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    Drone makers eye lion's share of global market

    Chinese mainland tech enterprises break world records with drone shows, using intelligent clustering technique to stay ahead of the pack. Zhou Mo reports from Shenzhen.

    By Zhou Mo | HK EDITION | Updated: 2025-01-10 11:20
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    Visitors enjoy a Mid-Autumn Festival drone show over Victoria Harbour in Wan Chai, Hong Kong, on Sept 17, 2024. ?EDMOND TANG/CHINA DAILY

    As the Chinese mainland's low-altitude economy booms, drones are stealing the show at performances during festivals and public holidays, generating significant visitor numbers and economic benefits.

    Shenzhen — the country's innovation hub and birthplace of DJI, the world's largest commercial drone maker by market share — is spearheading the trend, with local companies specializing in drone shows breaking world records in terms of the number of devices deployed and the sophistication of their performances.

    With the sector gaining momentum, drone companies are extending their footprints overseas, hoping to grab a piece of the pie in burgeoning international markets.

    At a spectacular lights show held in Riyadh recently, some 6,000 drones lit up the night sky of the Saudi Arabian capital, creating various formations, including a portrait of King Salman. The spectacle made a splash in the Middle Eastern country for its perfect combination of artistry and technology.

    At the Palace of Versailles in France during the 2024 Paris Olympic Games, a brilliant drone show with fireworks turned the night sky into a breathtaking scene of light and color, as hundreds of drones "danced" gracefully above the historic gardens.

    Shenzhen technological enterprises that are behind these performances have become leaders in the intelligent clustering technique. The technique refers to an airborne intelligent system consisting of a number of unmanned aerial vehicles working in unison to accomplish specific tasks through information transfer, interaction and coordination.

    "We are operating in over 20 countries and regions globally, including the United States, Britain, Australia, the Middle East and Southeast Asia," says Charles He, vice general manager and overseas market director of Shenzhen-based Damoda — one of the leading enterprises in the drone show sector.

    Overseas business saw significant development several years ago, but was outpaced by the domestic market partly driven by national policy support, He says.

    "Three or four years ago, our overseas markets were growing faster than that of the domestic market, partly due to the COVID-19 restrictions on the Chinese mainland. At that time, the share of our markets abroad was about 1.5 times that of our domestic market," He says.

    "The Chinese mainland market, however, saw fast growth after the anti-pandemic curbs were lifted in late 2022. The sector is embracing a golden era as the country sees the low-altitude economy as important. We have seen 30 to 40 percent annual growth in the past two years."

    Damoda's share of the domestic market is twice that of overseas, He says. The company expects to generate sales of 160 million yuan ($21.85 million) in 2024 — more than half from the mainland.

    Overseas markets offer large growth potential. He says the value of overseas orders amounted to 50 million yuan last year, representing a 30 percent year-on-year growth. "We aim to increase our overseas revenue to 80 million yuan in 2025," He says.

    "However, a major challenge for us in exploring overseas markets is that they are relatively slow in embracing new things. Therefore, it takes time to cultivate the market and consumers. Moreover, some countries are worried about Chinese drones posing a threat to their national security, so they are adopting a conservative attitude."

    Highgreat Innovation Technology — another major industry player in Shenzhen — has agents in over 40 countries, with 60 percent of its sales and shipments from overseas and operates about 80,000 drones worldwide, local media reported.

    According to Beijing-based consultancy QYResearch, global sales of commercial drone shows hit 1.52 billion yuan in 2023 and are expected to reach 6.84 billion yuan by 2030, representing a 23.4 percent annual compound growth.

    "In this niche market, Chinese enterprises are taking the lead globally in terms of the performance quality and market share," says Yang Jincai, president of the Shenzhen UAV Industry Association, adding that Chinese drone makers excel both in technological capability and costs.

    Damoda's He believes Chinese companies are three to five years ahead of their foreign counterparts in the intelligent clustering technique, the technology behind drone shows.

    Wang Guowen, director of center for logistics and supply chain management at Shenzhen-based think tank, the China Development Institute, says, "The successful 'going global' of Chinese drone shows demonstrates Chinese expertise in the intelligent clustering technique, which requires the support of communication, control and positioning capabilities."

    Wang says the technology is highly important as it can be used for civilian and military purposes. "While the capability of individual drones is inherently limited, drone clusters can perform much bigger tasks. They can address such complicated issues as ranging and positioning, which is essential in the battlefield."

    Shenzhen has a solid foundation in developing the intelligent clustering technique as the city is leading in the drone industry chain, covering all aspects from research and development to production, he says.

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