The 'Apple of Drones' Dominating the Global Drone Market: China's DJI [Hidden Industry Story]

World's No.1 Drone Manufacturer 'DJI'
'Drones Anyone Can Pilot' Capture 70% Market Share
Chairman Wang Tao Emphasizes R&D, "Maintain One-Third of Workforce in Research"

DJI's 'Mavic' drone./Photo by Yonhap News

[Asia Economy Reporter Kang Juhee] Unmanned aerial vehicles, commonly known as drones, are increasingly recognized as one of the most promising next-generation industries, being utilized across various sectors including private and industrial fields. Amid fierce competition targeting the drone market led by advanced countries, China has already secured over 90% of global drone production.

The dominance of China in the drone market is largely attributed to the role of DJI (Dajiang Innovation), the world's number one drone manufacturer. DJI currently holds a 70% share of the global drone market, effectively monopolizing the drone industry.

DJI's corporate value now reaches a staggering 160 billion yuan (approximately 27.5 trillion KRW). Wang Tao, the founder of DJI, is credited with popularizing drones, which were once unfamiliar to the public, and is often called the "Steve Jobs of the drone industry." What is the secret behind DJI's leadership in the drone market?

Wang Tao, Chairman of DJI. / Photo by Baidu Capture

◆ Drones Anyone Can Easily Control

Chairman Wang was born in 1980 in Hangzhou, Zhejiang Province, China. In elementary school, he happened to read a comic book about helicopters, which sparked his fascination with model helicopters and airplanes, nurturing a dream to build them himself.

Model helicopters were very expensive at the time, costing about seven times the average monthly salary of Chinese office workers. Wang improved his grades after his parents promised to buy him a model helicopter if he studied hard, and eventually got one in his hands.

However, the high difficulty of controlling model helicopters made them unattractive to Wang. He believed that anyone should be able to freely control and enjoy the charm of helicopters. From then on, Wang set a goal to create helicopters that would not crash and could be easily controlled by anyone.

In 2003, Wang entered the Department of Electronic Engineering at the Hong Kong University of Science and Technology (HKUST), where he began specialized research in flight control systems and robotics, laying the foundation for his startup. After winning first place at a Hong Kong robotics competition, he used the 300 million won prize money to establish DJI in 2006 with two university classmates.

At that time, the drone market was a DIY (Do It Yourself) market where users had to assemble various parts themselves. Wang Tao focused on this point, predicting that releasing fully assembled products would create a huge impact in the market.

Based on this conviction, Wang set up a makeshift bed next to his work desk and worked 80 hours a week, dedicating himself solely to drone technology development. He especially focused on making drones easy to use even for those not skilled with machines, recalling his childhood experiences. He relentlessly and meticulously pursued the dream he had since elementary school into adulthood.

Ultimately, DJI launched the integrated drone with a camera, the "Phantom," in 2013, which received an explosive market response. The Phantom, which could be flown straight out of the box without assembly, completely changed the drone industry that had been used only by some enthusiasts.

DJI's revenue, which was only 4.2 million dollars (about 450 million KRW) in 2011, surged more than 30 times to 190 million dollars in 2013. DJI then improved on previous models and successively released the Phantom 2, Phantom 3, and Phantom 4, successfully expanding the drone market base. Starting with just 20 employees in 2006, DJI has grown into a company with about 14,000 employees today.

DJI Korea demonstrated the new 'Mavic Air' product at the DJI Arena in Yongin, Gyeonggi Province, in January 2018. Photo by Yonhap News

◆ Chairman Wang’s Obsession with Quality First

Behind DJI's growth lies Chairman Wang's insistence and obsession with prioritizing quality. Wang reportedly had a strong aversion to the perception that "Chinese products are cheap and low-quality." To change this perception, Wang established a principle that "even as the company grows, one-third of the workforce must remain dedicated to research."

In fact, DJI is known for its generous investment in research and development (R&D). One-quarter of its workforce is dedicated to R&D, and about 7% of annual sales revenue is invested in R&D. DJI’s R&D facilities are specialized by field: aviation technology is developed in Shenzhen, China, where the headquarters is located; software development takes place in Palo Alto, Silicon Valley, USA; and camera technology is developed in Tokyo, Japan.

This management approach, focusing all efforts on R&D, has helped DJI release new products faster than competitors. While other drone companies typically launch new products every 2 to 3 years, DJI introduces new designs and features every 5 to 6 months, leveraging hundreds of its own patented technologies. In an interview with the American business media Forbes, Wang expressed confidence, saying, "We have dedicated ourselves to creativity and innovation. Other drone companies take 5 to 6 years to produce a new model, but we only need 5 to 6 months."

DJI officials are conducting work for COVID-19 prevention using drones. Photo by DJI

◆ Expanding from Consumer to Industrial Drone Markets

DJI is expanding its business beyond the consumer market into industrial drones. Today, drones are used in various industrial fields where human access is difficult, such as search and rescue, wildfire monitoring, and traffic law enforcement. DJI highly values the market potential and continues to release industrial drones. DJI’s agricultural drone "MG-1," launched in 2015, contributed to DJI’s sales exceeding 1 trillion KRW that year.

DJI is currently focusing on developing drones for agricultural use. The Chinese government actively deploys drones in agriculture and forestry to monitor crop conditions, pests, and wildfires. Since 2015, the Chinese government has designated the drone industry as one of the top ten key sectors, pouring massive investments and policy support into it.

DJI’s drones have also been used for disinfection efforts to prevent the spread of COVID-19. In February last year, DJI deployed its agricultural drone series "Agras" to spray disinfectants over an area exceeding 3 million square meters in China. In the era of social distancing brought on by COVID-19, drones have proven useful even on the front lines of disinfection.

Regarding this, Romeo Durscher, DJI’s head of public safety, said in a media interview, "Through drone disinfection, DJI is realizing its vision of actively improving the environment and society with new technology." DJI plans to continue expanding into industrial sectors by actively applying its technology in medical, disaster response, and relief activities in the future.