Tag Archives: drones

The future of flight: Beyond Visual Line of Sight operations

One of the main regulatory barriers to the successful commercial application of drones is the restrictions on routine Beyond Visual Line of Sight (BVLOS) operations. Many of the most commercially significant uses of drone technology require operators to fly beyond their direct line of sight, including delivery services, infrastructure inspection, surveying and mapping, and the monitoring of energy and transport networks. Enabling routine BVLOS operations is therefore critical to allowing drone services to operate at scale. This will be crucial to unlocking the full economic contribution of drones which, according to , could be worth £45 billion to the UK economy by 2030.

The UK has succeeded in funding and running trials of BVLOS operations, though these have yet to translate into a regulatory framework that enables routine operations at scale. In 2023, the CAA selected , spanning use cases from the delivery of pathology samples between hospital laboratories in London to infrastructure inspection. These trials have begun to pave the way for increased BVLOS operations, with additional London hospitals joining an expanded drone delivery service in early 2026. Operational data from the initial trial showed cost savings of 28% and a 98.4% reduction in CO2 emissions per delivery compared with conventional courier methods. This demonstrates the significant commercial and environmental benefits that BVLOS operations can provide and highlights the potential for wider adoption if the regulatory framework enables these services to move from individual trials to routine, scalable operations.

It is possible to apply to the CAA for operational authorisation for BVLOS flights using UK SORA (Specific Operations Risk Assessment), but this remains difficult to achieve in practice. To gain approval, operators must demonstrate that a specific operation can be conducted safely, meaning that authorisation may need to be sought for materially different operations or operating environments. While this approach can enable defined activities, such as regular deliveries between two hospitals, it can be time- and cost-intensive for businesses seeking to operate across multiple routes or locations that may change depending on the specific use case The publication of a SORA general operations template in August 2026 provides operators with a clearer and more standardised structure for developing the documentation required for an application. However, operators must still develop the relevant operational procedures and supporting evidence for their proposed activities, meaning that securing authorisation remains a time- and cost-intensive process. As a result, securing individual operational authorisations is not equivalent to a regulatory framework that allows routine BVLOS operations at scale, and this limits the ability of operators to scale their services rapidly.

There is a clear ambition across government and the CAA to enable routine BVLOS operations. The Regulatory Innovation Office (RIO) has been working with the Department for Transport (DfT), the Health and Safety Executive (HSE) and the CAA to address regulatory barriers to BVLOS operations. This has already resulted in several changes. A single, standardised SORA risk assessment has been introduced to reduce approval times for complex operations; the CAA is developing a , up from the previous 90-day period, providing greater certainty for longer-term operations; and its has been expanded to enable more operations in low-traffic environments, such as around power lines. While these changes operate within the existing system of approvals for individual operations, they represent incremental steps towards making BVLOS flights easier and more commercially viable. However, further reform will be required to move from facilitating individual operations towards a framework that enables routine BVLOS services to be deployed at scale.

To further scale BVLOS operations, the CAA has set out a , which charts a path towards routine and scalable BVLOS operations across the UK by 2027. Rather than pursuing a single major regulatory change, the CAA is adopting a ‘learn and evolve’ approach that will progressively move operators from segregated or restricted airspace towards integration with other airspace users as regulation, technology and operational evidence develop. The roadmap identifies three pathways for commercial operations. The first expands operations in Atypical Air Environments, such as around railways, power lines and wind turbines, where the risk of encountering crewed aircraft is comparatively low. The second focuses on integrating low-level BVLOS operations below 500 feet in urban areas, initially through restricted corridors before moving towards shared and uncontrolled airspace that can accommodate multiple operators. The final pathway is fully integrated BVLOS, enabling longer-distance operations such as middle-mile logistics, emergency services and offshore infrastructure inspection to operate alongside other airspace users. The CAA is aiming to have operations in controlled airspace underway by 2027, with operations in uncontrolled airspace beginning in 2028.

While this is a positive signal that the CAA wants to break down this regulatory barrier, it is important for the drone sector to engage closely with both the CAA and the government to ensure that the roadmap is delivered and enables routine BVLOS operations across all of these areas. It will also be important to build greater awareness among parliamentarians of the economic benefits of drones, which will make them more likely to scrutinise progress on this issue and to apply further pressure on the government and the CAA to ensure that there are routine and scalable BVLOS operations. Coordinated engagement with regulators, government and parliamentarians will be important in ensuring that the roadmap creates a regulatory environment that supports the commercial growth of the sector.

As parliament returns under the new Andy Burnham-led government, the drones sector has an important opportunity to firmly place the development of a supportive regulatory framework on the government’s agenda and build political momentum behind the reforms needed to enable routine BVLOS operations. At GK, we have launched the UK Drones Alliance, which will do exactly this by bringing together businesses from across the sector to speak with a coordinated voice to government, regulators and parliamentarians. The Alliance will provide a platform for the sector to demonstrate the benefits of drone technology and advocate for action to tackle the regulatory barriers constraining growth, enabling the industry to scale.

If you would be interested in hearing about our next UK Drones Alliance event, which we are hosting in partnership with the Department for Transport, or to discuss this policy area in more detail, please contact jacob.walsh@gkstrategy.com

 

 

GK & Anchor Policy Spotlight: Emerging Regulatory Markets

The next decade and beyond will be defined by global challenges ranging from climate change and food security to geopolitical instability and competition for resources. Governments around the world will be forced to address these at pace, but many of the solutions will depend on technological advances and scientific discoveries that are only just emerging.

Curiosity has always been in GK’s DNA and over the last year we have dedicated considerable time to understanding and engaging with the emerging industrial sectors of the future. Ranging from technological developments in already highly regulated sectors to the sectors that are just emerging as future economic powerhouses, GK has put them under the microscope to unpick the political, policy and regulatory opportunities and challenges on the horizon.

This report is an introduction of that thinking to you. We know our investment community is keen to understand the risks and opportunities in these spaces to stay ahead of competitors in origination strategies, and most importantly, to invest for the future. With the decades of combined experience that informs our counsel, we pride ourselves on seeing the things that others don’t. Our team of consultants in the UK, Europe and the US is uniquely positioned to give a truly global perspective on understanding and growing the future sectors of the global economy.

Beyond the battlefield: Britain’s drone strategy as a lever for economic growth

Lessons from the battlefields of Ukraine, combined with rapid technological innovation, have pushed drones firmly into the centre of UK defence policy. Yet, the implications of this shift extend far beyond military capability and the defence sector. By scaling domestic manufacturing and considering drone technology within wider growth strategies, there is potential to unlock growth across many sectors in the UK economy.

The pace of technological development seen in Ukraine has demonstrated how quickly drone capability can evolve when innovation is tested under real-world conditions. Low-cost drones, AI-driven autonomous systems, and advanced first-person view drones have challenged traditional defence strategies. For the UK, this has underscored the importance of building domestic drone capability to enhance national security.

To build these capabilities, the Ministry of Defence’s 2024 Defence Drone Strategy and 2025 Defence Industrial Strategy set out a vision that includes drones as a central component of military capability. This has been reinforced by the 2025 Strategic Defence Review, in which the government recognised that drones will be central to future conflicts and outlines its ambition to support innovation and growth in the drones sector.

For defence contractors, the implications are immediate. The government’s desire to deliver progress at pace on these strategies means that businesses that can demonstrate resilient and tested technologies are positioned to win contracts. However, the effects of this industrial strategy will be felt far beyond defence, with these moves creating large spillover effects to the civilian drone market.  Defence procurement can help firms scale production, de-risk investment, and move more quickly into civilian markets. In addition, many of the technologies that are useful as defence capabilities will assist in commercial settings. For instance, advanced first-person view drones will allow drones to be used more easily for law enforcement and infrastructure inspection. Counter-drone technologies also have clear commercial value, Systems developed to detect and neutralise hostile drones can be deployed to protect airports, prisons, critical national infrastructure, and other sensitive sites.

Together, these applications illustrate how defence-led innovation can unlock the sector’s wider economic potential – estimated by government-commissioned analysis to reach up to £103 billion by 2050, as we highlighted in our recent article. This demonstrates the scale of the commercial opportunities now emerging for businesses and investors, as technologies initially developed for defence are increasingly able to scale into regulated civilian markets, supported by a growing ambition within government to be a world-leader in drone technology.

However, despite this opportunity, risks remain. Defence procurement is politically sensitive and shifts in budget priorities over the course of a parliament could constrain investment. This means that businesses must continue to engage with government to reduce regulatory barriers to create a favourable regulatory environment. Businesses who engage with the government’s existing work on regulatory innovation and help government understand where other challenges exist will reap the benefits of the UK’s focus on the drones sector.

If you’d like to discuss the drones sector and related policy in more detail, please reach out to Jacob on Jacob.walsh@gkstrategy.com

Cleared for take-off? The policies shaping the UK drone industry

The government has set itself the ambitious goal for becoming the fastest growing economy in the G7. This lofty ambition sits at the heart of the government’s agenda and is central to its industrial strategy – a 10-year plan to increase business investment in the industries of the future. The drones sector has been identified as a frontier industry, with the government clearing a flightpath for the UK to be a world leader in drone innovation and technologies.

Driving this move is the extraordinary economic potential of drones. A recent PwC report states that the sector could contribute £45 billion to the UK economy and support 650,000 jobs by 2030. Further analysis undertaken by Frazer-Nash consultancy for the government suggests that with public support and a shared strategy and ambition between government and industry, the sector could have contributed £103 billion by 2050. Together, these findings demonstrate how collaboration between government and industry can lead to a thriving drones sector which can drive growth and innovation across the UK.

Regulatory challenges

For this growth to be unlocked, the government must work to address regulatory challenges that constrain innovation. Across government, companies face a range of overlapping rules that can slow commercial deployment and limit investment. One of the largest constraints on the sector is the requirement to keep the drone within the line of sight of the operator. Additional health and safety regulations enforced by the Civil Aviation Authority (CAA) also prohibit drones being flown within a 50m radius of people. This constrains the range of operations drones can perform, limiting their use in many areas such as delivery, infrastructure inspection, and large-scale surveying, particularly in urban areas.

The Health and Safety Executive (HSE) also limits the growth of drones operating in the agricultural sector, with the HSE requiring companies to get approval for almost all aerial spraying. The HSE states that there is a 52-week processing time for drone applications, which will inevitably undermine the innovation and adoption of drones in the agricultural sector.

All these affected areas are where drone technology offers incredible commercial potential, so overcoming these regulatory barriers will be key for businesses looking to unlock growth in the drones sector.

These challenges are not insurmountable and government and industry collaboration is already underway to tackle them. The Regulatory Innovation Office (RIO) is leading a series of pro-innovation reforms for the drones sector, including the introduction of a single, standard risk assessment process to cut approval times for complex drone operations. They are also working on expanding the CAA’s atypical air environment policy, which enables the use of drones Beyond Visual Line of Sight (BVLOS), with the ROI providing £8.9 million in funding for innovative projects that will test the effects of new BVLOS standards. The ROI has also worked with the HSE to make it legal for drones to spray slug pellets, which is a major step forward for agricultural drones businesses.

Public concerns

Drones businesses also face challenges of public perception. The research done by Frazer-Nash consultancy estimated that without public support, the size of the sector will be £65 billion by 2050. That represents a £38 billion reduction in the sector compared to the scenario with public support. Given the incredible economic value that lies in public support, addressing public concerns, such as the use of drones for criminal activities, are of great importance to the sector and government to ensure businesses reach their full potential.

The government is already thinking about innovative solutions to the public perception challenge. In November 2025, the government launched a technology challenge which will encourage industry to develop innovative systems capable of detecting drones designed by criminals to evade current detection methods. If successful, this challenge will help the government intercept drugs being delivered by drones into prisons.

The government’s willingness to cut red tape and find innovative solutions to the challenges facing the sector creates opportunity for the sector. However, it remains essential for companies to engage with the government, both to push further on reducing overly prohibitive regulation and to address public concerns surrounding drone safety. By doing so, businesses can play a central role in shaping a regulatory landscape that supports innovation, builds public trust, and cements the UK’s position as a global leader in drone technology.

If you’d like to discuss drones and the wider political landscape in more detail, please reach out to Jacob on Jacob.walsh@gkstrategy.com