#060 – 2017 Drone Market Trends And Analysis with Colin Snow

In Podcast by Ian Smith

2017 was a banner year for the drone industry. While the drone market as a whole grew, plenty of assumptions were proven false. Colin Snow, The Drone Analyst, is CEO of Skylogic Research, who recently released an 88-page report titled, “2017 Drone Market Sector Report“.

Colin’s report shows proves things that we already knew, like DJI having 72% global market share on drone sales, but also shows surprising developments, like the vast majority of all people (68%) who purchase drones above 250 grams intend to use those drones for some kind of professional (commercial) use. Ian and Colin discuss these facts and much more from the latest Skylogic Research report.

You can follow Colin Snow on Twitter and get some of his quick takes on the drone industry at, @DroneAnalyst.

Ian Smith: [00:00:16] Coming from Drone World Expo in San Jose California. And now I’m sitting with Collins Snow who some of you might remember is the CEO and founder of Sky Logic research. He’s also known as the drone analyst and it’s always a pleasure to have you on the show. Colin I’m saying this like you’ve been on multiple times but this is the second time you’ve been on the show and it’s been 11 months since that last time and that was episode number 25 and we’re already up and probably when this airs it’ll probably be in the 60s of episodes so thanks so much for coming back and joining.

Colin Snow: [00:00:49] Yeah. Thank you for having me. Appreciate it. It’s always a pleasure and I love listening to you to your podcast.

Ian Smith: [00:00:53] Well thank you so much. Yeah it’s come a long way since then. Lots more downloads and listeners etc..

Ian Smith: [00:01:00] So yeah we’re here at Drone World Expo and Sky Logic your company Sky Logic Research just released a brand new report on the commercial drone industry and it’s titled The 2017 drone market sector report.

Ian Smith: [00:01:16] So tell us a little about this Colin, what are we looking at here.

Colin Snow: [00:01:20] So this is the result of a three month study we did looking at four parts of the drone industry we looked at drone purchases. We looked at service providers. We looked at business users those in industry who use drones and then software services. So we were looking to figure out who’s buying drones for what types of purposes from which makers at what prices we want to know how large are the drone based service providers and how and where are they positioning themselves and which target industries and are they making money. And if so which ones are and which ones aren’t we want to know about business users and their drone based projects and which industries have tractions and which ones are sort of lagging. And then we want to know as much as we could from both service providers and the business users about their software use.

Ian Smith: [00:02:18] And this is a pretty comprehensive report.

Ian Smith: [00:02:20] It’s how many pages roughly 88 pages 40 figures and tables. Yeah. No it’s a big research report.

Ian Smith: [00:02:28] This is the good stuff guys. Okay.

Ian Smith: [00:02:31] So yeah I completely and I think the industry admires everything that you do with sky logic and the time and effort you guys put into this. I’ve talked to you previously.

Ian Smith: [00:02:43] Actually I think we talked about this in the last podcast but just so the audience knows like what. So we’re going to talk probably about a lot of figures and statistics that are coming from real people who took this you know real drone industry people depending on the category that they fall under. But what is the methodology I guess of the respondents like how many how many responses sometimes I mean I know you’re dealing with a lot of information here right.

Colin Snow: [00:03:09] Yeah that matters. So we we our online survey garnered about over 26 hundred respondents and 60 industries worldwide. We had a ninety eight point six percent completion rate which is really good for a survey. So our confidence level is really high in the statistics so we run a confidence level against any survey that we do in this one. Ninety nine percent plus or minus two and a half percent. So it’s valid for a population of 15 million and over. Okay. So you know it it yielded. We have we have this broken down easy for people to understand we don’t throw at people bunched statistics the report has 10 key insights front. So it reads like a pyramid.

Colin Snow: [00:03:52] You know we start at the top and we say hey you know in general these are the 10 things we found that were most interesting and significant and then we break it down by those four sectors and then we give the detailed graphs and information for people who really want to drill into something specific cool.

Ian Smith: [00:04:08] So I was actually a participant in this and so the results of course are very interesting to me and I’m I’m sure some of the people actually listening to this were also participants. So let’s kind of get into it I mean you know you just came off of your presentation here. I was in it and I got to catch about 15 minutes of it before I kind of came here to prepare. And my question I have written down here is was there anything that’s surprising from the research.

Ian Smith: [00:04:35] And I think it of course there was very surprising statistics and maybe you can kind of like describe the why why is some of this like why would we find this so surprising as an industry. I mean you know why is why are we going to be like questioning like oh wow like really.

Colin Snow: [00:04:53] Yeah there were a lot of surprising and not so surprising. But so let’s start with what wasn’t surprising because I want to put a foundation for people CGI really does have the largest market share of drone purchases worldwide. We calculate it to be 72 percent market share in the U.S. about 63 percent. And the reason that’s important is because I think people need to understand the extent to which they are embedded in so many industries and used for commercial purposes. This is the surprising thing. They’re not a toy.

Colin Snow: [00:05:27] People think of them as a toy manufacturer but really not they’ve matured their product line and they’ve been smart about the way they position and price them. So that’s probably not a surprise. I think probably what is a surprise maybe to some people who are newcomers. It wasn’t to us but probably is for some people is that the vast majority of people who purchase drones and these are drones above 250 grams. So most of them have cameras on them. The vast majority of them 68 percent was intended for some kind of professional use.

Colin Snow: [00:06:02] So the users told us yes we bought this drone to do professional work for a commercial so and just to reiterate everything about this commercial or this report is focused around kind of like the commercial part of drones. This isn’t about the hobbies do you do hobby additional type.

Colin Snow: [00:06:17] We have data in here from hobbyists so that we break that out and we show you know this is what hobbyists do and this is what professionals do. So for example you know 59 percent of the use of all drones no matter hobby or commercial are used in the area of doing film photo and video.

Colin Snow: [00:06:41] When you look at just the professional use of drones that is those who are doing it for commercial photography film or commercial video or commercial photography it’s 42 percent of the largest market.

Colin Snow: [00:06:56] Now that’s not a surprise to us because that’s the same data we’ve seen since 2014 we’ve done this that portion of the survey three times 2014 2016 2017.

Ian Smith: [00:07:08] Going back to the purchases of drones so D.J. eyes market share according to your research is I think he’s at 72 percent globally with all the respondents who was. Can you tell us who were number two was just so we understand I mean I’m going to make a guess here without knowing a sense why it’s unique unique was Nemyria then then 3D and then it goes down from there.

Colin Snow: [00:07:36] Yeah.

Ian Smith: [00:07:36] Do you remember from any past research has that changed a little bit because 3-D are dropped down.

Colin Snow: [00:07:42] That’s right and their price points went down as people began to push it out into the channel and begin to tail off as you know. Now of course they sell it as a complete turnkey solution. So you would only see it under the solutions set not necessarily the drone because people aren’t purchasing the drone by itself except in the big box retailers. Yeah like I said at a lower price points.

Ian Smith: [00:08:05] Cool. So so what were some of the other trends I mean there’s a couple that I definitely want to touch on but what are some of the other surprising things or just interesting tidbits that you came across in this research that I’m sure you design into the survey in a way to uncover specific details of course.

Ian Smith: [00:08:21] And so what were some of the other things that you can share from the report.

Colin Snow: [00:08:25] Well so besides what I said about you know the professional use of drones that 42 percent of the people who purchased commercial drones were doing it for film photo and video.

Colin Snow: [00:08:36] Eleven percent said they did it for survey and mapping only 11 percent.

Colin Snow: [00:08:42] And after that asset inspection only 5 percent said this is typically seen in our survey anywhere from 5 to 7 percent actually do it for precision agriculture. So applying drones for use in agricultural services so small a relatively small portion of the market.

Ian Smith: [00:09:01] So the biggest one besides photo and video yes it’s working and mapping areas. Oh so it drops all the way down to 10 percent. Yes that’s right.

Colin Snow: [00:09:12] And then inspection and monitoring about the same thing 5 percent for inspection and then it goes after that it’s very small percentages and people using anything from environmental studies to research to it. It varies from there. And again that’s consistent with what we’ve seen.

Colin Snow: [00:09:27] But the interesting findings in this will bear it out in other parts of the survey was the important and the pivotal role that the surveying mapping and GISS firms play within the industry. Given that most people buy drones for photography and video and filming the next largest user both on the service provider side and on the business users side are the surveying and mapping and GISS firms the engineering firms that provide GISS data to industry. They do the mapping the surveying and they do it in various industries. Right. They’re the second largest user and I said this very hour and I said that as I looked at the GISS market as they looked at drones this was early in 2013. This was the A-S peer group the American Society of photograms a trained remote sensing as those people woke up and said maybe drones are a cool tool that we should look at. Let’s look at them and look at the ability of the accuracy of what they can do. They’ve aggressively tested drones in various configurations for uses and they have found that there is good uses for drones in some of the work that they get contracted to do. And I don’t think that people quite understand what a pivotal role that they play because many of these large reports and you know I think I talked about this the last time I was on your show. How many large reports are out there that say you are the construction business is going to be three of them with three billion dollars. You know there are all kinds of studies that say and try to put a market value around what drones can do. They may be dubbed the probably double counting double counting because those firms already provide that service for that industry.

Colin Snow: [00:11:12] So yeah an industry like that may be good value out of the drone but they’re getting it from the intermediary who is the engineering or the GISS firm interest thing.

Ian Smith: [00:11:23] So you also talk about the trough or the chasm or something so this was like a recurring theme. So you can tell us about that because I don’t remember the whole like this was the underlying theme.

Colin Snow: [00:11:37] I kind of gathered was like you know we’re still not crossing this yeah we’ve not crossed the chasm yet and as we look at the business users there’s lots of issues around business adoption and those can be in regards to everything from regulation to the issues that we have in a particular industry and the standards that they have to adopt to use drones for data collection and that can be anything save for example on energy. There’s all kinds of safety requirements regarding the use of any aircraft or any device within the confines of a oil and gas production operation. Right. So same thing for other energy producers or same thing for railroads or same thing for transmission. There are standards regarding the operation of any kind of inspection service. And so you need to meet those requirements so drones are rigorous looked at rigorously. So we have across the chasm yet because people I’m just woke up and say yeah let’s start using drones. They’re going No. Well let’s look at it very hard and make sure that they meet and we can form a standard operating procedure. And we’ll try them in proof of concepts and they are. And people have done that.

Colin Snow: [00:12:58] They haven’t even gone widespread and haven’t gone widespread across their own companies. So at the drone shows we you know I and everybody else goes to the sessions and we listen to people’s use case and presentations and they talk about the one mine or the one aggregate pit or the you know stockpile that they are measuring and you know they may be doing two three maybe four sites but they have 100 worldwide. So you know are they using them at every site. No not yet fully deployed not fully deployed yet for lots of different reasons. It’s not just because of you know they may have proven the safety case they may have proven the operation case and have a standard operating procedure but they have to operate that drone in a different country now. So now they’re up against the regulations. The other is there’s little hurdles that every industry has to go through before we see you know this widespread adoption. So we don’t think we’ve crossed the chasm yet between the first adopters. Right. And and industries worldwide integrating them into their operations whole scale wide eyed you know broadly across their enterprise.

Ian Smith: [00:14:13] Because as you and what you mentioned I caught in in the presentation that you’re doing. So you had this like Jeopardy board and each industry. It’s hard to explain you have to see it. I can’t really describe it that well just you know with audio but you know different categories in different different different items in all these categories that each industry has has to deal with. And like I don’t know one of those categories was like operational and you gave the example of like land access or something like that for sure.

Colin Snow: [00:14:45] Yeah. Yeah land access land access in agriculture is not an issue for them.

Colin Snow: [00:14:52] If you do the field you’re a telecom provider and you need to do an inspection on your tower. You’ve leased that land from you you have to get to the tower. You have to get access to that tower. So you have to get permission to be flying around. It may have a small fence around it you can’t take the drone off from inside the fence sometimes. So there’s lots of there’s an example of where you know where people were that industry says gee wouldn’t it be great if we could just do beyond visual line of sight because we wouldn’t have all these land issues right. Hurt oil and gas. You know. Not the back and up you know where the oil sands are. There are large areas of property where it’s more dangerous to drive to a particular location where they need to do an inspection. They would love to have a drone to be able to do beyond visual line of sight and go and go to that operation and repeat the same inspection that was done before. Right. The same data kept her and it’s more dangerous sometimes just driving there than it is actually doing the operation. So every so you have to get on a truck and drive. And it’s a long distance to get there so people think about drones and it’s an automatic thing and I forget to press the button it will fly at all. It’ll capture the data because there’s a lot of great data automated data capture and mission planning software that’s out there. It’s really good and it’s far beyond what the capability of what most industries can actually consume with their own set of operations and limitations. So again we look at that as part of that we have across the chasm yet.

Ian Smith: [00:16:27] So because of this you also mentioned and I just want to mention myself that it’s it’s kind of funny how we talk about like my episodes I already know this episode has a completely different vibe than a lot of other ones because we’re actually talking about like data facts that you know are purposefully been asked in a very specific way to get down to the bottom and the truth of a lot of the like.

Ian Smith: [00:16:54] I guess you could just say media conjecture and some time some ways and you know the episodes that we do do have a different vibe. But I preface with one of them about to say prefacing with that because you mentioned also and I’m going back to that Jeopardy column of you know issues that every industry has to deal with in different ways. Land Management for agriculture obviously land access being a lot easier than you know.

Ian Smith: [00:17:22] For example cell tower the the growth rate is not going to be as hockey stick in your in your opinion internet research as what many may think.

Colin Snow: [00:17:36] Yes correct. We don’t believe there’s a hockey stick and we don’t think we you know think beyond visual line of sight. Is this all of a sudden you know going to unleash an unlimited amount of demand. Because we still improve in many industries and many companies still haven’t gone through all of the cases made around the security of the drone and security of the access of where the drone needs to go and provide a repeatable process in a secure environment and that the data is secure. So we don’t know beyond visual line of sight solves. You know one friction one piece of friction in the adoption but not all the others. So we don’t see a hockey stick. We see a progression. And you know I hope people don’t go with a negative thinking that the industry isn’t growing it is growing.

Colin Snow: [00:18:27] And that’s one of the things that the research does show is that more consumer drones are being used today to do professional work than ever before because and I’ll give you an example one of the things we found previously is that the sweet spot where most people buy drones is in the 1000 to 2000 dollar category.

Colin Snow: [00:18:48] So it’s in the area of where a Phantom 4 pro would be just to use a brand name you know. Same thing for unique.

Colin Snow: [00:18:59] So in that area people are using them 70 percent of the people affected by that price range are using it for professional purposes and that’s a big change from what we saw last year. Last year we saw 63 percent were using the drones that they had purchased in that price range for professional purposes. It’s jumped to 70 percent. And what that what we’ve also found is that in the next category down which is 500 to 1000 dollars there’s a 50 50 percent use. It’s astounding to think that 50 percent of the people who buy a drone that costs between five hundred dollars and one thousand dollars will actually use that for professional purposes. Now that can be explained when you start looking at details around secondhand use of aircraft lowering the lowered prices now of some of the some of the existing DJI drones. Yeah. The lowering of the price of the 3-D are drones. So as these things have hit either the secondary market or they are yesterday. Yesterday’s technology. You see the same thing in cameras. This is no different cameras as people bring out new camera lines within their prosumer those lower priced ones. It’s like looking at you know looking at the GoPro market. What do you think the market is now for GoPro five versus GoPro six. Well a lot of people who hung back to upgrade to the go pro five who are professionals are going out and buying the used GoPro fives that people who are you know people who are turning over their inventory on a one year basis they’re selling off on eBay their go pro 5 and now they’re getting the go pro 6 because it has more features. This is the same thing we’re seeing in the drone industry. So the price point stays the same. But last year’s model had the features of a professional was using a year ago. Why not just buy the lower priced one because it’s good enough for the work that I want to do. So what we’re seeing is again.

Colin Snow: [00:21:11] And so this is what I was saying going back to there’s more consumer drones being used today for professional purposes than ever before and that shows the growth of the industry right. As people understand that the price points have come down. It’s easier for me to see the drone itself as a consumable and the software is cheaper right.

Colin Snow: [00:21:34] People are offering freemium as they’re as they’re marketing freemium being the way in which you price your features of software usage where with if you use it for a certain amount of times it’s free and after a certain volume it’s no longer free and you’re up you’re you’re you’re paying for it. OK well if you’re just starting out you may start out with the free version of it.

Colin Snow: [00:21:56] It’s no different than the professional version it’s just using more of it. You’re going to pay more for it. So you know people are getting into the business that way.

Ian Smith: [00:22:10]  [00:22:10]And now a quick word from our sponsors. Commercial drones F.M. is supported by Devar on US Denver and you asked this building and standardize the drone network for farmers all across North America offering On-Demand near real time. [00:22:27]

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Ian Smith: [00:22:44]  [00:22:44]Thanks for listening to commercial drones. I think it’s about time I give away a drone. How about a DJI spark. Sounds good to me. Want to win the brand new DJI spark. Head over to commercial drones dot fm slash Sparke and enter the super easy giveaway contest and I’ll pick the lucky winner on February 5th. Oh and don’t forget to think one of the 100 plus commercial drones FM patriae on supporters because with their incredibly selfless monthly donations they are the ones making this drone give away possible to see what you get for supporting this podcast and to also donate go to patriae on dot com slash drones podcast. But don’t forget to win the DJI spark. You can quickly enter at commercial drones dot fm slash Sparke. [00:23:31]

: [00:23:35]  [00:23:35]Ok. Back to the show. [00:23:36]

Ian Smith: [00:23:39] There’s a statistic I want to see I wonder maybe in a future or if if it makes sense to see I mean I’m just curious like the the rate at which people upgrade hardware drone hardware because the way I kind of look at it and I feel like it’s fairly standard a lot of people are looking at it this way or maybe that’s just me thinking that they do.

Ian Smith: [00:23:57] But I kind of look at it like a cell phone and you know in the U.S. you know because there are global listeners in the U.S. reason like these two two year contracts from cell phone providers and you have to get a contract with your provider to get your phone at a cheaper price and every two years you’d kind of upgrade your phone. And I think most people in the U.S. just kind of got used to like you know technology and gadgets. OK. Every two years there’s a pretty big jump in technology. I’ll upgrade my phone. And so that’s the reasoning for the two year thing.

Ian Smith: [00:24:26] And then from what I understand and what I’m looking at in the industry is like yeah two years is like honestly if I’m doing professional services with the drone two years later if you’re if you’re looking at Phantom 3 to Phantom for pro you’re definitely going to want to upgrade and makes the two year hump is the biggest so I’d be really interested to see how many are doing like every year. Or they just get every new drone and add it to their fleet and then eventually just kind of kick away the old ones or sell.

Colin Snow: [00:24:53] I would be too I would be there’s an attrition to with drones that have crashed or you know been you know gone to the side of a hit by you know they’re buying next year’s model. Why not. You know because it’s at the same price. And then there’s the insurance that comes with it. Right. You have an assured program now that allows you to get a replacement. So there’s all of that that goes in there I’d love to see that data to what we think it’s somewhere the professionals people who are who have a drone fleet that is more than one who we think they’re buying at least every 18 months.

Ian Smith: [00:25:27] That makes sense. And you know by default we just like pivoted over to talking about D.J fans. I mean I pivoted to talking about jet Phantom’s but they’re the ones really that have been around for multiple years that you can see the progression right now and how it’s improving at such a fast clip.

Ian Smith: [00:25:44] So you also talked about there’s a really nice insight I mean from your report or maybe it was from your report but just about night waivers and the FAA. I mean tell us about this this is really a kind of eye opening and makes you kind of start questioning.

Colin Snow: [00:25:58] Yeah we were asking companies we were asking service providers you know what’s preventing you from growing.

Colin Snow: [00:26:04] What’s the number one thing that you’re seeing that preventing you from growth and everybody almost unanimously check the box that said it’s regular. It’s the difficulty in getting waivers and airspace waivers for the operations that I need to do. Okay I look at the data and I go look at that FAA data so 97 percent 90 they say 90 percent but 90 percent of the applications I’m looking at completions something like 97 percent of the completions is people who’ve been granted waivers are granted waivers for the night to be able to fly at night.

Colin Snow: [00:26:43] So the industry is hard working on beyond visual line of sight and joint identification. I’m going wait a minute why don’t you just put out a rule for nighttime operations. You solve the problem most people want most people want the nighttime.

Ian Smith: [00:27:00] How much time they would be able to say and you were saying they would be able to work on other things like maybe be visual line of sight if they would just come out with a rule based on all this data. You’re saying they have like right in front of them from all of these waivers that they have approved why don’t they just come up with a standardized rules basically around night operations like yes you have to have the Pisit lighted position it’s visible from one to two miles away or something you have to out of security in the sense set of operational standards yet.

Colin Snow: [00:27:28] I mean that could all be done I think by a rule. But I don’t know why is it not being done.

Ian Smith: [00:27:35] I mean it could be incrementally maybe they’re gearing up for a big mac.

Colin Snow: [00:27:40] It’s like I’m pretending like they’re trying to get out their funding for the next six months. OK what are we going to do we’ve got six months of funding. Figure out what we can do within that window.

Ian Smith: [00:27:51] It’s true. Well that was that was eye opening to seeing how many night waivers are being granted and that there’s still no rule on that maybe we’re being slightly impatient because we’re so excited about the industry you know all the things that are coming around about it. But I have to say it is nice to see a bunch of night flights and waivers being approved you know on the positive side of things. So there’s that. And so the last kind of little insight I wanted to talk about was the ratio of in-house drone operations.

Ian Smith: [00:28:22] So basically looking at the business use of the business who uses drones and so you have some data that you’ve collected and analyzed about them using it was like the vast majority of them are doing in-house operations basically and we’re looking at that dichotomy between in-house operations for a business and contracting it like a drone service provider correct.

Colin Snow: [00:28:46] Yeah yeah.

Colin Snow: [00:28:47] And there was an interesting find in the research is what we find is that 67 percent of business users that is industry are that acquire or or or do their own acquisition using drones use in-house employees versus outside contractors so only 33 percent rely somewhat on service providers to some some extent. Only 10 percent. Only 10 percent rely solely on outsourced to contractors.

Colin Snow: [00:29:20] We think there’s a good reason for that again it goes back to the industry examples where you need the industry expertise and understanding of the operations and requirements within a particular industry and just pick pick a couple. You know oil and gas or energy transmission utilities. There are specific requirements for them to operate within that industry.

Colin Snow: [00:29:44] They are not going to use now. They may have started without outsourced contractors to create the proof of concept to show that there is value to then explain that value. But as these companies now begin to stand up their own internal operator operations they are not using the outside contractors. They are using their own part 1 0 7 so they’re sending their employees out to get the part 1 0 7 so that they can operate right versus hiring a contractor.

Ian Smith: [00:30:17] If you looked at this and you have to make a bold predictions I mean just in general like would you expect if we’re looking at these numbers in I’ll say two years from next I don’t think a ton will change in a year but in two years from now. I mean based off of the data that you’re seeing would you imagine that in house operations continues to kind of become a bigger chunk of the pie. Or do you think that companies that solely rely on contractors could potentially grow for more than 10 percent.

Colin Snow: [00:30:46] I don’t think it will grow more than 10 percent but I actually don’t think it’ll change much. That’s my hypothesis. I mean we’ll take the temperature again next year right. And look and see what it says and see if we find a different number. My expectation is is that it would stay the same because many new many businesses are still figuring out whether they want to do use of drones as part of their data acquisition. They’re still trying to understand the value of it yet we inside the industry we think there’s all kinds of value. We think you know gosh we can get these drone shows. We see these presentations like oh everybody should be doing it outside the drone world people are still you know wondering whether or not you know the drone that’s being used by some company is going to be looking in on my teenage daughter swimming in the pool in my backyard. They’re still thinking that there’s privacy issues and risk issues. I’ve seen statistics and from risk managers those are the people within the company who are really who are tasked with looking at risk and that includes insurance risk within the company the insurance companies pulled those people and said you know what’s the number one issue that you see is privacy privacy and then it’s data security. So privacy and data security are two part of the risks that are out really sort of you know they’re inside the drone sphere but they’re you know but they are bigger issues that companies are looking at and eyeball is they eyeball drones they go I’m not sure you know there’s a risk. There’s privacy risk and we don’t want to put our company at risk. Big companies are not you know they’re risk averse.

Ian Smith: [00:32:26] What is the the model called with the trough of disillusionment.

Colin Snow: [00:32:30] It’s I forget crossing the chasm was a.

Ian Smith: [00:32:35] So basically you’re saying that I think I saw maybe a tweet from years something like the drone industry like along the hyper cycle hype cycle that’s the Gartner hype stock prices the trough of disillusionment or in history.

Colin Snow: [00:32:52] Yeah definitely. I actually think Gartner pegged it correct.

Colin Snow: [00:32:56] We are sliding down what’s called the trough of disillusionment which means that the industry had peaked in hype and we think it peaked in hype 2016 too. That is the assumption that drones could do everything went flying taxis and we had people show up at shows and we would all. You know you flying this business that people are thinking that drones are going to be you know dropping burritos and pizzas at my house and how and we haven’t seen that. Let’s go to you get asked this question you go to dinner party you get asked what’s the first question. What am I going to get be able to get you know drone delivery pizza. So it will stick with or dash right now.

Ian Smith: [00:33:35] If they’re still around in a year. I mean it’s like yeah.

Colin Snow: [00:33:40] So this is the thing but that’s life. That was the Heisman’s. Now people are coming to the realistic expectation and this is why the Jeopardy board.

Colin Snow: [00:33:50] There’s all these things that have to happen before we see any kind of steady smooth adoption by industry and we’re outside of the hype and people understand the business value. You and we think it’s great business value and drones and but all these other issues have to be addressed for has to get to a widespread and get us out of the trough of disillusionment.

Ian Smith: [00:34:13] Well that’s exciting for me because there’s always you know we’ve always talked about oh yeah the drone industry over hype and it’s like you know there’s all these reports and everything.

Ian Smith: [00:34:20] So I’m excited to know that we’re in the trough of disillusionment because the only way from here is up maybe a little bit further we go down and we go back up again and then there’s a plateau of productivity but I believe that as drones progress and you stop seeing you know we’re looking at one facet of drones right now which is the way that they have cameras and things on them. But I think once that trend starts affecting the physical world and fixing things from the air and screwing screws that they detected at that were loose or something or that they can fix something with an attached tool and then they start delivering things I think there could maybe be you know another like hype cycle that goes through the industry to where drones can start affecting our physical environment as opposed to what we do now.

Colin Snow: [00:35:07] Maybe there like observation tools interesting areas. So one of the things I’ve heard from drug companies is I don’t mean to sound in any way in disregard for people who suffered the losses of the hurricanes. And you know it was a tremendous amount of personal property loss. It was a boom for the industry because what happened is all of a sudden the insurance companies adjustor it just and companies woke up and said we need it right now. We have areas that are flooded and we need to get these assessments done and we can’t get our our inspectors into the locations. And so would you ship us 10 drones tomorrow. Right. And that happened across the industry like that. So that was a positive effect from these disasters that people are now understanding that businesses and people are understanding. There was a lot of positive press that came up came from it so to hype the industry is to provide the clear human and industrial and business value that drones provide versus delivering burritos and pizzas and flying taxis around Dubai. I’m sorry it just that’s not business value to me that’s that is there was hype and now there is some real story so I’m hopeful that we’ll get out of this trough of disillusionment with more positive use cases like that. I would come as a result of disasters but I do hope that that from this will see more positive press about drones as a result of on that note we’re going to go ahead and the podcast those beautiful by the way.

Ian Smith: [00:36:49] So I completely agree. Everyone that’s listening. You can go ahead and follow Collins Snow on Twitter at drone analyst and visit the Web site droon analysts dot com to get the official 27 drone market sector report. And while you’re at it you can follow the podcast at drones podcast on Twitter and Facebook dot com slash drones podcast. Thank you so much for listening and call and thank you so much for joining again on the podcast.

Ian Smith: [00:37:21] I think we need to make this definitely a yearly or every 11 month kind of thing that’s what the last episode was.

Ian Smith: [00:37:29] So what this will be in the episodes in the 60s I guess I’ll see again in the 80s or so we lived the 80s for how to run the show again appreciate paramount.

Ian Smith: [00:37:41] My pleasure. So everyone we’re cutting off the mikes fly safe.

Ian Smith: [00:37:46] Cheers.