Objectives Survey: determine buyers
purchasing experience and
preferences
• where and how do buyers purchase
their drones (e.g., online or in a
store)?
the intended drone use--for hobby or
racing or photography purposes, or
for their employer?
• what matters most about the
purchase (e.g., price, availability of
accessories, or service)?
• the most popular drone brands by
price point
Study: Get the most
comprehensive view of
drone distribution and sales
• U.S. market size for all drones and
growth projections by segment (cost
of drones, commercial activity, etc.)
• brand market share
• types of reseller outfits and the
roles they play
• the extent of big-box store
penetration (what they carry, how
many SKUs, etc.)
• the major drone distributors (who
they are, what they carry, how many,
major customers, customers by
industry segment)
• the retail outlets carrying drones

Study Interviews Retail canvasing

Survey 13-questions on buyers purchasing experience and
preferences
Large sample size means the
statistics are very reliable!
Confidence level: 95%
Confidence interval: ±3.5%
Valid for a population of 5 million
March2016
783qualifiedrespondents

Sample data

Channel The market for drones of all kinds has exploded, leading to a wide
range of reselling strategies:
• Manufacturers selling direct
• Those selling through drone-specific online and bricks-and-mortar
stores
• Distribution through hobby, photo, and broad Big-Box consumer
outlets
We estimate the total universe for drone distribution through retail
(online or bricks and mortar) in North America at this point in time
to be just under 35,000 locations.
Drone distribution is
fragmented and
disorganized, but is
maturing.
insight
ONE

Big store brand penetration
NUMBER OF BRANDS CARRIED BY MAJOR RETAILER
47
21
13 12
5 5
3
1
0
5
10
15
20
25
30
35
40
45
50
Walmart Best Buy Target Fry's Cabela's Dick's BJ's REI
Source: BZ Media and Skylogic Research
Brand # of Retailers
DJI 7
3DR 6
AEE 6
Yuneec 6
Cheerson 3
Estes 3
Odyssey 3
Parrot 3
Syma 3
Walkera 2
Ten Most Prominent Brands in Retail
Source: BZ Media and Skylogic Research

Buyers
Source: Skylogic Research
73%
15%
81%
had a positive buying
experience.
Only 3% said it was
negative.
use a mobiledevice
when purchasing drones
online.
purchase drones online.
The rest in-person.
The vast majority of
drones are purchased
online
insight
THREE

Purchasing trends
5%
1%
1%
1%
2%
4%
7%
18%
24%
38%
5%
1%
2%
2%
4%
5%
11%
19%
26%
26%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Other (DIY, used, etc.)
Action sports / outdoor retailer
General merchandise big box retailer
Vertical market reseller
General camera / audio / video retailer
Big Box electronics retailer
General hobby store
Amazon or eBay
Directly from manufacturer
Dedicated drone dealer/distributor
Past Future
n = 640
Qs. Where did you buy / where will you buy your next drone?
83%purchasedinlast18months

Price points Q. What was the price of your last drone purchase?
17%
13%
34%
18%
9%
7%
2%
1%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Less than $500
$500 - $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
n = 650
More than half of all
buyers purchase drones
costing between $1,000
and $4,000
insight
SEVEN

Most popular brands Q. What was the brand of your last drone purchase?
50%
7%
4%
3%
3%
2%
2%
2%
2%
4%
20%
DJI
3D Robotics
Yuneec
Blade
Parrot
Event 38
Hubsan
FreeFly Systems
Syma
Custom
Others (<2%)
n = 647
DJI’s overall market
share in North America is
about 50 percent—not 70
percent as popularly
described. So there is a
substantial population
willing to buy other
brands at various price
points.
insight
SEVEN

Intended use (detail) Q. What was the primary intended use?
29%
23%
10%
8%
7%
4%
4%
4%
3%
2%
2%
5% Hobby photo / video
Commercial photo / video
Survey and mapping
Inspection / monitoring
Hobby / recreation (no camera)
Precision agriculture
Academic research
Cinematography
Drone racing
First responder
Testing and R&D
Other
n = 640
More than half of all
buyers purchase drones
to take photos or shoot
video
insight
FOUR

Seller services Q. What seller services matter most when purchasing a drone?
0.9
1.52
1.64
1.68
2.08
2.19
2.32
2.33
2.39
2.44
2.47
2.57
0 0.5 1 1.5 2 2.5 3
Financing
Custom builds
Availability of extended warranties
Hands-on training
Repair services
Ready-to-fly bundles
Order delivery speed
No-hassle returns
Knowledgeable salespeople
Customer service reputation
Availability of accessories
Availability of repair parts
n = 760
Anything above 2.0 (the red
line) is considered ‘important’
to most buyers.
Anything below that is
considered somewhat or not
important to the buyer.

Most popular accessories Q. What accessories were purchased for the most recent drone acquisition?
10%
8%
11%
13%
17%
23%
24%
25%
35%
36%
46%
46%
71%
85%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other (various)
Swag
FPV goggles
Landing gear
Action camera
Propeller guards
RC transmitter or receiver
Lens filters
Charging unit
Spare parts
Micro SD Cards
Carrying case / backpack
Extra propellers
Extra batteries
n = 645
Source: Skylogic Research, LLC

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37pages
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About Skylogic Research, LLC is a research, content, and advisory firm
supporting all participants in the commercial unmanned aircraft systems
(UAS) industry.
We provide research-based insights needed to make critical investment decisions with
confidence.
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
80,000 business executives and innovators through social media and media
partnerships, allows Skylogic Research, LLC to deliver a high-value, low-risk method for
achieving optimal understanding.
Drone Analyst is the brand name and trademark of Skylogic Research, LLC
Learn more:
Web http://droneanalyst.com
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Email colin@droneanalyst.com

©2016SkylogicResearch,LLC.
Allrightsreserved.
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logos are trademarks of Skylogic Research, LLC.
These materials are provided by Skylogic Research are for informational purposes
only, without representation or warranty of any kind, and Skylogic Research shall
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In particular, Skylogic Research has no obligation to pursue any course of
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