Goldman's key players in commercial drone market include:
- GoPro Inc GPRO
- Alphabet Inc GOOGL GOOG
- Facebook Inc FB
- AeroVironment, Inc. AVAV
- Trimble Navigation Limited TRMB
Diving Into The Drone Market
Goldman said GoPro is a recognizable brand and has a customer base with exposure to the consumer growth angle. Alphabet is developing 5G drone-based Internet for remote places, while Facebook is competing with Alphabet to "deploy drone-based Internet networks."
Goldman sees AeroVironment as a good brand with a strong product offering, especially regarding its fixed wing, and Trimble as mapping Unmanned Aerial Vehicles (UAVs) for agriculture, construction and mining.
"The Commercial segment holds the most potential for growth, in our view, with a triple-digit CAGR over the next five years and a $21bn TAM," Goldman analysts wrote in a note to clients.
"Commercial drones offer greater autonomy, range, and support systems than Consumer versions, and we see applications in industries from construction and agriculture to journalism and real estate. Increased Commercial use is also likely to spawn offshoot markets in areas such as drone insurance. The Commercial market is emerging and opaque, with many privately held manufacturers like PrecisionHawk, Aeryon Labs and DJI," according to the note.
However, the brokerage sees public companies increasing exposure in the segment, including GoPro, AeroVironment, Trimble and potentially Lockheed Martin Corporation LMT.Image Credit: Public Domain
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