Big China brands drive drones growth

Global SourcesUpdated on 2023/12/01

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Big China brands drive drones growth

With emphasis placed on OBM, China is home to multimillion dollar corporations that are also the top global names in the fledgling industry.

February 16, 2015

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With emphasis placed on OBM, China is home to multimillion dollar corporations that are also the top global names in the fledgling industry.

Historically a military product, drones are poised to boom in the mainstream in the next several years.

In a 2014 market study, the Teal Group forecast that global spending for drone technology R&D in the next decade will reach $11.5 billion every year. At present, the annual investment is about $6.4 billion.

Leading the growth is China, which Teal estimates will account for 12 percent of global drones investment between 2011 and 2020. Xiong Yifang, Ehang Technologies Co. Ltd co-founder, said there are already more than 170 drone manufacturers in China. New players are joining the line, enticed by the low technical barriers, particularly in producing low-end drones.

Wang Jidong, deputy director of the helicopter institution Beijing University of Aeronautics and Astronautics, echoed this sentiment, adding that companies in China can easily purchase components and “assemble” a drone.

This does not mean, however, that all drone makers there are small. China, in fact, is home to some of the biggest drone brands in the world as companies aggressively pursue OBM instead of following the traditional mold where the focus is on OEM products.

Ehang is one of the top-tier homegrown drone brands. The company closed recently $10 million in Series A funding led by GGV Capital. Investors in the round are entrepreneurs Xiaoping Xu and Nick Yang, and PreAngel.

Shenzhen DJI-Innovations Co. Ltd, meanwhile, controls about 50 percent of the global market for small UAVs. The market is worth between $250 million and $300 million. DJI’s sales have increased three- to fivefold every year since 2009.

Civilian drones rise
Globally, civilian drones and those used in various businesses will drive industry growth.

Gretchen West, executive vice president of the Association for Unmanned Vehicle Systems International, told iMedia that drone technology boosts an industry’s efficiency. “With precision agriculture, for example, it can take pictures of fields so farmers can identify problems they wouldn’t necessarily see walking through the woods.”

This strong business growth potential is luring even more global giants into commercial drones. Google, for instance, has acquired drone manufacturer Titan Aerospace while Facebook spent $20 million to buy aerospace company Ascenta.

In China, Xiong of Ehang also noted the growing popularity of drones outside the military. In an exclusive interview with Global Sources, he named several industries now adopting drones, including real estate, landscape mapping, express delivery services and entertainment. Drones designed for such applications, however, are quite expensive and require special skills to maneuver them properly.

Ehang’s Skyway is an example of these high-tech drones. The professional-use hexacopter suits various industries, including agriculture, public security, telecommunications and forest-protection.

Meanwhile, the DJI Inspire 1, DJI’s latest, is the world's first flying 4K camera.

Guangzhou XAircraft Electronic Technology Co. Ltd is developing the XMission. The multitasking weather-resistant UAV system is for law enforcement, medical rescue, forest fire prevention, geological prospecting and exploration, surveying and arctic expedition.

This is not to say, however, that China’s drones selection is limited to just sophisticated designs for commercial use. Because of the significant overlap between R/C toys and small civilian-use UAVs, many China toy suppliers are actually positioning their drones as high-end toys.

Drones basics
Drones are available in several types, including unmanned helicopters, fixed-wing and multirotor aircraft, airships and parawings. Depending on their use, such models can be classified as military, commercial or civilian drones.

Military drone applications include military strikes, border patrol, crisis management, disaster monitoring, and search and rescue. The latter two can also be done using certain types of commercial drones.

Commercial types suit aerial photography, survey and mapping, transportation, plant protection and environment protection, agriculture, data collection and filming.

Civilian or consumer drones, on the other hand, are often smaller and more portable. They fly relatively shorter distances than their military and commercial counterparts, and are designed for recreational purposes such as taking pictures.

Drones have a variety of components depending on their intended use, but they have key parts:

Power system: The power system consists of the motor, battery, fuel tank, solar panel and propeller. Military, commercial and civilian drones differ on the power source they use. Military drones normally run on fuel that powers an internal combustion engine although some types use solar energy. Certain commercial and smaller UAVs, on the other hand, have an electric motor and a battery.

Flight control system: The flight control system is the key component that differentiates drones from flying R/C toys as it ensures stable and safe performance. A flight control chipset, rudders, signal transmission chipset, accelerometers, pressure sensors, ultrasonic altimeter, gyroscopes and GPS are among the components that make up a flight control system.

Functional module: Cameras, loading shelves and data collection devices are examples of functional modules. Drones can also be equipped with other functional modules, including a PTZ camera, humidity sensor and 3D scanner, depending on their application.

Others: Landing gears, LED indicators and anti-vibration bumpers are used for indication, decoration or protection. They also help provide users with better control of the drone.

The table below lists the different types of drones available from China, and their key specifications and price range.

Please click here to download the complete supplier comparison table.

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