Recent rumors have been that the U.S.-based Figma software has disrupted supplies to DJI, and the U.S. government has repeatedly issued executive orders restricting DJI's drone products. However, despite pressure from the U.S. government, DJI still monopolizes 70% of the global drone market and continues to be procured by official agencies such as the U.S. Air Force, U.S. Navy, local police stations, and fire departments, while Pentagon-backed local drone companies still cannot compete with it.
Why is DJI still prospering under such pressure? Behind this is not only the role of market laws, but also the support of independent innovation and excellent product strength.
The U.S. direct blow to DJI included tariffs in 2019, but DJI's strategy is to pass on costs to U.S. consumers and stay competitive through precise pricing. However, this price increase strategy is contrary to general market logic, because usually price increases reduce the competitiveness of the product and customers may flow to competitors. At the same time, the U.S. government is also supporting local drone companies, but they still can't compete with DJI.
Whether it is Trump or Biden, the US government wants to take the lead in the field of drones. However, there is a gap between reality and ideals, for example, in 2016 Ukraine criticized the use of analog image transmission by Ukraine, which lagged behind. In 2021, the commercial drones of the American company Skydio are still far behind DJI's products in terms of technology. The U.S. Department of the Interior also pointed out that the Blue Drone project is 8 to 14 times more expensive than DJI, and has worse performance and cannot meet mission needs.
Despite this, the U.S. Department of the Interior banned the use of DJI drones for a while, but later found that this increased the cost and difficulty of preventing and controlling wildfires, so it relaxed restrictions on DJI. Other departments have circumvented the ban through various exemption rules, and some police and fire departments have even used social donations to buy DJI drones, citing that "the lives of team members are the most important" or "saving lives is the most important."
The U.S. military has banned the purchase of Chinese drones, but has repeatedly purchased DJI drones through "special exemptions." DJI emphasizes that its products are designed for civilian use and do not meet military specifications, but American companies are also unwilling to pay for feelings. According to a survey, 78% of users said they would continue to use DJI drones, compared to just 7% who supported Skydio.
Unlike the U.S. that does not follow the government's orders, some U.S. allies are using DJI drones, especially during the 2020 pandemic. U.S. allies have chosen Chinese-made DJI drones to help fight the epidemic in the face of the epidemic, which shows DJI's trust around the world.
However, it will not be easy for the United States to catch up with DJI. DJI's success is not only due to the advantages of product performance and price, but also because of its strong independent research and development capabilities and huge industrial chain. DJI has core technologies in the field of drone technology, including flight control intelligence, low power consumption, and highly integrated integration, and has the world's largest drone R&D team, and has deep cooperation with universities. DJI is constantly innovating and introducing technological innovations, so it is difficult to be surpassed by other competitors.
In addition, DJI's success also benefits from China's mature industrial chain. Shenzhen has an industrial system suitable for manufacturing UAVs, including PCB circuit board factories, SMP patch factories, mold factories, assembly factories, etc. The localization rate of parts for Chinese drones is gradually increasing, which helps to reduce product costs. The U.S. drone industry faces supply chain issues because many components need to be sourced from overseas, while China's industrial chain is relatively well-established, allowing DJI to carry out research and development work more flexibly.
In short, DJI's success is backed by many aspects, including independent research and development, industrial chain improvement, product innovation and other factors. Despite pressure from the U.S. government, DJI maintains its leading position in the global drone market, which requires more innovation and independent development, not just policy intervention. To catch up with DJI, the United States needs more independent research and development and stronger industrial chain support.
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