Expanding Advanced Aerial Mobility in Michigan

Unmanned aircraft systems represent innovative and emerging modes of transportation with substantial forecasted growth. Global UAS opportunity is projected to be $57 billion in 2030, with nearly $10 billion of that figure coming from the United States.

Still, barriers to widespread adoption remain. The implementation of UAS-driven systems is subject to:

• Regulatory challenges Beyond visual line-of-sight (BVLOS) drone operations are subject to strict regulations by the FAA. Laws enabling BVLOS operations will be a crucial precursor to enabling economic growth in the drone sector.
• Unit economics considerations Transitioning to UAS-driven alternatives requires viable economics that include both direct and opportunity costs.‍
• Public acceptance concerns Public perception around the risks of drone technology will limit its adoption, so education around the advantages of drone applications is necessary for sector growth.

Newlab believes that in order to drive widespread adoption of advanced aerial mobility technologies, the focus needs to shift to real, high-potential industry use cases, including supply chain optimization, on-demand healthcare, and critical infrastructure monitoring.

Michigan, in particular, has a competitive advantage in driving this forward. The state is strategically positioned to activate advanced aerial mobility (AAM) growth by leveraging the state’s sizable supply chain and manufacturing base. The state of Michigan has a unique opportunity to lead the country in AAM adoption by catalyzing emerging, demand-led use cases and aligning pathways to scale operations.

In order to mobilize industry around viable B2B use cases, there are three primary strategic pathways to pursue:

1. INFLUENCE POLICY & REGULATIONS: To drive industry-wide adoption, we need to (1) focus on impactful pilot programs, (2) expand successful concepts like the Advanced Aerial Innovation Region (AAIR) – a first-of-its-kind advanced aerial urban initiative to accelerate commercial drone development and position Michigan as a leader in next-gen aerial mobility –  to gather crucial BVLOS data, and (3) align our strategies with state initiatives like "Make it in Michigan" to boost supply chain and manufacturing efficiency.
2. ALIGN & ACTIVATE DEMAND THROUGH TARGETED PILOTS AND INFRASTRUCTURE INVESTMENT: Scale successful pilots, focus on cross-border use cases, engage key industry stakeholders, launch new pilots for supply chain and logistics, and invest in strategic infrastructure to create robust, economically viable networks.
3. GRADUALLY INTRODUCE PUBLIC-FACING APPLICATIONS: Develop pilots focused on public good, particularly for underserved populations, to balance the focus on supply chain and manufacturing. Amplify these efforts to educate the public on the safety and benefits of drone technologies, fostering acceptance, and use public feedback to scale impactful B2C applications.