commercial services. While agriculture is anticipated to remain the dominant sector Public Infrastructure 1.04 5.5 43% using UAS technology, significant growth is also projected in other sectors. Medical drone deliveries in the healthcare sector, for instance, are forecasted to see a large increase in 0.67 adoption, with a CAGR of 132% over the 2021-2026 period. Insurance 5.5 52% Similarly, the environmental and cultural sector will witness considerable growth in drone usage for tasks such as Transport - 4.1 44% disaster management, environmental protection and cultural heritage surveillance. These sectors, although not the primary users, will substantially contribute to the overall 66.95 growth of the UAS market (as shown in Figure 3.2). Total 321.6 37% Source: PwC analysis on market size and market potential, second semester 2021. 41 Box 3.1 Agriculture Industry Outlook Agribusiness is one of the main economic sectors in Brazil, being responsible for about 27.4% of GDP in 2021. 2 Commercial applications of drones continue to gain traction as farmers aim to increase agricultural productivity and crop yield. Agriculture holds the largest share of the market, and In the Brazilian market, there are numerous local and international UAS hardware manufacturers as well as several software currently leads the pathway in drone usage. However, companies and startups that are focused on agriculture. There are also a great number of agricultural companies that use there is still lots of potential for further advancements in UAVs, including Embrapa, Klabin, Bayer, Raízen, São Martinho, and BASF.3 analytical software development and technology adoption among less knowledgeable players. Market Size Prediction: 147.2 USD Mn by 2026; CAGR of 33% from 2021–2026. Industry Players: Natutec Drone,4 Agripulvtech,5 Xmobots,6 AGX Technologia,7 SkyAgri,8 G drones,9 Nuvem UAV,10 ARPAC11 Current and Potential Sector Applications: • Crop Health Monitoring12, 13 - Drones equipped with RGB and multispectral cameras capture image data which is processed into mapping information (orthomosaics). - The captured data can be used to generate vegetation indices such as the Normalized Difference Vegetation Index (NDVI) among others. - Those vegetation indices can be used by farmers to monitor the health of the vegetation, optimise the fertilisation and watering process, and detect plant health problems proactively. - Combined with other data sources, they can also be used for estimating harvest yields. • Spraying14 - Spraying drones can be used for watering or fertilisation processes, especially in areas where traditional methods are not effective (e.g. farms located on slopes or with irregular shapes). - The technology can also be used for precision agriculture where drones can apply spot treatments of pesticides and fertilisers. • Sowing15 - Sowing drones are equipped with a special feeder which releases grains from the air into the soil. This approach can be much quicker and less labour-intensive than traditional planting. 42 Box 3.2 Healthcare Industry Outlook Brazil has great potential for developing drone solutions for the healthcare sector. There are several drone delivery startups established and pilot projects realised in cooperation with large medical and pharmaceutical companies, including Novartis, Currently, drones have had limited adoption in Pardini Group, and Raia Drogasil.16, 17 healthcare but that is poised to change. Technological With the appropriate investment in UAS technology and related incentives for the ecosystem, drones in the healthcare sector advances, successful pilot projects, and interest from can be quickly adopted and have a significant economic and social impact on urban, peri-urban, and remote communities.18 governmental and medical institutions are starting to drive rapid growth in the industry. Assuming that Brazil can reform its healthcare-specific drone regulations and digital infrastructure, drone delivery can transform healthcare from the ground up, providing better efficiency across the value chain and Market Size Prediction: 34.3 USD Mn by 2026; CAGR of 132% from 2021–2026. ultimately improving patient outcomes. Industry Players: Speedbird Aero,19 SkyDrones,20 Synerjet Corp.21 Current and Potential Sector Applications: • Medical Deliveries in Urban and Peri-urban Areas22 - Daily delivery of medical goods, blood samples, and biomedical equipment using specially determined routes in dense urban and peri-urban areas. • Medical Supply Deliveries to Remote Communities23 - Drones can provide necessary inventory and medical supplies directly to rural areas on a regular basis as well as on-demand due to medical emergencies. • Medical Corridors Between Health Facilities and Laboratories24 - Using unmanned aerial vehicles to improve logistics for moving biological samples and exams between health facilities reduces the time it takes to get results and thus optimises resources. • Medical Emergency Response* - In the case of natural disasters or catastrophic events, drones can be the first line of response to carry necessary medical equipment for injured people quickly and efficiently. - UAVs equipped with a thermal sensor can be used in environments with limited visibility, and those with ground-penetrating radar (GPR) can be used to search for people that get stuck under collapsed buildings. • Spraying Disinfectants in Public Places25 - Drones can be used to disinfect densely populated public places where the risk of spreading infections is high. * potential sector application 43 Box 3.3 Environment and Culture Industry Outlook Brazil’s usage of drones for environmental protection is forecast to have significant potential and high market value due to its geographic extension, vast areas of green lands, as well as existing plans to preserve the natural environment of the country. Due to the richness of Brazil’s biodiversity, protected With a diverse range of ecosystems, including the Amazon rainforest and the Pantanal wetlands, Brazil is an important areas, relevant cultural heritage sites in the country, as environmental reservoir with over 60% of its territory protected.26 well as commitments to preserve the natural environment – UAS services in this industry are Public government agencies are still the main sponsors of investments in environmental protection applications together with forecasted to grow significantly in the next 5 years.38 specialised NGOs and research institutes that are responsible for developing key technologies.27 Market Size Prediction: 31.9 USD Mn by 2026; CAGR of 33% from 2021–2026. Industry Players: Qualcomm,28 AGX Technologia,29 G drones,30 Altave.31 Current and Potential Sector Applications: • Wildlife Protection and Monitoring32, 33 ‐ UAS technology equipped with thermal and infrared sensors allows for precise animal monitoring, population counting, as well as the detection and identification of new habitats and species, particularly in the dense canopy of the Amazon rainforest. ‐ Utilising drones for aerial surveillance also provides real-time monitoring capabilities that enhance the efficiency and effectiveness of anti-poaching monitoring. • Water Monitoring34, 35 - Drones with a multispectral camera can be helpful to detect water contamination and its sources in areas with a high risk of pollution. - UAVs equipped with a special container can obtain water samples directly for further investigation • Air Quality Monitoring* - Drones equipped with air quality sensors can be deployed to create highly precise air pollution maps. • Landslide Risk Management36 - Drone technology can be used to generate high-resolution 3D terrain models which can then be used to run landslide simulations that inform the management of these high-risk areas. • Cultural Heritage Surveillance37 - Drone technology can be used to map and survey cultural heritage sites which is very useful for documentation and for procuring data for analysis. * potential sector application 44 Box 3.4 Forestry Industry Outlook Brazil became the first LAC country to include forest restoration in its Paris Climate Agreement commitment with the main goal being the revitalisation of 12 million hectares (29 million acres) of forests by 2030.39 With over 60% of Brazil’s territory being covered by the There have been at least 15 major research and pilot projects which are focused mainly on forest data acquisition and natural Amazon rainforest,52 this dense and vast ecosystem preservation in the country, some of which have been realised by Embrapa, University of São Paulo, Goias Federal faces significant risks from illegal logging, mining and University, Federal University of Paraná, WWF-Brasil, Ministry of the Environment, and the São Paulo State Forest Inventory. land-grabbing. As such, the adoption of drones in forest In addition, there are some commercial companies that are also utilising drones including, but not limited to, Duratex and monitoring, reforestation efforts, and threat detection is CMPC Brasil.40 expected to grow. Market Size Prediction: 27.9 USD Mn by 2026; CAGR of 32% from 2021–2026. Industry Players: XAG,41 SkyAgri,42 G drones,43 Grupo WZ,44 Topo Floresta,45 Sardrones46 Current and Potential Sector Applications: • Aerial Surveillance47 - Drones allow local communities to monitor and document the deforestation process from a safe distance before reporting the activity to the authorities in real-time. • Fire Detection48 - Drones can be deployed to spot smoke and fire in high-risk areas. - Drones can also provide firefighting units with relevant situational awareness in the process of putting out a fire. • Forestry Inventory49 - Drones equipped with Light Detection and Ranging (LiDAR) and optical sensors provide high-resolution biomass and biodiversity data which can be used for forest inventory measurements and management. • Forestry Restoration50, 51 - Drone technology can be used to map forest restoration areas and assess parameters such as soil condition and moisture content. - Planning drones can also shoot tree seed pods to the ground from the air. * potential sector application 45 Box 3.5 Utilities Industry Outlook The Brazilian electric transmission line system is constantly expanding. According to studies by the National Electric Energy Agency (ANEEL) 6159.34 km of the total newlines nationwide were completed in 2020 alone, increasing their reach in 15 The use of drones in the utilities sector in Brazil has states.53 been consistently growing and the outlook for the The use of drones in Brazil for utilities is already present in several large companies including ISA CTEEP, Enel, Aegea, BRK future is also optimistic. As the infrastructure expands Ambiental, AES Tietê, Neoenergia, EDP, Águas do Brasil, and Neoenergia Elektro. They have proven very helpful in reducing and major stakeholders recognise the advantages of the need for resource displacement and ensuring safety and agility.54 drone inspections and monitoring, the utility industry is poised to further implement UAS solutions. Market Size Prediction: 14.3 USD Mn by 2026; CAGR of 18% from 2021–2026. Industry Players: Horus,55 TerraDrone Brazil,56 MultiDrones,57 Drone Visual,58 DronePower,59 H3 Dynamics.60 Current and Potential Sector Applications: • Power Line Design, Construction, and Maintenance61 - Drone-based 3D mapping data can be used for design purposes related to the construction or reconstruction of power grids and related facilities, as well as to provide post-as-built documentation. - This mapping data can also be used for vegetation management purposes to map and measure the vegetation around power lines helping to determine if and where maintenance is needed to prevent potential safety hazards. - Drone inspection of power poles and other facilities can be used to detect faults in the infrastructure which are difficult to effectively identify using traditional methods. - Drones equipped with thermal imaging cameras can identify components that are overheating, helping to prevent possible power outages or fires. • Solar and Wind Farms62 - Drone RGB data and thermal inspections can be used to detect anomalies and faults within renewable energy infrastructure. • Water Reservoirs and Dam Monitoring63 - Drones can be used to perform dam inspections as they can reach difficult-to-access areas such as remote zones or the upper parts of the structure, limiting the risk related to performing manual inspections. • Inspection of Water Distribution Networks64 - “Digital twins” drone technology allows the simulation of different scenarios faced by water distribution networks, such as a possible leak or the most efficient way to make repairs. • Sewage Systems Inspection and Modernisation65 - Conducting a quick and accurate drone-based mapping exercise enables the connection of sewage networks more quickly in areas covered by native vegetation and sandy soil, while also providing greater security for the teams involved. * potential sector application 46 Box 3.6 Mining Industry Outlook Brazil is a highly relevant global player in the mining sector, long occupying a place among the top five mineral producers in the world, and playing host to more than 3,000 mines spread across the nation. Yet, as recently as 2019, only 3% of the Brazil’s mining sector is among the largest in the national territory was mapped, suggesting that there is tremendous potential for expansion.66 In Brazil, the mining and mineral developing world and is key to the country’s growth. processing sector represents approximately 4 percent of the country’s GDP and is considered to be a key component of the The industry requires modernisation though to be truly country's growth potential.67 sustainable in the modern world and drones could be To be aligned with global trends around sustainable mining practices, drones started to be implemented in the Brazilian an instrumental tool to use in this pursuit.78 mining industry from 2015.68 Leading industry players like Vale, Gerdau, ArcelorMittal, Ternium, and Anglo-American have already incorporated drones and actively use them for safety, surveying, and security operations.69 Market Size Prediction: 13.7 USD Mn by 2026; CAGR of 35% from 2021–2026. Industry Players: Skycatch,70 Microdrones,71 Altave,72 Maply,73 G drones,74 Futuriste Tecnologias Inovadoras75 Current and Potential Sector Applications: • Open Pit Mine Inspections76 - Drones are used for mapping and surveying mining areas to support asset management and operations planning. - Drone-based photogrammetry data is used for volumetric measurements of stockpiles. - Drone survey data is used to measure and monitor the compliance of haul roads on the mine site and analyse landslide risk factors. - Drone data can also be used for drilling and blasting planning and analysis. • Tailings Dams and Ponds77 - Drone data can be used to monitor and detect leaks and other anomalies. • Mine Rehabilitation* - Drone data can be used to map and document the removal, storage, rehabilitation, and reforestation of topsoil for mine clearing. * potential sector application 47 Box 3.7 Safety and Security Industry Outlook Significant growth is forecast for the safety and security industry as there is great potential for the development of UAV-based solutions. State and municipal governments have acquired drone technology and use it for police activities to reduce human The growing importance of drones for security exposure and risk while also facilitating emergency actions by monitoring them in real-time. purposes is already receiving recognition in Brazil. They are used to monitor events, large gatherings, and other high-risk areas.89 Advancements in drone technology will create a range of possible implementations that will inevitably result in a much bigger UAV presence in the industry. Market Size Prediction: 12.2 USD Mn by 2026; CAGR of 41% from 2021–2026. Industry Players: AL DRONES,79 XMobots,80 Global Drones,81 G drones,82 Altave,83 Air Robotics84 Current and Potential Sector Applications: • Surveillance85, 86 - Drones equipped with high-resolution cameras and a large zoom can unveil criminal activity without being spotted and provide information such as the number of offenders, their equipment, and their vehicles. - UAVs are also used to observe crowded areas where static cameras might have blind spots. - Drones can replace police helicopters thanks to their considerable advantages in being able to fly at low altitudes, superior efficiency, safety provision, and lower operating costs. - For large events, government authorities use drones to monitor and ensure the safety of the public through facial recognition technology. • Monitoring87 - UAVs with a thermal camera can be used for facilities and property monitoring, especially at night. - Drone-based monitoring can be provided continuously with a programmed path or can be deployed after alarm activation. - UAVs equipped with additional sensors like gas or toxic substance detectors can be useful for identifying leaks in industrial plants. - The public security sector uses drones to monitor risk areas in order to avoid environmental disasters such as landslides. - Since the beginning of the COVID-19 pandemic, municipalities have implemented UAV technology to monitor the temperature of people on the street and map crowds. • Search and Rescue88 - Drones equipped with thermal cameras and speakers are useful in search and rescue operations to find people that get lost in hard-to-access places or that stay in a dangerous environment. - UAV-based techniques can be also implemented in burning buildings to detect injured people or to determine the source of the fire. - Drones could be used to save the lives of people who are at risk of drowning by delivering rescue circles to them. 48 Box 3.8 Oil and Gas Industry Outlook Brazil is the largest oil producer in South America, and with gas included has a thriving industry that contributes approximately 10 percent of the country's GDP. With its significant offshore reserves and ongoing investments, Brazil is poised to become The adoption of drone technology among major oil and responsible for around 50% of the world's offshore oil production by 2040, according to the International Energy Agency. 90 gas companies, as part of digitalisation efforts, is There are several drone projects realised by larger players in the industry like Petrobras, D2R Technology, and Ultracargo projected to further fuel the demand for drone services that intend to identify possible failures or weaknesses throughout their plants, in addition to reducing the time spent optimising in the industry. operational processes.91 Market Size Prediction: 11.3 USD Mn by 2026; CAGR of 43% from 2021–2026. Industry Players: TerraDrone Brazil,92 Texo DSI,93 Grupo DR1,94 Plimsoll,95 Altave,96 Jetwind,97 DronePower98 Current and Potential Sector Applications: • Infrastructure Inspections* - Data gathered from UAV sensors is used to detect visual damages or differences in dimensions of utilities due to excessive load or material weakness. • Tank Inspections99 - Dangerous inspections can be performed by drones that have a protection system that eliminates the chances of a collision or the loss of altitude. This prevents a fire hazard in the process of unmanned inspections. • Pipeline Monitoring100 - Fixed-wing drones with thermal camera sensors and gas detectors can be used for pipeline maintenance and monitoring. • Inspection of Offshore Structures101 - Unmanned floating production, storage, and offloading (FPSO) tank inspections can be done via drone to identify corrosion, cracks, fractures, or welding anomalies quickly before they can damage the structural integrity of the vessel. - Drones are also used for inspection and 3D documentation of oil rigs. • Refinery Inspection102 - Drones can be useful for maintenance inspections of refineries and platforms in areas that are difficult to access or that represent a significant risk, such as tanks, closed reservoirs, and the tops of torches (flares). * potential sector application 49 Box 3.9 Media and Entertainment Industry Outlook The media and entertainment sector presents plenty of promising opportunities for the adoption of drone operations in Brazil due to its use in filming and aerial photography for coverage of sports and journalistic events, video production and editing for Drones have become increasingly prevalent in the tourism, and the real estate market. Brazilian media and entertainment industry, offering a There are already companies in the country with a specific focus on this type of demand such as RS Negócios Imobiliários, wide range of applications. Their versatility and ability Jiral Empreendimentos, Rossi Real Estate Corporation, GTIS Partners, MRV Engenharia, and Construtora Dias Righi.103 to capture unique perspectives have made drones an indispensable tool for enhancing storytelling and However, there is still room for further adoption if various regulatory limitations are addressed. For instance, filming major engaging audiences. events presents challenges as flying over people is only allowed with the public's consent. Market Size Prediction: 7.8 USD Mn by 2026; CAGR of 47% from 2021–2026. Industry Players: HireUAVpro,104 Brazil Production Services,105 Apoio Mídias Digitais,106 Max Drone,107 MultiDrones.108 Current and Potential Sector Applications: • Aerial Photography and Filming109 - Drones make it possible to take photos or videos at unique angles, operating at a greater height than a crane but lower than a helicopter. • Light Shows110 - Hundreds and thousands of light drones can be used to perform choreographic routines created with 3D animation tools and specialised software. • Live Stream Broadcast111 - An UAV equipped with a camera and controlled by a remote control allows for the broadcast of news reports or sport games from some of the best angles. 50 Box 3.10 Telecommunications Industry Outlook Brazil's telecommunications industry boasts 70,000 towers and 100,000 radio base stations. The use of drones for telecommunication operations is expected to significantly grow with the upcoming 5G infrastructure investments of Integrating drone technology can bring significant approximately 6 billion reais (USD 1.27 billion) between 2022 and 2025. These investments prioritise urban areas and enable advantages to the telecommunications industry with the incorporation of diverse digital solutions like the Internet of Things (IoT) alongside traditional towers. While the adoption of drones playing a crucial role in areas such as drone projects in this field is still limited, the 5G auction is anticipated to drive further expansion in the future.112 infrastructure inspection, network planning, and maintenance. Market Size Prediction: 6.0 USD Mn by 2026; CAGR of 45% from 2021–2026. Industry Players: Horus,113 Max Drone,114 Drone Visual,115 Applus+,116 Global Drones.117 Current and Potential Sector Applications: • Inspection of Telecommunications Towers118 - Multirotor drones are used to inspect telecommunications towers based on pre-programmed flight plans or manual piloting. UAS pilots capture high-resolution images to capture close-up images required for the analysis as well as to generate 3D models of the infrastructure. - Drone pilots can also deliver live video data feeds to engineers and technicians who are located remotely. This real-time information can assist in making immediate asset maintenance decisions. - The image data can be processed and stored in a cloud system that provides file hosting, simultaneous access, advanced image analytics, and tagging – all required for effective asset management. - The systems can be applied to generate reports providing insights and intelligence to relevant stakeholders. • Signal Strength Testing* - Drones equipped with specialised antennas and signal testing equipment can perform aerial signal strength testing. This helps engineers fine-tune the positioning and alignment of antennas, improving network performance and coverage. • Line-of-Sight Testing* - Drones can be deployed to identify obstacles that would degrade signal transmission. This information can then be used to determine the ideal location, height, and other parameters of an antenna. * potential sector application 51 Box 3.11 Public Infrastructure Industry Outlook Brazil has experienced rapid urbanisation in recent years, resulting in 87% of its population now residing in cities. While the 25 largest urban areas contribute nearly two-thirds of the country’s GDP, smaller cities have been witnessing the highest The public infrastructure industry in Brazil can levels of population growth – but they often lack the necessary capacity to manage it and deliver municipal public services at significantly benefit from the integration of drone scale. It is therefore a priority to implement extensive capital projects and asset management systems, which UAS solutions technology. Drones can assist in various areas, can greatly support.119 including inspections, mapping, and maintenance. Several construction projects have already been implemented with the help of drones in order to monitor work progress, including the pilot of IDB (Inter-American Development Bank) in cooperation with DNIT (Departamento Nacional de Infraestrutura de Transportes). However, wider adoption of drones in the sector is still to come.120 Market Size Prediction: 5.5 USD Mn by 2026; CAGR of 43% from 2021–2026. Industry Players: Max Drone,121 Obra 3D,122 Global Drones,123 G drones,124 Group Engemap,125 STE - Serviços técnicos de engenharia S. A126 Current and Potential Sector Applications: • Infrastructure Inspection127 - Drones can be used for the inspection of various construction projects including bridges, tunnels, roofs, buildings, roads, and railways. These inspections can help to identify invasions, monitor erosion areas, and calculate damage where it exists. • Construction Supervision128 - Aerial inspections with high-resolution cameras and LiDAR technology can supervise, verify, or track the progress of construction projects in real time, increasing safety and compliance. • Monitoring Informal Settlement Growth129 - Drones can be used to improve the efficiency of monitoring informal settlement growth patterns that prevent the government from providing basic services to citizens in a sustainable urban development framework. • Detection of Road Surface Anomalies130 - Drone technology, together with advanced data analytics, can be used to detect road surface pavement anomalies. In many cases, this solution is cheaper and more effective than traditional methods and measurements. * potential sector application 52 Box 3.12 Insurance Industry Outlook In 2021, Brazil emerged as the country with the largest premium volume in the non-life insurance sector across the LAC region.131 The insurance industry holds a crucial position in the Brazilian economy and society, making significant Besides healthcare, the insurance sector is anticipated contributions to infrastructure, job creation, and income generation. However, most insurers are currently grappling with the to experience the highest CAGR growth of 52% by challenge of outdated and fragmented legacy systems, necessitating the adoption of digital technologies for enhanced 2026. Although the current adoption of UAS technology efficiency in managing insurance claims and processes. At present, the use of drones in the insurance sector is still at an is relatively low, insurance companies are gradually early stage of development but experts believe that this will change in the coming years as it becomes an important tool for getting familiar with the advantages of using drones.136 risk management. Market Size Prediction: 5.5 USD Mn by 2026; CAGR of 52% from 2021–2026. Industry Players: Grupo Segurador Banco do Brasil Mapfre132 Current and Potential Sector Applications: • Risk Monitoring133 - Drones can be used to monitor areas that are prone to large-scale disasters such as earthquakes, floods, droughts, volcanic eruptions, or hurricanes – benefiting greatly from visual imaging and 3D mapping. • Claims Management and Fraud Prevention* - Data gathered by drones can be used to improve claims management by checking the initial state of a property and its condition after a reported incident. - Drones can also provide detailed, accurate data that allows for the creation of 3D models of a property or infrastructure. This can serve to assess possibly damaged areas faster, more cheaply, and more precisely. In addition, it can provide indisputable documentation to mitigate the risk of fraud. • Rural and Agricultural Insurance134, 135 - Drones can be implemented for the inspection of rural and agricultural insurance where an expert is traditionally sent out to analyse the losses and make an evaluation of whether or not to proceed with the claim. * potential sector application 53 Box 3.13 Transportation and Logistics Industry Outlook The use of drones in Brazil for transport and logistics is gaining traction and is expected to experience wider adoption in the future as the retail industry focuses on urban delivery and specifically last-mile delivery. The transportation and logistics industry is projected to 137 The first pilot project was a test by food delivery company iFood in cooperation with SpeedBird Aero. This got approval hold the smallest share of the market in terms of drone from ANAC for the first drone-assisted food delivery service in Latin America before being followed by pilot projects from adoption. However, taking into consideration Brazil’s Brazilian retailer B2W138 and the global personal care cosmetics group Natura.139 vast territory, and the results of some permanent UAS delivery operations, a viable drone delivery system can be highly beneficial, particularly for inter-city transportation. Market Size Prediction: 4.1 USD Mn by 2026; CAGR of 44% from 2021–2026. Industry Players: SpeedBird Aero,140 XMobots.141 Current and Potential Sector Applications: • Food Delivery142 - Drones can carry out food deliveries in urban and peri-urban environments. As an example of existing services in Brazil, drones can deliver loads of up to 2.5 kg within a radius of 3 km, however specifics of this use case might vary depending on providers. • Delivery of Goods143 - Drones can provide BVLOS operations for cargo delivery of basic supplies like water, food, medicines, and work equipment. The distance and drone payload will vary depending the solution utilised. • Delivery from Distribution Centres to Stores* - UAVs can be used to transport products from distribution centres and hubs to retail stores. * potential sector application 54 Forecast of the Number of Commercial UAS Figure 3.3 Forecast of the Number of Commercial UAS, 2021-2026, [units] Following the trends of the last five years, the number of commercial UAS in Brazil is expected to CAGR grow at a CAGR of 45% over the 2021-2026 period and is expected to reach over 144,000 in ’21-’26 144,162 2026. This is split across a few different types of drones. (Figure 3.3). In 2026, the drone market in Brazil is projected to be dominated by VTOL (Vertical Takeoff and 12,269 25% Landing) drones which will hold the largest market share and the highest growth rate. These drones are primarily employed in the healthcare sector for tasks such as delivering medical supplies or emergency response. 109,282 Following closely behind in terms of market share are fixed-wing drones, widely utilised in the agriculture, forestry, and utilities sectors. Fixed-wing drones excel at tasks such as line 10,066 54,231 24% infrastructure inspections and the mapping of expansive areas like forests and agricultural land. +45% Multi-rotor UAS are used where flights of short distances and high agility are required. In addition, 80,482 multi-rotors excel in industrial inspections and aerial filming. Those are projected to reach over 12,000 by the year 2026. 7,932 44,853 Finally, the smallest share of 86 units that is forecast for 2026 is expected to be held by tethered 58,242 drones. This specialised solution is applied when operation requires hovering for extended periods of time, including applications like traffic control, events recording, or surveillance. 7,423 35,770 40,801 5,190 77,576 61% 33,967 Figure 3.4 Forecast of the Number of Recreational UAS, 2021-2026, [units ‘000] 22,662 54,292 24,103 4,010 36,723 18,621 16,797 11,469 23% 463.0 31 39 55 57 71 86 2021 2022 2023 2024 2025 2026 Multi-rotor Fixed-wing VTOL Tethered 347.4 +39% Source: PwC analysis on market size and market potential, second semester 2021. 257.4 Forecast of the Number of Recreational UAVs 187.1 The popularity of recreational drones in Brazil can be attributed to multiple factors. Advancements in 131.7 drone technology have significantly increased accessibility and affordability for the general public. As a result, recreational drones have become more readily available for hobbyists to enjoy. 87.8 It is worth noting that in Brazil, drones weighing up to 250 grams are considered model aircraft (unmanned aircraft used for recreation and leisure), and the country's regulations allow them to be flown without any restrictions such as the need for pilot licensing. This regulatory leniency is further fueling the uptake of recreational drones as the industry is projected to grow. 2021 2022 2023 2024 2025 2026 The estimated number of recreational drones in 2026 is expected to reach 463,000 at a CAGR of 39% Recreational UAS over the 2021-2026 period (Figure 3.4). Source: PwC analysis on market size and market potential, second semester 2021. 55 Job Creation The anticipated expansion of Brazil's drone industry signifies a rising demand for drone services and technology, as well as a necessity for skilled professionals. This growth will consequently generate employment opportunities, contributing to the overall economic progress and development of the Brazilian economy. The analysis shows that the total number of jobs created will be over 82 thousand and this will be split across direct jobs and indirect jobs (Figures 3.5 and 3.6). Direct jobs are defined as those that are generated directly by core activities enabled by drones. Indirect jobs are those that support these core activities or that come into existence due to the economic growth of the direct drone ecosystem. Direct Jobs Figure 3.5 Estimated Number of Direct Jobs Created CAGR Forecasts predict that the drone industry in Brazil will grow at a CAGR of 35% between ’21-’26 2021 and 2026, resulting in the creation of 74,000 direct jobs by 2026 (Figure 3.5). These jobs will be spread across a range of different specialisations. 74,307 Drone operators are projected to maintain their position as the largest specialisation within the UAS operators industry, primarily because they will be operating across several different industry verticals. It is +35% expected that the majority of these jobs will be outsourced to external drone service providers. Data processing 36% 36,040 Data processing specialists are responsible for processing the vast amounts of data captured by specialists 32% drones. Therefore, they play a crucial role in transforming raw data into meaningful and useful outputs, enabling informed decision-making. They are expected to represent the second-largest job Analysts 32% specialty in the drone industry by 2023. 20,542 Machine Learning 16,880 47% Another data-related job category is the analysts who provide valuable support to data processing specialists 3,349 specialists. They deal with the interpretation and validation of the processed data, ensuring the 7,880 1,991 823 5,068 12,385 34% accuracy and reliability of the derived insights. It is assumed that their services will be performed both Management 295 2,814 in-house and in an outsourced model. 2021 2026 When dealing with drone data, machine learning specialists leverage their skills to create and apply Source: PwC analysis on market size and market potential, second semester 2021. machine learning algorithms and models. They focus on tasks such as data classification, object recognition, anomaly detection, and predictive modeling. While this specialisation is expected to be the smallest in the industry, it is anticipated to experience the biggest growth rate, as the range of Indirect Jobs possible machine learning applications expands quickly. In addition to the direct jobs created, there will also be a ripple effect of indirect job opportunities emerging in relation to commercial UAS services. They are expected to reach over 7,000 by the year 2023, with a CAGR of 32% from 2021 to 2026 (Figure 3.6). Figure 3.6 Estimated Number of Indirect Jobs Created The largest proportion of indirect jobs will be comprised of back office support staff covering finance, CAGR marketing, human resources, and procurement tasks. Their number is projected to reach almost 3,000 ’21-’26 by 2026. When it comes to the largest growth rate, beneficiaries are expected to lead with a CAGR of 58% 7,812 Enablement services from 2021 to 2026. This category includes a wide range of individuals and organisations that benefit 33% from the insights and information derived from drone-collected data. It is projected to expand to Product sales +32% 1,487 56% almost 1,500 jobs by the year 2026. R&D 1,485 3% This is followed by the product sales branch with a predicted 1,485 new jobs. The growth is expected Beneficiaries 208 to reach a CAGR of 56% from 2021 to 2026. Hardware and software 976 58% 463 Enablement services are predicted to maintain the position of the second-largest indirect job category development 2% 1,924 for the year 2023, reaching a job count of 1,487. These services relate to airspace and air traffic Supporting staff 361 2,843 management, regulatory bodies, training facilities, and insurance providers among others. 183 160 35% (back office) 98 410 Other 639 37% Interestingly, hardware and software engineering jobs are expected to reach 463 jobs with a CAGR of 73 350 2021 2026 2% from 2021 to 2026. However, despite a relatively slow growth rate, they still remain an important component of the drone industry. Source: PwC analysis on market size and market potential, second semester 2021. 56 Endnotes 1. PwC analysis on market size and market potential, second semester 2021. 21. Government Technology, “Drones Supporting the Delivery of Medical Supplies,” Website: Text/HTML, Government Technology, 20 May 2023, 2. AgNews, “Observations of Brazilian agricultural input supply chain,” Website: Text/HTML, AgNews, 20 May 2023, https://www.govtech.com/em/emergency-blogs/disaster-zone/drones-supporting-the-delivery-of-medical-supplies. https://news.agropages.com/News/NewsDetail---44879.htm. 22. Interview with Speedbird Aero representative, conducted by PwC Poland: July 2023. 3. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second semester 2022. 23. Interview with Speedbird Aero representative, conducted by PwC Poland: July 2023. 4. Natutec Drone, “Soluções,” Website: Text/HTML, Natutec Drone, 20 May 2023, 24. AEROIN, “Grupo testa amanhã, no Brasil, transporte de exames usando drone,” Website: Text/HTML, AEROIN, https://www.natutecdrone.com.br/solucoes. 20 May 2023, https://aeroin.net/grupo-testa-brasil-transporte-exames-drone/. 5. Tracxn, “Agripulvtech,” Website: Text/HTML, Tracxn, 20 May 2023, 25. Prefeitura Municipal de Porto Alegre, “Porto Alegre testa drones para descontaminar áreas públicas,” Website: https://tracxn.com/d/companies/agripulvtech/__UX-_17GZ8ZUtBR1X90YF9-l5ve03vF_aBeT-Vg9JRnA. Text/HTML, Prefeitura Municipal de Porto Alegre, 20 May 2023, https://prefeitura.poa.br/gp/noticias/porto-alegre-testa-drones-para-descontaminar-areas-publicas. 6. AgNews, “Brazil in the race to develop agricultural drones,” Website: Text/HTML, AgNews, 20 May 2023, https://news.agropages.com/News/NewsDetail---41206.htm. 26. UNESCO, “UNESCO Brasilia,” Website: Text/HTML, UNESCO, 20 May 2023, https://www.unesco.org/en/fieldoffice/brasilia. 7. Castelo Branco, Kalinka & Pelizzoni, Jorge & Neris, Luciano & Júnior, Onofre & Osorio, Fernando & Wolf, Denis. 2011. “Tiriba - A new approach of UAV based on model driven development and multiprocessors.” Proceedings - 27. WWF, “Drones: new path for environmental conservation,” Website: Text/HTML, UNESCO, 20 May 2023, IEEE International Conference on Robotics and Automation. https://www.wwf.org.br/?47062/Drones-new-path-for-environmental-conservation. https://www.researchgate.net/publication/221074189_Tiriba_-_A_new_approach_of_UAV_based_on_model_driv 28. Qualcomm, “How Brazilian farmers will use drones to boost agriculture and support environmental sustainability,” en_development_and_multiprocessors. Website: Text/HTML, Qualcomm, 20 May 2023, 8. UAS VISION, “Israeli and Brazilian Joint Project for Modular Precision Swarming Crop Spraying Drone Solution,” https://www.qualcomm.com/news/onq/2016/07/how-brazilian-farmers-will-use-drones-boost-agriculture-and-supp Website: Text/HTML, UAS VISION, 20 May 2023, ort https://www.uasvision.com/2019/07/02/israeli-and-brazilian-joint-project-for-modular-precision-swarming-crop-spr 29. InSight Crime, “Brazil Uses Drones to Monitor Environmental Crimes,” Website: Text/HTML, InSight Crime, 20 aying-drone-solution/. May 2023, https://insightcrime.org/news/brief/brazil-uses-drones-to-monitor-environmental-crimes/. 9. G-drones, “Serviços,” Website: Text/HTML, G-drones, 20 May 2023, https://www.g-drones.com.br/servicos/. 30. G-drones, “Serviços,” Website: Text/HTML, G-drones, 20 May 2023, https://www.g-drones.com.br/servicos/. 10. AgroPages, “Brazil in the race to develop agricultural drones,” Website: Text/HTML, AgroPages, 20 May 2023, 31. Altave, “ALTAVE para Mineração,” Website: Text/HTML, Altave, 20 May 2023, https://altave.com.br/mineracao/. https://news.agropages.com/News/NewsDetail---41206.htm. 32. Science News Explores, “These flying robots protect endangered wildlife,” Website: Text/HTML, Science News 11. ARPAC, “Quem Somos,” Website: Text/HTML, ARPAC, 20 May 2023, https://arpacdrones.com.br/quem-somos/. Explores, 20 May 2023, https://www.snexplores.org/article/drones-protect-endangered-wildlife-ai-conservation. 12. Tracxn, “Agripulvtech,” Website: Text/HTML, Tracxn, 20 May 2023, 33. Nature, “Using Drones to Assess World’s Largest Mass Gathering of Giant River Turtles,” Website: Text/HTML, https://tracxn.com/d/companies/agripulvtech/__UX-_17GZ8ZUtBR1X90YF9-l5ve03vF_aBeT-Vg9JRnA. Nature, 20 May 2023, https://www.pbs.org/wnet/nature/blog/drones-giant-river-turtles/. 13. José Carlos de Alarcão Júnior, Daniel Noe Coaguila Nuñez. 2023. “O uso de drones na agricultura4.0.” Brazilian 34. UnB Ciência, “Drone para monitoramento de águas será desenvolvido na UnB,” Website: Text/HTML, UnB Journal of Science, 3(1),1-13, 2024. ISSN:2764-3417, Ciência, 20 May 2023, https://www.unbciencia.unb.br/exatas/45-geociencias/410-dpmdasdnu. https://www.brazilianjournalofscience.com.br/revista/article/view/438. 35. Tratamento de Água, “Pesquisador desenvolve projeto para monitoramento hídrico,” Website: Text/HTML, 14. Revista Pesquisa Fapesp, “Crop spraying,” Website: Text/HTML, Revista Pesquisa Fapesp, 20 May 2023, Tratamento de Água, 20 May 2023, https://tratamentodeagua.com.br/pesquisador-monitoramento-hidrico/. https://revistapesquisa.fapesp.br/en/drone-spraying/. 36. PreventionWeb, “How drones are improving landslide risk management in Brazil,” Website: Text/HTML, 15. Giro do Boi, “Drone já semeia a pastagem numa das fazendas mais tecnificadas da América Latina,” Website: PreventionWeb, 20 May 2023, Text/HTML, Giro do Boi, 20 May 2023, https://www.preventionweb.net/news/how-drones-are-improving-landslide-risk-management-brazil. https://www.girodoboi.com.br/destaques/drone-ja-semeia-a-pastagem-numa-das-fazendas-mais-tecnificadas-da- america-latina/. 37. Ministério da Cultura, “Iphan faz monitoramento aéreo em conjunto tombado de Petrópolis (RJ),” Website: Text/HTML, Ministério da Cultura, 20 May 2023, 16. Mundo Conectado, “Novartis e RD são parceiras em primeira simulação de entrega de medicamentos por https://www.gov.br/iphan/pt-br/assuntos/noticias/iphan-faz-monitoramento-aereo-em-conjunto-tombado-de-petro drone,” Website: Text/HTML, Mundo Conectado, 20 May 2023, polis-rj. https://mundoconectado.com.br/noticias/v/11400/novartis-e-rd-sao-parceiras-em-primeira-simulacao-de-entrega- de-medicamentos-por-drone. 38. PwC analysis on market size and market potential, second semester 2021. 17. Saúde Business, “Drone vai transportar amostras de exames do Grupo Pardini,” Website: Text/HTML, Saúde 39. World Resources Institute, “Brazil’s Forests Are Being Restored — Now We Can See Where,” Website: Business, 20 May 2023, Text/HTML, World Resources Institute, 20 May 2023, https://www.saudebusiness.com/ti-e-inovacao/drone-vai-transportar-amostras-de-exames-do-grupo-pardini. https://www.wri.org/insights/brazils-forests-are-being-restored-now-we-can-see-where. 18. Interview with Speedbird Aero representative, conducted by PwC Poland: July 2023. 40. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second semester 2022. 19. AEROIN, “Grupo testa amanhã, no Brasil, transporte de exames usando drone,” Website: Text/HTML, AEROIN, 20 May 2023, https://aeroin.net/grupo-testa-brasil-transporte-exames-drone/. 41. XAG, “Brazil Introduces Agricultural Drones from XAG to Plant Trees,” Website: Text/HTML, XAG, 20 May 2023, https://www.xa.com/en/news/official/xag/150. 20. Prefeitura Municipal de Porto Alegre, “Porto Alegre testa drones para descontaminar áreas públicas,” Website: Text/HTML, Prefeitura Municipal de Porto Alegre, 20 May 2023, 42. SkyAgri, “From detection to correction,” Website: Text/HTML, SkyAgri, 20 May 2023, http://www.skyagri.com.br/. https://prefeitura.poa.br/gp/noticias/porto-alegre-testa-drones-para-descontaminar-areas-publicas. 57 Endnotes 43. G-drones, “Serviços,” Website: Text/HTML, G-drones, 20 May 2023, https://www.g-drones.com.br/servicos/. 63. International Water Power, “Drones to help inspect Brazilian dams,” Website: Text/HTML, International Water Power, 20 May 2023, 44. Grupo WZ, “Censo Florestal,” Website: Text/HTML, Grupo WZ, 20 May 2023, https://www.waterpowermagazine.com/news/newsdrones-to-help-inspect-brazilian-dams-7402817. https://grupowz.com.br/censo-florestal/. 64. Globo.com, “Concessionárias privadas usam hidrômetro inteligente, drones e análise de dados para elevar 45. TopoFloresta, “Topo Floresta – Levantamentos Aerofotogramétricos,” Website: Text/HTML, TopoFloresta, 20 May eficiência e reduzir desperdício,” Website: Text/HTML, Globo.com, 20 May 2023, 2023, http://topofloresta.com.br/servicos/aerolevantamento/. https://oglobo.globo.com/economia/concessionarias-privadas-usam-hidrometro-inteligente-drones-analise-de-da 46. Sardrones, “Servicos,” Website: Text/HTML, Sardrones, 20 May 2023, https://sardrones.com.br/servicos.html. dos-para-elevar-eficiencia-reduzir-desperdicio-25179103. 47. DroneDeploy, “DroneDeploy and WWF-Brazil partner to support environmental defenders of the Amazon 65. BRK, “BRK Ambiental investe em tecnologia para expansão da cobertura de esgoto em Blumenau,” Website: Rainforest,” Website: Text/HTML, DroneDeploy, 20 May 2023, https://www.dronedeploy.com/blog/dotorg-wwf. Text/HTML, BRK, 20 May 2023, https://www.brkambiental.com.br/blumenau/brk-ambiental-investe-em-tecnologia-para-expansao-da-cobertura-de 48. Ferreira, Manuel & Araújo, Ila & Spina Avino, Felipe & Vitor, João & Costa, Silva & da-Costa, Marcelo & -esgoto-em-blumenau. Albuquerque, Rafael & Balbuena, Enrique. 2019. “ZONING THE FIRE-RISK IN PROTECTED AREAS IN BRAZIL WITH DRONES: A STUDY CASE FOR THE BRASÍLIA NATIONAL PARK.” 66. Ulkoministeriö Utrikesministeriet, “Mining Sector in Brazil,” Website: Text/HTML, Ulkoministeriö Utrikesministeriet, https://www.researchgate.net/publication/335352617_ZONING_THE_FIRE-RISK_IN_PROTECTED_AREAS_IN 20 May 2023, _BRAZIL_WITH_DRONES_A_STUDY_CASE_FOR_THE_BRASILIA_NATIONAL_PARK. https://um.fi/edustustojen-raportit/-/asset_publisher/W41AhLdTjdag/content/mining-sector-in-brazil-1/384951. 49. Embrapa, “Paisagens Sustentáveis,” Website: Text/HTML, Embrapa, 20 May 2023, 67. The World Bank, “WB: META 2 to Modernize the Energy and Mining Sectors in Brazil,” Website: Text/HTML, The https://www.embrapa.br/busca-de-solucoes-tecnologicas/-/produto-servico/3862/paisagens-sustentaveis. World Bank, 20 May 2023, https://www.worldbank.org/en/news/press-release/2020/05/20/meta-project-modernize-energy-mining-sectors-in- 50. SciDev.Net, “Drones deployed to monitor Brazil forest growth,” Website: Text/HTML, SciDev.Net, 20 May 2023, brazil. https://www.scidev.net/global/news/drones-deployed-to-monitor-brazil-forest-growth/. 68. DR1, “Infraestrutura & Mineração,” Website: Text/HTML, DR1, 20 May 2023, 51. AgNews, “Brazil: Use of drones for biological pest control attracts investors,” Website: Text/HTML, AgNews, 20 https://dr1ts.com/solucoes-com-drones/infraestrutura-mineracao/. May 2023, https://news.agropages.com/News/NewsDetail---40836.htm. 69. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second 52. Valor, “Amazon rainforest targeted by development project,” Website: Text/HTML, Valort, 20 May 2023, semester 2022. https://valorinternational.globo.com/economy/news/2022/05/03/amazon-rainforest-targeted-by-development-proje ct.ghtml. 70. Skycatch, “A single source of truth to visualize geospatial data,” Website: Text/HTML, Skycatch, 20 May 2023, https://skycatch.com/drone-uav-mapping. 53. Pix Force, “Linhas de transmissão: A expansão no Brasil e seus desafios,” Website: Text/HTML, Pix Force, 20 May 2023, 71. Microdrones, “DRONE LiDAR AND DRONE PHOTOGRAMMETRY DATA COLLECTION FOR MINING https://www.pixforce.com.br/post/linhas-de-transmiss%C3%A3o-a-expans%C3%A3o-no-brasil-e-seus-desafios. APPLICATIONS: BUILD A DIGITAL TWIN OF YOUR MINE!,” Website: Text/HTML, Microdrones, 20 May 2023, https://www.microdrones.com/en/industry-experts/mining/. 54. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second semester 2022. 72. Altave, ALTAVE para Mineração,” Website: Text/HTML, Altave, 20 May 2023, https://altave.com.br/mineracao/. 55. Horus, “LIDER EM INSPEÇÃO DE PLANTAS SOLARES COM DRONES,” Website: Text/HTML, Horus, 20 May 73. Maply, “Tecnologia a serviço da Mineração,” Website: Text/HTML, Maply, 20 May 2023, 2023, https://horus.global. https://www.maply.io/industrias/mineracao. 56. TerraDrone Brazil, “Solutions,” Website: Text/HTML, TerraDrone Brazil, 20 May 2023, 74. G-drones, “Servicos,” Website: Text/HTML, G-drones, 20 May 2023, https://www.g-drones.com.br/servicos/. https://www.tdbrinspections.com/solutions.html. 75. Futuriste, “Setores que mais se beneficiam do uso de Drones,” Website: Text/HTML, Futuriste, 20 May 2023, 57. MultiDrones, “Informações,” Website: Text/HTML, MultiDrones, 20 May 2023, https://www.futuriste.com.br/drones_para_empresas. https://www.multidrones.com.br/informacoes. 76. Anglo American, “Anglo American usa veículo aéreo não tripulado na mina de Barro Alto (GO),” Website: 58. DroneVisual, “INSPEÇÃO EM LINHA DE ENERGIA COM DRONES,” Website: Text/HTML, DroneVisual, 20 May Text/HTML, Anglo American, 20 May 2023, 2023, https://www.dronevisual.com/drone-inspe%C3%A7%C3%A3o-linha-de-energia. https://brasil.angloamerican.com/pt-pt/imprensa/noticias/2016/06-09-2016. 59. DronePower, “Inspeção de Ativos,” Website: Text/HTML, DronePower, 20 May 2023, 77. Anglo American, “Reimaginar a mineração para melhorar a vida das pessoas,” Website: Text/HTML, Anglo https://dronepower.com.br/index.php/inspecao_ativos/. American, 20 May 2023, https://brasil.angloamerican.com/. 60. H3 Dynamics, “NEW: dam inspections in #Brazil by H3 Dynamics!” Website: Text/HTML, H3 Dynamics, 20 May 78. The World Bank, “WB: META 2 to Modernize the Energy and Mining Sectors in Brazil,” Website: Text/HTML, The 2023, World Bank, 20 May 2023, https://www.facebook.com/h3dynamics/posts/-new-dam-inspections-in-brazil-by-h3-dynamics-perimeter-safety-of https://www.worldbank.org/en/news/press-release/2020/05/20/meta-project-modernize-energy-mining-sectors-in- -dams-and-prese/3758844790896951/?locale=hi_IN brazil. 61. ABRADEE, “EDP é a primeira empresa do setor elétrico certificada pela ANAC para monitoramento de redes 79. AL Drones, “SECURITY,” Website: Text/HTML, AL Drones, 20 May 2023, com uso de drones,” Website: Text/HTML, ABRADEE, 20 May 2023, https://aldrones.com.br/en/2021/02/04/seguranca/. https://abradee.org.br/edp-e-a-primeira-empresa-do-setor-eletrico-certificada-pela-anac-para-monitoramento-de-r 80. XMobots, “Security and defence,” Website: Text/HTML, XMobots, 20 May 2023, edes-com-uso-de-drones/. https://xmobots.com.br/language/en/security-defense/. 62. Horus, “LIDER EM INSPEÇÃO DE PLANTAS SOLARES COM DRONES,” Website: Text/HTML, Horus, 20 May 81. Global Drones, “Conheça nossos serviços,” Website: Text/HTML, Global Drones, 20 May 2023, 2023, https://horus.global. https://www.globaldrones.com.br/servicos-2/. 58 Endnotes 82. G-drones, “Serviços,” Website: Text/HTML, G-drones, 20 May 2023, https://www.g-drones.com.br/servicos/. 102. Envea, “CASE STUDIES,” Website: Text/HTML, Envea, 20 May 2023, https://www.envea.global/use-of-drone-to-measure-odor-gases-in-a-refinery-plant/. 83. Altave, ALTAVE para Mineração,” Website: Text/HTML, Altave, 20 May 2023, https://altave.com.br/defesa-e-seguranca/. 103. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second semester 2022. 84. Air Robotics, “Quem Somos,” Website: Text/HTML, Air Robotics, 20 May 2023, https://airrobotics.com.br/quem-somos/. 104. Hire UAV Pro, “DRONE LIGHT SHOW,” Website: Text/HTML, Hire UAV Pro, 20 May 2023, https://www.hireuavpro.com/item/brazil-drone-light-shows/. 85. BNamericas, “São Paulo embraces drone surveillance,” Website: Text/HTML, BNamericas, 20 May 2023, https://www.bnamericas.com/en/news/sao-paulo-embraces-drone-surveillance1. 105. Brazil Production Services, “AERIAL VIDEO PRODUCTION IN BRAZIL – DRONES AND HELICOPTERS,” Website: Text/HTML, Brazil Production Services, 20 May 2023, 86. G1, “Drones vão transmitir imagens do carnaval de rua de SP em tempo real, diz secretário da Segurança,” https://brazilproductionservices.com/en/services-aerial-video-production/. Website: Text/HTML, G1, 20 May 2023, https://g1.globo.com/sp/sao-paulo/carnaval/2020/noticia/2020/02/14/drones-vao-transmitir-imagens-do-carnaval- 106. Apoio Mídias Digitais, “Fotografia profissional,” Website: Text/HTML, Apoio Mídias Digitai, 20 May 2023, de-rua-de-sp-em-tempo-real-diz-secretario-da-seguranca.ghtml. https://apoiomidia.com.br/. 87. EMBRAZIl, “SAIBA TUDO SOBRE OS DRONES PARA MONITORAMENTO, VIGIL NCIA E SEGURANÇA,” 107. Max Drone, “Filmagem de Eventos com Drone,” Website: Text/HTML, Max Drone, 20 May 2023, Website: Text/HTML, EMBRAZIl, 20 May 2023, https://www.maxdrone.com.br/filmagem-de-eventos-com-drone/. https://www.embrasilseguranca.com.br/drones-seguranca-monitoramento/. 108. MultiDrones, “Filmagem Aérea,” Website: Text/HTML, MultiDrones, 20 May 2023, 88. UTFPR, “Pesquisadores criam equipamento com drone para auxiliar resgate,” Website: Text/HTML, UTFPR, 20 https://www.multidrones.com.br/filmagem-aerea-servicos. May 2023, 109. MultiDrones, “Filmagem Aérea,” Website: Text/HTML, MultiDrones, 20 May 2023, https://portal.utfpr.edu.br/noticias/geral/divulgacao-cientifica/pesquisadores-da-utfpr-criam-equipamento-para-aux https://www.multidrones.com.br/filmagem-aerea-servicos. iliar-resgate-de-vitimas. 110. Hire UAV Pro, “DRONE LIGHT SHOW,” Website: Text/HTML, Hire UAV Pro, 20 May 2023, 89. BNamericas, “Sao Paulo embraces drone surveillance,” Website: Text/HTML, BNamericas, 20 May 2023, https://www.hireuavpro.com/item/brazil-drone-light-shows/. https://www.bnamericas.com/en/news/sao-paulo-embraces-drone-surveillance1. 111. RECORDTV, “Record inova e faz transmissão ao vivo com drone,” Website: Text/HTML, RECORDTV, 20 May 90. The International Trade Administration, “Energy resource guide,” Website: Text/HTML, The International Trade 2023, https://recordtv.r7.com/2014/08/08/record-inova-e-faz-transmissao-ao-vivo-com-drone/. Administration, 20 May 2023, https://www.trade.gov/energy-resource-guide-brazil-oil-and-gas. 112. BNamericas, “Brazil telecom tower industry projects US$1.27bn in capex by 2025,” Website: Text/HTML, 91. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second BNamericas, 20 May 2023, semester 2022. https://www.bnamericas.com/en/news/brazil-telecom-tower-industry-projects-us127bn-in-capex-by-2025. 92. TerraDrone Brazil, “Solutions,” Website: Text/HTML, TerraDrone Brazil, 20 May 2023, 113. HORUS, “TELECOM,” Website: Text/HTML, HORUS, 20 May 2023, https://horus.global/solucoes/telecom/. https://www.tdbrinspections.com/solutions.html. 114. Max Drone, “Inspeção de Torres com Drone,” Website: Text/HTML, Max Drone, 20 May 2023, 93. World Pipelines, “Latin America oil and gas drone services report,” Website: Text/HTML, World Pipelines, 20 May https://www.maxdrone.com.br/inspecao-de-torres-com-drone/. 2023, https://www.worldpipelines.com/equipment-and-safety/23112018/latin-america-oil-and-gas-drone-services-report/ 115. Drone Visual, “inspeção Em Telecom Com Drones,” Website: Text/HTML, Drone Visual, 20 May 2023, https://www.dronevisual.com/inspe%C3%A7%C3%A3o-telecom-drones. 94. Grupo DR1, “Estudo de Caso: Reduzindo $36MM de Custos em Operação Offshore no Brasil,” Website: Text/HTML, Grupo DR1, 20 May 2023, 116. Applus, “Inspeção de torres de comunicações,” Website: Text/HTML, Applus, 20 May 2023, https://blog.grupodr1.com.br/reducao-de-custos-em-operacao-offshore-realizando-inspecoes-com-drones/ https://www.applus.com/br/pt/what-we-do/service-sheet/inspe%C3%A7%C3%A3o-de-torres-de-comunica%C3% A7%C3%B5es. 95. Plimsoll, “UAV Tank Inspection,” Website: Text/HTML, Plimsoll, 20 May 2023, https://www.plimsoll.com.br/site/uav-tank-inspection#. 117. Global Drones, “Website: Text/HTML, Global Drones, 20 May 2023, https://www.globaldrones.com.br/servicos-2/. 96. Altave, “ALTAVE para Óleo & Gás,” Website: Text/HTML, Altave, 20 May 2023, https://altave.com.br/oleo-e-gas/. 118. Drone Visual, “inspeção Em Telecom Com Drones,” Website: Text/HTML, Drone Visual, 20 May 2023, https://www.dronevisual.com/inspe%C3%A7%C3%A3o-telecom-drones. 97. JETWIND, “PIPELINE INSPECTION,” Website: Text/HTML, JETWIND, 20 May 2023, https://www.jetwind.com.br/solucao-isr-i. 119. Coalition for Urban Transitions. 2021. “Seizing Brazil’s Urban Opportunity. Prioritising Urban Transport and Housing Investments for Inclusion And Resilience.” 98. DronePower, “Inspeção de Ativos,” Website: Text/HTML, DronePower, 20 May 2023, https://urbantransitions.global/wp-content/uploads/2021/10/Brazil-SUO-ENG-05Oct.pdf. https://dronepower.com.br/index.php/inspecao_ativos/. 120. PwC analysis of drone adoption and ecosystem maturity. Core analysis July 2022, updated during the second 99. Terra Drone, “Terra Drone Brazil conducts Brazil’s first unmanned FPSO tank inspection for Petrobras,” Website: semester 2022. Text/HTML, Terra Drone, 20 May 2023, https://www.terra-drone.net/global/2019/07/22/terra-drone-brazil-fpso-tank-inspection-petrobras/. 121. Max Drone, “Uso de Drones na Construção Civil e indústria,” Website: Text/HTML, Max Drone, 20 May 2023, https://www.maxdrone.com.br/construcao-civil-e-industria/. 100. Drone Certo, “SERVIÇOS,” Website: Text/HTML, Drone Certo, 20 May 2023, https://dronecerto.com.br/servicos-com-drones/. 122. Obra 3D, “ACOMPANHAMENTO DE OBRA DE PRECISÃO OBRA 3D,” Website: Text/HTML, Max Drone, 20 May 2023, https://www.obra3d.com.br/. 101. Grupo DR1, “Estudo de Caso: Reduzindo $36MM de Custos em Operação Offshore no Brasil,” Website: Text/HTML, Grupo DR1, 20 May 2023, 123. Global Drones, “Conheça nossos serviços,” Website: Text/HTML, Global Drones, 20 May 2023, https://blog.grupodr1.com.br/reducao-de-custos-em-operacao-offshore-realizando-inspecoes-com-drones/. https://www.globaldrones.com.br/servicos-2/. 59 Endnotes 124. G drones, “Serviços,” Website: Text/HTML, G drones, 20 May 2023, https://www.g-drones.com.br/servicos/. 125. GPS World, “3D cm achieved with UAV/van mapping system MapKITE,” Website: Text/HTML, GPS World, 20 May 2023, https://www.gpsworld.com/3d-cm-achieved-with-uav-van-mapping-system-mapkite/. 126. Interview with STE (Serviços técnicos de engenharia S. A) representative, conducted by PwC Poland: July 2023. 127. G drones, “Serviços,” Website: Text/HTML, G drones, 20 May 2023, https://www.g-drones.com.br/servicos/. 128. TCEPR, “Em evento nacional, TCE-PR apresenta uso de drones na fiscalização de obras,” Website: Text/HTML, TCEPR, 20 May 2023, https://www1.tce.pr.gov.br/noticias/em-evento-nacional-tce-pr-apresenta-uso-de-drones-na-fiscalizacao-de-obras /7250/N. 129. IADB, “Monitoring informal settlement growth in Manaus, Brazil with drones,” Website: Text/HTML, IADB, 20 May 2023, https://blogs.iadb.org/ciudades-sostenibles/en/monitoring-informal-settlement-growth-in-manaus-brazil-with-dron es/. 130. Parente, D. C., Felix, N. C., & Picanço, A. P. 2017. “Use of unmanned aerial vehicle (UAV) in the identification of surface pathology in asphalt pavement.” Revista ALCONPAT, 7(2), 160 - 171. https://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S2007-68352017000200160. 131. Mordor Intelligence, “Brazil Life Insurance and Non-Life Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028),” Website: Text/HTML, Mordor Intelligence, 20 May 2023, https://www.mordorintelligence.com/industry-reports/life-non-life-insurance-market-in-brazil. 132. IQuali, “Drone na mira dos negócios: de seguro a rodovias,” Website: Text/HTML, IQuali, 20 May 2023, http://www.iquali.com.br/noticia/53/Drone-na-mira-dos-negcios-de-seguro-a-rodovias. 133. Elaiz Aparecida Mensch Buffon and Francisco Mendonça. 2021. “Application of RPAS to disaster risk reduction in Brazil: application in the analysis of urban floods.” Journal of Unmanned Vehicle Systems. 9(4): 205-218. https://cdnsciencepub.com/doi/10.1139/juvs-2020-0033. 134. IQuali, “Drone na mira dos negócios: de seguro a rodovias,” Website: Text/HTML, IQuali, 20 May 2023, http://www.iquali.com.br/noticia/53/Drone-na-mira-dos-negcios-de-seguro-a-rodovias. 135. AgroPlanning, “Grupo Segurador Banco do Brasil e Mapfre usa técnicas de sensoriamento remoto em áreas rurais,” Website: Text/HTML, AgroPlanning, 20 May 2023, https://www.agroplanning.com.br/2018/06/19/grupo-segurador-banco-do-brasil-e-mapfre-usa-tecnicas-de-sensori amento-remoto-em-areas-rurais/. 136. PwC analysis on market size and market potential, second semester 2021. 137. LABS, “iFood gets authorization to use drones for food deliveries in Brazil,” Website: Text/HTML, LABS, 20 May 2023, https://labsnews.com/en/news/business/ifood-gets-authorization-to-use-drones-for-food-deliveries/. 138. Apex Insight, “Brazil’s B2W testing logistics drones,” Website: Text/HTML, Apex Insight, 20 May 2023, https://apex-insight.com/brazils-b2w-testing-logistics-drones/. 139. Folha de S.Paulo, “Natura vai usar drones para enviar produtos,” Website: Text/HTML, Folha de S.Paulo, 20 May 2023, https://www1.folha.uol.com.br/mercado/2021/08/natura-vai-enviar-produtos-a-partir-de-drones.shtml. 140. Speedbird Aero, “Go Beyond. Deliver with Speedbird,” Website: Text/HTML, Speedbird Aero, 20 May 2023, https://www.speedbird.aero/. 141. XMobots, “Cargo transportation over long distances,” Website: Text/HTML, XMobots, 20 May 2023, https://xmobots.com.br/cargo-e-delivery/. 142. IFood News, “iFood é 1ª empresa das Américas a poder usar drone no delivery,” Website: Text/HTML, IFood News, 20 May 2023, https://www.news.ifood.com.br/ifood-e-1-empresa-das-americas-a-poder-usar-drone-no-delivery/. 143. XMobots - https://xmobots.com.br/cargo-e-delivery/. 60 4 Drone technology has the potential to support several Table 4.1, which follows, categorises 14 drone use case in terms of important social and environmental objectives in Brazil, its current maturity in Brazil and its relevance for the country’s enabling green growth and helping to tackle some of the most development efforts. Some of the most relevant applications for pressing challenges faced by the country. UAS in the country are related with environmental protection and Due to its vast area, climate conditions, biodiversity, and monitoring activities, as well as climate related uses, where drones geography, the challenges are varied - ranging from natural have the potential to be a relevant asset to restore, protect and disasters to spatial and social disparities. Drones can be a relevant support Brazil’s transition to a greener and more sustainable tool in several key sectors and domains, as well as being valuable development. assets for policymakers as Brazil works to meet its climate change Other relevant use cases are related to transforming healthcare commitments and protect the interests of its citizens. through medical deliveries and other industries through goods deliveries in remote locations as well as urban and peri-urban areas Drones for Social The areas of focus and specific use cases identified in this analysis represent possible steps along the path toward a more resilient, in the country. Development and inclusive, and environmentally conscious nation. As Brazil navigates the intricate interplay between its cultural richness, Nonetheless, the potential for leveraging drone technology across these 14 applications, and many others, is significant, and it can Environmental environmental stewardship, and socio-economic growth, drones can enable positive transformation, amplifying the country's efforts play a role in shaping Brazil's future trajectory. By harnessing the capabilities of drones, policymakers and development institutions Protection to overcome its pressing social and environmental hurdles. have the opportunity to support initiatives addressing its multifaceted challenges, the attainment of Sustainable Development Goals, and its climate commitments. 61 Table 4.1 Maturity and Relevance of Drone Use Cases for Social Development and Environmental Protection Use Case Drone Application Examples Maturity Relevance Detection of logging activities, Volume calculation of removed logs, Mapping of future planting spots, Forest Deforestation, Restoration, and Reforestation seeding, Aftercare with spraying drones, Progress mapping, Measurement of the forest hight Assessing areas prone to fires, Early fire detection, Mapping the areas of wildfires, Situational awareness during Wildfires wildfires, Search and rescue operations Wildlife monitoring, Animal and habitat management, Counting the number of plants and animals, Monitoring Endangered Species Monitoring poaching incidents, Tracking the movement of endangered species Environmental Pollution Monitoring Air quality monitoring, Water quality monitoring, Soil quality monitoring Pre-disaster mapping for vulnerability assessment and risk modelling, Emergency drone delivery, Damage Disaster Management and Climate Resilience assessment, 2D and 3D modelling for infrastructure reconstruction during disaster recovery, Search and Rescue operations Road infrastructure inspections for disaster and climate resilience, Road surface and structural damage Climate Road Infrastructure Resilience monitoring, Post-damage surveying, Baseline surveying for construction/reconstruction design, Construction or repair progress monitoring and documentation, Asset management Healthcare and Medical Goods Delivery Medical deliveries in urban/peri-urban and remote areas, Medical emergency response with drones, Air medical * corridor between health facilities, Medical test and sample drop-off and pick-up with drones Cargo delivery in urban and peri-urban areas, Delivery from distribution centres to delivery hubs, Delivery of Deliveries of Goods goods such as food, clean water and medical equipment to places affected by natural disasters Remote Internet Access Creation of a network of drones equipped with internet routers, Facilitating post-disaster connectivity Identification of breeding sites, Releasing of sterilised male mosquitoes or mosquitos that carry Wolbachia Mosquitoes Borne Disease Spread Reduction bacteria, Spraying of Aquatain liquid Crop health mapping using vegetation indexes, Crop protection by drone spraying, Phytosanitary emergency Agriculture response, Livestock monitoring Informal settlement and its growth monitoring, City mapping and 3D model generation with photogrammetry Urban Planning and Monitoring software, Asset management, Capital project monitoring, Cadastral project monitoring, Cadastral information gathering, Identification of infrastructure needs and potential risks Landfill mapping, Waste volume calculation, Monitoring methane emissions, Monitoring waste treatment, Fire risk Waste Management and Landfill Monitoring monitoring, Detection of Illegal landfills Traffic flow analysis, Situational awareness and evidence collection in case of emergencies, Safety assessments, Road Traffic Monitoring Identification of traffic infractions, Data gathering for a range of studies: origin-destination, traffic volumes, parking, spot speed Level of Maturity of the Use Case in Brazil Relevance for Brazil Mature use case Testing & piloting stage Limited or no evidence High relevance Moderate relevance Low relevance PwC analysis of environmental and social impact of drones, August 2022 and updated in the first quarter 2023; * running permanent operations in two cities in the country 62 Brazil is known for its rich biodiversity and vast natural resources, This includes developing sophisticated machine learning and artificial and as a result, it has been actively focused on protecting and intelligence algorithms capable of extracting actionable information from restoring the country’s natural heritage. The diverse range of the collected data. These advanced analytical tools can enable real-time ecosystems includes important global habitats such as the Amazon decision making, and predictive modeling for climate change adaptation. rainforest and the Pantanal wetlands, making Brazil an important environmental reservoir with over 60% of its territory protected.1 If these barriers can be overcome, Brazil can use drones to significantly Restoring these ecosystems is not just critical for the country’s improve the efficiency, effectiveness, and coverage of environmental future but also for global efforts to address climate change. protection and monitoring initiatives in the country, thus helping to preserve the country’s biodiversity and natural resources. Brazil has made significant progress in environmental protection by focusing efforts on preserving ecosystems, protecting endangered species, and promoting sustainable land use practices across the country. Despite these, deforestation still remains a significant environmental challenge, particularly in areas that are home to the indigenous territories Deforestation, Restoration, in the Amazon rainforest.2 There have been several efforts to strengthen and Reforestation local protection capabilities (including the role of indigenous communities) involving satellite and drone monitoring, law enforcement, and financial incentives for sustainable land usage. For example, in 2019, the Green Deforestation and other human activities combined with the impact Climate Fund (GCF) provided funding of over USD 96mn for REDD+ of climate change and extensive land degradation pose a serious risk activities related to Brazil’s Nationally Determined Contribution (NDC) as to the ecosystems of the Amazon and Cerrado biomes. The trends a signatory to the Paris Agreement.3 These sorts of efforts to preserve witnessed across the region show a significant loss of biodiversity these forests not only protect the cultural heritage but also serve as and high levels of carbon sink depletion, making it a very pressing bulwarks against illegal deforestation and climate change.4 issue. While efforts have been made to control deforestation, the rate has been steadily increasing since 2012. The Brazilian government Drone Applications in Environmental Conservation has pledged to end illegal deforestation by 2028 and achieve carbon neutrality by 2050,9 but budget constraints and enforcement issues Several environmental projects have implemented drones for monitoring remain significant barriers. To overcome these obstacles, drones and conservation. The range of related applications includes monitoring have become an innovative solution that is starting to gain traction. illegal activities such as land clearing with fires or deforestation, as well as more proactive conservation like seed planting and tree counting.5,6 A lot of effort has been expended to reduce and stop deforestation in Brazil over the last few decades. Between 2004 and 2012, there was Drones have also been used by research institutions to conduct some success in terms of conservation policies like the PPCDAm (The biodiversity surveys and capture imagery and data on species diversity, Action Plan for Prevention and Control of Legal Amazon Deforestation)10 population size, and habitat conditions.7 which contributed to an 80% decrease in the rate of deforestation,11 translating into just 0.2% of annual deforested area by 2012.12 However, During wildfires, drones equipped with thermal cameras and smoke since 2012 the rate has been constantly increasing, reaching 12,000 km2 detectors can be deployed for early detection of these fires. They can of forest loss in 2022.13 This deforestation is driven by many factors quickly survey large areas and give authorities the information they need including illegal logging, agriculture (including cattle ranching), and land to respond rapidly and minimise the damage, providing key situational grabbing. These activities are fueled by stretched law enforcement, awareness for firefighters.8 suboptimal land governance, and macroeconomic factors related to commodity demand and prices. Likewise, researchers have been working on the development of drone applications for environmental pollution monitoring, including polluted However, if deforestation can be curbed, it can have a massive impact on water bodies, and land and air quality with the help of dedicated sensors. the country’s future. A 2021 study found that Brazil has the highest total cost-effective mitigation potential from land-based measures of any Drones offer a wide array of innovative solutions for some of Brazil’s country in the world because the vast majority of deforestation is already largest environmental challenges, but their full potential remains untapped considered illegal in terms of current regulations. Therefore, while legal due to different challenges that must be effectively navigated. Some of deforestation is expected to remain constant, the designation of protected these include regulatory hurdles, infrastructural limitations, public sector areas is expected to increase until 2030.14 Assuming illegal deforestation adoption, investment gaps, the shortage of trained personnel, and can be slowed, the growth in agriculture production after 2028 will happen inefficiencies in collecting and processing vast quantities of data. mostly due to productivity gains rather than land clearing.15 Overcoming this data bottleneck (through investing in cutting-edge technology and capabilities) is crucial to unlocking more advanced applications. 63 Brazil has been proactive in taking steps forward in deforestation efforts by This allowed them to create high-resolution maps of the terrain which can being the first country to receive results-based payments from the Green further support future preservation efforts. Drones can also be used for Climate Fund for keeping forests in good condition and reducing more advanced use cases such as calculating the volume of removed emissions, and by pledging to end deforestation by 2028.16,17 But despite logs, fire prevention, and creating a forest catalogue that lays out all the these commitments, there has been a 24% cut to the environmental different plant species found in a given area. These activities are budget, making it even more important to find cost-effective and innovative significantly useful to monitor the state of timber before the concession. An solutions to protect Brazil’s biodiversity and forests.18 The current example of this is when the head of the São Paulo State Forest Inventory trajectory shows that without proper tools and funding that support started testing drones in 2021 to understand the biodiversity, tree health, compliance with climate change regulations, it will be difficult to meet the and forest development across certain key forest areas.26 country’s environmental commitments, making the fight against deforestation much more challenging. Utilising autonomous drones for reforestation involves the deployment of seeds, capsules, or seedlings in areas affected by deforestation. One One of the tools that the Brazilian government uses in the fight against example of a drone seeding project is the Arboreto Project which is a deforestation is the Amazon Forest Code, established in 2012, which is collaboration between the Federal University of Paraná (UFPR), which responsible for ensuring the preservation of native vegetation in rural stands as Brazil's oldest university, and Timber, a local partner and properties.19 The law states that when vegetation on private land belongs supplier of autonomous agricultural machinery produced by XAG. The to a forest region, 80% of it must be preserved. This can be lowered to primary objective of this project is to expedite the restoration of forests by 50% in states or counties where more than 65% of their surface area is planting tree species that possess both commercial value and adaptability classified as protected areas or indigenous lands, and if the government to the local environment.27 These autonomous drones exhibit very high decides to do so.20 This sort of legislation is important because 44% of precision, enabling them to accurately target specific locations, even in deforestation in Amazonia between 2019 and 2021 happened on private challenging terrains. They also excel in planting new trees, exhibiting land.21 Due to the significant economic strength and influence of significantly higher levels of efficiency when compared to conventional prominent ranchers and crop producers, Brazil encounters substantial methods.28 difficulties when enforcing legal compliance. A combination of stringent regulatory measures, law enforcement solutions, and market-driven Although this technology is still at an early stage of development, the incentives must be used to achieve success. potential is clear. With the establishment of appropriate regulatory frameworks, collaboration among stakeholders, and the formation of robust public-private partnerships, the full potential of autonomous drone Drone Applications in Deforestation, Restoration, and Reforestation technology in reforestation can be realised. For many years, monitoring of deforestation was either done from the This collaboration between stakeholders is vital for the successful ground or via satellites. These solutions have some limitations, especially adoption of advanced drone solutions in all environmental restoration when considering the impact of weather constraints and the high costs of efforts. Regulatory bodies, governmental agencies, manufacturers, service daily monitoring. Hence, drones have emerged as an increasingly popular providers, research institutions, and investors need to come together to tool that helps to substantially reduce costs and increase local capabilities drive regulatory reform and market acceptance if the country is to realise at the same time. It has become especially important in places that are the full potential of drones in the sector. If this can be achieved, drones specifically vulnerable to illegal deforestation such as forest boundaries, can significantly enhance the restoration and reforestation efforts by farm vicinities, and private lands. providing valuable data, enhancing monitoring capabilities, providing more Drone data can be combined with cadastral information to inspect cost-effective solutions, decreasing response times, streamlining whether conditions from the Amazon Forest Code and other regulations operations, and enabling better environmental compensation measures are being met. If inspections detect non-compliance, drone data can demanded by public bodies. provide the evidence needed to enforce the return of land back to the native forest from landowners. This is already starting to happen with many indigenous communities living in the Amazon (such as tribes from the Western state of Rondônia22 or the Amazonian Acre) using drones and artificial intelligence to monitor illegal timbering, forest fires, and even hunting.23 Drones significantly expand the range of land that communities can monitor and it allows them to record and report environmental crimes without running the risk of confronting people who are acting against the law and threatening innocent people.24 SDGs impacted: Directly: Indirectly: When it comes to mapping, drones can also be a very useful tool. In 2019, the College of Agriculture at the University of São Paulo collaborated with universities in Florida and Connecticut as well as with NASA and Embrapa to use drones to measure the height of Brazil’s rainforests.25 64 Drones offer substantial potential for fighting wildfires due to their versatility, agility, and ability to reach remote areas. Thanks to specialised Wildfires cameras, thermal imaging, and advanced sensors, drones can play a pivotal role in early detection, rapid response, enhancing safety, and various preventative measures. Although drone use in Brazil is still in an early stage of development, some organisations have already begun Wildfires have become an increasingly critical issue in Brazil, testing the solution. causing significant damage to the environment and its wildlife, as In 2019, the ICMBio (an environmental agency within the Brazilian well as to local communities. In recent years, the country has government) collaborated with Ecodrones (an initiative coordinated by witnessed a surge in the number of wildfires (most of which are WWF - Brazil) to explore the use of drones for assessing fire risks in human-induced),29 particularly in the Amazon rainforest and other protected areas in Brazil. By integrating the drone data, the researchers important ecosystems. According to Brazil’s National Institute for were able to develop a fire risk zoning map for the Brasília National Park. Space Research, there was a 16.7% increase in fire hotspots This map identified areas with different risk levels and helped to guide land between January and August 2022. In just one day on the 22nd of management strategies including the prioritisation of fire prevention August, 3,358 fires were detected in the Brazilian portion of the measures, identifying areas for controlled burns, and allocating resources Amazon. This was the highest number of fires recorded in any for firefighting efforts.35 24-hour period since 2007,30 showing just how serious the problem is becoming. To effectively address this challenge, it is crucial that In 2022, Fundação Vitória Amazônica (FVA), an organisation that focuses Brazil harnesses advanced technologies such as drones to support on environmental education and conservation, conducted workshops that firefighting efforts and develop efficient prevention measures. explored how to reduce forest fires in the Rio Unini region using drones. These aimed to raise awareness about the importance of environmental Between 2019 and 2021, the average annual area lost to wildfires education in preventing forest fires and promoting sustainable practices. reached 11,405km2 compared to the previous 3-year average of 7,458km2 They also included practical training on drone operation for monitoring and between 2016 and 2018 with the vast majority of these wildfires being surveillance purposes which proved very useful.36 human-made disasters set off by loggers and cattle ranchers.31 This trend highlights the urgency of implementing effective solutions to combat Drones can also be a valuable tool in managing ongoing wildfires, wildfires across the country. Fighting these wildfires requires collaboration providing real-time data on fire behaviour, spread, and direction – thus between many key stakeholders both locally and globally. allowing firefighting teams to make more informed decisions and allocate resources efficiently. For example, in June 2022, the fire department of the At the national level, the Brazilian government, local environmental state of Goiás worked with agricultural drone service provider XAG to agencies, firefighting departments, and research institutions need to deploy drones to wildfire hotspots and found that the real-time data was actively participate in initiatives to manage ongoing fires, including early crucial in helping the firefighters to respond quickly and effectively, detection and control, and to prevent future ones. For example, the minimising the spread and potential damage.37 National Fire Management Program developed by the Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA) aims to Drone technology can have a profound impact on the overall effectiveness prevent and control wildfires through a coordinated approach, focusing on and efficiency of firefighting efforts in Brazil, enhancing situational capacity building, training, and promoting the use of appropriate fire awareness and empowering decision-makers to allocate resources management techniques.32 Additionally, local communities, NGOs, and optimally. Moreover, they can also contribute to long-term wildfire indigenous groups play a vital role in monitoring and reporting wildfires. prevention to mitigate the devastating consequences of future fires. Fulfilling this potential will require a comprehensive and multifaceted At the international level, organisations like the United Nations (UN), the approach that involves all stakeholders. But if achieved, it can play a World Wildlife Fund (WWF), other bilateral or multilateral agencies, and crucial role in protecting Brazil’s ecosystems and its local communities. foreign governments could support Brazil in its efforts to control wildfires because the impact extends beyond national borders.33 For example, an integrated fire management policy has been developed and tested by the United States Forest Service (USFS), the National Aeronautics and SDGs impacted: Space Administration (NASA), and Brazil’s Institute for Space Research Directly: Indirectly: (INPE) to advance the use of satellite and ground data to detect and predict fires.34 Drones have started to play a crucial role in these sorts of projects. 65 being relatively abundant, are considered highly vulnerable due to the fragmentation of their ecosystem caused by dams and other threats like Endangered Species Monitoring water contamination. A total of 119 observations were made by onboard observers, and 76 of these were confirmed by drone footage. The discrepancy between the two methods was attributed to the drone camera’s resolution and the distance at which dolphins were protected. As Brazil is a country with very high biodiversity, boasting a rich variety the technology advances, higher-resolution cameras will continue to of unique species across its two biodiversity hotspots, six terrestrial reduce this difference in observations and provide greater accuracy, biomes, and three large marine ecosystems. At least 103,870 animal especially when counting individuals within large groups. The imagery species and 43,020 plant species have been identified in the country, captured by the drones also helped to facilitate precise identification and comprising 70% of the world’s catalogued species.38 However, correlation between species and habitat usage, while also reducing the pressing issues such as deforestation, habitat loss, and illegal bias caused by responsive movement, thus contributing to more reliable activities are threatening the preservation of these species. Drones data collection for monitoring endangered river dolphin populations.47 have gained traction globally as a solution to combat these threats, When equipped with thermal sensors or LiDAR technology, drones can and the technology is now poised to be replicated in Brazil. also be used to detect changes in vegetation, identify areas of Brazil is home to a wide array of endangered species, many of which are deforestation, and monitor the quality of water bodies, providing not found anywhere else on the planet. In 2022, the International Union conservationists with the data they need to make better decisions for Conservation of Nature (IUCN) Red List categorised 448 animal surrounding habitat restoration and protection. When it comes to illegal species in Brazil as vulnerable with a further 240 species considered activities, drones can monitor illegal hunting, poaching, or wildlife critically endangered.39 The major threats contributing to this are habitat trafficking hotspots, detecting any suspicious activity and reporting back to loss and fragmentation which are primarily caused by illegal deforestation law enforcement agencies to enable quicker response times. and unsustainable land management practices in sensitive areas Drones are also a valuable tool for tracking the movement of endangered dominated by native vegetation and uncontrolled urban sprawl that species populations, especially for birds and sea turtles. By combining disrupts critical ecological dynamics.40, 41 aerial imagery with thermal imagery, drones can identify nesting sites, Preserving Brazil’s endangered species requires a collaborative approach track nesting activity, and protect vulnerable areas from disturbances or that involves Brazilian stakeholders and key international partners. At the threats. GPS data can then augment this, providing critical information on national level, government agencies such as the Brazilian Institute of migration patterns, habitat use, and behaviours – all of which give Environment and Renewable Natural Resources (IBAMA) and the Chico researchers a better understanding of species dynamics so that they can Mendes Institute for Biodiversity Conservation (ICMBio) play a crucial role develop targeted conservation strategies. in enforcing regulations and implementing key conservation strategies.42, 43 Lastly, drones can collect water or soil samples for eDNA analysis which International stakeholders including NGOs, research institutions, and involves detecting genetic material shed by endangered species in their global conservation bodies can then augment those efforts by bringing environment. This non-invasive technique can provide insight into a expertise, funding, and technological advancements to the table. For species’ presence (or absence), population genetics, and overall example, organisations like the WWF and Conservation International (CI), biodiversity assessments. are deeply involved in protecting Brazil’s biodiversity and contributing to the success of drone-based monitoring programs.44, 45 All this potential to provide enhanced capabilities for data collection, surveillance, and analysis can only be unlocked if several key barriers are The deployment of drones for endangered species monitoring is at an overcome. These include addressing regulatory frameworks specific to early stage of development in Brazil but it has the potential to deliver drone operations in wildlife conservation, developing training programs to substantially positive outcomes. By providing real-time information on equip end-users with the necessary skills, encouraging collaboration and species populations, habitat conditions, and threats – drones can partnerships between stakeholders, investing in drone technology and empower conservationists to make more informed decisions and infrastructure, and implementing community engagement initiatives. implement highly targeted conservation strategies. The technology also aids in identifying illegal activities such as poaching and deforestation which helps law enforcement to respond quickly and efficiently. This type of monitoring is enabled by drones with high-resolution cameras SDGs impacted: and/or multispectral sensors that can conduct detailed aerial surveys of Directly: Indirectly: habitat areas. A good example of this is when, in November 2016, a team of researchers used drones to locate and monitor Amazon river dolphins, otherwise known as pink river dolphins or botos.46 These animals, despite 66 Brazil also faces challenges related to water contamination from leaking landfills as well as industrial, agricultural, and household sewage that Environmental Pollution Monitoring overwhelm basins and causes environmental degradation.52, 53 Drones could be used to map polluted areas by flying over water bodies and gathering remote sensing data, then process them with algorithms such as Water Quality Index. This approach is easier in hard-to-reach Another area where drones could be used in Brazil is in environmental places, allowing for more efficient preventive action at a lower cost. Drone pollution monitoring. Smog clouds that come from forest fires and fumes technology can also be utilised to collect water samples more rapidly and released by vehicles can cause significant negative effects on the effectively than a traditional sampling that uses boats and personnel to environment and the people living in Brazil. The implementation of drones access the water surface. could support the detection of deviations from the norm, allow for better decision-making, and monitor improvements during the mitigation While this sort of drone adoption is at an early stage of development in process. Brazil, there are several different research projects and programs that are working to demonstrate the potential benefits. In 2021, representatives Depending on whether the area is urban or suburban, air pollution is from the São Carlos School of Engineering of the University of São Paulo caused by several different factors and it varies in severity across the (EESC-USP) and the Federal University of São Carlos (UFSCar) created country. As an example, in the Metropolitan Region of São Paulo, vehicles a drone that was able to identify areas with a possible proliferation of were considered to be responsible for 40% of fine particulate matter aquatic macrophytes, algae, and cyanobacteria, which can produce (PM2.5),48 which people breathe, leading to chronic lung disease and dangerous toxins for flora and fauna, posing health risks if the water is acute respiratory infections, lung cancer, heart disease, and strokes. To consumed by the population.54 improve the air quality and reduce emissions, especially GHG ones, the public transport authority of São Paulo, has banned bus companies from In order for drones to play a meaningful role in environmental pollution purchasing new diesel buses since the end of 2022.49 As a result, the city monitoring there needs to be improved funding and strong partnerships is expected to have at least 2,600 electric buses operating on municipal between institutions, governmental agencies, and commercial players to lines by 2024.50 prolong research and transform test projects into permanent applications. These advancements can help to unlock all the benefits that drone Although drones equipped with dedicated sensors to collect data and technology can provide for a cleaner, healthier, and more sustainable information about air quality and pollution are not yet widely adopted in environment for current and future generations. Brazil, they could play a vital role in detecting and measuring different types of pollutants such as toxic gases, suspended particles, and other elements that are harmful to biodiversity and the health of citizens. Compared to traditional monitoring stations, drones can be deployed in specific or difficult-to-access areas, offering real-time data on air quality. An example of research dedicated to measuring the air pollution released by cargo and passenger trains in the urban environment is a project that was conducted by representatives of the Department of Environmental SDGs impacted: Engineering, Federal University of Paraná (UFPR). Drones equipped with Directly: Indirectly: electrochemical sensors were used to measure the accuracy of NO2, SO2, and O3 concentration in Curitiba, in the state of Paraná. The research outcomes highlighted the high efficiency of drones to measure increases in all three pollutants and the need to regulate emissions from diesel-powered locomotives.51 67 Furthermore, the United Nations Office for Disaster Risk Reduction (UNDRR) collaborates closely with Brazil’s Centre for Disaster Monitoring Disaster Management and Climate Resilience and Alerts (CEMADEN) within the UNDRR Regional Science and Technology Advisory Group.59 Another key collaboration is between stakeholders and universities because these knowledge centres have specialised expertise and research capabilities across many disciplines Brazil is a country prone to a wide range of natural disasters that relevant to disaster management. They can provide valuable insights, have a serious impact on society and the environment. In 2022, data, and evidence-based approaches that enhance the effectiveness of almost 180,000 people were directly affected by climate disaster management strategies and interventions. change-induced natural disasters.55 From floods and landslides to Although the use of drones has yet to gain more traction in Brazil’s wildfires and droughts, these disasters can cause loss of life, disaster management practices, there have been studies to test and pilot damage to property, and contribute significantly to environmental solutions in this area. For example, a study where scientists from the degradation. Drones can offer support in how the country handles Federal University of Paraná conducted research on using drones for disaster management in all its forms. urban flood risk reduction. The study presented a case in Campo Magro 85% of Brazil’s natural disasters are caused by three types of events: where drone mapping was used to identify flood risk areas, enhancing the floods, landslides, and prolonged droughts.56 The consequences of these understanding of potential flooding hazards. This drone data can three disasters are far-reaching, affecting the well-being of communities, significantly improve research outcomes by reducing data fragmentation economic stability, and the fragile balance of Brazil’s rich biodiversity. In and providing real-time monitoring capabilities, all in a cost-effective and the rainy season, flooding and landslides can cause casualties, low-risk solution.60, 61 displacement, and infrastructure damage; and in dry periods, droughts Another example was Help.NGO who, together with Amazon Web can devastate large areas of valuable ecosystems, exacerbating the Services, performed drone mapping after the devastating rainstorm effects of climate change. followed by the extensive flooding that occurred near Petropolis in 2022. The losses from climate-related events in Brazil averaged over USD 2.74 With careful coordination and monitoring of drone pilots, drones conducted bn per year between 1995 and 2019, with droughts being the most costly missions for four days, generating 2D and 3D maps of the city. These hazard, followed by floods. The states of Rio Grande do Sul, Minas maps were provided to local authorities, enabling them to formulate Gerais, Bahia, Pernambuco, and Santa Carina accounted for half of the effective action plans and utilise historical data for future planning and the reported losses totaling USD 68.55 bn, but almost every municipality has ongoing recovery process.62 suffered some form of climate-related losses with 85% of the 5,570 This points to the fact that drones can offer many advantages for disaster municipalities affected.57 management in Brazil. The aerial surveillance that they provide can help To address the threats posed by natural disasters, Brazil already stands with enabling the rapid assessment and mapping of disaster-affected out in the region because of its significant investment in research and areas. This is possible thanks to high-resolution cameras and sensors that development initiatives that focus on disaster risk reduction. But the can capture data to support informed decision-making during emergency country has the opportunity to continue looking to implement integrated operations. Drones can also play a vital role in search and rescue, quickly solutions that foster cooperation between various stakeholders including surveying large areas of land, locating survivors, and enhancing the public and private entities, NGOs, and civil society at large. A good efficiency and effectiveness of rescue teams, while minimising the need to example of such a joint initiative is the Making Cities Resilient 2030 have a human presence in hazardous environments. These advantages program which aims to create a more resilient future and mitigate the all coalesce to form a powerful suite of solutions that can be implemented impact of natural disasters. in Brazil’s disaster management frameworks. It has brought together 277 municipalities across 18 states who have all committed to implementing a resilience roadmap. As a part of this initiative, Brazil established two resilience hubs and trained over 800 SDGs impacted: agents in partnership with intergovernmental organisations, UN-system Directly: Indirectly: agencies, academia, and ICLEI- Local Governments for Sustainability, an international NGO that promotes sustainable development.58 68 The World Bank Group organised a pilot case study to test the application of drone technology for landslide risk management by conducting a flight Climate Road Infrastructure Resilience over three locations on highway BR-101 in the state of Rio de Janeiro. These points have all experienced landslides in the past and they are monitored by the local branch of the National Department of Transport Infrastructure (DNIT). The results of the study showed a positive Brazil’s road infrastructure is a crucial component of Brazil’s cost-benefit analysis given the low investment required, the fast economic development and connectivity but it faces many processing of data, and the reduction of the team required to do the challenges including those associated with natural disasters and the analysis. The drone data produced consistent results that can be relied impacts of climate change. Two-thirds of Brazilian roads are in poor upon for planning, monitoring, and maintaining road works while also condition and 82% of roads are unpaved,63 thus exacerbating the contributing to improvements in the understanding of the area’s unique consequences of natural disasters such as catastrophic landslides geohazard risks.71 while also making it more difficult for people and goods to travel Another example comes from the Bahia state whose increasingly across the country.64 Drone technology can be integrated as a congested highways require better monitoring. Drones, as part of a World valuable tool to enhance road infrastructure climate resilience. Bank initiative, were used for surveying and mapping to obtain The losses due to floods and landslides between 2010 and 2015 high-precision or centimetre-accurate positioning data to record the amounted to approximately USD 5 billion with 20% of this being precise spatial coordinates of roads, highways, and associated attributable to transport infrastructure.65 For example, the devastating infrastructure and also to help optimize road design and construction, landslides in Petrópolis in 2022 comprised 269 landslides caused by improving traffic flow and safety. The surveys were carried out using the extreme rainfall – and these resulted in 217 deaths and the destruction of Visual Line-Of-Sight (VLOS) method, where the pilot maintains direct over 850 homes.66 Likewise, exposure analysis suggests that the risk of visual contact with the drone. The drone is equipped with an obstacle floods affecting the road system will increase to 38% by 2030 and 65% by sensor which allows an operator to perform 5 flights, each up to 31 2040, further highlighting the urgency needed to improve preparedness minutes in duration.72 and climate resilience strategies.67 Another example of the use of drones is the application of remote sensing One of the significant challenges that must be addressed in order to technologies like LiDAR and thermal imaging to detect subtle changes in achieve road infrastructure climate resilience is the lack of a landscapes that might suggest a higher risk of landslides and floods. By comprehensive approach to road geohazard risk management including monitoring environmental conditions and detecting these sorts of early monitoring, risk identification, assessment, planning, maintenance, and warning signs, drones can contribute greatly to disaster prevention and contingency programming. Stakeholders often work in silos and there is a infrastructure protection. Researchers from the University of São Paulo lack of official coordination mechanisms to share data and information are using drones to capture high-quality images that allow them to detect efficiently.68 For example, the country is working on implementing cracks or shifting earth, providing valuable insights for improving landslide strategies such as the National Plan for Risk Management and Response susceptibility models.73 This replaces time-consuming and costly methods to Natural Disasters which has identified high-risk areas in 821 different like on-foot surveys or helicopter flyovers, and instead permits the municipalities and then suggests a national adaptation plan to guide comparison of orthomosaics of the same areas over time, allowing the initiatives for the management and reduction of long-term climate risks.69 authorities to issue timely warnings to residents which greatly mitigates the impact of landslides. Another challenge is funding, as there are not sufficient funds to improve the national road network with the budget for road maintenance. In fact, in The use of drones for road resilience especially in landslide monitoring not 2022 this was the lowest that the country has seen in 10 years.70 Related only enhances road safety but also enables better preparedness, to this, road administrators rely on the experience of local engineers and mitigation measures, response, and protection for local communities. By personnel who have to perform visual inspections before commencing harnessing the power of this technology, Brazil can mitigate the impact of any road maintenance. Hence, drones can be a reliable and relevant tool natural disasters and safeguard its road infrastructure for a more to support adequate, informed, targeted, and timely interventions to move sustainable and resilient future. towards road infrastructure resilience. Researchers are using drone mapping technology to improve landslide risk management because UAS can enable rapid assessment and SDGs impacted: mapping of infrastructure and terrain, allowing for the identification of Directly: Indirectly: vulnerable areas and potential hazards. They also facilitate the collection of geospatial and environmental data which supports the development of effective maintenance and mitigation strategies. 69 number of delivery vehicles on the roads during peak hours, alleviating traffic congestion, enhancing road safety, and improving overall efficiency. Healthcare and Medical Goods Delivery They can also take more direct routes, avoiding congested areas, and minimising the risk of accidents while also increasing the chance of medical supplies being delivered on time. Moreover, by replacing or supplementing traditional fossil fuel-powered delivery methods with Brazil's vast geographical distances and limited access to electric-powered drones, Brazil can significantly reduce greenhouse gas healthcare represents an opportunity for drones to improve emissions, contributing to the fight against climate change and improved healthcare deliveries in both remote communities and air quality in urban areas. urban/peri-urban areas. Drones can provide innovative solutions for remote patient care, medical goods deliveries, and emergency Differences Between Remote and Urban/Peri-Urban Deliveries responses, surpassing the limitations of traditional methods. The key differences between healthcare deliveries in remote communities Deliveries in Remote Communities and urban/peri-urban areas lie in the context and challenges associated with each category. Brazil's challenging terrain across remote regions, inhabited by over 27 million people, poses significant obstacles to delivering essential In terms of accessibility, drones are essential for overcoming geographical healthcare products like vaccines, medicines, lab tests, and even blood barriers and delivering critical healthcare items quickly to healthcare using conventional means.74 These conventional delivery methods often centers or other strategic locations in remote areas e.g. Zipline medical face delays and uncertainty due to unpredictable weather conditions, deliveries. In contrast, in urban/peri-urban areas, drones are an integral impassable roads, and inadequate transport infrastructure. When there part of the supply chain, and in most cases act as connectors between are heavy rains in these areas, it can significantly disrupt delivery and different healthcare centers. shipping processes. Drones can operate in a more predictable and timely manner, bypassing traffic and natural barriers. This reliability ensures that When it comes to Infrastructure, remote areas often lack the need for remote communities receive their deliveries promptly, fostering economic advanced infrastructure, meaning that drones can serve as a vital lifeline development and improving quality of life. for medical deliveries. This is in contrast to urban and peri-urban areas where drones operate in a more airspace-advanced, populated, and This type of application has been widely tested and it has been fast-paced environment. Therefore, infrastructure such as detect and permanently implemented in Rwanda, Ghana, and other African avoid systems or designed takeoff and landing zones might be required to countries.75 There are also an increasing number of pilots projects enhance the safety and volume of drone operations. Also, the choice of happening across the LAC region. For instance, in 2019 in Brazil, the payloads, whether heavier for remote areas or lighter for urban settings, Oswaldo Cruz Foundation partnered with drone manufacturer DJI and the directly influences delivery efficiency, affecting the volume of drone traffic Brazilian National Health Surveillance Agency (Anvisa) to deliver vaccines required and ultimately determining the strength of the business case. to a remote indigenous community deep within the Amazon rainforest. This initiative significantly reduced delivery times from days to minutes, Lastly, drones in remote and urban/peri-urban areas can contribute ensuring timely immunisation for the local population.76, 77 significantly to improving air quality by reducing congestion and emissions. The partnership between Spright and Synerjet Corp in 2022 further While the core purpose remains the same – improving healthcare expanded the scope of drone healthcare deliveries in Brazil, with the accessibility and efficiency – the specific challenges and contexts in introduction of 19 new drones aimed at serving even the most remote different regions requires tailored approaches for the effective utilisation of regions.78 Fleury and Hermes Pardini's collaborated in 2023 to transport drone technology. Collaboration among regulatory bodies, healthcare medical samples to remote communities using drones, showcasing organisations, and drone manufacturers is essential to establish another step toward enhancing healthcare accessibility in such areas.79 comprehensive frameworks that ensure responsible drone integration and the continued advancement of healthcare delivery in Brazil. Deliveries in Urban and Peri-Urban Areas The majority of Brazil's population resides in urban areas and this has given rise to traffic congestion and deteriorating road infrastructure, resulting in increased road accidents and harmful emissions. In response, SDGs impacted: the Brazilian government introduced the National Plan of Traffic Deaths and Injuries Reduction (PNATRANS) to improve road safety and reduce Directly: Indirectly: traffic fatalities.80 Introducing drones for urban and peri-urban deliveries can be a pivotal part of achieving these goals. Drones have the potential to reduce the 70 In contrast, drones operate on electric power, leading to a substantial decrease in their carbon footprint. By replacing or supplementing Deliveries of Goods conventional delivery methods with drones, Brazil can make significant progress in decoupling growth from GHG emissions, improving air quality and reducing the risk of road traffic accidents in densely populated urban areas. Brazil, a highly urbanised country, saw nearly 88% of its population The adoption of drone technology for deliveries also brings benefits for living in cities in 2022.81 This urban population continues to grow at society and for commerce. Delivery and logistics is slowly emerging as a a rate of 1.1% per year.82 However, rapid and extensive urbanisation promising market use case in Brazil with startups like Speedbird Aero has resulted in various challenges such as increased vehicle density leveraging the technology to scale delivery services. In its inaugural year, and poor road infrastructure conditions. These issues have led to a Speedbird Aero successfully executed over 4,000 deliveries, with nearly a rise in fatal car accidents, higher levels of harmful emissions quarter of them involving urban BVLOS flights.85 released into the atmosphere, and an overall decline in the quality of life for urban residents. Another relevant application that can be considered in the future is the delivery of goods for humanitarian and aid purposes in Brazil, particularly As part of the National Plan for the Reduction of Deaths and Injuries in in response to natural disasters. With the convergence of cutting-edge Transit (PNATRANS), Brazil has committed to reducing national traffic technology and innovative logistics strategies, there are several fatalities by 50% by 203083 and enhancing road safety in the country. To opportunities to support disaster relief efforts through UAS goods achieve this, the government has introduced various initiatives, such as deliveries. Drones will navigate through Brazil's diverse terrain, swiftly designing safer streets, strengthening regulations and enforcement, and transporting critical supplies such as food, medical equipment, and clean providing traffic education. water to areas that are often isolated due to damaged infrastructure or Introducing drones for goods deliveries can play a significant role in adverse weather conditions. With their agility and versatility, drones will achieving these goals. By using drones, the number of delivery vehicles prove invaluable in reaching remote communities in need. on the roads, especially during peak hours, can be reduced, resulting in less traffic congestion, smoother traffic flow, and fewer instances of road rage. This improved traffic flow can lead to increased productivity and overall efficiency. Additionally, with drones taking more direct routes and avoiding congested areas, the risk of accidents and collisions on the roads can be minimised, further enhancing road safety. Furthermore, fewer cars on the roads will lead to a decrease in GHG SDGs impacted: emissions. According to data from the Climate Observatory, the Directly: Indirectly: transportation sector accounted for 47% of total energy emissions in 2019, with non-cargo transport accounting for 60% of this total, primarily due to the burning of fossil fuels, such as gasoline and diesel which are relied upon by traditional delivery methods.84 71 Drones can also be used in non-crisis scenarios to provide more permanent connectivity. American startup Telelift has developed tethered Remote Internet Access drones that can stay airborne for a month and act as flying cellphone towers to provide high-quality internet access to underserved areas. The company initially aims to deploy these drones in Kenya, Niger, Botswana, and Senegal where internet coverage is limited. Each drone can provide One in every five Brazilians (totalling 46 million people) currently internet access to several hundred people over a 30-50 km radius, making lacks access to the internet86 due to insufficient infrastructure, it a very cost-effective solution for remote and suburban areas.88 geographical inaccessibility, and high costs. This lack of Utilising drones in this way is much more affordable than traditional connectivity poses several challenges in terms of accessing infrastructure which makes it a much more viable option for connecting information, communicating with others, and participating in the underserved communities, especially when there are private-public digital economy. Drones can offer an alternative solution to address funding collaborations with technology companies that further support the this issue by providing remote internet access to underserved and implementations. However, there are several barriers that must be disconnected communities. overcome to fully realize the potential of this technology. While drone usage for remote internet access is at an early stage of Firstly, the complex nature of wireless infrastructure, particularly in maturity in Brazil, there is significant potential for piloting and adopting challenging weather conditions, requires robust systems that can ensure this solution across the country. By deploying drone internet platforms, reliable signal transmission and minimise the risk of signal loss. Secondly, underserved communities can gain connectivity and unlock various societal resistance to drones because of concerns about privacy and economic, educational, and healthcare opportunities; farmers can security needs to be carefully dealt with through education and community optimise their production through access to knowledge platforms; engagement. Lastly, there are technical challenges in developing efficient entrepreneurs can expand their market reach; students can tap into global and sustainable drone platforms that conform to national regulations and online resources; and in disaster relief scenarios, drone internet platforms suit the unique circumstances of each individual area. The building and can also facilitate coordination, communication, and connectivity for testing of these prototypes can be expensive and so innovative funding search and rescue missions. solutions need to be sought to bring them to life. All of these applications can empower communities to lift themselves up If these barriers can be overcome, drones can become a critical means of and that can have a profound social impact. In fact, a good example of providing remote internet access to unserved communities in Brazil, this comes from Puerto Rico after the devastation of Hurricane Maria. helping to realise the social and economic benefits that such connectivity American telecommunication company AT&T deployed an unmanned provides. helicopter called Flying COW (Cell on Wings) to provide wireless connectivity to the affected areas. The vehicle was connected to the ground by a tether and used satellites to provide connectivity during the crisis.87 SDGs impacted: This use case demonstrates how important drones can be in providing Directly: Indirectly: temporary connectivity solutions and highlights the importance of further research and development in remote internet access solutions. 72 A key long-term strategy for combatting mosquito-borne diseases is to Mosquitoes Borne Disease Spread release sterile mosquitos to integrate into the population. Drones can cover large distances in short time frames and thus can release sterile Reduction mosquitos further than ever before in a much more cost-effective way. Fewer release sites are required on the ground and fewer field staff are required – all of which serve to get more value out of the money being Due to Brazil’s extensive tropical and subtropical regions, the spent.95, 96 country faces many challenges related to combatting In March 2018, a field trial was conducted to assess the viability of mosquito-borne diseases. The favourable climate and ecological releasing sterile mosquitoes by drone. During the trial, a specially conditions contribute to the proliferation of disease-carrying designed mechanism attached to the drone ejected over 200,000 sterile mosquitoes, leading to outbreaks of malaria, dengue fever, yellow insects over a period of 3 days. When a comparison was done between fever, encephalitis, and Zika.89 Traditional mosquito control methods the treated area and the reference area, it was discovered that there was have proven insufficient, creating demand for the exploration of more a 50% increase in unviable eggs. This shows the significant potential of innovative approaches.90 Drones offer one of these cutting-edge such solutions, particularly in remote and hard-to-reach locations where technological solutions for targeted interventions and efficient traditional techniques have proven impractical or ineffective.97 surveillance. Recent technological advancements in drones including advanced Malaria is particularly prevalent in the Amazon region and in Brazil imaging and sensing functionality make them an ideal tool for disease specifically with the World Health Organisation (WHO) reporting 142,000 control in all its forms. With targeted interventions and accurate data cases in 2020, making Brazil one of the largest malaria hotspots in the collection, Brazil can take meaningful steps to reduce outbreaks and Americas.91 The emergence of the Zika virus also caused widespread secure a safe environment for all who live there. However, strict concerns in 2015 when a significant outbreak took place causing over regulations for drone operators, limited resources, a lack of infrastructure 200,000 suspected cases according to the Pan American Health in remote areas, and the initial cost of procurement and training still Organization (PAHO).92 One of the most dangerous effects of the virus is remain barriers that need to be overcome if the country is to leverage the when a woman is infected during pregnancy as this can cause severe birth potential of drones in reducing mosquito-borne disease.98 defects like microcephaly – a situation that resulted in a public health emergency being declared in 2015.93 Drones can play a significant role in combating mosquito-borne diseases because they offer a highly efficient and precise means of distributing larvicides or sterilised male mosquitoes. By leveraging their aerial SDGs impacted: capabilities, drones can navigate challenging terrain and inaccessible mosquito habitats where transportation networks may be limited or Directly: Indirectly: underdeveloped. This allows comprehensive coverage and timely responses to disease outbreaks in a highly cost-effective manner. Another key benefit is the safety it provides to individuals because mosquito control activities can be undertaken without people being exposed to the risk.94 73 The farmer would then use the data to detect areas in their crops that might be showing disease, plagues, water stress, nutrient deficiencies, or Agriculture other forms of environmental damage. From there, precise measures could be taken to solve the problem while avoiding the overuse of agrochemicals and allowing for selected irrigation patterns to reduce the environmental impact, support sustainability, and increase yields. Agriculture represented 27.4% of Brazil’s GDP in 2021 99 with Drones can also be useful on family farms which are recognised as a pillar exports reaching USD 125 bn, led by soybeans, sugar, beef, poultry, of national development, accounting for 70% of the country’s staple food corn, cotton, pork, coffee, and citrus – making the country a leading production and employing three-quarters of the industry’s labour force.102 producer and exporter of many goods to the international market.100 Usage in these contexts has been limited up to now because of the high However, despite the strength of the industry, there are still a wide costs, the need for specialised operators and technicians, and the need range of challenges that need to be addressed including the for access to powerful computers. But if these barriers can be overcome, negative externalities that come from the excessive use of pesticide farms could benefit from timely and accurate data about their crops and and the impact that land degradation has on the environment. fields that would allow for decisive action that can increase crop yields and Drones can be a valuable solution for these challenges, helping to decrease the environmental impact of their food production.To put the prevent unexpected harvest shortfalls. potential impact of this into perspective, it is worth considering that The agricultural industry in Brazil was one of the very first to start changes in land use for agriculture in Brazil, with an emphasis on adopting drone technology at scale. One of the ways that drones started deforestation, amounted to 44% of total domestic greenhouse gas to gain traction is by helping to combat excessive pesticide use by emissions in 2019.103 assisting with crop monitoring and crop spraying. When equipped with Another major opportunity to use drones is emerging in the livestock RGB (Red-Green-Blue, a standard commercial camera type) and monitoring sector, across a range of different use cases including cattle multispectral cameras, drones can capture high-resolution images of counting, livestock health analysis, and herding. When combined with crops, allowing farmers to monitor plant health and take proactive action other emerging technologies such as cloud computing, IoT, and machine to protect yields and treat problem areas. The technology then allows for learning, there emerges significant potential to facilitate highly efficient highly precise spraying of fertiliser and pesticides which is much more agricultural practices, foster better harvest outcomes, and mitigate the cost-effective than traditional methods. The same data can later be used harm being caused to the environment. for cases such as water flow management, fumigation, and insect control. The ability to monitor vast areas in short time frames makes drones very valuable for increasing productivity and optimising resource allocation. One successful example is the collaboration between Qualcomm Wireless Reach, Embrapa, and the Institute of Solidarity Socioeconomics (ISES) called the Drone Technology Development Program for Precision Agriculture. This program was run in Sao Carlos and aimed to SDGs impacted: demonstrate how drones could reduce the negative impact of climate Directly: Indirectly: change by providing timely and accurate information to farmers which enabled more precise decision-making.101 The crop intelligence data was delivered to farmers in an easy-to-use format via an LTE-connected smartphone or tablet computer. Agriculture 74 Drones can also play a pivotal role in energy efficiency assessments and promoting the widespread utilisation of renewable energy sources in the Urban Planning and Monitoring context of climate-friendly urban development. By conducting aerial surveys and data collection, drones identify optimal locations for solar panel installations that not only maximise energy generation efficiency but also accelerate the transition towards cleaner energy sources. Urban planning and monitoring are critical components of Furthermore, drone technology has the capacity to support the sustainable development for any country. Brazil, like many other enhancement of safety measures, alleviating traffic congestion and further countries in the region, faces the challenges of rapid urbanisation improving energy efficiency within cities. By seamlessly integrating with and the emergence of informal settlements that are characterised by vehicles and transport systems, drones and sensors can facilitate inadequate housing, limited infrastructure, and a lack of formal land real-time data collection and decision-making, ultimately creating smarter, tenure. Drones offer many opportunities for improving urban more sustainable urban environments. planning and monitoring in Brazil’s informal settlements. As an example, drones have already been used for urban planning in Sao Despite a decrease of 7 million Brazilians living in slums over the past Paulo and Manaus. The Inter-American Development Bank (IDB) decade, there are still approximately 38.5 million individuals (19% of the collaborated with Manaus’s sub-Secretariat of Information Technology population) who live in informal settlements.104 These sprawl across the (SubTI) to launch a pilot project where the technology was used to monitor hillsides of towns and cities, and tend to be characterised by the growth of informal settlements in the city. The aerial survey included 3 overcrowding, a lack of planning, and hazardous living conditions. The separate areas of 15 hectares each which were monitored weekly over a prevalence of these informal settlements poses several challenges for period of 3 months. The data collected was analysed with machine Brazilian urban planners and monitoring agencies. These challenges learning to detect changes in land use and to identify the growth patterns include limited access to accurate data, difficulties in mapping and within the settlements. In this particular project, the number of informal surveying dynamic areas, and the need for community participation in houses increased by 129% and that understanding enabled a fast and decision-making processes. All of these need to be overcome in order to efficient response from municipal authorities, helping to prepare for the ensure safety and sustainable growth of cities and urban areas. integration of those informal dwellers into the provision of basic The introduction of drones has the potential to provide accurate, timely, services.105 and cost-effective data to support programs and policies, while also Through the utilisation of drones, we can effectively pinpoint the enabling more informed decisions that can help to solve this complex set sustainable growth of settlements and identify bottlenecks in the planning of challenges. UAS equipped with high-resolution cameras and sensors of essential services, thus mitigating potential risks. This holistic approach allow for the efficient gathering of data including aerial imagery and ensures that urban development not only thrives but also safeguards the geospatial information. This data then provides comprehensive insight well-being of its inhabitants, creating a more resilient and prosperous into settlement patterns, infrastructure needs, and potential risks. The future for Brazil's cities. accurate mapping of informal settlements facilitates a better understanding of spatial dynamics and supports informed decision-making, while regular drone surveys can detect potential hazards such as unsafe building practices or environmental risks – allowing for timely interventions. The use of drones in urban planning and monitoring aligns with Brazil's sustainability goals. Drones equipped with advanced technology are invaluable tools for identifying areas of high environmental value within urban landscapes. Drone data can identify green spaces and biodiversity SDGs impacted: hotspots, offering crucial insights for informed decision-making. With the Directly: Indirectly: information gathered from drone surveys, proactive actions can be taken to facilitate the preservation and integration of green areas within urban spaces. This integration is pivotal for maintaining ecological balance and enhancing the overall quality of life in cities. 75 A recent study conducted in Pontal do Paraná used drones to assess a Waste Management and Landfill domestic landfill site, estimate the volume of visible waste, and evaluate Monitoring the environmental conditions. The drones were equipped with high-resolution cameras and flew over the landfill area, capturing imagery for analysis. This data then allowed for the creation of a terrain elevation model which enabled detailed altimetric analysis. It proved to be a highly Brazil, like many other nations with a large population and rapidly effective tool for conducting topographic studies in challenging and increasing urbanisation, faces a number of waste management unsanitary environments without requiring human presence.110 The study challenges.106 Innovative approaches to overcome these challenges showed how drones can offer a safer and more efficient solution for are needed and drones offer a potential solution for many of them. assessing waste volume and monitoring environmental conditions. Equipped with sensors and imaging technologies, drones can Another pilot project in Panama City used drones to optimise monitoring improve waste collection, monitoring, and disposal, enhancing and supervision at the Cerro Patacón landfill, while an Argentinian waste efficiency, accuracy, and environmental sustainability. management company employed drones at the Nortes III landfill to With a population of over 200 million, the primary challenge facing Brazil perform precise topological surveys and data analysis.111, 112 in its public waste management sector revolves around the limited funding The use of drones in waste management in Brazil is still at an early stage allocated to establish a nationally coordinated waste management system of maturity and there are still some barriers that need to be overcome to that could enhance efficiency.107 As a result, Improper disposal and unlock its potential. These include a lack of technological awareness, inadequate waste management systems have led to environmental inadequate regulatory frameworks for commercial applications (especially pollution, public health risks, and the degradation of natural resources. In BVLOS operations), privacy concerns, limited investment and innovation, 2017, Brazil generated approximately 78.4 million tons of urban solid resistance to change, and data processing challenges. However, there is waste and only about 59% of that waste was properly collected and interest from the public sector around innovative drone applications and if disposed of.108 The lack of infrastructure such as waste treatment plants these can be combined with the available software platforms for data and recycling plants further exacerbates the problem. analysis and the wide availability of drone services, Brazil can make Drones offer a range of benefits and applications that can help to improve significant strides in improving its waste management practices. Brazil’s waste management. They can significantly improve landfill surveying by providing accurate data on landfill areas, waste volume, and capacity utilisation, while also using their advanced sensors and aerial imagery to identify waste types, detect pollution pathways, and monitor SDGs impacted: landfill processes. Such solutions are much cheaper and safer compared Directly: Indirectly: to traditional flying methods for collecting landfill data.109 All of this can help to combat illegal dumping, enforce local litter laws, and predict landfill fires which enhances worker safety and generates valuable data for decision-making. 76 For example, in January 2023, the Santa Catarina Highway Police (PMRv) acquired 8 DJI Air 2S drones to enhance traffic monitoring on state Road Traffic Monitoring highways. The drones were used to detect illegal overtaking, conduct general surveillance and identify abandoned vehicles in hard-to-reach areas. With a range of up to 10km, these remotely controlled aircraft complemented the existing drone fleet already in use and they will now be Although road traffic monitoring in Brazil is complex because of the deployed across all state highways in Santa Catarina.115 country’s vast size and diverse landscapes, many of the most There are several enablers that can facilitate the adoption of drones in pressing issues are concentrated in cities. Drones equipped with Brazil’s road traffic monitoring strategies. These include relevant advances cameras and sensors can provide real-time aerial views of road in drone technology such as improved flight stability, longer endurance, networks which help improve traffic monitoring and analysis. They and sophisticated data processing capabilities. Also, the availability of can identify congestion hotspots, assess road conditions, and specialised software platforms enables more efficient data analysis and optimise the timings of traffic signals. As such, the potential for more useful data visualisations. However, there are also barriers that drones to improve traffic management in Brazil is significant as they As The Urban Mobility Research Network of São Paulo found, some offer increased efficiency, enhanced safety, and better transportation São Paulo residents stand in spend the way such one month as inadequate per year regulatory in traffic, frameworks or 2.4 hours for drone per day. operations, privacy concerns, data protection concerns, public planning. acceptance, and the need for skilled operators and analysts to interpret Brazil faces many challenges when it comes to road traffic with major the drone-collected data. These need to be overcome if Brazil is to unlock cities like Rio de Janeiro and São Paulo occupying the list of the most the potential for drones to transform traffic monitoring. congested cities in the world.113 As an example, in 2019, the average resident of Rio de Janeiro lost around 190 hours of productivity due to traffic congestion.114 To address this issue, drones offer a potential solution because of their versatility and cost-effectiveness. Equipped with sensors and thermal SDGs impacted: cameras, drones can gather detailed data during the day or night, Directly: Indirectly: providing important situational awareness within minutes. Their aerial perspective allows for better coverage over longer distances and enables continuous monitoring which can be very useful for managing congestion in real time. 77 Table 4.2 Example of Public Sector Stakeholders to be Involved in Drone Pilot Projects for Social Development and Environmental Protection in Brazil Use cases Stakeholders and Potential Partners • Ministry of Environment and Climate Change (MMA) Deforestation, Restoration, and • Brazilian Forest Service (SFB) • National Institute for Colonization and Agrarian Reform (INCRA) Reforestation • Brazilian Agricultural Research Corporation (Embrapa) • Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA) • Ministry of Environment and Climate Change (MMA) • Chico Mendes Institute for Biodiversity Conservation (ICMBio) Wildfires • Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA) • National Institute for Space Research (INPE) • Ministry of Environment and Climate Change (MMA) Endangered Species Monitoring • Chico Mendes Institute for Biodiversity Conservation (ICMBio) • Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA) • Brazilian Institute of the Environment and Renewable Natural Environmental Pollution Monitoring • Ministry of Environment and Climate Change (MMA) Resources (IBAMA) Disaster Management and Climate • Ministry of Environment and Climate Change (MMA) • National Secretariat of Civil Defense (SEDEC) Resilience • National Centre for Disaster Monitoring and Alerts (CEMADEN) • Ministry of Transport • National Transport Infrastructure Department (DNIT) Climate Road Infrastructure Resilience • Ministry of Infrastructure (MINFRA) • The National Center for Risk and Disaster Management (CENAD) Healthcare and Medical Goods Delivery • Ministry of Health • Brazilian Health Regulatory Agency (Anvisa) Deliveries of Goods • Ministry of Transport • Ministry of Infrastructure (MINFRA) • Ministry of Communications Remote Internet Access • National Telecommunications Agency (ANATEL) • Ministry of Science, Technology and Innovation (MCTI) Mosquitoes Borne Disease Spread • Ministry of Health • Brazilian Health Regulatory Agency (Anvisa) Reduction • Ministry of Agriculture, Livestock and Food Supply (MAPA) • National Institute for Colonization and Agrarian Reform (INCRA) Agriculture • Ministry of Agrarian Development and Family Agriculture (MDA) • Brazilian Agricultural Research Corporation (Embrapa) • Ministry of Cities Urban Planning and Monitoring • The Brazilian Institute of Geography and Statistics (IBGE) • The Institute of Applied Economic Research (Ipea) Waste Management and Landfill • Brazilian Institute of the Environment and Renewable Natural • Ministry of Environment and Climate Change (MMA) Monitoring Resources (IBAMA) • Ministry of Transport • National Transport Infrastructure Department (DNIT) Road Traffic Monitoring • National Traffic Department (DENATRAN) • Federal Highway Police 78 Endnotes 1. United Nations Framework Convention on Climate Change. 2022. “Nationally Determined Contribution (NDC)." 17. Council on Foreign Relations, “Deforestation of Brazil’s Amazon Has Reached a Record High. What’s Being https://unfccc.int/sites/default/files/NDC/2022-06/Updated%20-%20First%20NDC%20-%20%20FINAL%20-%20P Done?” Website: Text/HTML, Council on Foreign Relations, 20 May 2023, DF.pdf. https://www.cfr.org/in-brief/deforestation-brazils-amazon-has-reached-record-high-whats-being-done. 2. Silva-Junior, C.H.L., Silva, F.B., Arisi, B.M. et al. 2023. “Brazilian Amazon indigenous territories under 18. Guardian, “Bolsonaro slashes Brazil’s environment budget, day after climate talks pledge,” Website: Text/HTML, deforestation pressure.” https://www.nature.com/articles/s41598-023-32746-7 Guardian, 20 May 2023, https://www.theguardian.com/world/2021/apr/24/bolsonaro-slashes-brazils-environment-budget-day-after-climate 3. Green Climate Fund, “GCF's first REDD+ results-based payment boosts financial incentive to protect forests,” -talks-pledge. Website: Text/HTML, Green Climate Fund, 20 May 2023, https://www.greenclimate.fund/news/gcf-s-first-redd-results-based-payment-boosts-financial-incentive-to-protect-f 19. Black Jaguar Foundation, “11 Years of The New Brazilian Forest Code,” Website: Text/HTML, Black Jaguar orests. Foundation, 20 May 2023, https://www.black-jaguar.org/new-brazilian-forest-code-2023/. 4. Green Climate Fund, “GCF's first REDD+ results-based payment boosts financial incentive to protect forests,” 20. OpenEdition Journals, “Is Brazil now in control of deforestation in the Amazon?” Website: Text/HTML, Website: Text/HTML, Green Climate Fund, 20 May 2023, OpenEdition Journals, 20 May 2023, https://journals.openedition.org/cybergeo/27484?lang=en. https://www.greenclimate.fund/news/gcf-s-first-redd-results-based-payment-boosts-financial-incentive-to-protect-f 21. Gilberto Camara et al. 2023. “Impact of land tenure on deforestation control and forest restoration in Brazilian orests. Amazonia.” https://iopscience.iop.org/article/10.1088/1748-9326/acd20a. 5. InSight Crime, Indigenous Communities Employing Drones to Monitor Amazon Deforestation,” Website: 22. InSight Crime, “Indigenous Communities Employing Drones to Monitor Amazon Deforestation,” Website: Text/HTML, InSight Crime, 20 May 2023, Text/HTML, InSight Crime, 20 June 2023, https://insightcrime.org/news/indigenous-employing-drones-monitor-amazon-deforestation-brazil/. https://insightcrime.org/news/indigenous-employing-drones-monitor-amazon-deforestation-brazil/. 6. DroneDJ, “Brazil looks at tree-planting drones to help fight climate change,” Website: Text/HTML, DroneDJ, 20 23. Mongabay, “Indigenous agents fight deforestation with drones and AI in Brazilian Amazon,” Website: Text/HTML, May 2023, https://dronedj.com/2022/02/01/tree-planting-drones-brazil/. Mongabay, 20 June 2023, 7. 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XAG, “Brazil Introduces Agricultural Drones from XAG to Plant Trees,” Website: Text/HTML, XAG, 20 June 2023, https://forestsnews.cifor.org/13491/how-much-credit-can-brazil-take-for-slowing-amazon-deforestation-and-how-l https://www.xa.com/en/news/official/xag/150. ow-can-it-go?fnl=en#:~:text=Deforestation%20rates%20in%20Brazil%20plummeted,country%20enacted%20the %20PPPDAm%20policies. 28. Euronews Green, “These seed-firing drones are planting 40,000 trees every day to fight deforestation,” Website: Text/HTML, Euronews Green, 20 June 2023, 11. The World Bank. 2023. “Brazil: Country Climate and Development Report.” https://www.euronews.com/green/2022/05/20/this-australian-start-up-wants-to-fight-deforestation-with-an-army-of https://openknowledge.worldbank.org/server/api/core/bitstreams/fd36997e-3890-456b-b6f0-d0cee5fc191e/conten -drones. t. 29. The Guardian, “Amazon fires: what is happening and is there anything we can do?”, Website: Text/HTML, The 12. OpenEdition Journals, “Is Brazil now in control of deforestation in the Amazon?” Website: Text/HTML, Guardian, 20 June 2023, OpenEdition Journals, 20 May 2023, https://journals.openedition.org/cybergeo/27484?lang=en#tocto2n3. https://www.theguardian.com/environment/2019/aug/23/amazon-fires-what-is-happening-anything-we-can-do. 13. Mongbay, “Deforestation accelerated in Brazil while climate talks were underway in Egypt,” Website: Text/HTML, 30. Greenpeace, “Amazon rainforest fires 2022: Facts, causes, and climate impacts,” Website: Text/HTML, Mongbay, 20 May 2023, Greenpeace, 20 June 2023, https://news.mongabay.com/2022/12/deforestation-accelerated-in-brazil-while-climate-talks-were-underway-in-eg https://www.greenpeace.org/international/story/55533/amazon-rainforest-fires-2022-brazil-causes-climate/. ypt/. 31. Greenpeace, “Amazon rainforest fires 2022: Facts, causes, and climate impacts,” Website: Text/HTML, 14. 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U.S. Forest Service International Programs. 2019. “Brazil Program.” United Nations Climate Change, 20 May 2023, https://www.fs.usda.gov/sites/default/files/BRZ-Factsheet-Fire-english.pdf. https://unfccc.int/news/forest-protection-in-brazil-boosted-through-redd-plus. 79 Endnotes 35. Ferreira, Manuel & Araújo, Ila & Spina Avino, Felipe & Vitor, João & Costa, Silva & da-Costa, Marcelo & 53. 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Qualcomm, “How Brazilian farmers will use drones to boost agriculture and support environmental sustainability,” 85. Drones.R.Africa, “Getting ahead: Of Latin America’s resilient delivery drone industry,” Website: Text/HTML, Website: Text/HTML, Qualcomm, 20 June 2023, Drones.R.Africa, 20 June 2023, https://www.qualcomm.com/news/onq/2016/07/how-brazilian-farmers-will-use-drones-boost-agriculture-and-supp https://dronenews.africa/getting-ahead-of-latin-americas-resilient-delivery-drone-industry/. ort#:~:text=A%20vast%20majority%20of%20the,quarters%20of%20farm%20labor%20force. 86. Agência Brasil, “One of every four Brazilians has no internet access,” Website: Text/HTML, Agência Brasil, 20 June 2023, https://agenciabrasil.ebc.com.br/en/economia/noticia/2020-04/one-every-four-brazilians-has-no-internet-access. 81 Endnotes 102. Qualcomm, “How Brazilian farmers will use drones to boost agriculture and support environmental sustainability,” Website: Text/HTML, Qualcomm, 20 June 2023, https://www.qualcomm.com/news/onq/2016/07/how-brazilian-farmers-will-use-drones-boost-agriculture-and-supp ort. 103. Alimentando Políticas, “Agriculture is the Sector That Most Impacts and is Impacted by Climate Change,” Website: Text/HTML, Alimentando Políticas, 20 June 2023, https://alimentandopoliticas.org.br/en/2021/07/agriculture-is-the-sector-that-most-impacts-and-is-impacted-by-cli mate-change/. 104. UN Habitat. 2016. “Brazil Impact Story.” https://unhabitat.org/sites/default/files/download-manager-files/Brazil%20Impact%20Story.pdf. 105. IDB, “Monitoring informal settlement growth in Manaus, Brazil with drones,” Website: Text/HTML, IDB, 20 June 2023, https://www.sciencedirect.com/science/article/abs/pii/S0301479718311435. 106. Santos RED, Santos IFSD, Barros RM, Bernal AP, Tiago Filho GL, Silva FDGBD. 2019. “Generating electrical energy through urban solid waste in Brazil: An economic and energy comparative analysis.” https://www.sciencedirect.com/science/article/abs/pii/S0301479718311435. 107. Issues in Brazil, “Waste management,” Website: Text/HTML, Issues in Brazil, 20 June 2023, https://sites.google.com/a/nygh.edu.sg/brazil---people-and-society-poverty-environmental-sustainability/main-issu es/environment/waste-management-in-brazil. 108. COSTA, I.M.; DIAS, M.F. 2020. Evolution on the solid urban waste management in Brazil: A portrait of the Northeast Region.” https://www.sciencedirect.com/science/article/pii/S2352484719312429. 109. LinkedIn, “Drones for waste management,” Website: Text/HTML, LinkedIn, 20 June 2023, https://www.linkedin.com/pulse/drones-waste-management-naveen-joshi/. 110. Cesar Aparecido da Silva, Tânia Jaqueline Rebinski, Sara Priscila Teles, Gustavo Tavares Krüger, Magna Mara Barros, Alan D’Oliveira Correa, Alexandre Bernadino Lopes. 2021. “USO DE DRONES PARA ESTIMAR O VOLUME DE RESÍDUOS SÓLIDOS APARENTES E DIAGNOSTICAR AS CONDIÇÕES AMBIENTAIS DE UM ATERRO SANITÁRIO NO LITORAL DO ESTADO DO PARANÁ-BRASIL.” https://revistatecie.crea-pr.org.br/index.php/revista/article/view/718/479. 111. Universidad Tecnológica de Panamá, “Drones como una Herramienta para la Optimización del Monitoreo y la Supervisión,” Website: Text/HTML, Universidad Tecnológica de Panamá, 20 June 2023, https://utp.ac.pa/drones-como-una-herramienta-para-la-optimizacion-del-monitoreo-y-la-supervision. 112. SCS Engeeners. 2016. “ LF Track III: Drone Technology Application in Waste Management Facility.” https://ncswana.org/images/downloads/2016_Spring_Conference/drone_technology_application_in_waste_mana gement_facility.pdf 113. TomTom, “TomTom Traffic Index. Ranking 2022,” Website: Text/HTML, TomTom, 20 June 2023, https://www.tomtom.com/traffic-index/ranking/. 114. World Economic Forum, “The countries with the worst traffic congestion - and ways to reduce it,” Website: Text/HTML, World Economic Forum, 20 June 2023, https://www.weforum.org/agenda/2020/07/cities-congestion-brazil-colombia-united-kingdom/. 115. Correio de Santa Catarina, “ Mais drones serão usados para monitorar infrações de trânsito em rodovias estaduais,” Website: Text/HTML, Correio de Santa Catarina, 20 June 2023, https://www.correiosc.com.br/mais-drones-vao-monitorar-infracoes-de-transito-em-rodovias-estaduais/. 82 5 In a dynamic technological landscape, the advancement and As the number and adoption of drones increase, it is important to growth of drones offer several opportunities for nations to have strong foundations in place to support the ecosystem growth in drive economic growth and foster innovation. a sustainable and responsible manner, including having the right Brazil, with its existing technology base and strategic positioning, incentives for players and investors to enter the market, and seek could leverage the drone sector to strengthen its role as a regional long-term growth. and global leader in technology innovation. UAS has already found The analysis of global best practices suggests that the creation of a a myriad of applications in various industries with the most mature thriving drone ecosystem requires more than just a robust regulatory being agriculture. In others, the technology is beginning to receive framework. It demands a comprehensive foundation that includes recognition and several use cases are starting to be tested and digitalised processes, actively engaged stakeholders, a skilled permanently implemented. workforce, innovative entrepreneurs, and a transparent governance structure. This combination is essential in promoting the balanced Drone Ecosystem Similarly, drones can play a critical role in supporting Brazil’s ambitious environmental and climate agenda, as well as helping to growth of the drone ecosystem. Development solve some of the country’s pressing development and social challenges. In Brazil, the implementation of basic drone services and the introduction of the SARPAS NG and SISANT systems have set a Roadmap Considering the industry’s maturity as well as its potential for Brazil, government agencies and institutions, along with other key valuable foundation for UTM. However, there is still a need for enhancing and further improving the ecosystem. Key initiatives must stakeholders have a critical role to play in shaping the future focus on advancing regulatory frameworks and promoting the direction of this industry. Hence, there is a need to focus on digitalisation of traditional analogue and paper-based processes. It strategic initiatives that could expedite the adoption of UAS across is essential to include and train relevant stakeholders to accelerate industries and public institutions. the development of the drone ecosystem and support education and innovation. Through these efforts, Brazil can reinforce its position as a technology leader and enhance its green economic growth. Proposed Strategic Pillars for the Development of the Drone Ecosystem: Regulation and Processes: clear governance structure, well-defined roles and responsibilities of stakeholders, 1 and transparent processes and procedures to facilitate straightforward compliance with regulations. Digitalisation and Automation: digitalisation of processes and services provided by public institutions, gradual 2 introduction of digital Unmanned Traffic Management (UTM) services to control and safely integrate UAS into the airspace. Awareness and Promotion: building awareness among society and fostering innovation by connecting 3 start-ups, industry, and research. Knowledge and Education: developing human capital by providing access to knowledge, educating users 4 and stakeholders about regulations, best practices, etc.; also supporting innovation and research. Demand and Entrepreneurship: stimulating innovation and technology adoption by providing means to 5 accelerate market entry and instruments to activate and scale the market. 83 1 2 3 Regulations and Processes Digitalisation and Automation Awareness and Promotion The regulatory landscape in Brazil is at an advanced level, The fast-growing number of drone operations in Brazil, The successful integration of drones into diverse fields and similar to leading legislation globally. However, as the coupled with the imminent rise of large-scale BVLOS industries relies on establishing trust and raising drone industry continues to innovate and explore new flights requires the implementation of a full UTM system. awareness among industry players, public stakeholders, applications, it becomes increasingly crucial to further To unlock the full potential of the UAV industry, it is and communities. improve and ease the legal requirements to enable more essential to further develop the basic UTM capabilities that The implementation of awareness campaigns is an important complex and at-scale operations. are currently available in the country. This would effectively step to increase the adoption of drone technology by and safely integrate UAVs and manned air traffic, with high The BVLOS flight approval process plays a pivotal role in showcasing their potential and ability to enhance the safety of enabling advanced drone operations, making it imperative to levels of automation in decision-making and control. flights. For example, in 2017, DECEA launched the “Conscious streamline its requirements as well as to minimise the length In order to ensure the effectiveness of UTM*, it is essential to Drone Campaign” and brought together a drone community to and complexity of the authorisation period as much as possible. establish an interconnected ecosystem that links all share best practices, hold webinars, and disseminate content in Additionally, the extensive and time-consuming process of stakeholders and participants, enabling the required interactions the form of articles, tutorials, and infographics.2 This initiative obtaining drone design approval for new and modified and data exchange. Hence, it becomes critical to define the aimed to improve the prevention of potential accidents caused platforms, which can extend to as much as 730 days, may roles and responsibilities of key players within the system as by non-compliance with established regulations such as the present a considerable obstacle for drone manufacturers in well as to establish a robust development model between the Congonhas case, when an unauthorised drone was flying close Brazil.1 public and private sectors. to the runway threshold and led to the temporary shutdown of Additionally, the UTM system should represent a the Congonhas Airport in São Paulo.3 Therefore, along with the increase of institutional response capacity, it would be highly beneficial to adopt a comprehensive collection of automated services and features. Increased public knowledge of rules and restrictions can Hence, wider adoption will rely on developing high-quality, facilitate wider community acceptance and adoption of more performance-based approach while developing a flexible regulatory framework that supports innovation. This approach user-oriented, tools that are widely accessible and usable by advanced drone applications such as delivery or surveillance, the drone community. which commonly raise concerns about privacy and security. enables operations that are critical for emerging use cases such Improving the perception of drone technology is particularly as drone deliveries and emergency applications. To ensure the UTM system functions effectively at its relevant when the Not In My Back Yard (NIMBY) effect is fundamental level, it is vital to establish the capability to monitor As a longer-term objective, the regulators could also consider identified among communities and local authorities. In this case, all UAVs operating in the airspace. Such capability will be establishing a phased approach supporting the implementation it manifests as resistance to possible UAV utilisation in the crucial for fully autonomous or even automated unmanned of Advanced Air Mobility. This new sector is expected to bring proximity of their local areas. flights, especially in terms of manned and unmanned airspace many benefits to the local economy by creating new jobs, attracting investors, and delivering new opportunities to the integration. Likewise, having a common platform that allows businesses to explore relevant information related to the ecosystem, economy. *for more details on the UTM see Box 5.1 on page 86 regulations, and the potential applications of UAS in their respective sectors can support the development of a strong drone community and environment. Similarly, drone-related events such as the Drone Show support the awareness and promotion of the sector and contribute to enhancing collaborations. This large event gathers a range of stakeholders to disseminate knowledge, stimulate innovation, and showcase drone solutions for various applications across sectors such as agriculture, forestry, and logistics among others.4 84 4 5 Knowledge and Education Demand and Entrepreneurship Education and knowledge form the foundation for a Enabling entrepreneurs to innovate and fostering an thriving drone industry, as it cultivates expertise, fosters a environment that increases demand for UAS services in the professional workforce, enhances collaboration, and public and commercial sectors are two key components of enables the formulation of legislation that supports a robust drone ecosystem. innovation. To effectively address the demand for UAS technologies and Increasing the availability of specialised programs and services, it is crucial to bring together stakeholders from both curriculums at universities (e.g. engineering, programming, or the supply and demand sides. Collaboration in sectoral working geographic information systems) is crucial for nurturing skills in groups enables the identification of new opportunities and the drone industry, especially because of the rapid pace of potential partnerships, leading to the effective implementation of development within the sector. As the ecosystem matures, there UAS solutions in various industries. will be further needs for trained drone pilots, specialists, and A supportive regulatory framework is also an essential analysts involved in UAS operational processes from both the component of entrepreneurial activation. The aim should be to supply and demand sides. make the regulations amenable to entrepreneurship, removing An example of this comes from Veiga de Almeida University burdensome procedures and encouraging partnerships who, in 2020, launched a post-graduate course in drone between stakeholders. This will help to facilitate technology operations, covering entrepreneurship, machine learning, GIS, transfer and enable Brazilian UAS companies to access global AI, remote sensing, photogrammetry, and drone legislation.5 markets more efficiently. Similarly, developing and promoting drone training programs Lastly, incubators will play a vital role in nurturing and among indigenous communities can help them preserve their supporting entrepreneurial endeavours in the UAS industry. By land and environment from illegal activities. Through training focusing on key sectors, these programs provide targeted provided by the Rainforest Foundation U.S., members of assistance to UAS technology developers, by assisting with Amazonian tribes have acquired the skills to produce accurate access to funding, expertise, and business development. maps and detailed footage of their territories using drones. An example of such a venture is EmbraerX, the innovation These materials help them report crimes to the authorities and subsidiary and incubator of Brazilian aircraft manufacturer - raise awareness of the problems faced.6 Embraer, which acquired a minority stake in Xmobots. The Besides expanding the accessibility for drone-related courses incubator works with startups and large companies focused on and education, another way to promote knowledge sharing projects in agribusiness and logistics.7 could be to implement a dedicated web service that enables easy and open access to information such as regulations, services, and the UAS technologies itself, for every member of the drone community. 85 Box 5.1 Unmanned Traffic Management (UTM) systems UTM is a critical technology for the safe and efficient integration of drones into the airspace. As the number of drones in the sky grows, UTM will become increasingly important for the deconfliction of drone traffic and the prevention of collisions. Drone operations are currently conducted separately from traditional aviation traffic. This division, for UAVs, is defined by maximum flight altitude, restricted or segregated airspaces, and corridors. However, the drone industry's rapid growth, resulting in new applications and at-scale operations, necessitates the implementation of a unified UTM system. A robust UTM system can allow for the coordination, deconfliction, and management of manned and unmanned aircraft traffic in the lower levels of the airspace, effectively enabling and maximising the safety of multiple simultaneous BVLOS drone operations. Additionally, the system should also act as a service platform for exchanging real-time information regarding airspace, flight conditions, and other operational limitations between all airspace users. Early developments of UTM systems should prioritise ensuring the functionality of “foundational” or “core” features such as flight planning services and airspace authorisation services, as well as establishing a reliable means of communication between air traffic services and drone pilots. The next generation of UTM services would focus more on airspace awareness and intelligence such as drone identification tracking and location services, terrain and obstacle data services, meteorological services, provision for authorisation automation, and flight autonomy support. In the final step, the ultimate goal is to switch from drone separation to full airspace integration, both with manned and unmanned traffic. BR-UTM Main Foundations: SARPAS NG: The functionalities of the UTM system will be developed based on the existing services provided by the SARPAS NG system, which is considered a precursor of the UTM that is a web-based platform allowing for drone and operator registration, flight planning, and approval. Operational UTM Concept: Released by DECEA, serves as the basis for the National UTM Implementation Plan, which will guide the systematic, safe, and sustainable implementation of the UTM in Brazil’s jurisdiction that will effectively generate benefits for the whole UAV ecosystem. *for more details on the Brazilian UTM system, see page 31 There are a few use cases that are considered crucial for the development of future drone space, and will benefit greatly from a UTM system: Drone delivery: A UTM system will enhance efficiency and scalability for drone deliveries by optimising flight routes and ensuring safety in congested airspace. Emergency operations: A UTM system can facilitate rapid safety response and real-time monitoring during emergency operations, improving disaster assessment and supporting search and rescue efforts. Passenger drones: A UTM system can improve safety and efficiency in air traffic management, instilling confidence in the reliability of passenger drone air travel. 86 Specific Initiatives Brazil is in a crucial and transitional moment for the drone ecosystem and it requires a holistic and strategic perspective on all the elements that are required to support its growth. To facilitate this process, there are several different initiatives that could be considered, with varying levels of tractability.8 Figure 5.1 Selected Drone Ecosystem Development Incentives for Brazil Strategic Drone Development Incentives for Brazil 1 Regulations and Processes 2 Digitalisation and Automation 3 Awareness and Promotion 4 Knowledge and Education 5 Demand and Entrepreneurship 1.1 2.1 3.1 4.1 5.1 Strengthen clear governance and Define architecture of the UTM system Build awareness of digital services and Enhance the offer of professional Organise sectoral working groups to communication between key including roles and responsibilities of compliance among industry players. education programs at universities in match the supply and demand side, regulatory players and decision crucial players in the provision of UTM order to create a local skilled inviting national/federal unit makers. services. workforce for the drone sector. representatives and local businesses. 3.2 1.2 2.2 4.2 5.2 Develop UAS-related promotional Improve institutional capacity to Design and develop foundational UTM activities including publications Facilitate easy access to information Strengthen incubators and accelerate response and enhance services to provide drone pilots and (market potential) & PoC, pilots, and on regulations, e-services, and current accelerators for UAS technology compliance level. airspace management bodies with demonstrations. technology in a dedicated web service. developers, especially in crucial critical tools. market sectors (e.g. agriculture 1.3 3.3 innovation, drone delivery). 2.3 4.3 Develop a sustainable framework for Enable and grow local demand by BVLOS and long range flights at scale promoting advanced use cases to 5.3 Design and develop advanced and Create education and training (e.g. drone delivery), including urban supplementary UTM services to boost public acceptance (i.e. programmes for federal/state officials Increase the availability of funding to and rural areas. prepare the skies for future integrated indigenous communities, key local / on the potential of drones in specific take technologies to operational level. airspace. state / national stakeholders). sectors. 1.4 5.4 3.4 4.4 Develop a phased approach for Remove burdensome regulations to Advanced Air Mobility implementation Position Brazil as a regional and global Develop/promote training programs for facilitate import/export of technology (passenger transportation). hub in drone technology applications local remote communities (Amazon, and services. (e.g. agriculture) and support local indigenous communities, etc). business expansion to neighbouring 5.5 countries. 4.5 Facilitate foreign expansion of Develop programs focused on digital Brazilian UAS companies. 3.5 upskilling in critical sectors. Run nationwide and localised campaigns for local communities and 5.6 business owners on the benefits and Develop public standards for drone potential of drone solutions. services procurement in order to 87 improve the institutional capabilities of national and federal bodies. Source: PwC analysis of drone sector enabling initiatives, August 2022 and PwC analysis of the Brazilian ecosystem, first quarter 2023. 87 The 23 initiatives have been categorised according to impact, complexity, and cost. Some Having a well-planned roadmap that prioritises the most impactful initiatives and sequences them initiatives like communication strengthening, as an example, are relatively easy to implement but in a logical order will be critical to success. The categorisation presented in figure 5.2 could be have a low impact. Other initiatives, such as developing UTM system, are more complex and used as an additional assessment during the development or adjustment of the roadmap. costly but have a high impact. The correct mixture and sequencing of these initiatives is essential for Brazil to unlock the full potential of the drone ecosystem. Figure 5.2 Strategic Drone Development Incentives for Brazil Impact 5.1 4.2 5.2 2.2 Organise sectoral working groups to match the supply and demand Facilitate easy access to Strengthen incubators and Design and develop foundational UTM services to provide drone side, inviting national/federal unit representatives and local information on regulations, accelerators for UAS technology pilots and airspace management bodies with critical tools. businesses. e-services, and current developers, especially in crucial technology in a dedicated web market sectors (e.g. agriculture service. innovation, drone delivery). High 5.4 5.5 Remove burdensome regulations to Facilitate foreign expansion of 1.3 1.4 2.3 facilitate import/export of Brazilian UAS companies. Develop a sustainable framework Develop a phased approach for Design and develop advanced and supplementary UTM services to technology and services. for BVLOS and long range flights Advanced Air Mobility prepare the skies for future integrated airspace. at scale (e.g. drone delivery), implementation (passenger including urban and rural areas. transportation). 5.6 3.2 4.5 4.1 Develop public standards for drone services procurement in order to Develop UAS-related promotional Develop programs focused on Enhance the offer of professional education programs at universities improve the institutional capabilities of national and federal bodies. activities including publications digital upskilling in critical in order to create a local skilled workforce for the drone sector. (market potential) & PoC, pilots, sectors. and demonstrations. Medium 3.4 3.5 Position Brazil as a regional and Run nationwide and localised 1.2 2.1 5.3 global hub in drone technology campaigns for local Improve institutional capacity to Define architecture of the UTM Increase the availability of funding to take technologies to operational applications (e.g. agriculture) and communities and business accelerate response and system including roles and level. support local business expansion to owners on the benefits and enhance compliance level. responsibilities of crucial players neighbouring countries. potential of drone solutions. in the provision of UTM services. 4.4 3.3 3.1 4.3 Develop/promote training programs Enable and grow local demand Build awareness of the digital Create education and training for local remote communities by promoting advanced use services and compliance among programmes for federal/ state (Amazon, indigenous communities, cases to boost public industry players. officials on the potential of drones etc). acceptance (i.e. indigenous in specific sectors. communities, key local / state / Low 1.1 national stakeholders). Strengthen clear governance and communication between key regulatory players and decision makers. Low Medium High Complexity Cost Low Medium High Source: PwC analysis of drone sector enabling initiatives, August 2022 and PwC analysis of the Brazilian ecosystem, first quarter 2023. 88 Brazil’s drone ecosystem has very strong foundations with many initiatives already in operation and a relatively mature market in several key industries. However, in order to enhance capabilities and advance towards more complex use cases, it is important to develop a comprehensive development roadmap. There are a number of initiatives that are categorised as having a lower level of impact but are also less expensive and complex - thus representing low-hanging fruit. These can be considered as ‘starter’ initiatives to create some initial positive effects and lay a solid foundation for further efforts. As an example, nationwide awareness campaigns can bring instant benefits without significant changes to regulatory or operational frameworks. As this awareness increases, it opens up opportunities for other enablers like public standards for advanced drone services procurement. Next, the strategic development roadmap could focus on interconnected efforts such as frameworks and development plans for BVLOS or Advanced Air Mobility. This, combined with other initiatives like promotion and capability building, requires more effort and more capital but also provides more significant results. Finally, the complex and long-term initiatives related to Unmanned Traffic Management and digitalisation can be implemented. These were assessed as the most complex, impactful, and costly initiatives and therefore should only be prioritised once the industry is sufficiently mature. This should be accompanied by well-developed education offerings and funding for innovators, as these areas are critical to achieving the long-term goals for the country. 89 The Five-Year roadmap Brazil's drone ecosystem development roadmap may focus on three main phases. Taking into consideration that the country already has a firm baseline, the first efforts should focus on current The implementation of these initiatives requires prioritisation on a year-to-year timeline to ecosystem upscale and growth support. Then, the focus should be on enhancing capabilities create a strategic plan for the development of the ecosystem. Considering the stages of backed by clear regulations and basic UTM services. The last and most challenging phase would organic growth, from low levels of complexity to more advanced and impactful initiatives, a focus on building an advanced and sustainable ecosystem ready to tackle drone operations at five-year ecosystem development roadmap has been proposed. scale, including full skies integration and autonomy support.9 Figure 5.3 Illustrative Development Roadmap for Drone Ecosystem in Brazil Ecosystem Upscaling and Growth Support Enhancing Capabilities Building an Integrated and Safe Airspace Year 1 Year 2 Year 3 to Year 5 1.1 Strengthen clear governance and communication between key regulatory players and decision makers Regulations and 1.2 Improve institutional capacity to accelerate response and enhance compliance level Processes 1.3 Develop sustainable framework for BVLOS and long range flights at scale (e.g. drone delivery), including urban and rural areas 1.4 Develop a phased approach for Advanced Air Mobility implementation (passenger transportation) 2.1 Define architecture of the UTM system including roles and 2.2 Foundational UTM services - design and develop to provide drone pilots and airspace management bodies with critical tools responsibilities of crucial players in UTM services provision Digitalisation and 2.3 Advanced and supplementary UTM services - design and Automation develop to prepare the skies for future integrated airspace 3.1 Build awareness of the digital services and compliance among industry players Awareness 3.5 Run nation wide and localized campaigns for local and Promotion communities and business owners on benefits and potential of 3.2 Develop UAS related promotion activities including publications (market potential) & PoC, pilots, demonstrations drone solutions 3.3 Enable and grow local demand by promoting advanced use cases to boost public acceptance (i.e. indigenous communities, key local / state / national stakeholders) 3.4 Position Brazil as a regional and global hub in drone technology applications (e.g. agriculture) and support local business expansion to neighbouring countries 4.1 Enhance the offer of professional education programs at universities in order to create a local skilled workforce for the drone sector Knowledge 4.2 Facilitate easy access to information on regulations, 4.5 Develop programs focused on digital upskilling in critical sectors and Education e-services and current technology in a dedicated web service 4.3 Create education and training programmes for federal/ state officials on drones potential in specific sectors 4.4 Develop/promote training programs for local - remote communities (amazon, indigenous communities, etc) 5.1 Organise sectoral working groups to match supply and demand side, inviting national/federal units 5.3 Increase the availability of funding to take technologies to operational level representatives and local businesses Demand and 5.4 Remove burdensome regulations to facilitate import/export of 5.2 Strengthen incubators and accelerators for UAS technology developers, especially in crucial market Entrepreneurship technology and services sectors (e.g. agriculture innovation, drone delivery) 5.5 Facilitate foreign expansion of Brazilian UAS companies 5.6 Develop public standards for drone services procurement in order to improve institutional capabilities of national and federal bodies Source: PwC analysis of drone sector enabling initiatives, August 2022 and PwC analysis of the Brazilian ecosystem, first quarter 2023. 90 Ecosystem Upscaling and Growth Support 1 Today, Brazil has a strong foundation for drone sector development, and the industry is well-positioned for rapid growth in the coming years. Specifically, the country has a high demand for drone services which is driven mainly by the agriculture sector. However, there is a need for further development of procedures and processes that can unlock the potential and allow drones in other sectors to fly at scale. This phase will involve activities such as: • Continuing to build on the current UTM-related systems (e.g. SARPAS NG) and procedures set for both drone pilots and relevant authorities. • Keeping on unlocking long-range flights and autonomy for agriculture to be further used as a lesson learned for urban and populated areas. • Defining a clear roadmap with roles and responsibilities assigned in order to prepare the country for nationwide foundational UTM services with a long-term goal of integrated airspace management. • Fostering education, knowledge sharing, promotion, and awareness for the general public as well as authorities and institutions. Enhancing Capabilities 2 This phase will focus on building organic growth and competency through the application of small and medium enterprise (SME) knowledge and the execution of various long-term strategies. Efforts taken at this stage will help to transition from concepts and tests to reliable systems and procedures. The foundational UTM services that will be developed during this period will play a crucial role in further growth, and the deployment of advanced drone use cases, as well as safe integration with manned aviation. This phase will involve activities such as: • Training and deploying a skilled workforce with expertise in drone technology. • Building foundational UTM services and infrastructure to provide critical tools for airspace managers and properly trained drone pilots. • Conducting research and tests on specific drone use cases, BVLOS operations, Advanced Air Mobility, and autonomy. • Promoting the drone sector through events, Proof of Concepts, education campaigns, and the support and acceleration of technology companies from the local market. Building an Integrated and Safe Airspace 3 This phase will focus on long-term efforts and the most advanced technologies that are required to build a truly integrated airspace. Initiatives related to the organic growth of the drone market and support for Brazilian companies to lead in the region and take a significant position globally are crucial as well. This phase will involve activities such as: • Developing advanced and supplementary UTM services, focusing mainly on serving large-scale operations, including the most demanding use cases such as passenger transportation and autonomous drones. • Supporting the development of Advanced Air Mobility and autonomous drone operation through a favourable legislative environment and infrastructure availability for testing. • Addressing the challenges of technology providers and innovators, helping them to position the country as a regional drone hub and a leading drone ecosystem in strategic industries. 91 Endnotes 1. Serviços e Informações do Brasil, “Obter autorização ou modificação de projeto de Sistema de Aeronave Remotamente Pilotada (RPAS),” Website: Text/HTML, Serviços e Informações do Brasil, 20 May 2023, https://www.gov.br/pt-br/servicos/obter-autorizacao-de-projeto-de-sistema-de-aeronave-remotamente-pilotada-rp as. 2. Drone Show, “Campanha Drone Consciente incentiva o voo seguro e seguindo as normas,” Website: Text/HTML, Drone Show, 20 May 2023, https://droneshowla.com/campanha-drone-consciente-incentiva-o-voo-seguro-e-seguindo-as-normas/. 3. Piloto Policial, “Voo irresponsável de Drones é um caso só da Polícia?” Website: Text/HTML, Piloto Policial, 20 May 2023, https://www.pilotopolicial.com.br/voo-irresponsavel-de-drones-e-um-caso-so-da-policia/. 4. DroneShow Robotics, “Purpose,” Website: Text/HTML, DroneShow Robotics, 20 May 2023, https://droneshowla.com/en/purpose/. 5. Canaltech, “Universidade brasileira lança curso de pós-graduação para operação de drones,” Website: Text/HTML, Canaltech, 20 May 2023, https://canaltech.com.br/drones/universidade-brasileira-lanca-curso-de-graduacao-para-operacao-de-drones-158 624/. 6. CNN, “Amazon tribes are using drones to track deforestation in the Brazilian rainforest,” Website: Text/HTML, CNN, 20 May 2023, https://edition.cnn.com/2020/09/01/americas/amazon-drones-brazil-deforestation-cte-spc-intl/index.html. 7. The Brazilian Report, “EmbraerX has a new investment strategy,” Website: Text/HTML, The Brazilian Report, 20 May 2023, https://brazilian.report/liveblog/web-summit-rio/2023/05/01/embraerx-new-investment-strategy/. 8. PwC analysis of drone sector enabling initiatives, August 2022. 9. PwC analysis of drone sector enabling initiatives, August 2022. 92 6 State Context CO₂ emissions.10 These trends make it highly relevant to focus efforts on enhancing institutions, programmes, and measures for Tocantins is the newest (formed in 1988) and the fifth-largest state strengthening environmental monitoring initiatives across the state. in Brazil with a surface area of 277,423 km2, a population of more than 1,6 mln,1, 2 and a GDP of USD 9 bn.3 Being predominantly Despite these challenges, the state has several opportunities for rural, with a sparse population, the state is known for its vast economic growth and development. The government is actively natural resources including forests, rivers, and waterfalls. looking to further develop the state and overcome barriers while Approximately 91% of the state is situated within the Cerrado simultaneously creating a favourable business environment that biome, a vast tropical savanna covering over 20% of Brazil. The can make Tocantins an attractive destination for investment. As an remaining 9% of the state falls within the Amazon biome.4 Hence, example of this, the World Bank supported their efforts to improve environmental protection and sustainable growth are highly relevant road transportation to promote sustainable development across the Lessons learned pillars for Tocantins’ economic pathway. state with a multisectoral package of interventions that supported the revitalisation of the local economy and market farming, as well The state is an important agricultural region for Brazil with 30% of from a drone-based its area being covered by agricultural lands in 2020, divided as providing access to educational services and assistance for environmental law enforcement.11, 12 between areas of pasture, agriculture and forestry.5 The region’s proof of concept fertile soil and favorable climate have made it a good location for The Potential of the Drone Ecosystem for Tocantins growing crops such as soybeans, corn, rice, cotton, and cattle for environmental ranching; the latter occupying 6.2 million ha of pastures with a The introduction of drone technology can support the efforts to cattle herd of 10 million heads.6 monitoring in The state’s agricultural industry has undergone significant growth in protect the natural heritage of the state and advance towards greener economic growth and development. When combined with Tocantins recent years with investments in technology and infrastructure improving yield and productivity. The total agriculture area other technologies such as satellite data and the groundwork of government institutions focused on environmental law enforcement, increased almost two-fold between 1985 and 2020 (from around 4 drones can strengthen the institutional capacity to effectively mln ha to almost 8 mln ha).7 Most of the agriculture in the state is monitor the activities in the state while enhancing new opportunities export-oriented and in 2022 Tocantins exported $3.09B, making it for growth. the 14th largest exporter out of the 27 states in Brazil.8 For example, UAS adoption in agriculture could further enable Tocantins also has several other developing industries which precision agriculture practices that reduce the environmental impact include food processing, textiles, ceramics, mining, renewable of land use. In forestry, drones can be a reliable tool for energy, and logistics. strengthening environmental protection and monitoring efforts safely by planting trees, detecting illegal activities, and fighting However, Tocantins, also faces various challenges that impact its deforestation. Similarly, by introducing drones for medical goods potential growth and development such as access to healthcare deliveries, new logistics hubs could be developed to connect services, the level of education and skills among its population, soil remote communities without interfering with the natural degradation, and water pollution.9 Environmentally, Tocantins lost environment. These use case examples showcase how drones can 2.05 mln ha of tree coverage between 2001 and 2021, equivalent to be a catalyst for economic and environmental progress in an 18% decrease in the total tree cover since 2000, and 804Mt of Tocantins. 93 In 2022, there were only 405 registered drones in Tocantins, representing just 0.43% of the country’s total units Two use cases were tested involving drone technology: registered.13 As a result, there is significant potential for increased drone adoption to tackle some of the most pressing economic, social, and environmental challenges in the state. Inspections and Inspections and One example of the progress of the efforts to introduce new technologies is the drone training that was conducted mapping of protected mapping of water for the Palmas Municipal Environment Foundation (FMA) in 2021. Among other training participants who were taught natural areas resources how to operate drones were employees of the Municipal Secretariat for Land Regularization, the Municipal Secretariat for Urban Development and Regional Services (Sedurs), and the Palmas Metropolitan Guard (GMP).14 This training aimed to demonstrate drone technology efficiency and showcase how to optimise inspection activities for diverse purposes including environmental protection. Drones Used During the PoC In 2023, experts from the Nature Institute of Tocantins (Naturatins) used drones with a combination of camera traps to monitor and protect solitary species of animals in the Cantão State Park (PEC). The approach used helped to Fixed-wing reach difficult-to-access lakes and map the animal habitats without disrupting their routine.15 Fixed-wing drones are mostly used for mapping extensive areas such as forests, There are also events that are starting to emerge such as the Fair of Agriculture and Livestock Technology (Agrotins nature reserves, or agricultural land and for 2023) which was organised by the Secretary of Agriculture and Cattle Raising, the Agricultural Defense Agency linear infrastructure surveying. (Adapec), the Institute of Rural Development, the Foundation for Research Support of Tocantins (Fapt), and Tocantins Parcerias.16 Together with various companies, institutions, public agencies, research entities, and others, the team prepared a project aimed at showcasing the latest advancements in the agricultural sector. One of the highlights of this project was the introduction of a crop-spraying drone with high-precision technology developed by Multirotor local company Aerotrak Drones Agrícolas de Palmas. This drone is equipped with advanced features to enhance Multirotors serve the demand in industries spraying efficiency. where smaller distance flights are required or more precise manoeuvrability is preferred. 2021/2022 Proof of Concept (PoC) in Tocantins: Initiative by Naturatins, SEMARH, and SEAGRO In an attempt to look for innovative solutions to further strengthen institutional mandates and environmental law enforcement, the government launched a Proof of Concept (PoC) in 2021/2022 to test the use of drone technology as a means of supporting environmental protection initiatives and monitoring of preserved areas and water sources, Sensors Used During the PoC especially due to increasing environmental threats. In pursuit of establishing a comprehensive Geospatial Data Center, the State of Tocantins recognised the potential of leveraging geospatial, satellite, and drone data for the LiDAR purposes of environmental protection and management. LiDAR can be used to generate precise This project aimed to test the use of drones for inspections and mapping of protected areas and water sources. The terrain and surface models with advanced aim was to evaluate the data obtained from the PoC in terms of various UAS applications in order to aid in water classification while being able to penetrate course and vegetation identification, land use categorisation, and diverse geospatial analysis. Hence, it was relevant through vegetation. to verify the efficacy of drone-derived data in conducting surveys and analysis of extensive natural protected areas and water resources. The primary objective centered on the assessment and evaluation of various sensor technologies including LiDAR, Optical optical, and multispectral sensors, in conjunction with UAS equipped with both fixed-wing and multi-rotor capabilities. RGB optical sensors are used for The objectives of the PoC were formulated in alignment with the specific needs and requirements articulated by key operations related to creating stakeholders, namely the Nature and Environmental Institute (Naturatins), the Environment and Water Resources high-resolution outputs like orthophotos and Secretariat (SEMARH), and the Agriculture Secretariat (SEAGRO). orthomosaics. The project was conducted by Brazilian drone manufacturer Xmobots. The company used its drone platform equipped with RGB optical, multispectral, and LiDAR payload. The PoC encompassed a designated area of 25 square kilometers. Simultaneously with the drone mapping, ground control points were marked in the field to Multispectral enhance data accuracy and verifiability. This data was later processed into orthomosaics, Digital Elevation Models, In environmental and agriculture studies, and 3D point clouds. These results underwent testing across a variety of use cases, tailored to meet the specific multispectral sensors are used for the needs and requirements of the stakeholders. creation of various vegetation indices such as the NDVI. The PoC represents the foundation for the utilisation of UAS for environmental monitoring and protection in Tocantins and provided many valuable lessons learned and recommendations on the potential of the technology as a relevant tool for the state environmental agenda. 94 Description of the PoC for the Usage of Drones in Environmental Protection Goals: • Verify the efficacy and accuracy of drone-derived data in conducting surveys and conducting analyses of extensive natural protected areas and water resources. • Determine the essential capabilities necessary for the Geospatial Data Center of the State of Tocantins in relation to the utilisation of such data and analytical procedures. • Evaluate the feasibility of specific use cases outlined by Naturatins, SEMARH, and SEAGRO. Location • Two Areas of Interest (AOIs) with ca. 23 sq km total area (ca. 18 + 5) • AOI 1 size: 6,7 x 0,8 km • AOI 2 size: 6,1 x 2,9 km • Flat terrain with no visible obstacles or terrain height differences. • Good access by public roads (along TO-374 road), close to Lagoa da Confusão city. Source: XMobots, 202117 Specific Tasks and Objectives • Collect high-quality images of designated test areas using a combination of drones, satellite imagery, and geospatial technologies. • Digitally process collected data, including summarising observations and organising it effectively for further analysis. • Calculate volumes of mining areas, dams, biomass, deforestation windrows and infrastructure, dumps, landfills, etc. • Generate vegetation index products (NDVI, EVI, SAVI, and VARI). • Develop methods and technology to differentiate between various vegetative stages within pastures, such as primary and secondary growth. • Implement sensors and methods to identify and characterise local hydrography, distinguishing between different types of water sources. • Generate comprehensive reports based on the analysed data, presenting valuable insights and findings to stakeholders. • Evaluate the outcomes of the PoC and formulate actionable recommendations for the future implementation of technology based on the PoC results. 95 Key Outcomes and Preliminary Results The preliminary results of the PoC presented a strong case for the integration of drones into environmental protection and monitoring initiatives in Tocantins. Drones have proven to be a reliable and precise tool, demonstrating their potential to enhance inspections and mapping of protected areas and water resources, both independently and in combination with other technologies and methods. While this PoC will continue during the next year to address certain inherent challenges and limitations encountered during its implementation, the current findings showcased the advantages of integrating this technology. PoC Insights and Successes The project served as a demonstration of the feasibility and effectiveness of integrating drones into environmental monitoring efforts considering the geography, landscape, and climatic conditions of the state due to its two distinct biomes (the Cerrado and Amazon). The project has shown that drone data, classification algorithms, and a data-driven approach can enable a cost-effective, time-efficient, and accurate way of tracking changes in the landscape The analysis of the initial PoC results showed that the necessary conditions for expanding UAS adoption and operation in the environmental monitoring field were met, and several successes can be derived from it. Successful Deployment and Compliant Operations of the PoC in Tocantins The operations were carried out smoothly without encountering significant problems. Regulatory requirements and permissions were adhered to, ensuring compliance with national regulations. The flights were conducted safely with no concerns expressed by the public. Data acquisition and processing occurred without any major incidents and the technology has demonstrated its suitability for the region's climate and environmental conditions, proving a valuable addition to other methods such as satellite data for environmental protection and monitoring. Efficient Data Collection of Over 2400 Hectares in the Two Selected Sites The PoC allowed for the successful acquisition of 2413 hectares of data in two areas. While the multispectral data was acquired with Xmobot’s Arator 5C fixed-wing drone equipped with a 5-band camera, the LiDAR data acquisition was done with their experimental hybrid multirotor. Both units were equipped with an RTK receiver. Creation of a Detailed Land Use Classification from High-Resolution Orthomosaics The data acquisition allowed for the creation of orthomosaics with a final resolution of 8cm/px that were classified based on the color value, texture, and pattern/shape using the MaxVer algorithm during a supervised classification. After manually validating the resulting classification and comparing it to the results, the accuracy of the processing was calculated. In addition, the following classes were identified: primary forest, exposed soil, damp soil, agricultural areas (including rivers, irrigation, and canals), animals, construction, highways, agricultural equipment (water pumps, drinking fountains), and ipucas (fragments of flooded forest with a sinkhole appearance). This analysis was performed for all the surfaces included in the PoC, identifying all the above classes with the possibility of further study to verify and monitor the change of land use in Permanent Preservation Areas (APP), natural reserves, water reservoirs, agricultural land, and related infrastructure. Source: XMobots, 202318 Detailed Mapping of the Drainage Network LiDAR scanning provided a detailed map of the drainage network including all the streams and channels that drain toward a reference point based on the 3D representation of the digital terrain model. 96 Challenges for the Introduction of Drones as Assets in Environmental Conservation The project enabled the identification of specific challenges and constraints in both its planning and execution that must be overcome for the successful design of programs and the integration of drones for environmental purposes in Tocantins, and other states. These challenges included issues related to testing innovative technologies within the framework of traditional public sector contracts, navigating the complexities of rigid technological parameters for procurement and project evaluation, as well as the limitations associated with the short duration of the data acquisition period, and disparities between public and private sector processes and offerings. Despite these obstacles, the potential of drones as valuable assets in environmental conservation efforts remains significant. Traditional Public Sector Framework Contracts and Procurement Processes Managing the intricacies of conventional public sector contracts and procurement processes presents several challenges for entrepreneurs, startups, and technology providers seeking to establish themselves as public sector contributors. Overly bureaucratic procedures can sometimes leave little room for innovation and experimentation with new technologies, particularly in comparison to the private sector's more flexible environment. The public sector tends to maintain consistent contractual obligations and procurement processes for all providers, which becomes particularly challenging due to predefined parameters, and technological prerequisites with limited flexibility. These factors added further complexity for full compliance with all project parameters that involved extensive testing of hardware and software. Technological Limitations Related to Data Capture at a Single Point in Time While the data acquisition and processing proceeded without issues, certain technological limitations became apparent when attempting specific analyses reliant on data captured at a single point in time. For instance, the capacity to develop a vegetation index for distinguishing between primary and secondary vegetation was constrained without supplementary historical data. Similarly, creating a reliable map of the drainage network that identified the ephemeral, intermittent, and perennial posed challenges as the LiDAR scanning lacked the ability to ascertain network stability, given that the data was captured at a single moment, which made it difficult to accurately evaluate possible temporal changes and water sources. Limited Duration of the PoC and Project Timeframe The deployment of the PoC found itself constrained by several interrelated factors. Firstly, the financial framework in which it was situated imposed limitations on the project’s timeline, playing a pivotal role in shaping the overall schedule and design of the project. Additionally, the length of public procurement and contractual procedures further compounded the constraints faced by the project. The intricate, time-consuming nature of these procedural elements (even including in some cases physical delivery of interim data deliverables) significantly influenced the design and execution of the PoC. Disparities Between Public and Private Sector Processes and Offerings can Generate Disincentives for UAS Suppliers Navigating both the public and private sectors unveils not only substantial disparities in processes, requirements, and timelines but also the challenges of comprehending the frameworks within which each operates. These discrepancies become particularly pronounced when endeavouring to introduce new suppliers, especially in the context of technological innovations within the current operational frameworks and payment conditions. The intricacies of public sector processes can present significant challenges, often requiring a deep understanding of the system's inner workings to avoid potential delays or misinterpretation of procedural deadlines. This complexity introduces additional barriers for private-sector companies seeking to transition into public-sector providers. Consequently, disparities, particularly in payment conditions and procedural approaches, can act as disincentives for private sector participation, especially in operations that entail significant upfront costs for mobilising resources and deploying drone operations. 97 Lessons Learned and Recommendations Arising from PoC Numerous valuable insights can be gleaned from the drone testing conducted for inspecting and mapping protected areas and water sources in the Tocantins state. The demonstrated effectiveness of this technology, coupled with the successes and challenges encountered during the planning and execution of UAS deployment, provide relevant lessons for policymakers, public sector entities, and service providers. These lessons encompass areas for further improvement and considerations when planning the scaling up or implementation of similar programs in different locations in the future. Historical data and future acquisition is essential for achieving comprehensive and accurate results, especially for developing vegetation indexes and identifying stable drainage networks. Historical data provides insights into the development and changes of the drainage system. Data from a single point in time offers a snapshot of the current layout. However, to gather accurate and robust data, create vegetation indexes, and identify differences in water basins, additional data capturing is needed. Since the local network is dynamically changing due to various factors such as weather, groundwater levels, and seasons, testing new technologies needs to be conducted in a manner that allows for multiple observations to fully grasp the potential of UAS as a valuable tool for environmental purposes. Combining drone data with other sources is crucial for establishing cost-effective and efficient environmental monitoring. While the PoC showcased the potential of drone data, it is crucial to consider its combination with other technologies for cost-effectiveness when contemplating scaling up operations and permanent technology implementation for extensive areas. In fact, high-resolution drone data can be used precisely and cost-effectively when complemented with insights from lower-resolution satellite imagery. A preliminary analysis of satellite data can generate a list of targets, such as detected illegal deforestation, for more precise and in-depth analysis conducted by a multispectral-equipped drone. High-resolution data should be prioritised in high-value areas, such as national parks and APPs. Creating a drainage network from multispectral imagery became a viable solution after successful supervised classification, despite the limitations in identifying whether the water is ephemeral, intermittent, or perennial. Despite the challenges in identifying water stream types, the PoC demonstrated that accurate classification can be achieved using a multispectral camera. As a result, a drainage network can be derived from the same imagery used for classification data, reducing the cost and time required for acquisition and processing. To further identify the stream types, particularly due to the semi-humid climate of the region with an average annual rainfall ranging from 800 to 1600 mm, historical data and data acquisition in various seasons are necessary. Public sector contracts and procurement processes could be adapted to create specific contracts and payment conditions for service providers conducting technological Proof of Concepts, offering the necessary flexibility and resource mobilisation to ensure successful operations. The testing of new technologies, such as drones, poses two distinct challenges. Firstly, it necessitates a substantial mobilisation of initial resources. Secondly, potential limitations may arise, requiring separate solutions or extending beyond the scope of the PoC. Therefore, it is crucial to incorporate flexibility and diverse contractual conditions for service providers to achieve the overall objectives and test hypotheses without unduly constraining the process. By allowing for adaptability in the conditions, the PoC can better accommodate unforeseen challenges and maximise its potential for success. In fact, it is essential to consider the distinct setups and characteristics of the public sector and drone service providers to create the necessary conditions for a harmonious and seamless project deployment. Allocating ample time for the planning of PoC, pilot projects, and broader drone operations is essential to ensure their successful execution. When embarking on a PoC or a pilot project involving drones or other technological testing, early planning and the involvement of all stakeholders are crucial. This is particularly significant in public sector settings, where public procurement and tender processes can vary significantly across institutions and states. 98 Development is providing opportunities and better lives for those who live in this Planet. A Planet that is under many threats, including climate change and biodiversity loss, but also stagnant salaries and low productivity in several regions, such as the case of Latin America and the Caribbean. Brazil is not different, and protecting a part of the Earth Lungs is key for the survival of humankind, so we need to use as many tools as necessary to achieve this goal. And that’s where this report on what drones offer today and, most importantly, what they can offer tomorrow, comes into play. By improving the capacity of kids building drones at schools – you increase your human capital; by enforcing the environmental laws, you reduce CO2 emissions and save the biodiversity gems; by flying drones you can offer a connection to people in remote areas without the need to open roads that can lead to deforestation. And many more options are possible, and that is the beauty of this small or medium artifacts, that they can provide jobs and opportunities in Brazil to do good, and until now, Brazil has shown that they know how to use them, becoming a major powerhouse in this sector at Regional and Global level, mostly with private sector involvement. It is high time then for the public sector to come forward and join the private sector in using drones as a main tool for development in the coming years! For Brazil, for good. Carlos Bellas Lamas, World Bank, Senior Transport Specialist 99 Endnotes 1. Instituto Brasileiro de Geografia e Estatística, “Tocantins,” Website: Text/HTML, Instituto Brasileiro de Geografia e 16. Governo do Tocantins, “FAPT assina Termo de Cooperação para realização da Agrotins 2023,” Website: Estatística, 10 February 2022, https://www.ibge.gov.br/en/cities-and-states/to/.html. Text/HTML, Governo do Tocantins, 20 May 2023, https://www.to.gov.br/fapt/noticias/fapt-assina-termo-de-cooperacao-para-realizacao-da-agrotins-2023/2a3dl4fl73 2. City Population, “BRAZIL: Tocantins,” Website: Text/HTML, City Population, 10 February 2022, u7. http://www.citypopulation.de/en/brazil/cities/tocantins/. 17. [Two Areas of Interest selected for a drone-based proof of concept]. 2021.XMobots. 3. IBGE, “Produto Interno Bruto - PIB,” Website: Text/HTML, IBGE, 10 February 2022, https://www.ibge.gov.br/explica/pib.php. 18. [Creation of a Detailed Land Use Classification from High-Resolution Orthomosaics]. 2023. XMobots. 4. Chain Reaction Research. 2019. “Brazilian State of Tocantins: A Hotspot for Cerrado Deforestation.” https://www.profundo.nl/download/crr190401. 5. ARAUJO, Valquíria Dayce da Silva. et al. 2023. “Current scenario of pastures in the state of Tocantins.” Revista Científica Multidisciplinar Núcleo do Conhecimento. Year. 08, Ed. 03, Vol. 03, pp. 05-30. https://www.nucleodoconhecimento.com.br/agronomy-en/pastures. 6. ARAUJO, Valquíria Dayce da Silva. et al. 2023. “Current scenario of pastures in the state of Tocantins.” Revista Científica Multidisciplinar Núcleo do Conhecimento. Year. 08, Ed. 03, Vol. 03, pp. 05-30. https://www.nucleodoconhecimento.com.br/agronomy-en/pastures. 7. ARAUJO, Valquíria Dayce da Silva. et al. 2023. “Current scenario of pastures in the state of Tocantins.” Revista Científica Multidisciplinar Núcleo do Conhecimento. Year. 08, Ed. 03, Vol. 03, pp. 05-30. https://www.nucleodoconhecimento.com.br/agronomy-en/pastures. 8. The Observatory of Economic Complexity, “Tocantins,” Website: Text/HTML, The Observatory of Economic Complexity, 10 February 2022, https://oec.world/en/profile/subnational_bra_state/tocantins. 9. The World Bank. 2022. “Implementation Completion and Results Report on a Loan in the Amount of US$ 281 Million to the State of Tocantins for theTocantins Integrated Sustainable Regional Development Project.” https://documents1.worldbank.org/curated/en/282511657904809880/pdf/Brazil-Tocantins-Integrated-Sustainable -Regional-Development-Project.pdf. 10. Global Forest Watch, “Tocantins,” Website: Text/HTML, Global Forest Watch, 10 February 2022, https://www.globalforestwatch.org/dashboards/country/BRA/27/?category=land-use&location=WyJjb3VudHJ5Iiwi QlJBIiwiMjciXQ%3D%3D&map=eyJjZW50ZXIiOnsibGF0IjotMTEuNDYwNTI1MTY2Mjc0NzE5LCJsbmciOi00OC4 4ODkwMTE1OTkwNzcwNH0sInpvb20iOjUuNTc5Mzk0NDUwMDYzOTksImNhbkJvdW5kIjpmYWxzZSwiZGF0YX NldHMiOlt7Im9wYWNpdHkiOjAuNywidmlzaWJpbGl0eSI6dHJ1ZSwiZGF0YXNldCI6InByaW1hcnktZm9yZXN0cyI sImxheWVycyI6WyJwcmltYXJ5LWZvcmVzdHMtMjAwMSJdfSx7ImRhdGFzZXQiOiJwb2xpdGljYWwtYm91bmRh cmllcyIsImxheWVycyI6WyJkaXNwdXRlZC1wb2xpdGljYWwtYm91bmRhcmllcyIsInBvbGl0aWNhbC1ib3VuZGFya WVzIl0sImJvdW5kYXJ5Ijp0cnVlLCJvcGFjaXR5IjoxLCJ2aXNpYmlsaXR5Ijp0cnVlfSx7ImRhdGFzZXQiOiJ0cmVlL WNvdmVyLWxvc3MiLCJsYXllcnMiOlsidHJlZS1jb3Zlci1sb3NzIl0sIm9wYWNpdHkiOjEsInZpc2liaWxpdHkiOnRyd WUsInRpbWVsaW5lUGFyYW1zIjp7InN0YXJ0RGF0ZSI6IjIwMDItMDEtMDEiLCJlbmREYXRlIjoiMjAyMS0xMi0zM SIsInRyaW1FbmREYXRlIjoiMjAyMS0xMi0zMSJ9LCJwYXJhbXMiOnsidGhyZXNob2xkIjozMCwidmlzaWJpbGl0e SI6dHJ1ZSwiYWRtX2xldmVsIjoiYWRtMSJ9fV19&showMap=true. 11. The World Bank, “Tocantins Integrated Sustainable Regional Development,” Website: Text/HTML, The World Bank, 10 February 2022, https://projects.worldbank.org/en/projects-operations/project-detail/P121495. 12. The World Bank, “Improving Road Transport to Promote Sustainable Regional Development in Tocantins, Brazil.” Website: Text/HTML, The World Bank, 10 February 2022, https://www.worldbank.org/en/results/2022/05/02/improving-road-transport-to-promote-sustainable-regional-devel opment-in-tocantins-brazil. 13. Ministério da Infraestrutura, “Quantidade de Cadastros - Drones,“ Website: Text/HTML, Ministério da Infraestrutura, 20 May 2023, https://www.gov.br/anac/pt-br/assuntos/drones/quantidade-de-cadastros. 14. Prefeitura de Palmas, “Fundação Municipal de Meio Ambiente de Palmas,” Website: Text/HTML, Prefeitura de Palmas, 20 May 2023, https://www.palmas.to.gov.br/portal/noticias/servidores-serao-capacitados-para-uso-de-drones-em-atividades-de -fiscalizacao-e-monitoramento/28807/. 15. G1, “Armadilhas fotográficas e drones ajudam monitorar e proteger ariranhas no Parque Estadual do Cantão,” Website: Text/HTML, G1, 20 May 2023, https://g1.globo.com/to/tocantins/noticia/2023/07/22/armadilhas-fotograficas-e-drones-ajudam-monitorar-e-proteg er-ariranhas-no-parque-estadual-do-cantao.ghtml. 100 Annex 1 The following section contains: • LAC drones ecosystem distribution – the full list of categories with their descriptions and selected stakeholder organizations Players Assessment Methodology1 In order to provide a comprehensive overview of the drone ecosystem in Brazil, the methodology involved identifying and mapping key market stakeholders, categorising them, assessing their roles and maturity levels, conducting qualitative and quantitative analysis, and identifying the leading players in the country. All the stakeholders have been divided into several categories and subcategories. Considering that some organisations may be involved in more than one category, to better represent the actual state of their competencies in Brazil, two approaches were used when conducting the quantitative assessment of companies: by core category only and a second including additional activities performed by them. Prayers Categorisation Description Category Subcategory Description Regulators and Aviation Bodies Regulators and Aviation Bodies Organisations responsible for UAS regulations and controlling the airspace. Associations & Other Influencers Associations & Other Influencers Local organisations, aviation clubs, and associations that influence the drone ecosystem. Companies Operating Across Companies that offer a combination of different drone services and solutions like hardware/software Companies Operating Across Multiple Categories Multiple Categories development, drone based services, or training programs. Hardware Manufacturers and Producers Manufacturers of drones for commercial and recreational use. Hardware & Software Software Developers Developers of drone-related software, e.g. flight control, data management, data analysis. Drone Services Providers Drone Services Providers Companies providing commercial services using drones, e.g. drone operations, consulting services. Companies and organisations providing drone pilot training and other relevant courses e.g. Training & Education Training & Education photogrammetry data processing. Universities, research institutions, and innovation labs that work on drone technology and its Research & Development applications. Innovation Accelerators Funds & Investors Companies and organisations providing funding to drone startups, drone programs, etc. Companies and organizations using the services of Drone Operators or having their own drone End-Users End-Users division for internal usage. Drone Insurance Insurance companies providing drone insurance services and dedicated drone insurance companies. Official resellers of hardware and software, as well as specialised marketplaces for drone companies Other Resellers of Hardware and Software and enthusiasts. Other Other drone-related organisations not included in categories mentioned above. 102 Companies Operating Across Multiple Categories Due to the maturity of the Brazilian drone ecosystem, there are several companies that operate across multiple different categories, demonstrating versatility in their offerings. For example, there are some drone manufacturers who offer integrated services with their hardware and software, leveraging their end-to-end knowledge of the equipment and utilising partnerships to offer a more comprehensive solution to end users. Some of these companies include the following: Some of these players include the following: XMobots, established in 2007, has experience in hardware manufacturing, software development, the provision of drone services, consulting, training, and maintenance services both locally and on the international stage.2 Their offering spans across various sectors but with a disproportionate focus on agriculture, energy, healthcare, disaster relief, and transportation infrastructure.3 XMobots was the first company to obtain permits from ANAC for experimental flights, flights above 120m, and BVLOS.4 With the consent of DECEA, the company also developed XUTM - a Brazilian air traffic management system for drones.5 They participate in many global drone events, partner with companies from the EU6 and the USA,7 and they export their drones to Angola, Chile, Argentina, and Peru.8 They are one of the companies that give Brazil representation and visibility in the global drone ecosystem. Speedbird Aero, established in 2018, is a Brazilian start-up that has focused on regulatory compliance, technological innovation, and operational best practices.9, 10 They are the first Brazilian company to be certified by ANAC for drone deliveries and they are on a mission to improve logistics by using drones as a viable and scalable mode of transportation.11 Recent funding means that the company is ready to commence large-scale manufacturing and launch various service offerings – aiming to have a fleet of 250 drones by the end of 2023.12 Horus Aeronaves, established in 2014, is a company that utilises several advanced technologies including drones, robots, satellites, sensors, and artificial intelligence. Their goal is to bridge the gap between data and decision-making by providing fast and accurate data that enables customers to better manage their business, increase their productivity, and reduce operational risk. They specialise in innovative drone solutions for the telecommunication, energy, smart cities, and mining industries.13 To meet the needs of the energy market, they have developed a methodology for collecting and analysing thermal energy, helping to provide more accurate information about the actual conditions of photovoltaic panels within large power plants.14 In addition, they are the developers of Mappa image processing software and offer comprehensive training to people who want to use the tool most effectively.15 Skydrones, established in 2008, has worked with the Ministry of Agriculture to support various regulatory developments related to drone spraying. The company is a software developer and drone manufacturer and they offer their products and related services to clients in agriculture, mining, energy, and construction.16 Other products include their SARtube, an auto-inflatable floater for DJI drones that are used in search and rescue missions,17 and the first local mapping app released in 2016 used for drone mapping, measurements, and data collection.18 Due to the significant demand for drone mapping, spraying, and pest control in the agricultural sector, Skydrones has also established a specialised subsidiary called SkyAgri.19 The company has strategic alliances with companies from Germany, South Korea, the USA, and China, helping to expand its operational scope into new territories outside of the local market. AeroFoundry, established in 2008, specialises in the design, manufacture, and integration of innovative drone systems for commercial applications. Originally focused on adapted manned aircraft, this aeronautics company shifted into producing their own unmanned vehicles before, in 2014, focusing on building military aircraft. They supply ready-to-fly aerial platforms for their own payload configurations and their small UAV line consists of four different drones, each with unique features and capabilities. The company has since expanded to seven countries and four continents, with customers worldwide.20 103 Hardware & Software Brazil is the most mature market in the region when it comes to hardware and software developers led by a strong presence of international producers (DJI and XAG from China, HEMAV from Spain, Flyability and Sensefly from Switzerland, Parrot from the UK, and ISI from Israel) who have both online and offline stores as well as a developed network of sales representatives. Local developers are starting to emerge as well, buoyed by the accessibility of more affordable solutions that are focused on specialised local use cases. Some of these players include the following: FT Sistemas, established in 2005, was one of the first local manufacturers and started by developing tactical and light UAVs for civil and military applications. They have participated in many programs and projects with the Ministry of Defense and they were a key security partner during the 2016 Olympic Games. The company’s drones have also been used in infrastructure, agriculture, logistics, and environmental conservation.21 Nuvem UAV, established in 2011, develops and manufactures drones for the agriculture sector (90% of sales), as well as for environmental conservation, topographical mapping, and defense.22 They have offices in Brazil, Mexico, and Colombia, to service wider parts of the regional ecosystem.23 Jetwind, established in 2014, has been developing drones to support BVLOS flights for missions that require endurance, persistent area coverage, and long-range.24 The company develops solutions for a wide range of industries including agriculture, natural resources control, traffic management, intelligence, surveillance, and cargo transportation. In 2022, they announced a partnership with AirGo, a Singaporean company specialising in composite material solutions, to introduce a standardised lightweight and intelligent container drone and delivery system to the LAC market.25 USSV (Unmanned Surface Solar Vehicles), established in 2016, is a company that utilises autonomous vessels for applications in sheltered waters and across the open sea. Their vehicles feature tethered drones on board that are powered by solar energy, helping with various research projects related to water studies and acoustic monitoring. In addition, they offer harbour and coastal scanning and monitoring, offshore applications, and defense applications amongst others.26 XFly Tecnologia, established in 2012, produces hexacopters for aerial filming and precision agriculture - most specifically for dispensing biocontrol agents in bulk. They also provide training for drone operators and have worked with Embrapa, Fibria, the Federal Police, and other major power plants nationwide. In addition, the company also exports its products to Mexico, Peru, Bolivia, France, Spain, and the Netherlands.27, 28 104 When it comes to software development, most of the local developers are working on agricultural solutions because the global alternatives are not well suited to the specific characteristics of the Brazilian reality. Some of the key players here include the following: Maply, established in 2016, has created a mapping platform that captures, processes, and analyses the data collected by drones. Users can create a flight plan for capturing data autonomously before the platform transforms those images into 2D and 3D maps. In addition, the company provides data analytics tools used by professionals in engineering and construction, mining, topography, and surveying.29 Aeroscan Tecnologia, established in 2015, has developed an automated drone monitoring system for multiple drone management without direct operator control. It also offers a management platform to monitor real-time transmission, cloud storage, possible threat alerts, and an anti-drone solution for protection against the invasion of illegal drones and equipment in the customer’s perimeter.30 Agrotopus, established in 2016, provides an end-to-end farm management platform that includes features such as warehouse management and automation. The platform connects various equipment including tractors, harvesters, drones, satellite image analysis, weather stations, and silo sensors, all of which can then be augmented by artificial intelligence to generate actionable insights for better decision-making.31 Altave, established in 2011, is an aerospace company recognised as a Strategic Defense Company. They specialise in real-time intelligent monitoring services using fixed or aerial structures like aerostats and drones. By seamlessly integrating drones with Altave Harpia software, the company offers connectivity and video monitoring solutions to clients globally. Using Altave services enables companies from telecommunications, defense & security, agriculture, environmental monitoring, mining, and construction sectors to closely investigate incidents, conduct detailed surveys and inspections, and traverse challenging terrain.32 105 Drone Service Providers There are a wide range of different drone service providers in Brazil ranging from simple aerial photography and videography all the way up to orthomosaics and 3D point clouds creation. Some players are able to operate in a single industry when the market is big enough (eg. agriculture, construction, oil and gas) but many others operate across multiple industries. For example, within the agriculture market, there is a large demand for mapping, spraying, and pest control – so companies can develop that niche expertise rather than entering new sectors. This is likely to change as more industries mature, but for now - this is the state of the ecosystem. Some of the players in this category include the following: Arpac, established in 2015, is a drone service provider that is active in the agriculture sector. To provide services the company utilises its own custom-developed hardware and software, tailored specifically to the needs of Brazilian crops. Arpac relies on locally manufactured hardware components, ensuring quality and supporting the Brazilian manufacturing industry. Moreover, their drones can be personalised and tailored to meet the specific requirements of each customer. 33 Plimsoll UAV and Ulstein Belga Marine serve the oil and gas and maritime sectors in Brazil. Plimsoll UAV, which has had a majority stake acquired by Terra Drone, offers inspections of Floating Production Storage and Offloading Systems (FPSOs). Ulstein Belga Marine offers UAV inspections of offshore rigs, FPSOs, drilling ships, storage tanks, under-deck structures, and flare systems. They also offer some services for shipyards including drone inspections of sea trials and heavy machinery.34, 35 The DR1 Group, established in 2014, has a dedicated department for drone solutions where they explore operations in industrial markets such as visual inspections, aerial monitoring, and stack volume in the oil and gas and renewable energy sectors. The company uses thermal cameras to perform inspections, obtaining thermal and visual data during the flight. They can also incorporate orthomosaics for this purpose.36 Dron Drones perform inspections for telecommunications, media, power, and construction clients. Their business model is a Drone as a Service (DaaS) combined with consulting assistance to determine proper hardware and software choices for a specific use case. The company evaluates the needs of the end user and then suggests a suitable combination of technology to use.37 106 Training & Education Drone training in Brazil is relatively accessible both online and offline and is offered by various specialised aviation schools and drone companies. Educational institutions such as universities are still trying to define the best way to include drone training in their syllabus and so the involvement so far has only been with short courses that are very precisely tailored to specific applications. In 2020, there was one private university that started to offer a 1-year postgraduate course in drone operations but that is an isolated example.38 Companies who offer drone training do so as an additional revenue stream as well as to contribute to the wider ecosystem as a whole. For software companies, training courses provide an opportunity for organic marketing and showcasing the capabilities of their tools. One challenge in the training industry is that flying small drones up to 25kg in weight and under 400ft does not require a license. As such, there is no mandatory training that can bolster the sector.39 ANAC has chosen not to establish a standardised curriculum for drone training, resulting in a wide variety of course material being available depending on the specific use case, with little to no standardisation. Some of the major players in this category include the following: ITARC, established in 2013, is the oldest drone school in the country. The company provides a wide range of drone courses for pilots, maintenance, data analytics (mapping and aero photogrammetry) for security, photography, business, and public agency usage. ITARC has also developed an application for mobile devices that offers interactive course content, checklist functionality, and notifications for efficient drone training and management.40 Droneng, established in 2014, has emerged as one of the pioneers in the industry, specialising in training for aerial mapping through classroom, online, and live courses. With a community of over 20,000 alumni, the company is an example of the demand for drone training and education.41 BemAgro, established in 2017, is on a mission to develop the agriculture industry through comprehensive training programs, including aerial mapping, precision agriculture flight planning, and platform utilisation, with a strong focus on data analysis. Their platform, which transforms images and data into actionable insights, offers accessible imaging solutions driven by artificial intelligence, aiming to enhance productivity and promote sustainability in agriculture.42 The availability and quality of training programs are crucial for the development of various use cases in Brazil. Continued education and investment in skills are essential for raising awareness, fostering local capabilities, and meeting the demands of the market. If Brazil can prioritise further investment and expansion in training and education, it has a better chance of achieving the desired level of developmental maturity. 107 Innovation Accelerators (R&D) Box 2.1 Case Study - Project ARARA55 Research and development (R&D) activities in Brazil’s drone industry are mostly concentrated around military entities and public universities. Research centres outside of this are still at an early stage of development, but there are some innovation accelerators that The ARARA project was a collaboration between the have been developed as partnerships between public initiatives and established software companies. Institute of Mathematics and Computer Sciences at the University of São Paulo (ICMS), the Some of these accelerators include the following: Technological Institute of Aeronautics, Purdue University (USA), and AGX Tecnologia. The primary objective of the project was to demonstrate the The Brazilian Agricultural Research Corporation (EMBRAPA), established in 1973, is focused on enabling capabilities of Brazilian drone technology (and agricultural innovation, including the integration of drone technology. They have been actively exploring the use of specifically the ARARA II drone) in challenging drones in agriculture for tasks such as crop monitoring, precision agriculture, and remote sensing.43, 44 environments such as what you might find during adverse weather conditions. The drone was The Federal University of Goiás (UFG), established in 1960,45 is a publicly funded university that actively collaborates designed to operate autonomously and was with research agencies and institutions to further develop and advance drone applications. Examples of this work equipped with several advanced features including a include a project related to improving drone mapping techniques for agricultural, urban, and forest areas, and a course hyperspectral sensor which enabled detailed on the use of drones equipped with hyperspectral sensors and LiDAR to receive data about forest degradation and imaging and data collection in specific colour recovery in the Amazon and Cerrado. 46, 47 ranges. The drone underwent extensive flight testing in Brazil before performing the final flight in Indiana, The São Paulo Research Foundation (FAPESP), established in 1962, is a public foundation in São Paulo known for USA in 2013. During this, it demonstrated its ability supporting research projects that embrace the utilisation of drones in various fields of study.48 Through their funding, to operate efficiently despite freezing conditions and researchers in São Paulo are developing intelligent systems and advanced sensors for agrochemical spraying, crop very strong winds, showcasing its resilience and monitoring, disease detection, and pest control. FAPESP's initiatives also focus on integrating drones with advanced stability. The use of the hyperspectral sensor imaging technologies. All this can help to advance the use of drones in agriculture and promote sustainable farming provided enhanced imaging capabilities, detecting practices.49 minute agricultural details that would be almost impossible to capture with traditional RGB cameras. The University of São Paulo (USP) is a public university that recognises the potential of drones for various applications The collaboration between the research teams was and therefore has established research groups and laboratories dedicated to drone technology. In collaboration with instrumental in achieving the project’s objectives and other institutions, USP has developed and tested the first Brazilian fixed-wing drone50 and explored the use of drones for it fostered knowledge sharing and technological border monitoring, precision agriculture, environmental monitoring, and medicine delivery.51, 52 USP researchers have exchange which bodes well for the future of the also developed drones capable of flying autonomously in forests and have utilised drones for monitoring marine and industry in Brazil. coastal environments, studying dolphin behaviour, and conducting biological pest control.53 Additionally, USP is involved in robotics swarm programming research through the National Institute of Science and Technology for Cooperative Autonomous Systems (InSAC).54 Initiatives like these are key for attracting talented entrepreneurs to build new offerings that can add value in the local context. 108 Associations Drone associations in Brazil have a mandate to help grow drone operations and protect the interests of the ecosystem and its stakeholders, specifically when it comes to conversing with regulators. By creating a space for like-minded individuals to come together and discuss key topics, it can lead to improved regulations over time which helps to propel the industry forward. This is especially important as the market evolves and the technology advances. Some of the players in this category include the following: The Brazilian Association of Multirotors (ABM), established in 2014, is an organisation in Brazil for enthusiasts of multirotor equipment, advocating for their interests and actively participating in the development of regulations and legislation relating to drones. By providing a platform for collaboration and knowledge-sharing, ABM is working to advance the drone industry in Brazil and support the growth of multirotor technology across all its applications.56 The National Association of Aerial Survey Companies (ANEA) is an association that unites aero photogrammetry companies from around the country. Mostly those are companies with engineering and topography as their core specialties. The organisation faces key challenges, including maintaining technological advancement, combatting unfair competition, addressing low-quality engineering services, overcoming disadvantages for Brazilian companies, promoting customer awareness, ensuring copyright compliance, and revitalising systematic mapping efforts.57, 58 109 End Users As the drone industry has matured in Brazil, the number of end users who are benefitting from the technology has continued to grow. This is happening across many different sectors and is the heartbeat of the ecosystem’s development. Here are some examples of drone end users in Brazil: SkyDrones adapted their drones to contribute to the fight against the new coronavirus, spraying public roads and disinfecting public areas where there was a high circulation of people.59 Security forces in the 2010 street carnival of São Paulo used drones to transmit images of the parades of blocks in real-time. The objective was to identify suspected criminals among the revellers, in addition to helping to locate missing people. The Military Police and Metropolitan Civil Guard (GCM) equipment flew over 13 lanes through which 41 mega blocks passed, which attracted, on average, more than 40,000 people each.60 In 2013, drones were used for surveillance during the Rio+20 Conference and the Confederations Cup. After the success of these solutions, drones were also implemented in the security systems during the Olympic Games in 2016. This was done to ensure the safety of audiences and athletes, leading to temporary no-fly zones and flight restrictions being established in Brazil, in coordination with the military.61 Gerdau, established in 1901, is one of Brazil's largest steel producers, and they produce large amounts of special steel for global export. In partnership with Embratel, they are harnessing the power of drones to improve steel production through intelligent monitoring, predictive security, and asset sensing. This approach enables efficient management, remote control of equipment, and real-time monitoring, contributing to the company's digitalisation and overall operational efficiency.62, 63 iFood, established in 2011, became the first food delivery company in the LAC region that uses drones. After 11 months of cooperation with Speedbird Aero and AL Drones, iFood received the Experimental Flight Authorisation Certificate. Preliminary tests showed significant benefits related to the use of this new technology, including shortening the delivery time by up to 6 times compared to the traditional land-based route.64, 65 The construction and infrastructure sector in Brazil has embraced drones for a number of use cases including inspections of structures such as bridges and viaducts, providing quick identification of anomalies and the need for repairs. Additionally, drones contribute to improved traffic flow studies and facilitate decision-making processes, resulting in enhanced safety, cost reduction, and increased productivity for Brazilian construction and infrastructure companies. Recreational users of drones in Brazil are also growing in number as more individuals discover the excitement and possibilities of flying drones for leisure activities. With the increasing availability and affordability of consumer drones, enthusiasts can capture aerial photographs and videos, explore new perspectives, and engage in drone racing competitions. However, it is important for recreational drone users to abide by the regulations set by the National Civil Aviation Agency (ANAC) to ensure safe and responsible drone operation in public spaces. 110 Annex 2 The following section contains detailed explanations for: • Drone Ecosystem Assessment Methodology • Drone Regulatory Framework Assessment Methodology • Methodology to Assess the Market Potential of Drone Services • Methodology Used to Measure the Maturity and Relevance of Drone Use Cases for Social Development and Environmental Protection • Methodology to Develop Strategic Drone Development Initiatives for Brazil Drone Ecosystem Assessment Methodology Drone ecosystem assessment is a key part of the benchmarking analysis used to identify international best practices across countries in the LAC region, including Brazil. For this exercise, vital drone landscape elements and components were identified and analysed deeply to determine their maturity. This approach allowed for an ecosystem study conducted from different dimensions, thus enabling the identification of its strengths and weaknesses, development opportunities, and key recommendations. The following is a list of all the components analysed, their explanation, and maturity scale ranking: UAS Ecosystem Components Component Maturity Comment Industry Readiness Early adopters Selected companies Wide Adoption Readiness and willingness of the industry players to purchase UAS-related services. Number of UAS operators providing required services on the market, their level of skills and Supply & Demand Access to UAS Operators Mainly hobbyists Limited Wide, professionals professionalisation of the services. Training & Education Not available Available Widely available Availability and number of schools offering courses for UAS operators. Availability of insurance providers, type of available policies (adjustment Insurance Not available General Dedicated to specific requirements) and presence of UAS-specific policies. Availability of additional services, such as marketplaces for UAS services, repair and maintenance services Marketplace & Other Not available Basic Advanced providers ensuring safe and smooth functioning of the hardware etc. Execution of Regulations Low Medium High Effectiveness of regulations measured by compliance to it, easiness to comply. Regulations Approach to BVLOS Not available Waivers Allowed Possibilities to fly Beyond Visual Line of Sight (BVLOS). Licensing & Examination Not available Operated by CAA Certified centers Existence and organisation of processes to license and examine UAS operators. Registration & Identification Not available Analog Digital Requirement to register UAS and availability of comprehensive UAS identification system. Digital readiness Flight Authorisation Time 2+ weeks 1-2 days Instant Time needed to get an approval to fly an UAS in controlled airspace. Availability, type, level of advancement and access to airspace maps that contribute to easiness of the use of Airspace Maps No access Descriptive Digitalised UAS technology. Presence and/or advancement of the technology to provide UAS operations tracking, drone identification and Identification & Tracking Not available Digital flight plan Remote ID verification of flight plans. In this analysis, three components vital for the drone ecosystem are included: supply and demand, For the regulations component, an overview of the key elements of the drone regulatory regulations, and digital readiness. framework focusing on a drone operator’s journey was developed, from purchasing the hardware To analyse the demand and supply dynamics, the industry player's maturity to buy drone services to planning a mission, and actually executing the flight to collect the data. was assessed, as well as the providers' readiness to offer them. The maturity of auxiliary services As part of the digital readiness analysis, the digital tools facilitating the drone ecosystem were providers, including drone hardware and software resellers, training and education centres, identified and the availability of these tools in the region was assessed. hardware repair companies, and drone insurers, was also taken into consideration. Source: PwC Analysis 112 Drone Regulatory Framework Assessment Methodology As part of the regulatory assessment conducted for the 35 selected LAC countries, a more in-depth analysis was performed for Brazil. This research aimed to define the developmental stage of each framework, capture additional relevant elements, highlight local particularities, identify drivers for growth, and uncover existing barriers. These findings are essential for navigating and improving established regulatory processes, ultimately unlocking the full potential of drone adoption. Overview of the Regulatory Frameworks Research Elements Covered from the Drone Regulations In assessing the drone regulatory framework of Brazil, the following In order to provide relevant scoring system, the following aspects were analysed: steps were taken: • Evaluation of the country’s regulations in a descriptive manner, Drone regulations officially in place Permitted drone flight altitudes involving analysis of available legislative documents. • Conducting interviews with local operators and drone associations to Drone regulation adoption year BVLOS (Beyond Visual Line of Sight) flights receive additional information on the current state of the regulatory framework and delve into peculiarities. Drones prohibition Insurance requirements • Outlining the key regulatory elements crucial for market development. • Developing a comprehensive scoring system, as part of the analysis of the 35 LAC countries, based on previously defined regulatory elements, Drone registration Flying over crowds presented in the table on the right. Pilot training and certification Drone weight classes / categories differentiation Flight Management processes establishment / Unmanned Traffic Management services (UTM) The index that determines the stage of drone regulations development in Brazil was based on PwC-developed criteria for the analysis of the Country Ratings in the Assessment Index for LAC: 35 LAC countries. The main principles were as follows: Advanced With the regulatory and UAS ecosystem local understanding, and as part of the larger LAC study, a scoring system to weight each category was developed by PwC. While including each and every category and dimensions considered in the analysis, the most points awarded categories were the ones related to fundamental drones ecosystem elements, being: Intermediate • Official drone regulations • Unmanned Traffic Management initiatives • Drone registration • Insurance Early Stage From the perspective of global trends and successful benchmark countries, these elements were found crucial for safe and sustainable ecosystem. The analysis allowed to categorise the level of maturity of the UAS regulatory framework at country level. No Regulations 113 Methodology to Assess the Market Potential of Drone Services The market assessment of drone services in Brazil comes as a part of a broader analysis conducted for 35 selected countries in the LAC region. The market model was prepared during 2021 and data sources for the previous years were used to assess the market size and showcase the potential of drone services up to 2026. The methodology of the analysis used in the report comprises 2 estimation approaches: one that was bottom-up and the other which was top-down. These were used to define: • the total market potential that represents the value that the total market could reach if all current works were performed by UAS; and • the total market size that represents the current size of the market, taking into account the current adoption of UAS technology. The transition from market potential to market size is achieved by taking into account a technology adoption rate represented by applicability. Current drone initiatives, the maturity of enablement services, and international benchmarks were all taken into account to estimate the applicability of different use cases in Brazil and other LAC countries. Estimation Approach Total Market Potential • Represents the value if all current work done by traditional methods is replaced by Bottom-up Total Market drones. • Estimation of the market on the basis of identified drivers (market Potential • Growth of the market potential is dependent on growth of the infrastructure (e.g. growth in segments) that contribute to the final market value (entire market). pipelines length or infrastructure development). • Final market value was calculated as the volume of infrastructure, data etc. multiplied by the price of the services to be performed in relation to Total Market Size the infrastructure. Total Market Size • Represents the current forecasted use of UAS technology. • A comprehensive approach was used for a detailed calculation of the (Realised Potential) • Growth is dependent on infrastructure (similarly as total market potential), but it also market potential depends on adoption of UAS technology which is what makes it more dynamic. Top-down Market Share* • Estimation of the value based on reliable data for entire market and • Represents the value of the market that can be captured by a specific company or entity Market factors for extrapolation. taking into account also other players operating on the market. Share • Simplified approach used for high-level estimations. *Market share was not a subject of analysis for this project In order to understand which sectors have the biggest impact on the economy in each of the 35 LAC countries, 30 UAS use cases that have been broadly adopted globally, and at the same time are the most relevant to the local market, have been taken into account. Despite the robustness of the model, several key limitations should be considered. These include the reliability and availability of data across Brazil and other LAC countries and its industrial sectors, the unpredictable pace of technological progression and policy changes, potential fluctuations in global and local economic conditions, assumptions related to the 30 UAS use cases, unforeseen geopolitical events, and various environmental factors. All of these elements have the potential to significantly impact the accuracy of the projected market potential and size in the analysis. To showcase the rapid pace of drone technology adoption and the demand for its services, the forecast of the number of commercial UAS of various types such as Multi-rotor, Fixed-wing, VTOL, and Tethered drones was created until 2026. Following the enablement of the commercial market and establishment of all necessary processes, the development of the recreational UAS market is expected to increase and the forecasted number of recreational drones until 2026 stands as the part of conducted analysis. The analysis also showcases the direct and indirect job creation potential of the UAS commercial service industry until 2026. As part of the applied methodology, a number of direct jobs created was calculated in detail using a bottom-up approach and considering both in-house and outsourced models of delivering UAS services. The number of indirect jobs created was estimated with a top-down approach on the basis of a current assessment of international workforce benchmarks, as well as a bottom-up approach where data is available. The list of selected direct and indirect job categories is specified in two tables below: Direct Jobs Indirect Jobs Defined Category Specification Defined Category Specification Execution of drone operations for all use cases and Enablement Services Jobs that include the following functions: airspace traffic management, regulatory bodies, training facilities, insurance providers. Drone Operators sectors. Product Sales People who sell hardware in specialised stores (which constitute only part of total sales). Data Processing Processing geospatial data and creating engineering Specialists products from the footage gathered by drones. R&D Specialists in research centres related to work on the development of new global and local technologies. Perform detailed analyses of the products after People at major companies that will purchase UAS services from the market in the outsourced model and manage completion of Analysts Beneficiaries processing and preparation of analytical reports. the projects. Hardware and Software Machine Learning Development and implementation of machine learning Engineering positions in local companies that are manufacturing drone-related hardware and software. Development Specialists algorithms. Support Staff (back-office) Jobs in UAS-focused companies in departments such as marketing, finance, HR, and procurement. Management Supervision activities. All other jobs created by the sector in industries such as media (journalism and blogs), events and UAS competitions (both sport Other and e.g. hackathons), and the wider marketplace. Source: PwC analysis 114 Methodology Used to Measure the Maturity and Relevance of Drone Use Cases for Social Development and Environmental Protection The range of social and environmental challenges faced in Brazil requires long-lasting and innovative solutions, where the implementation of drone technology could take a leading role during the mitigation process. As part of the study to unlock the country’s potential and address present hurdles, 14 development use cases were selected: deforestation, restoration and reforestation, wildfires, endangered species monitoring, environmental pollution monitoring, disaster management and climate resilience, climate road infrastructure resilience, healthcare and medical goods delivery, deliveries of goods, remote internet access, mosquitoes-borne disease spread reduction, agriculture, urban planning and monitoring, waste management and landfill monitoring, and road traffic monitoring. The comprehensive analysis of drone applications for each of the use cases results in a detailed description and deep understanding of the potential and requirements for the implementation of drone technology in development activities. For instance, the decision to include “deliveries of goods” as an important case for the country was influenced by the high rate of urbanisation and the need to improve delivery processes due to traffic accidents, traffic congestion, GHG emissions, and other negative road traffic consequences. To define the maturity and relevance of the chosen development use cases, thresholds were created in regard to measurement criteria. The maturity threshold of use cases was divided into three categories: • mature use cases (advanced and permanent implementation of drone technology); • testing and piloting stage (presence of drone-related tests, pilots, and research projects); and • limited or no evidence (the application of drones was not identified or was applied a lot of years ago with no further advancements). The table below represents the approach that was used to measure the relevance level of use cases for Brazil. The relevancy threshold was divided into three categories: low, medium, and high and these are based on the value distribution for each use case across the country. The relevance level of use cases for Brazil Relevancy Threshold Relevance Use Case Measurement Criteria Low Medium High for Brazil Deforestation, Restoration and Reforestation The annual forest area net change rate (%) as of 2020. >0 -0.3-0 <-0.3 -0,3 Wildfires The changes in annual values of burned areas compared to the average for 2019. <0 0-35 >35 0,11 Endangered Species Monitoring The Red List Index. <0.7 0.7-0.85 >0.85 0,89 Environmental Pollution Monitoring The annual mean concentration of fine particulate matter (PM2.5) in µg/m3 for 2016. <15 15-25 >25 12 Disaster Management and Climate Resilience The number of people affected by floods (UN OCHA) [mln]. <0.9 0.9-3 >3 7,4 The Road quality indicator for 2019 published by the World Economic Forum, where 1 is Climate Road Infrastructure Resilience >5 3.5-5 <3,5 3 undeveloped road infrastructure and 7 is extensive and efficient by international standards. Healthcare and Medical Goods Delivery Healthcare delivery needs in rural areas. <5 5-13 >13 7 Carbon dioxide emissions per Capita (tCO2e/person) released by the transportation sector Deliveries of Goods <0.5 0.5-1 >1 0.89 as of 2020 Remote Internet Access The proportion of the population covered by at least a 4G mobile network (%). >95 70-95 <70 88,7 Mosquitoes-borne Disease Spread Reduction The malaria incidence rate (per 1,000 population at risk). <0.05 0.05-10 >10 4,15 Agriculture The intensity of fertiliser use (kg/ha). <100 100-200 >200 260 Urban Planning and Monitoring The percentage of the urban population living in slums. <10 10-30 >30 16,3 Waste Management and Landfill Monitoring The share of the population covered by waste collection and transport services. >95 80-95 <80 95,9 Road Traffic Monitoring Mortality caused by road traffic injury (per 100 000 population) for 2019. <10 10-30 >30 16 Source: PwC analysis 115 Methodology to Develop Strategic Drone Development Initiatives for Brazil To ensure the expansion and advancement of the drone ecosystem in Brazil, strategic drone development initiatives were created as a result of an in-depth analysis of global best practices and local requirements. The applied methodology consisted of five phases with the primary objective of identifying strategic initiatives to strengthen the country’s ecosystem foundations. Additionally, it aimed to identify advanced initiatives and programs that could unlock the ecosystem's potential for growth and further drone adoption. The Implemented Phased Approach 1 Drone Ecosystem Framework for Achieving Strategic Drone Development Initiatives Governance Overarching 1 The proposed Drone Ecosystem Entrepreneurship Technology Training & Education Framework defines eleven elements Enabling divided into three categories: Foundational, Enabling, and Funding & Financing Awareness Research & Development Overarching. These elements summarise all the important aspects Regulations Processes of the long-term vision for a Foundational competitive drone sector and are Operations Sustainability relevant to achieving maximum growth in the UAS sector. 2 Global Best Practices 2 Global and LAC region best practices have been analysed in terms of drone-related initiatives and programmes that bring relevant 3 Drone Ecosystem Development Pillars impact into the ecosystem. Regulations and Digitalisation and Demand and Awareness and Promotion Knowledge and Education 3 The analysis of global best practices Processes Automation Entrepreneurship showed that elements of the Drone Ecosystem Framework are often • Clear regulatory • Digitalisation of • Building trust and • Growing human capital by • Stimulating innovation by being developed simultaneously as framework to ensure processes to facilitate awareness among public providing access to high providing entrepreneurs part of a larger drone strategy safety while stimulating ease of providing services stakeholders, society and quality education to with the means to followed by interconnected initiatives. innovation and enabling for SMEs and scaling industry to facilitate the stimulate scaling and accelerate their market All the initiatives have been future use cases. capacity of public adoption of innovative rendering of innovation. entry and scaling the summarised into five main pillars. institutions. and relevant UAS development of the • Transparent processes • Facilitating sustainable and procedures to • Implementation of digital solutions. airspace safety by technology. 4 A deep analysis of the Brazilian facilitate straightforward unmanned traffic • Fostering innovation by educating users and • Stimulating demand for drone market and interviews with compliance with management services to connecting startups, stakeholders about drone products and stakeholders were conducted to regulations and related control and safely industry and research. regulations, best services by providing understand and define Brazil's processes. integrate UAS into the practices and responsible instruments to activate specific needs and requirements. airspace. behaviours. the market. 5 Based on these inputs, a list of 23 Strategic Drone Development Initiatives for Brazil required to 4 Brazilian Needs and Requirements harmoniously develop different elements of the drone ecosystem in a long-term and sustainable way was created. 5 Strategic Drone Development Initiatives for Brazil Source: PwC Analysis 116 Endnotes 1. PwC. “Drones General Assessment in Latin America and the Caribbean.” 2021. 23. Nuvem UAV, “DEVELOPED AND MANUFACTURED IN BRAZIL,” Website: Text/HTML, Nuvem UAV, 20 May 2023, https://en.nuvemuav.com/. 2. XMobots, “OUR HISTORY,” Website: Text/HTML, XMobots, 20 May 2023, https://xmobots.com.br/language/en/ourhistory/. 24. LinkedIn, “JETWIND BRASIL,” Website: Text/HTML, LinkedIn, 20 May 2023, https://www.linkedin.com/company/jetwind. 3. XMobots, “Drone Industry Insights entrevista Giovani Amianti,” Website: Text/HTML, XMobots, 20 May 2023, https://xmobots.com.br/drone-industry-insights-entrevista-giovani-amianti/. 25. MundoGeO, “Brazilian drone company JETWIND is joining DLE to collaborate with AIRGO to develop drone parts,” Website: Text/HTML, MundoGeO, 20 May 2023, 4. Ministério da Infraestrutura, “ANAC authorizes drone capable of flying distances of up to 30 km,” Website: https://mundogeo.com/en/2022/04/07/brazilian-drone-company-jetwind-is-joining-dle-to-collaborate-with-airgo-to- Text/HTML, Ministério da Infraestrutura, 20 May 2023, https://www.gov.br/anac/en/news/2021/anac. develop-drone-parts/. 5. XMobots, “XMOBOTS PRESENTS XUTM – XMobots´ air traffic management system for drones,” Website: 26. USSV, “Quem Somos?,” Website: Text/HTML, USSV, 20 May 2023, https://ussvtech.com/quem-somos-. Text/HTML, XMobots, 20 May 2023, https://xmobots.com.br/language/en/xmobots-presents-xutm-for-br-utm/. 27. XFly Tecnologia, “Somos pioneiros no desenvolvimento e fabricação de dispensers para controle biológico com 6. EDR Magazine, “LAAD 2023 – MBDA and XMobots of Brazil cooperate on armed UAV,” Website: Text/HTML, drone,” Website: Text/HTML, XFly Tecnologia, 20 May 2023, https://www.xflytecnologia.com.br/home. EDR Magazine, 20 May 2023, https://www.edrmagazine.eu/mbda-and-xmobots-of-brazil-cooperate-on-armed-uav. 28. LinkedIn, “XFLY TECNOLOGIA,” Website: Text/HTML, LinkedIn, 20 May 2023, https://br.linkedin.com/company/xfly-tecnologia. 7. Agencia FACESP, “Embraer announces investment in drone maker supported by FAPESP,” Website: Text/HTML, Agencia FACESP, 20 May 2023, 29. LinkedIn, “Maply,” Website: Text/HTML, LinkedIn, 20 May 2023, https://br.linkedin.com/company/maply.io. https://agencia.fapesp.br/embraer-announces-investment-in-drone-maker-supported-by-fapesp/39780/. 30. LinkedIn, “Maply,” Website: Text/HTML, LinkedIn, 20 May 2023, 8. Revista Pesquisa Fapesp, “Out of sight,” Website: Text/HTML, Agencia FACESP, 20 May 2023, https://br.linkedin.com/company/aeroscantecnologia. https://revistapesquisa.fapesp.br/en/out-of-sight/. 31. Agrotopus, “CIÊNCIA DE DADOS E TECNOLOGIA ACESSÍVEIS, OTIMIZANDO TODOS OS NÍVEIS DA 9. 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