This presentation gives an overview of a report on current state of the U.S. commercial drone industry which analyzes the business impact and market opportunities that the proposed rules have for manufacturers, distributors, service providers, and investors. The presentation answers the following questions: • Are UAS really an economic game changer? • What are the proposed FAA rules and what do they mean for businesses? • Where are the biggest opportunities for commercial UAS • What can we expect in the future?

1. 1|Copyright 2016 – Skylogic Research, LLC
COMMERCIAL
DRONES:
CURRENT STATE
OF THE INDUSTRY
Summary of
New Research
Report
UPDATED:
September 15, 2016

2. 2|Copyright 2016 – Skylogic Research, LLC
Introduction Worldwide commercial unmanned aircraft systems (UAS)
are emerging as a competitive technology in a number of
data collection scenarios. But in the U.S., the industry is
still struggling to get off the ground more than four years
after The FAA Modernization and Reform Act of 2012.
The Act was widely expected to result in tens of
thousands of commercial drones being licensed to fly
over U.S. airspace. So far it has produced only a few
under restricted use.
However, with the advent this year of the FAA’s new Part
107 rules on small UAS, the industry stands poised for
rapid business adoption. This report gives an overview of
the current state of the U.S. commercial drone industry
and analyzes the business impact and market
opportunities that the current rules have for
manufacturers, distributors, service providers, and
investors.
This report answers the
following questions:
In what applications and markets
are UAS a potential economic
game changer?
What are the new FAA rules and
what do they mean for
businesses?
Where are the biggest
opportunities and challenges for
commercial UAS?
What can we expect in the future?

3. 3|Copyright 2016 – Skylogic Research, LLC
Report topics Commercial Drones
Applications and Markets
Forecasts and Investment
Ecosystem
Regulatory Environment
Commercial Use Statistics
Impact By Market / Challenges and
Opportunities
Innovations and Incubators

4. 4|Copyright 2016 – Skylogic Research, LLC
What’s in the report? A primer on commercial drones that discusses common terminology
and the distinctive nature of commercial drones as aircraft systems and
Internet of Things devices.
An outline of the growing number of commercial applications for
drones, with categorization into major market segments for easier
consumption and further analysis. We discuss the growing interest in
commercial drones, what forecasters say about future demand, and
what investors are banking on.
An overview of the industry’s flourishing ecosystem of businesses that
support commercial drone activity. We present a few of the most
prominent firms and companies that provide legal services, insurance,
flight readiness applications, and training.
A detailed discussion of the fluid state of FAA restrictions on
commercial UAS operations in the U.S – including the FAA’s
proposed rules for small UAS. We also discuss the growing complexity
of state and local issues, the current state of private sentiment and legal
concerns, and the impact of current FAA rules. It shows that some
markets are winners, but some are bigger winners than others. We
report on the important details and determine the success factors in
each market.
Statistics on commercial drone use. We compare the number of
drone operators by country, the manufacturers who have the most
aircraft in U.S. commercial operations, and which market segments are
shaping up to be the biggest.

5. 5|Copyright 2016 – Skylogic Research, LLC
Sample
content

6. 6|Copyright 2016 – Skylogic Research, LLC
Alphabet Soup Unmanned Aerial Vehicle (UAV) - legacy
Unmanned Aircraft System (UAS) - FAA
Remotely Piloted Aircraft System (RPAS) - EU
Drone – public
Simply put…a vehicle that navigates in the air from
point A to point B that is remotely controlled or flown
autonomously and shares what it ‘sees’ with humans
on the ground or other machines.

7. 7|Copyright 2016 – Skylogic Research, LLC
Hobby
Open-source
Mass produced
Cheap
Commercial applications
IoT device
Extensible
High ROI
Specialized use
Proprietary
Custom made
Expensive
Anew kind of drone

8. 8|Copyright 2016 – Skylogic Research, LLC
Aerial Photography Pipe/Power Line Inspection
Real-estate Surveillance
Mapping Stockpile Measurement
3D Imaging Mail / Freight Transport
Rail Monitoring Agricultural
Disaster Response/Relief Movie Productions
Damage Assessment Sporting Event Coverage
Infrastructure Monitoring Flare Stack Inspection
Inventory Management Construction Reporting
Application breadth

9. 9|Copyright 2016 – Skylogic Research, LLC
Investment activity
1.8 1.2
7
55
107
450
1
2
2
13
29
74
-5
5
15
25
35
45
55
65
75
0
50
100
150
200
250
300
350
400
450
500
2010 2011 2012 2013 2014 2015
Dollars ($)M Deals Source: CB Insights and Skylogic Research

10. 10|Copyright 2016 – Skylogic Research, LLC
Drone sales
128
450
1100
2900
0
500
1000
1500
2000
2500
3000
3500
2013 2014 2015 2016
U.S. Consumer Drones Unit Sales (in 000s)
Actual Projected Source: CES

11. 11|Copyright 2016 – Skylogic Research, LLC
51%
22%
14%
6%
4% 2%
Film / Photo / Video
Inspection / Monitoring
Mapping / Surveying
Precision Agriculture
Public Safety / First Responders
Other
Commercial market
segments
Source: FAA and Skylogic Research

12. 12|Copyright 2016 – Skylogic Research, LLC
Regulatory
environment
FAA Modernization and Reform Act 2012
COA vs Experimental Cert vs Section 333 Exemptions
Six UAS Test Sites
Notice of Proposed Rulemaking (NPRM)
FAA Part 107 rule
Congressional proposals
Federal privacy acts
State legislation
Local restrictions

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395
404
1005
1360
1672
2200
11424
0 2000 4000 6000 8000 10000 12000 14000
Sweden
Australia
Spain
U.K.
Canada
France
U.S.
LEGAL UNDERGROUND
Commercial drone
operators
* U.S. as of 9/15/2016 | Source: FAA, Skylogic Research
~1800

14. 14|Copyright 2016 – Skylogic Research, LLC
What’s the impact of
the new rule on the
major market
segments?
1. Precision Agriculture
2. Inspection / Monitoring
3. Mapping / Surveying
4. Film / Photo / Video
5. Public Safety / First Responders

15. 15|Copyright 2016 – Skylogic Research, LLC
Purchase Get comprehensive data and analysis
Purchase Complete Report
$495 - Single User PDF
$795 - Site License PDF
$995 - Enterprise License PDF
http://droneanalyst.com/purchase-research/
34pages
12figures
4data tables

16. 16|Copyright 2016 – Skylogic Research, LLC
About Skylogic Research, LLC is a research, content, and advisory
services firm supporting all participants in the commercial
unmanned aircraft systems (UAS) industry.
We help companies make critical investment decisions with
confidence by providing research-based insights on the
commercial drone markets.
Our focus is on the needs of three constituents:
• Manufacturers, suppliers, and business service providers – who
need research and insight into buyer needs
• Buyers of UAS technology and services – to help inform their
acquisition decisions
• Investors – who need to distinguish technical and market viability
This focus, plus research as a foundation and reach into a community of
more than 90,000 business executives and innovators through social
media and media partnerships, allows us to deliver a high-value, low-
risk method for achieving optimal understanding.
Drone Analyst® is the registered trademark and brand name and
trademark of Skylogic Research, LLC
Learn more:
Web http://droneanalyst.com
Twitter @droneanalyst
Email colin@droneanalyst.com

17. 17|Copyright 2016 – Skylogic Research, LLC
Why Skylogic
Research?
Deep industry and UAS
technology experience
Research as the
foundation for insights
Understands both buyers
and sellers of UAS
technology
Proven media and
publishing experience
Objectives driven
Pragmatic enthusiasts
Client partnership
SkylogicResearch,LLCandour
advisorsreachintoacommunityof
morethan90,000businessexecutives
andinnovatorsthroughsocialmedia
andmediapartnerships
@droneanalysthasover
18,600Twitterfollowers

18. 18|Copyright 2016 – Skylogic Research, LLC
Testimonies
“Yet another stellar report. Dense with information,
cuts to the chase, fiercely independent and unafraid
to tackle status quos.” - DIY Drones commenter
“I can't thank you enough for your insights on commercial drone services.
Your analysis keep my decisions on track and over the last 20 months, this
industry changes rapidly, I have noticed you being "dead on“ - - Commercial
Drone Service Provider

19. 19|Copyright 2016 – Skylogic Research, LLC
Management
Colin Snow, CEO and Founder
25-year technology industry veteran
with a background in manufacturing,
electronics, digital imaging, field
service, software, research, and
mobility.
Colin served as a marketing and
operations manager at Olympus
Corporation, Oracle / PeopleSoft,
Steelwedge Software, and SAP. As an
industry analyst at Ventana Research,
he covered a range of topics including
supply chain management, operational
performance, and product information
management.
Colin holds an M.B.A. from Florida
Atlantic University and is a member of
the major UAS industry groups
including AUVSI, RCAPA, and AMA.
Full bio here.
Charlotte Ziems, Chief Content Officer
25 years of experience in publishing,
business management, market
research, and content marketing.
Charlotte served as vice president of
InfoWorld’s Test Center, founded
InfoWorld Consulting Services, and
held executive editorial positions at
publications including Computerworld,
PC Resource, PC/Computing, PC
Week, and Computer Shopper.
Charlotte holds a B.A. in English from
the University of Virginia and is an avid
equestrian, gardener, and drone
enthusiast.
Deeptechnologyandmarketingexperience

20. 20|Copyright 2016 – Skylogic Research, LLC
Contributor /
Advisors
Steve Maller, founder of
Mallermedia, is a professional
photographer and videographer
providing expertise in increasingly
complex and capable aerial
camera platforms for the film /
photo / video market.
Jonathan Rupprecht is a drone
attorney and a commercial pilot
currently practicing drone law in
South Florida at his firm
Rupprecht Law, P.A.
Chad Colby is founder and
principal of Colby AgTech and is
the industry-leading advocate for
the use of unmanned aerial
systems in agriculture.
Bill McNeil has over 25 years’
experience developing and
marketing GIS applications and is
an expert in UAVs for mapping
and surveying.
These independent
professionals join other
Skylogic Research team
members and contractors who
lend their proficiency and
assistance to provide industry
insights, thought leadership
content, research, and
consulting.

21. 21|Copyright 2016 – Skylogic Research, LLC
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