Wednesday, April 8, 2015

Airship Market will be worth 50 Billion in the next 20 years

Hybrid Air Vehicles has started a crowd funding campaign that you can invest in if you live in the UK. You only need  £100 but if anyone in the UK has a few hundred thousand this may be the best chance you get to grab some equity in the company.

What is even more interesting is that if you log in to the link I provided, there is a section talking about the predicted market for airships. HAV writes:

Market
The aviation market has been seeking alternatives to overcome the limitations of existing technologies.  Helicopters are expensive to run, and are limited by their existing lift capacity and range.  Aeroplanes don’t have an ability to fly at a wide range of speeds (which is useful for surveillance tasks), and typically need costly infrastructure at airports. Unmanned Air Vehicles have limited range, endurance and/or payload capability and many are constrained in their use by regulation. The operating performance and low cost of Airlander 10 means it can fulfill roles in surveillance, communications, advertising and filming, remote resupply, leisure & tourism. The airborne surveillance market (covering communications and other forms of survey, search and rescue, maritime patrol etc) is estimated to be worth $19.23 billion. The luxury tourism market is worth in excess of £2 billion. The annual cargo market has been calculated by Boeing to be 200 Billion Revenue-Tonne-Kilometers growing to over 500 billion RTK's by 2030. Industry estimates for the value of aircraft deliveries to military and commercial customers annually are in excess of $400 billion. This gives an indication of the size of the aerospace markets which the Airlander can enter. To calculate the likely share of this market for Airlander 10, over the last few years, there have been 4 market studies on hybrid aircraft – 3 of which have been independent, and all of which have put the market at between 500 and 1000 aircraft. The most recent independent market study, commissioned by an Aerospace major and the Company, was by Renaissance Strategic Advisors (RSA). RSA is a leading independent consultant to the aviation industry. RSA validated potential demand for 556 hybrid air vehicle platforms between 2015 and 2035 worth over $50 billion and identified an upside of a further 100+ aircraft. The early adopters of Airlander are likely to be military and governmental agencies interested in border control, maritime surveillance, force protection and search & rescue. There is also strong potential for early adoption from the luxury leisure and tourism market. The RSA report stated that Airlander 10 has multiple civil applications including tourism/leisure flights with associated advertising, oil and gas people movements and pipeline security, commercial sensing e.g. geological surveys in support of the mining industry, remote logistics e.g. for wind turbine blade movements and communications relay.
The diversity of product usage is summarised by the segmentation analysis which you can see uploaded in the images section to the left *bottom*.



So 50 billion in the next 20 years is a good starting point, but I imagine it is only the beginning. This market valuation doesn't seem to include the possibility of public transportation systems like the one I wrote about last year in my examination of using a public transportation solution here where I live in California.

In that analysis, I found that one could make good profit running the airship as a mid range transportation solution just in the area where I live. I didn't even do feasibility tests in places like Los Angeles, New York and London where they would be even more profitable.

There is even the possibility that hybrid airships can compete with the airlines in long range transport by offering the services of staterooms, shopping and other leisure activities like gambling while passengers are transported to their destination at a decreased cost. Yes it will take longer to get there then airlines but for travelers that don't need to get to there destination quickly and would rather relax on an airship sun tanning and drinking champion for a day or two instead of being cramped into a small seat for 8-14 hours there is the possibility that it could be competitive.

Only time will tell, but I feel like 50 billion is probably only the start for this industry.

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