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2017 DRONE MARKET SECTOR REPORT PROSPECTUS Opportunities and challenges in key market segments Abstract This comprehensive report pulls together our latest research on both the consumer and commercial markets to offer insight into the drone industry’s overall direction. Published in September 2017, it includes the results from our survey on drone buyers, service providers, business users, and software services, plus insights into the verticals that use drone data.

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2017 DRONE MARKET

SECTOR REPORT

PROSPECTUS

Opportunities and challenges in key market segments

Abstract

This comprehensive report pulls together our latest research on both the consumer and

commercial markets to offer insight into the drone industry’s overall direction. Published in

September 2017, it includes the results from our survey on drone buyers, service providers,

business users, and software services, plus insights into the verticals that use drone data.

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 1

CONTENTS

LIST OF FIGURES ............................................................................................................................................................ 1

VENDOR SPONSORS ....................................................................................................................................................... 2

MEDIA PARTNERS .......................................................................................................................................................... 3

EXECUTIVE SUMMARY ................................................................................................................................................... 4

ABOUT THIS STUDY ........................................................................................................................................................ 5

Background ............................................................................................................................................................... 5

Methodology ............................................................................................................................................................. 6

Demographics ........................................................................................................................................................... 7

PRICE AND CONTENT OF THE COMPLETE RESEARCH REPORT .................................................................................... 11

Purchase Options .................................................................................................................................................... 11

Content and List of Figures...................................................................................................................................... 11

ABOUT SKYLOGIC RESEARCH ....................................................................................................................................... 15

APPENDIX: QUESTIONS ................................................................................................................................................ 16

LIST OF FIGURES

Figure 1 – Respondents by Country or Region .............................................................................................................. 7

Figure 2 – Respondents by Role .................................................................................................................................... 8

Figure 3 – Respondents by Age Group .......................................................................................................................... 9

Figure 4 – Industry Sector of Respondents .................................................................................................................. 10

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 2

VENDOR SPONSORS

We would like to thank our vendor sponsors for helping to underwrite the cost of this research.

Airware is the leading enterprise drone analytics company. For more information, visit Airware.com.

DroneDeploy is the leading cloud software platform for commercial drones. Learn more at

www.dronedeploy.com.

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 4

EXECUTIVE SUMMARY

No one disagrees that drones—both consumer and professional—represent a new and emerging

market. We believe, however, that there are major misconceptions in the drone industry as to how fast

the market will grow, which sectors will grow, and which ones will lag.

Despite the large number of independent companies that provide market forecasts on the drone

industry, we see a big gap between these forecasts and actual purchases, services, and business

adoption. We believe the consumer and commercial drone market participants deserve better, so we

created this study to explore the following questions:

• Who’s buying what types of drones, from which makers, at what prices, and for what uses?

• How large are drone-based service providers, how are they positioning themselves, and what

markets are they targeting?

• Who are the business users for drone-based projects, and which industries have traction?

• How much are service providers and businesses using software for drone-based projects—for

flight management, mission planning, and image processing?

Data collected for this study comes from a survey we conducted over the web in July and August 2017,

as well as interviews with business users in Q1 and Q2 of 2017. The study evaluates four distinct sectors

of the market:

1. Drone Purchases

2. Service Providers

3. Business Users

4. Software Services

Our online survey garnered 2,666 respondents representing over 60 industries worldwide.

Our analysis yielded 10 key insights that summarize the current state of the four sectors, along with

overall market growth and adoption of drone use by industry.

This 88-page report contains 40 figures, 9 tables, and an appendix listing the survey questions.

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 5

ABOUT THIS STUDY

BACKGROUND

We believe the #1 misconception in the drone industry is how fast it will grow, which sectors will grow,

and which ones will lag.

No one disagrees that drones—both consumer and professional—represent a new and emerging

market. Drone market forecasts abound. We currently track 71 independent companies that provide

market forecasts, and each of them projects growth for the drone or unmanned aerial system (UAS)

sector that is nothing short of phenomenal. Some of these, however, are questionable, because at the

time they were written, there were no historical sales or reliable market survey data on which to create

a proper forecast. We have written about this problem here.

Our observations:

• We see a lack of objective information on drone industry market segments.

• We find there’s an absence of credible market-based research.

• We see little understanding of the difference between large industry forecasts and actual

business user adoption rates.

What we hear from industry insiders:

• Drone solution and service providers want to know the market share of their competitors.

• Software and service providers want to understand business implementation issues, and what

they can do to help speed adoption.

• Investors want to know who the players are in the value chain, and where the opportunities lie.

We believe that consumer and commercial drone market participants deserve better information, so we

created this study to explore:

• Who’s buying what types of drones, from which makers, at what prices, and for what uses?

• How large are drone-based service providers, how are they positioning themselves, and what

markets are they targeting?

• Who are the business users for drone-based projects, and which industries have traction?

• How much are service providers and businesses using software for drone-based projects—for

flight management, mission planning, and image processing?

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 6

Our goal for the research study is to provide a foundational view of topics like:

• Critical industry drivers

• Vendor and service provider market share

• Business adoption trends and issues

• Market size for all drones, and growth projections by segment

This research builds on our highly successful Drones in the Channel: 2016 Market Report, which was the

first and only study to provide a view of drone manufacturer market share and drone usage trends. As

the industry grows and evolves, we believe it’s important to identify and understand who the major

hardware and software brands are, and what opportunities provide the best chance of market success.

Simply put, this new study details the existing state of drone sales, service providers, business users, and

software services, and analyzes the potential growth and challenges for each.

METHODOLOGY

Data collected for this study comes from a survey Skylogic Research conducted over the web in July and

August 2017, as well as from interviews with business users in Q1 and Q2 of 2017. Survey participation

was solicited via emails, website blog posts, website media articles, and online forum posts. Skylogic

Research created the emails, blog posts, and forum posts, and, together with our ten media partners,

created article invitations and ads.

We described the survey objectives and incentives to respondents ahead of time:

This survey seeks to get your opinions about your experiences buying and using small unmanned

aircraft systems, otherwise known as drones. Designed for those who have purchased drones,

used drone software, offer drone services, or use drone services, the survey should require about

10 minutes of your time.

What’s in it for you? Lots!

You will have an opportunity at the end of the survey to:

- receive a free summary report of the research results, a $95 value

- enter to win a free DJI Spark Mini Drone (a $400 value) or one of two $100 VISA gift

cards

You must be 13 years of age or older to qualify for the drawing.

This independent research is being underwritten by Airware, DroneDeploy, and Skylogic

Research. Your individual answers are completely confidential; responses will be aggregated,

analyzed, and summarized in research reports and publications.

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 7

The survey followed statistical research sample-size best practices, with the following results for a

worst-case 50-percent answer for a population of 15 million or greater:

• Confidence level 99%

• Margin of error ±2.5%

DEMOGRAPHICS

The following charts depict demographic and qualifying data for respondents who took our survey. This

data is useful for understanding the target market for drone use. A total of 2,666 web users clicked

through to the survey. Of those, 2,629 answered all the qualifying questions and completed the survey,

yielding a 98.6% completion rate.

Figure 1 shows the qualified respondents by country of residence.

Figure 1 – Respondents by Country or Region

The data shows 80% of respondents were from the U.S. and 4% from Canada—so, on the surface, it

looks like the data represents mostly the North American market. Our analysis of other regional markets

shows this isn’t too far off. For example, this 2016 SESAR report says the European market has an

estimated 1–1.5 million consumer drones. They estimate commercial drones to be about 10,000 units,

based on operator registrations numbering in the thousands in multiple European member states.

80%

9%

4%3%

5%

U.S.

Europe

Canada

Australia and New Zealand

All others

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 8

Another example is Australia. A recent article notes:

“As of 24 July 2017, there were 5,870 remotely piloted aircraft license (RePL) holders and 1,106

remotely piloted aircraft operator’s certificate (ReOC) holders in Australia. The vast majority of

RPA owners and operators are recreational users who require neither a RePL nor a ReOC. It is

estimated that there are at least 50,000 drones being operated in Australia today, mostly for

sport and recreational purposes.”

Compare that with the U.S., which has about 4.1 million drones in the market as of June 30, 2017, about

61,500 commercial sUAS registrations as of March 31, 2017, and 50,385 certified remote pilots as of

August 1, 2017.

We believe the U.S. market is anywhere from four to six times larger than the next largest market—

Europe—and ten times larger than Australia. Our analysis also shows there are few regional or country

differences in the detailed data we collected (significant deviations are noted in the details section of

the report).

In the “About You” section of the survey, we identified participants’ functional roles. Respondents could

select as many as applied (Figure 2). We used this data to validate answers to questions later in the

survey and tabulate trends for major respondent types: pure hobbyist, professional users (who may also

be hobbyists), drone service providers, and drone business service users.

Figure 2 – Respondents by Role

More than half (1,709) of the respondents identified themselves as small drone hobbyist / enthusiast,

and yet over a third of respondents (934) identified themselves as certified FAA Part 107 remote pilots,

200

17

54

55

134

164

271

273

295

416

934

972

1709

0 200 400 600 800 1000 1200 1400 1600 1800

Other (various)

Lawyer

Drone aircraft manufacturer

Dealer / distributor

Certified UAV/UAS/RPAS unmanned pilot (other than U.S.)

State or local government agency official or employee

Researcher / educator

Consultant

Licensed manned aircraft pilot (any level)

Employee, owner, or principal of a business that uses…

Certified FAA Part 107 Remote Pilot– Small UAS Airman

Employee, owner, or principal of a drone-based service

Small drone hobbyist / enthusiast

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 9

11% (295) as licensed manned aircraft pilots, and 5% (134) as other than U.S. certified UAV/UAS/RPAS

unmanned pilots.

Over a third of respondents (972) identified themselves as either owners / principals or employees of a

sUAS commercial service provider. About 16% (416) identified themselves as either an employee,

owner, or principal of a business that uses drone-based services.

We also asked respondents’ ages. We intentionally limited the choices to roughly correspond to

generational demographics, and the results appear in Figure 3.

Figure 3 – Respondents by Age Group

We note that respondents are not dominated by any particular generational demographic—other than

to observe that more than 84% of buyers are older than 31. The fairly even split between Baby Boomers

and GenXers is consistent with last year’s Drones Buyers survey.

In addition to their age, we asked what industry respondents currently work in. The answers appear in

Figure 4 and show the wide variety of interest in use of drones.

1%

16%

43%41%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

15 or under 16 - 31 (Millenials) 32 - 51 (Gen X) 52 + (Boomers)

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 10

Figure 4 – Industry Sector of Respondents

The results show that no single industry sector dominated our survey. Still, we were not surprised to see

those in the photography / video / cinematography industry with the largest number of respondents

(15%) since this is the most common use of drones.

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 11

PRICE AND CONTENT OF THE COMPLETE RESEARCH REPORT

PURCHASE OPTIONS

The complete 88 page research report which contains 40 figures, 9 tables, and an appendix listing the

survey questions can be purchased online here: http://droneanalyst.com/research/research-

studies/2017-drone-market-sector-report/

Price:

• $1,450 for Single User License

A Single User License authorizes only the named user (one person) the right to access the

purchased report. It grants the user the right to install the report on any number of machines as

long as that same licensee is the only user. By choosing this option the named user agrees not to

distribute the report.

• $2,250 for Enterprise License

An Enterprise License authorizes the entire population of a business entity (employees, on-site

contractors, off-site contractors) access to the purchased report for up to two years from date

of purchase.

CONTENT AND LIST OF FIGURES

EXECUTIVE SUMMARY

ABOUT THIS STUDY

Background

Methodology

Glossary

Demographics

KEY INSIGHTS

Insight 1

Insight 2

Insight 3

Insight 4

Insight 5

Insight 6

Insight 7

Insight 8

Insight 9

Insight 10

UNDERSTANDING SEGMENTS AND VERTICALS

Understanding Purchases

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 12

Drone distribution businesses and the roles they play

It’s a multirotor world

Professional use of consumer drones

Brand leader: The juggernaut that is DJI

Bottom line

Understanding Service Providers

Business size

Industry targets and growth prospects

Bottom line

Understanding Business Users

Top industrial uses

Company size

Controlling departments

The role of surveying / mapping / GIS firms as intermediaries

Limited success stories on integration

Bottom line

Understanding Software Apps and Services

Flight logging and operations management

Automated mission planning software

Data, image, and video processing software

Outlook by Vertical

DETAILED FINDINGS

Section 1 - Drone Purchases

Drone type

Top drone brands

Price points

Place of purchase

Intended use

Use by price point

Cameras and sensors

Section 2 - Service Providers

Length of Service

Size of service businesses

Services offered

Information provided to clients

Training

Growth prospects

Section 3 - Business Users

Services performed or purchased

Role of GIS firms

Controlling department

Business size

Aircraft purchases

Section 4 - Software Services

Consumption preferences

Flight logging and operations management software

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 13

Automated mission planning software

Data, image, and video processing software

ABOUT SKYLOGIC RESEARCH

License agreement

APPENDIX: QUESTIONS

LIST OF FIGURES

Figure 1 – Respondents by Country or Region

Figure 2 – Respondents by Role

Figure 3 – Respondents by Age Group

Figure 4 – Industry Sector of Respondents

Figure 5 - Skylogic Research Drone Use Vertical Scorecard

Figure 6 - Drone Type Purchased

Figure 7 – Drone Brand Market Share

Figure 8 – Drone Purchase Price Points

Figure 9 – Where Drones Are Purchased

Figure 10 – FAA Definition of UAS Operations

Figure 11 – Intended Use Detail

Figure 12 – Intended Use Professional Only

Figure 13 – Camera and Sensor Integration

Figure 14 – Most Popular Add-on Camera or Sensor Brands

Figure 15 – Number of Years Offering Services

Figure 16 – Revenue from Commercial Drone Operations

Figure 17 – Number of Full- and Part-time Employees (Service Providers)

Figure 18 – Number of Remote Pilots Employed (Service Providers)

Figure 19 – Average Number of Drone Projects per Month (Service Providers)

Figure 20 – Primary Service Offering

Figure 21 – Information Delivered to Clients

Figure 22 – Preferred Training Method

Figure 23 – Service Provider Hiring Intentions

Figure 24 – Issues Inhibiting Service Provider Growth

Figure 25 – Part 107 Waivers

Figure 26 – Primary Drone Service Used or Purchased

Figure 27 – Business User Outsourcing

Figure 28 – Services Most Likely to Be Outsourced

Figure 29 – Business User’s Controlling Department

Figure 30 – Average Number of Flights per Month (Business Users)

Figure 31 – Business User Company Size

Figure 32 – Number of Remote Pilots Employed (Business Users)

Figure 33 – Method of Drone Purchase

Figure 34 – Software Consumption Preferences

Figure 35 – Drone Flight Logging and Operations Software Market Share

Figure 36 – Problems with Flight Logging and Operations Software

Figure 37 – Drone Automated Mission Planning Software Market Share

Figure 38 – Problems with Automated Mission Planning Software

Figure 39 – Drone Data / Image / Video Processing Software Market Share

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 14

Figure 40 – Problems with Data, Image, and Video Processing Software

COMPARISON TABLES

Table 1 – Top Drone Brands Costing Less Than $1,000

Table 2 – Top Drone Brands Costing $1,000–$1,999

Table 3 – Top Drone Brands Costing More Than $2,000

Table 4 – Changes in Place of Purchase, 2017 vs. 2016

Table 5 – Commercial Use Yearly Comparison

Table 6 – Hobby vs. Professional Use by Price Range

Table 7 – Change in Professional Use by Price Range

Table 8 – Average Number of Employees by Company Size

Table 9 – Top 10 Drone Services Making Over $100K/Year

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 15

ABOUT SKYLOGIC RESEARCH

Skylogic Research, LLC is a research, content, and advisory services firm supporting all participants in the

commercial unmanned aircraft systems (UAS) industry. We help you make critical investment decisions

with confidence by providing research-based insights on the commercial drone markets. Drone Analyst®

is the registered trademark and the brand name for Skylogic Research.

Copyright © 2017 Skylogic Research, LLC

v170914

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 16

APPENDIX: QUESTIONS

ABOUT YOU

Q1. First, please tell us a little about your role in buying or using drones or drone software. (check all

that apply)

Small drone hobbyist / enthusiast

Employee, owner, or principal of a business that offers drone-based services

Employee, owner, or principal of a business that uses drone-based services

Researcher / educator

State or local government agency official or employee

Certified FAA Part 107 Remote Pilot– Small Unmanned Aircraft Systems Airman

Certified UAV/UAS/RPAS unmanned pilot (other than U.S.)

Licensed manned aircraft pilot (any level)

Lawyer

Consultant (operation, engineer/hardware, software, marketing)

Drone aircraft manufacturer

Dealer / distributor

Q2. In what country do you currently reside?

United States

Australia

Canada

China

France

Germany

India

Japan

United Kingdom

Other country (please specify country)

Q3. My age is:

15 or under

16 - 31

32 - 51

52 - 65

66 or older

Q4. Which best describes the industry sector in which you currently work? (choose the one best answer)

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 17

AEC (Architecture, Engineering, Construction)

Aerospace / Aviation (including drone service providers)

Agriculture (including farming and ranching)

Automotive (manufacturer, sales, and service)

Cinematography

Civil Infrastructure (highways, bridges, tunnels, etc.)

Communications / Datacom / Telecom / ISP

Computers / Peripherals / Devices

Community based organization

Consulting

Consumer Goods

Education

Facilities Management

Finance / Accounting

Government / Defense

Healthcare / Medical / Hospital / Pharmaceutical

Insurance

Journalism

Legal

Media

Mining or Aggregates

Manufacturing

Non-profit

Oil & Gas Production / Distribution

Photography / Videography

Power Generation

Public Safety / First Responder (Law Enforcement / Security / Fire / Search & Rescue)

Real Estate (commercial and residential)

Retail / Wholesale / e-Commerce

Sports or Recreation

Surveying & Mapping (including GIS services)

Transportation / Logistics (including warehousing and delivery)

Utilities (distribution & transmission)

Other industry sector (please specify)

DRONE PURCHASES

Q5. Have you or your organization purchased a drone in the past 12 months?

Yes

No

Q6. What type of drone did you or your organization purchase? (choose best answer)

Fixed wing

Multirotor

Hybrid (both)

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 18

Q7. What brand was it?

3D Robotics

Aerialtronics

AeroVironment

Aeryon Labs

AgEagle

Aibotix (Leica Geosystems)

Altavian

Autel

Blade

Boeing / Insitu

Delair-Tech

DJI

Draganfly

EHANG

Event 38

FreeFly Systems

Hubsan

Intel / AscTech

Microdrones

Mikrokopter

Parrot

PrecisionHawk

SenseFly

Syma

Topcon

Trimble

Walkera

Yuneec

Zerotech

Custom / DIY

Other (please specify)

Q8. What was the price (in USD) for the most recent drone you or your organization purchased?

Less than $500

$501 - $999

$1,000 - $1,999

$2,000 - $3,999

$4,000 - $7,499

$7,500 - $34,999

$35,000 - $99,999

More than $100,000

Q9. Where did you or your organization obtain it? (Choose best answer)

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 19

Directly from the manufacturer

Amazon

eBay

Apple store

Dedicated drone dealer/distributor (like Drone Depot, Multicopter Warehouse, Aerial Media Pros,

Quadrocopter, etc.)

General Hobby store (online or retailer)

Camera / Video retailer (like Adorama, B&H Photo-Video, Sammy’s Camera, etc.)

Action sports / outdoor retailer

Big box electronics retailer (like Best Buy, Fry’s, etc.)

General Merchandise big box retailer (like Walmart, Costco, Target, Sam’s Club, etc.)

Vertical market reseller (like a heavy equipment dealer, farm equipment dealer, survey equipment

supplier, etc.)

Other (please specify)

Q10. What was the primary intended use for your most recent drone purchase? (choose the one best

answer)

Academic research

Agriculture / farming

Asset or infrastructure inspection and monitoring

Cinematography

Commercial photography and/or video

Construction or building design

Drone racing

Delivery / Logistics

Education / Training

Hobby / Recreation (no camera)

Hobby photography and/or video

Insurance, forensics, documentation

Law enforcement, fire, emergency response, search and rescue

Mining / Aggregates

Newsgathering and reporting

Real Estate (commercial and/or residential)

Surveying and terrain mapping

Testing / R&D

Turf or golf course management

Wildlife monitoring and preservation

Other activity (please specify)

Q11. What best describes the camera or sensor your drone came with? (choose best answer)

It was fully integrated as part of the drone

It was a separate or add-on purchase with pre-integration options

It was a separate purchase, but I/we had to integrate it ourselves

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 20

Does not apply

Q12. What brand of camera or sensor did you purchase or came with your most recent drone? (check

all that apply)

OEM (same as the drone brand)

Canon

FLIR

Fuji

GoPro

Hasselblad

MicaSense

Nikon

Olympus

Panasonic

Pentax

Ricoh

Sentera

Slantrange

Sony

Tetracam

Other (please specify)

SERVICE PROVIDERS

Q13. Do you or your company offer drone-based imaging or sensing services for outside hire?

Yes

No

Q14. Tell us about your drone-based imaging or sensing services business.

How long have you been offering drone-based services?

Never

Less than one year

2 to 3 years

3 to 5 years

More than 5 years

Q15. On average, how many individual drone-based imaging or sensing projects do you or your

company perform a month?

1-5

6-9

10-24

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 21

25 or more

Q16. What are the primary and secondary commercial product or services that you offer? (you can

choose only one primary)

Aerial Photography and/or Video

Agriculture / Farming Services

Cinematography / Movie / TV

Conservation - Land / Wildlife

Construction (design, building, inspection or monitoring)

Consulting

Data Aggregation or Analytic Services

Education and Training

Environmental / Meteorology

First Responder Service (Police, Fire, or Medical)

Forensics (accident or insurance)

Surveying / Mapping / Topography / Geospatial / Photogrammetry

Mining or Aggregate Operations

Newsgathering and reporting

Oil & Gas Facilities Inspection

Product Delivery

Public Asset and Infrastructure Management

Real Estate (commercial and/or residential)

Scientific Research

Search and Rescue

Turf / Golf Course Management

Utilities infrastructure inspection or monitoring

Other (please specify)

Matrix

Primary

Secondary

Secondary

Secondary

Q17. What was your company’s revenue last year from commercial drone operations?

None

Under $50,000

Between $50,001 and $100,000

Between $100,001 and $500,000

Between $500,001 and $1,000,000

Between $1 million and $10 million

Over $10 million

Not sure

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 22

Q18. How many full-time employees (including yourself) in your business support drone-based services?

None

I am the only full-time employee

2-5 full-time employees

6-10 full-time employees

11-25 full-time employees

25 or more full-time employees

Q19. How many part-time employees or contractors support your business?

None

I am the only part-time employee

2-5 part-time employees or contractors

6-10 part-time employees or contractors

11-25 part-time employees or contractors

25 or more part-time employees or contractors

Q20. How many aviation authority, licensed small UAS / UAV remote pilots does your business currently

employ?

None – we contract with outside pilots

1

2-5

6-9

10 or more

Q21. What has been (or would be) the preferred way for your pilots to learn safe operations of small

UAS / UAV? (choose one best answer)

I train them

Self-training / online courses

2-hour lesson, 1:1 with a professional

Full-day class in a group (mixed learning and flying)

Week-long intensive course specific to my industry

Q22. What information does your company provide to clients and how do you deliver it? (check all that

apply)

Customer-specified reports

Our standard reports

Image files

Data analytic files

Other (please specify)

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 23

<Matrix>

Printed (hand delivered)

Sent via email

Delivered on USB flash drive

Sent via file hosting service (Box, Dropbox, etc.)

As a link to it in cloud-based software

Q23. To support our drone-based service, my firm in the next year expects to hire:

None

At least 1 full-time employee

2-5 full-time employees

6-10 full-time employees

11 or more full-time employees

We expect to lay off at least one or more full-time employees

Not sure

Q24. What issues do you feel are inhibiting further business growth right now? (check all that apply)

Difficulty getting operational waivers and airspace clearances

Regulations restricting beyond visual line of sight (BVLOS) operations

State and local restrictions on flight locations

Limited working capital

Difficulty finding qualified pilots

Difficulty getting safety or industry specific training

Public privacy and safety concerns

Slow adoption by our target industries

None / does not apply

Other (please specify)

BUSINESS USERS

Q25. Do you or your company use or purchase drone-based imaging or sensing services as part of your

company’s internal work or projects?

Yes, we either do that work ourselves or contract out for it

No, my company provides drone-based services to other companies or individuals

No, neither

Q26. What commercial drone-based service do you use? (check all that apply)

Aerial Photography and/or Video

Agriculture / Farming Services

Cinematography / Movie / TV

Conservation - Land / Wildlife

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 24

Construction (design, building, inspection or monitoring)

Consulting

Data Aggregation or Analytic Services

Education and Training

Environmental / Meteorology

First Responder Service (Police, Fire, or Medical)

Forensics (accident or insurance)

Surveying / Mapping / Topography / Geospatial / Photogrammetry

Mining or Aggregate Operations

Newsgathering and reporting

Oil & Gas Facilities Inspection

Product Delivery

Public Asset and Infrastructure Management

Real Estate (commercial or residential)

Scientific Research

Search and Rescue

Turf / Golf Course Management

Utilities infrastructure inspection or monitoring

Other (please specify)

Q27. Are the drone-based services you use performed by in-house employees or outsourced to

contractors?

In-house employees

Outsourced to contractors

A mix of both

Q28. Which department has primary responsibility for managing drone operations or contracted

services? (choose best answer)

Accounting and Finance

Aviation Services

Engineering

Human Resources

Information Technology

Marketing and Sales

GIS / Surveying / Imagery Service

Legal

Maintenance

Operations / Production

Purchasing

Quality Assurance

Research

Other (please specify)

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 25

Q29. On average, how many individual drone-based imaging or sensing projects do you perform or

acquire per month?

None

1-5

6-9

10-24

25 or more

Q30. What was your company’s revenue last year?

Under $5 million

Between $5 million and $10 million

Between $10 million and $1 billion

Over $1 billion

Not sure

Q31. How many aviation authority, licensed pilots does your company employ who are dedicated to

operate UAS / UAVs?

None – we contract with outside pilots

1

2-5

6-9

10 or more

Q32. If your company performs its own services, how do you acquire the drones you use?

We purchase them outright

We lease or rent them

We lease or rent them as part of a combined aircraft / software solution

Don’t know

Does not apply

SOFTWARE SERVICES

Q33. Do you or your company use software apps or online services to manage drone operations, plan

missions, or process data from drones?

Yes

No

Q34. Which software app or software service do you use most to log flights manage drone operations?

Airmap

Airware / Redbird

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 26

B4UFLY

DJI GO / DJI GO4 / DJI GS Pro

Drone Complier / Drone Logger / RPAS Logger

Drone Data Management System (Event 38)

DroneDeploy

DroneLogbook

Flyte

HoVER

Kittyhawk

Leidos

Litchi / Airdata UAV

NVdrones

Skyward

UASidekick

VirtualAirBoss

None

Not sure

Other (please specify)

Q35. What problems have you had this software? (check all that apply)

Accuracy of no-fly zones

Frequency of version updates

Lack of integration to mission planning software

Lack of TFR / NOTAM data

Performance off-line or in remote locations

Scalability for multiple pilots or missions

User interface / user friendliness

Vendor support

None

Other (please specify)

Q36. Which software app or online service do you use most for automated mission planning?

3DR Site Scan

Aerotas

Aibotix AiProFlight

Airware / Redbird

APM / ArduPilot Mission Planner

Datumate

DJI GO / GO 4 / GS Pro

DJI PC Ground Station

Drone Data Management System™ (Event38)

DroneDeploy

Hangar Autopilot (Auto Flight Logic)

Hivemapper

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 27

Kespry

Kittyhawk

Litchi

Map Pilot (Maps Made Easy)

Pix4D

PrecisionFlight (PrecisionHawk)

PrecisionViewer (PrecisionHawk)

Propeller

Sentera

SenseFly eMotion

Skycatch Commander

Sky-Futures Expanse

Slantrange

UgCS

None

Not sure

Other (please specify)

Q37. What problems have you had with this software? (check all that apply)

Accuracy of no-fly zones

Accuracy of planning map to actual GPS coordinates

Frequency of version updates

Image overlaps

Indications of aircraft in or near the mission area

Integration of TFR / NOTAM data

Integration with camera or sensor controls

Integration with flight or stick controls

Large maps / multiple flights

Performance off-line or in remote locations

Real-time flight monitoring

Return to home

Terrain height clearance

User interface / user friendliness

Vendor support

Waypoint / home point flexibility

None

Other (please specify)

Q38. Which software app or software service do you use most to process data, images, or video?

3DR Site Scan

4DMapper

Adobe (Lightroom, Photoshop, Premiere, etc.)

Aerotas

Agisoft

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 28

AgVault (Sentera)

AirGon

Airware / Redbird

Apple (iPhoto, iMovie, Final Cut Pro, etc.)

Bentley Systems

Datumate

DJI GO / Skypixel

DJI PC Ground Station

Drone Data Management System™ (Event38)

Drone2Map for ArcGIS

DroneCloud

DroneDeploy

DroneMapper

Dronifi

FarmLense (Agribotix)

Forge (Autodesk)

FarmSolutions

Hangar

Hivemapper

Kespry

Maps Made Easy

Pix4D

PrecisionMapper (PrecisionHawk)

PrecisionViewer (PrecisionHawk)

Propeller

Skycatch Commander

Sky-Futures Expanse

SimActive

Topcon

Trimble InSphere

None

Not sure

Other (please specify)

Q39. What problems have you had with this software? (check all that apply)

Composite image accuracy

Data upload process

Image security for users or customers

Integration with the other downstream software

NDVI accuracy

Not enough analytics

Reporting functions

Software crashes

Speed of processing

User interface / user friendliness

2017 DRONE MARKET SECTOR REPORT PROSPECTUS | © 2017 Skylogic Research, LLC | pg. 29

None

Other (please specify)

Q40. What is your company’s preferred way to pay for the software you use? (choose best answer)

Monthly license

Yearly license

Purchase outright

We use only free software

END SECTION

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