Chinese drone maker Da-Jiang Innovations Technology Co (DJI, 大疆創新科技) is betting on flying machines that shoot pesticide instead of photographs to fend off growing competition in the global remote-controlled aircraft market.
The world leader in the civilian drones sector is switching its focus from leisure photography to more professional uses for its uncrewed aerial vehicles and it sees agriculture as the future for the burgeoning industry.
DJI’s campus lies within a high-tech park in Shenzhen, where visitors are treated to a showroom featuring an array of drones.
Half the space of the showroom is dedicated to the recreational machines like the Phantom series, while the other half shows off the “enterprise” drones for agriculture, public safety, professional photography or film-making.
Propelled by rotors, the tiny crop-dusting aircraft can carry a liquid payload of 15kg to spray fields.
Piloted from a distance, one drone can cover the same area as about 30 people and it does the job more efficiently, said Jiang Sanchun, manager of a small company that operates pesticide drones for farmers in northern China.
“Within five years, we went from drones that only took photos to machines specialized in first aid or agriculture,” DJI vice president Paul Xu (徐華濱) told reporters at the company’s headquarters in Shenzhen.
DJI was founded in 2006 in an apartment in Shenzhen by Frank Wang (汪滔), a young graduate with a passion for model planes.
The company now makes almost two-thirds of the world’s civilian drones, according to an estimate by Frost & Sullivan, a market research company. Its overall revenues reached US$1.5 billion last year.
Xu boasted that DJI “created a new market” in 2013 when it launched its Phantom drone with high-definition cameras.
About 75 percent of its drones are sold abroad, mostly in the US and Europe, and they are popular among people flying the crafts for fun or to take aerial photographs.
A drone that landed on the White House lawn in 2015 was a DJI Phantom.
US authorities last year issued new rules that clear the way for small, commercial drones to operate across US airspace, while EU regulators are trying to catch up.
With competition on the rise, DJI is looking for new markets.
In late 2015, it launched Agras MG-1, an octocopter, or eight-rotor drone, which can carry pesticide or fertilizer.
“A drone can monitor energy networks in hard-to-reach areas or support public security missions,” Xu said.
Chinese police use thermal cameras to track down fugitives. In Brazil and California, firefighters use them to get a complete, bird’s eye view of a blaze. Zoom lenses can help authorities locate people in rescue missions in remote areas.
“DJI is entering these enterprise markets because that is where their customer base takes them,” said Susan Eustis, president of US-based firm WinterGreen Research Inc.
Worldwide drone sales soared by 60 percent last year, said Gartner Inc, a consulting company.
Sales are expected to reach US$6 billion this year and nearly double to US$11.2 billion by 2020.
Drones for commercial uses represent 6 percent of the market, but 60 percent of revenue.
“We do see the DJI market domination as likely to continue for the next five years with no serious challengers,” Eustis said, adding that the company has the ability to roll out new products within months.
However, the firm is far from dominating the enterprise drone market.
While DJI commands half the general market in small drone sales in North America, its share falls dramatically for the higher-priced machines.
In the battle for drones costing more than US$7,500, DJI has a 33 percent market share in North America, said Colin Snow, chief executive of Skylogic Research LLC, a consultancy in the drone market.
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