In recent years, the consumer drone market has seen a major shift, with DJI, a global leader holding around 70% of the market share, expanding into agricultural drones. DJI first entered the agricultural drone space in late March 2016, but it wasn't until later that it truly made an impact in this sector. By the end of 2017, the company launched its next generation of agricultural drones, using a strong price-cutting strategy that quickly captured significant market attention—and also drew criticism from competitors. Many argued that such aggressive pricing could harm after-sales support and long-term competition.
According to reports, in December 2017, DJI introduced three new agricultural drones: the MG-1S Advanced, MG-1P, and the MG-1P RTK (Real-Time Kinematic) version. These models are designed for tasks like crop monitoring, irrigation management, and pesticide spraying. Despite not yet turning a profit in the agricultural drone segment, DJI claims to have secured nearly 70% of the mainland Chinese market.
What concerns industry observers is DJI’s overall strategy of lowering prices—its latest models are about 12% cheaper than the ones released in November 2016. Additionally, the company has hinted at launching the Phantom 4 RTK for the agricultural market, though no official release date or pricing details have been announced. Analysts speculate that this model could be one of the most affordable RTK-equipped drones available. Meanwhile, Hanwu Airlines, another mainland-based drone manufacturer, says DJI's low-cost approach has significantly affected the market. Their UAVs run on gasoline, while DJI's are battery-powered, leading some customers to complain that Hanwu’s products are three to four times more expensive.
However, Anyang Quanfeng Aviation Plant Protection Technology believes that future competition in the agricultural drone sector will focus more on performance and efficiency rather than just price or device specifications.
DJI’s aggressive pricing strategy has drawn strong criticism from other players in the agricultural drone market. Competitors argue that the price war could negatively impact essential after-sales services, including training and user guidance. DJI is not the first to face accusations of using predatory pricing tactics. In 2015, the U.S. Immigration and Customs Enforcement (ICE) reportedly raised concerns about DJI stifling competition by slashing prices by as much as 70%. This led to several competitors, such as Yuncee Xiang, French Parrot, and U.S.-based 3D Robotics, exiting the market due to their inability to match DJI’s pricing.
As a result, DJI was able to sell its Category One Unmanned Aircraft System (UAS) for approximately $900 in the U.S., compared to other manufacturers’ similar models priced around $1,500. This strategy has allowed DJI to dominate the market, but it has also sparked ongoing debates about fair competition and long-term sustainability in the drone industry.
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