Fierce competition is expected to drive down prices and reduce the consumer drone to commodity status according to Richard Jun Li, VP of Innova Research. A recent report from Innova Research maintains the the big three of the consumer drone market, DJI, Parrot and 3D Robots, are going to face strong market pressure from hundreds of new entrants to their turf.
According to the report, “The World Market for Drones – 2015 Edition,” 57.0% of the world drone market revenue was taken by three players in 2014: DJI was first with an estimated 45.0% of the global drone market revenue in 2014, second was Parrot with 8% and third was 3D Robots with 4.0% in the same year.
Their revenue strength, largely in the consumer market, is attributed to clear supply chains, strong R&D capabilities, and brand awareness. But it is expected that they are going to be mightily challenged from hundreds of new entrants. These new entrants include big names such as Google, Amazon, and Alibaba, as well as a large number of smaller drone technology developers. Many of these IT and Internet giants are developing their drones as future funnels for data and are focused on commercial drone segment. The technology barrier of entry for consumer drones is low and new entrants are expected to drive down the average selling prices rapidly in the next few years which will result in consumer drones soon becoming a commodity.
Richard Jun Li, Vice President of Innova Research commented:” Although consumer drone segment is larger than the commercial drone segment at present in terms of market revenue, investors and industry players seeking opportunities to enter the drone industry should aware the increasingly fierce competition in the consumer drone segment. They are suggested to seek investment targets or technology partners at the commercial drone segment, which has higher technology barrier. Moreover, the commercial drone segment is forecast to overtake the consumer drone segment in terms of market revenue in 2019″.
You can find the Innova Research web site here.
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