Goldman Sachs estimates that the booming drone industry will be worth $100 billion by only next year. In a video released by CNBC International, Goldman Sachs’ statistics also suggest that military drones will account for 70% of the drone industry, whereas consumer drones make up 17% and commercial and civil drones 13% make up the rest of the $100 billion estimate.
Earlier this month, drone research and consulting firm, DroneAnalyst, released two reports delving into the rise, fall and stagnation of the UAV consumer market.
David Benowitz, DroneAnalyst research head and author, suggests that DJI, the Chinese dominant drone maker, has been instrumental in contributing to the slowdown of the drone market, with a combination of the product expansion, cost cuts, and competitive prices, which its smaller competitors were unable to match.
According to Benowitz:
“As new competitors entered the market, DJI remained one step ahead, releasing products at a comparable or superior performance with lower prices. At the same time, DJI better covered the entire market with a variety of new offerings, both lowering and increasing prices simultaneously to attract a wider range of customers.”*
How Did It Happen?
Benowitz points out that DJI made strategic investments in emerging technology and brought a very serious focus on manufacturing automation, which resulted in profits that left its competitors behind.
Although DJI’s market expanded through its lower prices and efficiencies, reductions in sales and marketing efforts have resulted in less profitability in the last couple of years.
Goldman Sachs’ estimates that the booming drone industry will be worth $100 billion by only next year is tremendous news during a very difficult year!
It is possible to grow in the new normal!