On a recent sunny Autumn morning your author ventured ten miles south east of central London to Beckenham Park in order to deepen his knowledge of future trends. There, he had an opportunity to fly a drone. Drones have historically been associated either with military warfare or keen hobbyists (like your author’s fellow Heptagonian, to whom the machine belonged). However, as we discussed in more detail in our most recent theme piece, the number of practical use cases for commercial drone deployment is growing significantly.
Our drone was certainly impressive in its capabilities. Not only was it easy to operate (via a handheld remote controller), but the quality of the imagery it was capturing (viewable in real-time via the headset visible in the photo) was compelling. The drone is able to reach heights of up to three miles and can operate for around 30 minutes on a single battery charge. While the primary motivation for owning this drone is to allow for stunning photography/ video footage to be taken from novel angles, a growing consumer familiarity with such devices may make their broader future rollout in other scenarios more seamless.
Consumers certainly have no shortage of choices. Type ‘drone’ into Amazon and around 500 different options are highlighted, ranging in price from $50 to $1500 and in payload from 250g to 20kg. Their quality and functionality continue to improve each year. Similar to new iterations of the iPhone, the latest drone models contain features such as 4K definition and dynamic angle filming. More and more of your colleague’s friends are apparently buying them. Your author has yet to part with his cash though.
It is, however, one thing flying a drone in a suburban London park on a quiet morning to having drones filling the streets with pizza deliveries and e-commerce packages. Many such trials are underway in cities across the world by the likes of Amazon, DHL, Domino’s, Tesco, Walmart and more, as discussed in our theme piece. When the question was put to your author’s colleague whether he was in favour of getting his goods by drone, he highlighted concerns over the ability of drones to deliver accurately – what if there were congestion or potential mid-air collision resulting in goods being either delayed or damaged? These are certainly valid issues, which will need addressing. Others include noise-levels and cyber-compromise. Regardless, investment continues apace. Beyond miliary deployment, by decade-end the industry could be worth $100bn.
—
Originally Posted November 10, 2022 – Hopefully we have lift-off
The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.
Disclosure: Heptagon Capital
The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document.
The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital’s prior written consent.
Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
fax +44 20 7070 1881
email london@heptagon-capital.com
Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Heptagon Capital and is being posted with its permission. The views expressed in this material are solely those of the author and/or Heptagon Capital and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
