China’s drone market reached US$4.5 billion in 2022, up 15% year on year, a market study found recently.
A research report published by S&P Consulting, a domestic market intelligence provider, indicates that China’s drone market will be valued at US$6.6 billion by 2025.
Major growth drivers include governmental support for drone technologies and wider application of drones in a range of areas.
For example, drones are increasingly used in agriculture, logistics, real estate and law enforcement.
In agriculture, in particular, farmers fly drones to carry out crop inspection and plant protection, so as to increase productivity, the report found.
The report authors also attribute the expansion of China’s drone developers to higher R&D spending in a bid to bolster their technological capacity and market competitiveness.
Chinese drone makers have become top-tier players globally, counting market leaders like DJI (大疆) and EHang (亿航, Nasdaq: EH) among them.
The report also points to the downside confronting the burgeoning segment, such as mounting regulatory scrutiny, the safety and privacy risks posed by drones, intensifying technological competition and periodic fluctuation in consumer demand.
Notwithstanding these factors, the market has gained steam and enjoys huge opportunities, the study says.
As technologies progress, drones are finding wider use in agriculture, logistics, rescue, tourism and photography, which led to a spike in demand.
The sector also benefited from advances in autonomous navigation, flight stability and battery life.
Besides, the Chinese government has rolled out a raft of policies and incentives over the past few years to encourage drone-related independent innovation.
Meanwhile, increasing international demand also continue to spur the growth of China’s drone producers.
The report concludes that the drone domain has enormous potential and predicts it to become a magnet for investment.