As the industry becomes more regulated and mature, market players and analysts believe it is technology that will finally decide the fate of drone companies.
"Adjustment and knock-out are the natural laws in any industry," said Lin Weidong, president of Shenzhen Art-Tech R/C Hobby Co Ltd. "Only those with core technologies and a precise positioning (of their products) can survive."
Lin expects the percentage of drone companies with manufacturing and operational capability would decrease to 2 percent, or less, of the current number within five years.