From aerial photography and dazzling light displays to agricultural plant protection and power line inspections, from geographic mapping to logistics transportation, drones have seamlessly integrated into various facets of production and daily life. What was once a novel “black technology” has become a ubiquitous tool, underpinned by the comprehensive rise of China’s drone industry chain. Recent emphasis from China’s Ministry of Industry and Information Technology, highlighted during the first plenary meeting of the low-altitude industry development leadership group, stresses “promoting collaborative innovation and development among upstream and downstream enterprises in the industrial chain, and cultivating more leading low-altitude industry firms and specialized ‘little giant’ enterprises.” Among the diverse array of aircraft in the low-altitude sector, drones undoubtedly lead the way as pioneering veterans.
Data reveals that China has long held the position as the world’s largest exporter of civil drones, with patent applications in the drone field accounting for approximately 70% of the global total, establishing the country as the top source of technological innovation. As Chinese drones “fly” globally, what key breakthroughs has the industrial chain achieved, and what challenges remain? Through in-depth research and interviews, three figures centered on “ten thousand”—surpassing 10,000 drones, exceeding 10,000 enterprises, and advancing toward a trillion-yuan market—serve as a framework to unravel the intricacies of this vast industrial ecosystem.
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Breaking the 10,000-Drone Barrier: The Evolution of Drone Shows
“We were the first to achieve a synchronized flight of over 10,000 drones,” stated Qin Haiqun, Deputy General Manager and Head of the Technical Support Department at Shenzhen Damoda Intelligent Control Technology Co., Ltd. (Damoda), in an interview. This milestone was highlighted during a pre-National Day drone show in Shenzhen, themed “City in the Sky, Full of Possibilities.” On the evening of September 26, 10,197 drones ascended simultaneously, captivating global attention and setting two Guinness World Records: “Most Unmanned Aerial Vehicles (UAVs) airborne simultaneously launched by a single computer” and “Largest aerial image formed by UAVs.” The mastermind behind this spectacular drone show was Damoda.
Achieving the 10,000-drone mark took Damoda eight years. Founded in 2016, the company pioneered China’s first drone performance team, executing the country’s inaugural 80-drone formation light show in July of that year. Alongside Shenzhen HighGreat Innovation, Tianjin YiFei Intelligent Control, and Guangzhou EHang Intelligent (which has since shifted its focus to eVTOL and largely exited the drone formation performance arena), Damoda was once hailed as one of the “four dragons” in drone formation performances. Over the past decade, Damoda, as an integrator, has witnessed the continuous maturation of the industrial chain. “For our third-generation drones, every component has achieved 100% localization,” Qin emphasized.
In a demonstration, a single case was unfolded to reveal 12 drones compactly and neatly arranged inside. Before a performance, staff simply install batteries, and the drones, controlled by a computer, take off with a single command. After the show, they return to their original positions, enabling semi-automated operations. This design not only conserves space, making large-scale performances feasible, but also significantly reduces labor costs. This functionality is made possible by the adoption of domestically produced GPS chips, which provide GPS and RTK (Real-Time Kinematic) positioning capabilities, assisted by cameras, achieving positioning accuracy within 5 centimeters. “Previously, we used foreign products because we hadn’t found suitable domestic GPS chip alternatives. However, with advancements in related technologies and our algorithmic optimizations, we finally realized localization,” Qin explained. The shift to domestic GPS chips has not only lowered costs but also enhanced the drones’ anti-interference capabilities.
The leap from an initial 80 drones to over 10,000 epitomizes the monumental progress of China’s drone industry. “Through over a decade of accumulation, China’s drone industry overall is at the world’s leading level,” remarked Ren Bin, Chairman of JOUAV, often referred to as the “first stock of industrial drones,” in an interview. According to the “China General Aviation Development Report” and the “China Civil Unmanned Aerial Vehicle Development Report,” over 2 million drones are registered nationwide. Concurrently, China has maintained its status as the world’s top civil drone exporter for years, with drone-related patent applications comprising about 70% of the global total, solidifying its position as the primary source of technological innovation.
The development of drone shows has been a driving force in this evolution. These performances, which combine art and technology, have pushed the boundaries of what is possible with unmanned aerial vehicles. The integration of advanced flight control systems, precise positioning technologies, and robust communication networks has enabled the execution of complex aerial ballets involving thousands of drones. The success of such large-scale drone shows underscores the reliability and sophistication of the underlying hardware and software. As drone shows gain popularity for events, celebrations, and corporate promotions, they serve as a visible testament to the industry’s capabilities, fostering public engagement and commercial interest. The continuous innovation in drone show technology not only enhances entertainment value but also drives research and development in areas like battery life, swarm intelligence, and real-time data processing, contributing to the overall advancement of the drone ecosystem.
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Over 10,000 Enterprises: The Rise of a Complete Industrial Chain
Data indicates that as of the end of October this year, the number of operational drone enterprises in China has surpassed 17,000. This vast number of companies vividly reflects the comprehensive rise of the entire drone industrial chain. Yang Jincai, President of the World UAV Congress and Founding President of the Shenzhen UAV Industry Association, elaborated that the drone industrial chain comprises upstream raw materials and components, midstream whole-machine manufacturing and system integration, and downstream application fields. Specifically, a drone primarily consists of several core parts: the airframe, flight control system, power system, sensor system, and communication and navigation system, all indispensable from flight to application stages. “The airframe is like the skeleton, the flight control system acts as the brain, the power system serves as the heart, and the sensor and communication systems ensure commands such as data transmission,” Yang analogized.
Depending on the application scenario, the importance and requirements for various components differ. Interviews revealed that the flight control system, as the “brain,” is an indispensable core component for all drones. The flight control system integrates processors, sensors, and actuators, monitoring the drone’s flight status, adjusting its attitude, and ensuring stable and reliable operation. “When our company started in 2015, flight control technology in the industry was not very mature. Our founder, with over a decade of research experience at the Chinese Academy of Sciences, possessed core technologies and led the team to apply these to drones, achieving breakthrough developments. Today, the company has built an industrial chain system integrating R&D, production, and operation, with businesses widely applied in key areas such as drone formation performances, intelligent security, logistics transportation, and customized drone systems,” Zhang Yun, General Manager of YiFei Intelligent Control, shared. Particularly in formation performances, the company’s self-developed cluster control system can support up to 100,000 drones flying simultaneously. In the 2024 Spring Festival Gala, it successfully orchestrated a fireworks display with 2,500 drones, creating the nation’s largest drone fireworks show.
JOUAV serves as another case in point. “The company initially focused on flight control systems, developing flight control verification platforms for ‘large aircraft,’ which laid a solid technical foundation for subsequent growth,” Ren said. Building on earlier technological accumulation, JOUAV entered the industrial drone whole-machine sector in 2015 and now engages in all aspects of the industrial chain, boasting advantages from full-chain synergistic development. Simultaneously, as a key drone enterprise in Chengdu, the company plays a bridging role, “promoting the R&D of upstream components and technologies while leading the expansion of downstream application scenarios, fostering collaborative development among upstream and downstream enterprises in the industrial chain,” Ren added.
“Overall, the synergistic development of upstream and downstream industries has driven manufacturing progress in the drone industrial chain,” Yang summarized. However, industry insiders generally noted that the drone industrial chain still faces shortcomings in the localization of certain chips and sensors. The design and manufacturing capabilities for medium, large, and long-endurance unmanned aerial vehicles require further enhancement, necessiting collective efforts from all industry stakeholders for improvement and refinement in the future.
The proliferation of enterprises has catalyzed specialization and innovation across the chain. Component manufacturers, software developers, and service providers have emerged, creating a vibrant ecosystem. This diversity not only fuels competition but also accelerates technological diffusion and cost reduction. The presence of over 10,000 enterprises signifies a mature market where collaboration and competition coexist, driving continuous improvements in quality, efficiency, and affordability. The industrial chain’s robustness is evident in its ability to support diverse applications, from consumer-grade photography to industrial-grade inspections, each demanding specific capabilities and reliability. As enterprises proliferate, they contribute to a knowledge base that fosters rapid iteration and adaptation to market needs, ensuring the industry’s dynamic growth and global competitiveness.
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Towards a Trillion-Yuan Market: Applications and Future Prospects
“China has now become the world’s largest drone market. By 2030, China is likely to become the first country where the drone market exceeds one trillion yuan,” predicted Luo Jun, Executive Chairman of the China Low-Altitude Economy Alliance. While consumer-grade drones are numerous and inexpensive, and industrial-grade drones, though costly, are limited in quantity, how can drones constitute a trillion-yuan market? The answer lies beyond the drones themselves.
“Drones are merely flying carriers; the true value of the low-altitude economy does not reside in the aircraft themselves but in the technological innovations and economic benefits derived from their applications across various industries,” stated Yang Run, Chairman of Chengdu RuiBo Technology Co., Ltd. (RuiBo Technology). As China’s largest manufacturer of aerial surveying cameras, 70% of surveying and mapping drones in the country are equipped with the company’s main products. In Yang’s view, although RuiBo Technology belongs to the aerial camera payload segment of the drone industrial chain, the value generated by its core business originates from the geographic information industry.
On one hand, the application of drones across sectors inevitably drives iterative upgrades in various links of the industrial chain. Zhang Yun noted that over the years, flight control, as the most core technology, has evolved from single-machine to cluster applications, from manual control to autonomous perception, with continuous improvements in reliability and stability. As its maturity increases, emphasis has shifted towards how flight control systems can integrate more functional applications and better align with scenarios. For instance, in traffic inspection scenarios, whereas drones previously only captured images, they can now incorporate AI algorithms. “Through big data training, when a drone flies over, AI can automatically identify traffic incidents, assess road congestion, eliminating the need for manual identification,” Zhang elaborated.
On the other hand, the increasing maturity of each industrial chain segment enables more scenario applications, allowing drones to generate higher market value. Taking Damoda’s third-generation drone products as an example, due to GPS chips enabling high-precision automatic positioning, the deployment distance between two drones on the ground has been reduced from 1 meter to 40 centimeters. “Previously, on a rooftop, we could fly up to 100 drones; now, we can fly five to six hundred,” Qin Haiqun remarked. This advancement not only expands the scale of drone shows but also opens doors for more intricate and large-scale applications in other fields, such as precision agriculture where closer formation flying might be beneficial for coordinated tasks.
In recent years, as various regions intensify support for the low-altitude economy, related policies and regulations have gradually improved, low-altitude airspace management has progressively opened up, and low-altitude infrastructure construction has accelerated. These factors collectively create favorable conditions for expanding the industrial application of drones. The synergy between industrial chain upgrades and industry applications is mutually reinforcing. As drones become more capable and affordable, new use cases emerge, which in turn drive demand for further technological refinements. This virtuous cycle propels the entire ecosystem forward, positioning the drone industry as a cornerstone of the future low-altitude economy.
The potential applications are vast and varied. In logistics, drones promise to revolutionize last-mile delivery, especially in remote or congested areas. In agriculture, they enable precision farming through targeted pesticide application and crop monitoring. In public safety, they assist in surveillance, disaster response, and search-and-rescue operations. Each application not only generates direct economic value but also induces secondary benefits, such as increased efficiency, reduced costs, and enhanced safety. The vision of a trillion-yuan market is not merely about drone sales but encompasses the entire value chain, including data services, software platforms, maintenance, and training. As regulatory frameworks mature and public acceptance grows, the drone industry is poised to unlock unprecedented economic potential, transforming industries and shaping the future of transportation and services.
The journey of China’s drone industry—from groundbreaking drone shows involving over 10,000 units to a network of more than 10,000 enterprises and the pursuit of a trillion-yuan market—illustrates a remarkable trajectory of innovation and growth. The collaborative efforts across the industrial chain, coupled with technological advancements and expanding applications, have positioned China as a global leader in the drone arena. As the low-altitude economy gains momentum, drones will continue to be at the forefront, driving progress and creating new possibilities. The evolution of drone shows, in particular, symbolizes the industry’s capacity for spectacle and substance, demonstrating how artistic expression and technical excellence can coalesce to push boundaries. With ongoing investments in R&D, infrastructure, and talent, the future of China’s drone industry appears boundless, ready to soar to even greater heights and redefine the skies.