Even with prices dropping, the sheer size of the market is attracting lots of people into the business to offer basic services like roof inspections or aerial photography,” said Phil Finnegan, an industry consultant with the Teal Group. “There are very low barriers to entry.”

Technology itself is proving to be one of the biggest competitive threats. As drones become more automated and easier to operate, some would-be customers are deciding to buy their own aerial robots to fly themselves.

Expanding Scope
That’s driving companies such as Avitas to think beyond the aircraft. “We’re much more interested in the data and data analytics,” Trepper said.

Avitas plans to offer automated data analysis to detect corrosion and cracks in surveys of infrastructure like storage tanks -- and even predict where a railroad track might fail, Trepper said. The startup also can leverage its parent’s market clout by offering its services to GE’s customers.

Measure is rolling out a franchise of trained pilots to win work that includes inspections, law enforcement support and filming sport events. Data analysis is done at the company’s Washington, D.C., headquarters.

The company aims to create a recognized brand capable of fending off low-ball pricing from one-person outfits that can jump into the business for less than $1,000 -- the cost of a small drone and a remote pilot’s license, said Declet, Measure’s CEO.

“Having a highly skilled pilot at the controls is important when you’re inspecting a $15 million wind turbine or you’re flying over a newly commissioned solar farm,” Declet said. “No one wants to take any risks when it comes to aircraft falling or crashing into critical infrastructure.”

Rethinking Strategy
Small outfits like that of Trench’s operation in Rhode Island are adjusting, too. His answer is to relaunch his drone business as Vertspec, a provider of low-cost inspections for infrastructure like mobile-phone towers, wind farms and power transmission lines.

Trench, 37, who started building his own drones as a hobby 16 years ago, is taking advantage of increased automation to reduce the cost of hiring operators. To compete with the big companies, he’s subcontracting for data analysis to third-party software companies.

“I have lower overhead than they do and I’m more agile on development,” Trench said. “The large companies up in the castles might be surprised when they get undercut by small ones.”