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Innovative EHang confident in nation's fast-growing drone market

By Li WenFang (China Daily) Updated: 2015-02-04 07:52

Yang's confidence in predicting the company's sales comes from what he refers to as the "nearly blank" home and overseas markets.

The consumer drone market, he said, is dominated by people who are simply "after some fun", typically, for instance, those who love using the new devices to take aerial photos and share them with friends.

"Of course, we get all kinds of enquiries from customers-one recently asked if he could use a drone to deliver flowers to a loved one," he said.

To the wider business market, drones are being used by a huge variety of sectors, from forest fire prevention, to disaster-hit area observation, broadcast journalism to emergency medical delivery and vegetation observation.

One of the company's more recent contracts was with a Chinese power grid company, planning to use its devices to check overhead power lines.

"Traditionally, it is dangerous sending people up ladders to check cables, some of which could stretch over mountains and forests; it used to involve a lot of people, but using a drone can be easier, cheaper and safer."

According to a recent report by China Securities, the annual global demand for unmanned aerial vehicles is expected to almost double from $6.4 billion in 2015 to $11.5 billion in 2024, with public-sector sales expected to account for 14 percent of the total by then.

In China, the market is projected to expand from $620 million in 2013 to $2.28 billion by 2022, with nearly 13 percent coming from the non-military sector.

At last month's massive International Consumer Electronics Show, held in Las Vegas, a specially designated "Unmanned Systems" marketplace was created for the first time.

Without any official statistics, Yang, who is also in charge of the company's sales, estimates about 300 drone makers already exist in China, including those producing what are essentially toys, with EHang positioned in the top five.

The Shenzhen-based manufacturer DJI Technology Co claims a 70 percent share of the global civilian drone market.

"It is hard to give an accurate figure, but I guess that soon there could be as many as 3,000 drone makers in China," he said, adding that EHang's continued expansion is dependent on what he calls, sustained innovation in meeting user experiences.

"Every two to three months we launch an eye-opening function," he said, to meet those demands.

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