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COMMERCIAL DRONE ADOPTION

An overview of where we are today and expected evolution

January 2019

IPSOS PEEL HONG KONG

2019-07-03

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Intel Drone Light ShowsWorld record for most drones flown simultaneously – 1,500

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Nano Drones - Black Hornet

Length 16 cmRotor span 12.3 cmLess than 33 gramsMaximum speed 6 m/sEndurance up to 25 minutesThermal camerasRange – 2 km digital datalinkGPS guidedLive video

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While drones are on their way to becoming mainstream, legislation and infrastructure are critical bottlenecks

COMMERCIAL DRONE ADOPTION DEVELOPMENT

Photo / Video

Sports

Real Estate

Construction

Cinematography

Structural Inspection

Surveying

Precision Agriculture

Mapping / Imaging

First Responders

VLOS BVLOS

Search and Rescue

Package Delivery

Linear Inspection

Fish and Game

Border Patrol

Surveillance

Dusting / Spraying / Seeding

Current Environment Future Potential

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3.2

10.45

2.6

13.55

2017 2018 2019f 2020f 2021f

Global Commercial Drone Market Value

Global Commercial Drone Data Services and Analytics Market Value

Global commercial drone data and analytics market value will surpass the drone hardware market value in 2019

GLOBAL COMMERCIAL DRONE MARKET VALUE

USD Billions

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Asia Pacific will witness the highest growth compared to other continents and be the 2nd largest market by 2021

GLOBAL COMMERCIAL DRONE MARKET VALUE

2017 2021f

North America APAC Europe Rest of World

40%

29%

20%

11%

North America APAC Europe Rest of World

CAGR2017-2021

32%

34%

36%

33%

Market Share 2021

Sources: Technavio, Grand View Research, BIS Research, DRONEII, Ipsos Business Consulting Analysis

CAGR

34%

3.2

USD Billions

10.5

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B2B segments will overtake the consumer segment as the largest segments in the mid-term

GLOBAL COMMERCIAL DRONE END-USER SEGMENT MARKET SHARE

Sources: Technavio, Grand View Research, BIS Research, DRONEII, Ipsos Business Consulting Analysis

31%

24%17%

9%

5%

4%

4%3%

2% 1%

Hobbyist

Infrastructure

Agriculture

Oil and Gas

Media and Entertainment

Mining

Telecommunication

Transport

Insurance

Environmental

Market Share 2021

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At CAGR 55% Asia Pacific will enjoy the highest growth in in data services and analytics

GLOBAL COMMERCIAL DRONE DATA SERVICES AND ANALYTICS MARKET VALUE

2017 2021f

North America APAC Europe Rest of World

39%

20%

33%

8%

North America APAC Europe Rest of World

CAGR2017-2021

47%

51%

55%

49%

Market Share 2021

Sources: Technavio, Grand View Research, BIS Research, DRONEII, Ipsos Business Consulting Analysis

2.6

13.5

USD BillionsCAGR

52%

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Construction and agriculture are the dominant segments for data services and analytics

GLOBAL COMMERCIAL DRONE DATA SERVICES AND ANALYTICS END-USER SEGMENT MARKET SHARE

35%

30%

18%

6%

5%6%

Construction

Agriculture

Utility

Mining

Real Estate

Others

Market Share 2021

Sources: Technavio, Grand View Research, BIS Research, DRONEII, Ipsos Business Consulting Analysis

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People’s Insurance Company of China (PICC), ChinaCASE STUDY: AUTO-INSURANCE

• The 2015 Tianjin chemical explosions left a 100 meter explosion crater in warehouse and storage area

• PICC used drones and satellite imaging to determine number of vehicles destroyed and total losses for Volkswagen in the 2015 Tianjin chemical explosions

• Drones were cost effective, provided high resolution imagery, and could avoid visual obstruction to perform loss assessments

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EVOLUTION BEYOND 2021

VLOS BVLOS

Current Environment Evolution

Autonomous BVLOS

Source: Airbus

Aircraft will talk to different digital systems which will coordinate with each other

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EVOLUTION BEYOND 2021 DELIVERY ON DEMAND

Solving the scalability problem - Scalability is the critical barrier for the drone economy

Humans In the Loop

One pilot per drone → 1:1

Humans Off the Loop

One human for multiple drones – one to many → 1:50 max

Companies with UAV Pilot Programs

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Source: Airbus

EVOLUTION BEYOND 2021 URBAN AIR MOBILITY

Source: Volocopter

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About the SpeakerAs Head of Hong Kong, Markus is responsible for leading and managing research and consulting projects in Hong Kong, across China as well as other countries in Asia Pacific. These studies cover market and competitor analysis, full market entry strategy development, industry benchmarking analysis and best practices development.

Markus leads the Ipsos Business Consulting Drone Center of Excellence which focuses on mapping out the drone manufacturing value chain and understanding the impact of drone adoption across industries.

Markus is also an Adviser to the Board of Directors of PericulumLabs, a start-up from Canada which is pioneering advanced artificial intelligence technologies enabling organizations to optimize complex and high-risk decision-making. Periculum Lab’s core focus is the decision intelligence for the operation and management of autonomous drone fleets.

Markus SCHERER Drone Center of Excellence – Lead

markus.scherer@ipsos.com+852 2839 0647

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THAILAND

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