Drone firms fly higher with versatile models

JD said it has used innovative drone technology to reach consumers in some of China's hard-to-reach remote areas. The drones are developed by JD-X, JD's research and logistics innovation lab, which is focused on developing smart logistics solutions to make the passage of goods from warehouses to Chinese consumers quicker, cheaper and more efficient.

SF Holding said it has rolled out several types of drones for delivery services, with a maximum payload of 25 kg and flying distance of 100 km.

In the global delivery drones market, the Asia-Pacific region will witness the highest growth and China is the largest market already. Increasing support from the authorities concerned for commercial drone operations is propelling the growth of drone delivery operations in the region, the Mordor Intelligence report said.

Pan Xuefei, a senior analyst at market research firm International Data Corp, said applications of delivery drones are still nascent, adding such drones are mainly used to improve delivery efficiency in remote mountainous areas and sparsely populated regions.

Civilian drones are basically consumer- and industry-level equipment. In the consumer electronics sector, drones are mainly used in aerial photography, while industrial applications of drones are for patrolling power lines and similar operations, which will see immense demand in China, potentially boosting their worth, industry insiders said.

Jason Low, an analyst from market research company Canalys, said major drone companies are concentrating on professional and industry-level drones, spending a large part of their investment on developing software and hardware platforms, and attracting developers to create apps and new use cases for their drones.

The industrial drone market has huge growth potential, said Yang Jincai, director of the Shenzhen Unmanned Aerial Vehicle Industry Association in Guangdong province. "However, we still need time to see the large-scale application of drones in various sectors."

Experts also said China is at the forefront of state-of-the-art agricultural drones, the fastest-growing, most widely used and mature industry-level drones.

DJI has been devoting a great deal of attention to farm-specific drones in the hope of helping farmers improve the efficiency of sowing seeds and spraying fertilizers and pesticides, as well as increasing the use ratio of intelligent agricultural equipment.

Its agricultural-use business began in November 2015 when it launched its first farm drone, the MG-1, marking its diversification into the segment. The Shenzhen, Guangdong province-based company is bullish about the prospects for farm drones as demand for such gadgets has surged and the whole industry is expanding rapidly.

The company has also used drones to carry out three-dimensional digitization of national cultural heritage, a move that will make contributions to the preservation, restoration and research of cultural heritage and historical relics.

XAG Co Ltd, China's largest agricultural drone maker, is ramping up efforts to develop farm-specific drones, step up investment in research and development, and expand its footprint in global markets as part of its broader drive to build a smart farming ecosystem.

Justin Gong, co-founder of XAG, said agricultural drones have been widely used for spraying pesticides, sprinkling fertilizers and sowing seeds to help farmers improve efficiency and reduce costs.

The company has trained lots of young people who went back to the countryside and became drone pilots and robot operators instead of directly selling the devices to farmers, Gong said.

Drones and robots can replace manpower for labor-intensive and tedious farm work, Gong said, adding that reduced use of chemicals and fertilizers could eventually help lower farming costs.

The Chinese authorities have released a guideline to promote digital technologies in rural areas, as part of their efforts to advance agricultural and rural modernization.

"Our ultimate goal is to create a smart agriculture ecosystem in which all the repetitive, tedious and dangerous jobs are assigned to drones and robots, allowing farmers to focus on decision-making with the aid of big data and artificial intelligence," Gong said.

He further said digital technologies help accelerate the industrialization of the Chinese agricultural sector. Lower production costs can improve the competitiveness of agricultural products. The company aims to expand its global footprint in Southeast Asia, Eastern Europe and South America in the next few years.

Chen Shengdou, director of the China Agro-tech Extension Association, said farmers have high expectations for modern agricultural equipment that can transform, upgrade and develop traditional agriculture. Farm drones, which have the highest technical content and the largest market demand, have been increasingly used to safeguard a wide range of crops, he said.