A leading Japanese drone and advanced aerial mobility company has made its first major move to enter the US market and advance its efforts to create a global air traffic control system for unmanned aircraft, known as the Unmanned Aerial System Traffic Management, UTM .
Terra Drone Corporation has made a significant investment in Silver Spring, MD-based Aloft Technologies Inc.becoming its largest shareholder, the companies announced on Tuesday.
Indeed, the development of a global UTM system has taken on increased urgency as the number of low-altitude aircraft such as drones, vertical takeoff and landing craft, and short-hop air taxis increases. They typically occupy altitudes well below commercial aircraft at 4,000 feet and lower.
“Above populated areas there are many restrictions to ensure safety,” Yuki Ueno, an executive at Terra Drone, said in an interview. “But if we have such a system as UTM, not only does it give us the opportunity to do beyond visual line of sight or to fly in a little more high-risk areas, all of this to be more digitized and automated and properly managed by the UTM. It then enables more congested and more relevant, recurring or denser flights in a safe and efficient manner. But without UTM we can’t do that.”
Ueno, who is also joining Aloft’s board as part of this new deal, notes that with companies such as Joby and Archer Aviation planning to launch advanced air mobility, or AAM, services to coincide with the 2028 Summer Olympics in Los Angeles, the development of UTM becomes even more urgent.
Aloft previously secured investments from Boeing’s Corporate Venture Capital and Travelers Insurance and is a leading FAA-certified provider of unmanned aircraft systems services.
It’s this kind of expertise that led Terra Drone to invest in Aloft and make it a subsidiary,
“Aloft has over 80% market share, which is pretty dominant, I would say,” Ueno explained. “It’s not a big company. It’s like there’s only 15 people or something, but it’s a really solid and focused company, and we think the founders are really visionary.”
The investment in Aloft is in line with Terra Drone’s ultimate goal of creating a global UTM system, largely by aligning with companies that specialize in the technology.
Belgium-based UTM provider Unifly became a subsidiary of Terra Drone in 2023.
A mandatory UTM system is in place in 27 European countries according to Ueno, and now the pace for a standardized air traffic system for UAS is accelerating in the US
Last July the FAA released Innovation28the Advanced Air Mobility Implementation Plan to enable advanced air mobility systems in time for the 2028 Summer Olympics.
Described by the FAA as a “living document,” it will be updated periodically. Key features of Innovate28 are:
· Providing air traffic control through existing systems
· Use of existing airports and helipads
· Establishing predefined routes
The creation of Innovate28 is a testament to the pace at which UAM is growing in the US—especially compared to Japan, Terra Drone’s home country.
The development of a UTM is an important complement to Terra Drone’s other important activities.
“We started doing UTM in 2016,” Ueno said. “We have also done many other industries such as providing drone-based solutions such as topographic surveys or inspections, serving, for example, the major oil and gas companies worldwide, the largest energy company in Japan and also the largest energy company in the world. Aramco is our shareholder and customer.”
It was all profitable for Terra Drone, one of the top two drone service providers in the world, but the company had yet to conquer the US market — a long-term goal now achieved by finding the right partner.
Based on FAA data, there are currently about 2.4 times more registered unmanned aircraft and 62 times more registered manned aircraft in the US than in Japan, with further growth expected within the next four years.
“It really is one of the biggest markets in the world. That’s why we’ve always wanted to enter the US market,” said Ueno.