ST Engineering STEG.SI is showing off two distinct platforms at the Singapore Airshow that mark a significant expansion into next-generation aviation technologies for the world's largest airframe maintenance and repair services provider.

At Asia's largest aerospace and defence event, the Singapore-based company launched the DrN-600, a large all-electric vertical take-off-and-landing cargo drone, and announced partnerships with ferry operators for its crewed hovercraft-like AirFish Voyager.

Drones represent "a new market - in a way, it's a disruptor, because that product never existed before that is viable," Jeffrey Lam, chief operating officer of ST Engineering and president of its commercial aerospace business, told Reuters in an interview on the show's sidelines.

The DrN-600, with a range of over 70 km (43 miles) and a 100-kg (220-pound) payload capacity, is the company's highest-capacity drone to date and aimed at medium-lift cargo operations, with certification expected by 2028, according to ST Engineering.

The expanded push into unmanned systems comes as ST Engineering, like many industry players, navigates challenges in global supply chains and seeks growth opportunities in emerging technologies.

Lam emphasised the potential for drones to overhaul commercial and industrial operations, from cargo delivery to security surveillance.

"Power lines and structures across the country had to be inspected by humans in the past. Today, we can use drones to do a much better job, faster and more efficiently," Lam said.

He added that drones will likely replace some helicopters, ferries and seaplanes, although their market size will not immediately rival that of commercial aviation.

While initially targeting commercial uses, Lam noted the firm's openness to exploring potential military applications.

However, regulatory frameworks remain a key hurdle for the widespread adoption of drones.

"It's still unregulated. Countries are developing regulation," Lam said, adding that ST Engineering was collaborating with governments globally to address air traffic management and safety challenges over populated areas.

Complementing its cargo drone ambitions, the company's ST Engineering AirX joint venture on Tuesday announced two partnerships to bring its AirFish Voyager, a 10-passenger craft that glides above water at speeds up to 100 knots, to the market through ferry operators in Southeast Asia and India.

While pursuing drone initiatives, ST Engineering also continues expanding its core maintenance, repair and overhaul (MRO) operations to meet surging demand.

This week, the company announced the launch of an integrated airframe and engine nacelle service centre in Singapore, the first in its global network. The facility is expected to streamline maintenance and reduce turnaround times for aircraft operators.

Lam said ST Engineering has over the past year expanded nacelle MRO capacity to the U.S. and China, with its Singapore facilities slated to come online in the coming months.

-Reporting by Julie Zhu and Jun Yuan Yong in Singapore; Editing by Jamie Freed/Reuters