Periodic Reporting for period 1 - KYLUS (Fully autonomous real-time inventory management system, based on drone technology with high precision indoor localization)
Reporting period: 2019-06-01 to 2019-09-30
Arteries Studio’s industrial drone, Kylus, has been developed to meet the demand of large warehouses. Kylus is a unique, lightweight, completely autonomous (no need for GPS/GLONASS) drone-based inventory system that can help to track, optimizing and managing data in large-scale indoor environments by allowing long-range Radio Frequency IDentification (RFID) scanning. The product is highly innovative and bringing together RFID reading and indoor navigation combining with Big Data analysis empowers the dynamic and smart warehouses to enhance and speed-up distribution, optimize the warehouse layout, and reduce operational expenses and environmental footprint.
As the Feasibility Study revealed, Kylus has great potential in the warehousing industry. Relevant studies forecast rapid growth of Unmanned Aerial Vehicle (UAV) usage in warehouses, while the construction of new warehouses itself is also expected to grow with a double-digit CAGR in the next years. The Global UAV Drones market is projected to reach USD 49.37 billion by 2025, growing at a CAGR of 17.22% from 2018 to 2025. Use of high-tech and drone-based systems in day-to-day operations will bring a significant competitive advantage to traditional warehousing during the “industry 4.0” transition.
Arteries Studio has formed a strong project team with deep expertise in IT and in autonomous drone inventory systems.
The company’s sales strategy and business model have been also validated: the expected revenue will come either from the full system implementation, including drone purchase or leasing, account-based software licensing, or the joint solution delivery, as a part of the integrated WMS/ERP (Enterprise Resource Planning) systems. The revenue projection after the successful completion of phase 2 project is €13.26M with a €9.1M profit by the end of the first five years of commercialization.
The feasibility study has also reinforced the “freedom-to-operation” status, and updated the current and expected competitive landscape. Today, there is still low competition in this segment, but as the advantage of this and similar solutions become obvious, we expect a rapidly growing competitive pressure in the future.
Arteries Studio has formed a strong project team with deep expertise in IT and in autonomous drone inventory systems.
The company’s sales strategy and business model have been also validated: the expected revenue will come either from the full system implementation, including drone purchase or leasing, account-based software licensing, or the joint solution delivery, as a part of the integrated WMS/ERP (Enterprise Resource Planning) systems. The revenue projection after the successful completion of phase 2 project is €13.26M with a €9.1M profit by the end of the first five years of commercialization.
The feasibility study has also reinforced the “freedom-to-operation” status, and updated the current and expected competitive landscape. Today, there is still low competition in this segment, but as the advantage of this and similar solutions become obvious, we expect a rapidly growing competitive pressure in the future.
Kylus has closed a successful feasibility analysis, related to the business potential, marketing, technical, financial, organizational assessment. However, the risk analysis has revealed that the global commercial success depends primarily on the close cooperation with warehouse system solution providers, and system integrators specialized in the warehouse management systems.
During the customer interviews the importance and necessity to integrate Kylus with SAP-based solutions have been repeatedly highlighted.
The early-stage innovation has already revealed a high market demand, and the feasibility assessment indicates that the solution may revolutionize the warehousing precesses, especially for warehouses, managing high-value or high-volume goods over 15,000 sqm.
During the customer interviews the importance and necessity to integrate Kylus with SAP-based solutions have been repeatedly highlighted.
The early-stage innovation has already revealed a high market demand, and the feasibility assessment indicates that the solution may revolutionize the warehousing precesses, especially for warehouses, managing high-value or high-volume goods over 15,000 sqm.