A Business and Commercial Plan for the exploitation of an Adaptive Self-Tuning Flight Control System (AST-FCS) has been developed based on the “ADEX Inside” concept. According to this, the Adaptive Self-Tuning Flight Control Laws (AST-FCL) based on ADEX technology will be integrated in flight control systems (FCS) for UAVs from different manufacturers to obtain beta prototypes of business ready AST-FCS products.
The “ADEX Inside” technology is not intended to compete head-on with FCS manufacturers, but rather to collaborate with them, inserting “ADEX Inside” into their existing FCS products in order to enhance their ability to deal with the fundamental problems of uncertainty inherent in flight dynamics generally. The innovative technology concept and the proposed business model have been well received by nine international manufacturers who have responded positively with letters of interest. The IP of AST-FCL is legally protected by two international patents. The first one defines ADEX technology, and the second one, the basic optimization control strategy of the AST-FCL. Software protection against reverse engineering and copy will be implemented, as well as a revenue protection mechanism.
In order to prove the generic viability of the AST-FCL in the UAV market where the requirements will vary considerably, a 24 month Work Plan will develop three different business ready AST-FCS beta prototypes. It will also help to establish an early foothold in three different geographic areas and companies. This will provide an ideal starting point for the subsequent commercial exploitation (Phase 3) of the AST-FCS product range worldwide. The design of the Work Plan ensures its technical feasibility taking into account the project constraints and challenges.
The business plan envisages this as a first step towards the introduction of AST-FCS into the market, to avoid incurring initially the high costs associated with certifying manned aircraft, while at the same time taking advantage of the current dramatic increases in the UAV civil market. The Market study has focused primarily on this UAV market as a Target Subgroup (TS) of the total addressable market which includes all manned and unmanned aircraft.
While the total addressable market in 2015 for the AST-FCL amounts to €1,235.40M rising to €1,989.64M in 2020, the TS market in 2015 amounts to €11.25M rising to €18.11M in 2020. The TS market therefore, is less than 1% of the total addressable market. The Economic Viability Study estimates that in year 4 of Phase-3 the AST-FCL license gross sales will amount €2,224,600; having reached 12.3% of the initial TS market and 0.11% of the total addressable market. The total license gross sales for the first four years of Phase-3 will reach the amount of €4,164,140. Estimates from the profit and loss account in year 4 of Phase 3 indicate that the EBITDA will amount to €2,063,713 and the EBIT to €1,969,264, assuming the investment made during Phase 2 will be amortized over a 5 year period.
Overall, this document has demonstrated the economic viability, credible market strategy, and technical innovation of the AST-FCS, which will establish European leadership in flight control.