Premium manufacturer of thermal imaging cameras FLIR Systems, Inc. FLIR has collaborated with the Chinese drone titan, DJI Innovations, to develop new infrared cameras for its latest drones. The strategic partnership is part of FLIR’s strategy to capitalize on its game-changing technologies to expand its footprint in the thriving commercial drone market.
Inside the Headlines
The product, christened “DJI Zenmuse XT stabilized camera”, is being developed by combining DJI's Zenmuse stabilized micro-gimbal technology with FLIR’s Tau 2 thermal imaging camera core. By installing these cameras in Inspire 1 and Matrice aerial cinematography & development platforms, DJI aspires to extend the prowess of commercial drone operators and infrastructure monitors.
Though any price quotations for the product has not been disclosed, the companies are planning to introduce two versions of the product, one with 640 x 512 pixel resolution and another with 336 x 256 pixel resolution. Expected to be commercially available by early 2016, Zenmuse XT is likely to usher colossal improvements in a gamut of drone applications ranging from agriculture and firefighting to energy infrastructure and wildlife protection.
Powered by FLIR’s thermal imaging technology, Zenmuse XT will instill visibility in absolute darkness as well as accurately read temperature variances for drones, thereby enabling easy scouting in heavy dust, fog or smoke. Moreover, it can be synchronized with other DJI applications like Lightbridge live video downlink system and DJI GO to provide real time-based control for driving superior results.
Going Forward
DJI’s growing popularity among commercial operators has allowed it to become one of the most trusted brands among consumers and cinematographers. According to market sources, DJI currently seeks to penetrate the industrial applications market and the latest partnership will likely unlock lucrative opportunities for FLIR’s thermal inspection camera line in the near future. With an expected CAGR of 109.31% for 2014–2020, the commercial drone market is anticipated to reach the $1.27-billion mark by 2020.
FLIR Systems’ effective imaging & threat-detection technologies have proved to be a strong growth driver. According to research firm Markets and Markets, increased adoption of thermal imaging in a broad spectrum of applications, ranging from military to personal hand-held cameras and smartphones, is fueling the growth of thermal imaging market for an expected CAGR of 6.6% for 2015–2020. We believe FLIR’s commercially successful thermal imaging camera line, coupled with bright prospects of the drone market, will support its growth, going forward.
However, broader macroeconomic uncertainties like adverse currency fluctuations, intensifying competition and volatility in primary markets continue to pose significant headwinds for this Zacks Rank #4 (Sell) stock.
Better-ranked stocks include Dycom Industries Inc. DY, Energous Corp. WATT and Harman International Industries, Incorporated HAR. While Dycom Industries sports a Zacks Rank #1 (Strong Buy), Energous Corp. and Harman International carry a Zacks Rank #2 (Buy) each.
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