Unmanned Aerial Vehicles (UAVs), commonly known as drones, are aircraft that are operated without a pilot on board. They are controlled through remote control devices and onboard programmed control systems. The drone is equipped with autopilot, program control devices, and other equipment, while personnel on the ground, ships, or mother stations track, locate, remotely control, measure, and digitally transmit data using radar and other equipment.
There are several types of drones, including unmanned helicopters, fixed-wing aircraft, multi-rotor vehicles, airships, and winged drones. Based on different usage areas, drones can be categorized into military, civilian, and consumer-grade types.
This article compiles the components required at various stages of the drone supply chain and lists the major suppliers for reference.
Overview of the Drone Industry Chain
Overall, the drone industry chain mainly includes two categories:
One category consists of manufacturers like DJI and GoPro that produce complete systems; the other category includes upstream manufacturers that provide hardware and software for drones, such as chips, flight controllers, batteries, sensors, GPS, gyroscopes, power systems, data systems, and so on.
In terms of hardware, chips are the core components, directly determining the drone’s control performance, communication capabilities, and image processing abilities.
Major control chip manufacturers for drones include: Qualcomm, Intel, STMicroelectronics, Texas Instruments, Samsung, Atmel, Nuvoton, XMOS, NVIDIA, Rockchip, etc.
Consumer-grade hardware manufacturers include: DJI, Parrot, ZeroTech, Yuneec, ASC Tec, XAG, 3DR (formerly a competitor of DJI, now exited the consumer drone market), GoPro, etc.
Solution providers include: Ehang (providing complete system solutions), ZeroTech (launching a drone solution based on mobile chip technology), etc.
Technology providers include: Skydio (provider of drone navigation systems), Aerotenna, Woxu, Panoptes EBumper, Percepto, BetterView, AMIMON, Vertical AI, Dedrone, etc.
Core component suppliers include: InvenSense (acquired by Japan’s TDK, develops and sells MEMS gyroscopes for motion tracking devices), MicroPilot (produces autopilots for drone systems), PolarPro (specializes in filters and accessories for action cameras), uAvionix, etc.
Accessory suppliers include: ParaZero, Fuerte Cases, etc.
13 Major Control Chip Manufacturers
① Qualcomm
Control: Qualcomm Snapdragon chips. These chips have functions such as wireless communication, sensor integration, and spatial positioning. They utilize “RealSense” technology to build 3D maps and perceive the surrounding environment, enabling the drone to fly like a bat and actively avoid obstacles.
To integrate Qualcomm technology into the drone market, Qualcomm began acquisitions and investments in 2015. In February, it acquired drone development company KMel Robotics, and at the end of the same month, it led a $50 million Series C round for 3DR, a former competitor of DJI in the consumer field. Additionally, Qualcomm launched the Snapdragon Flight drone design platform in September.
The core advantages of Snapdragon Flight lie in reducing drone manufacturing costs and prices. On a deeper level, this is due to: 1. Qualcomm’s drone chips share the same processors as smartphones and may include other similar components, allowing for mass production and cost optimization; 2. The chips are highly integrated, saving costs associated with multiple expensive modules, which reportedly account for 30% to 40% of the total drone cost.
Compared to current major drone chip solutions, Qualcomm’s Snapdragon Flight has the smallest CPU size and the highest clock frequency. It has been applied to domestic manufacturers’ small drone products like Hover Camera and ZeroTech’s selfie drone Dobby.
② Intel
Control: Intel Atom processors. These contain up to 6 Intel RealSense 3D cameras and use a customized PCI-express card with a quad-core Intel Atom processor to process distance and sensor real-time information and how to avoid nearby obstacles.
As traditional PC sales continue to decline, Intel is shifting its chip business to the booming drone market. However, compared to selling end products, Intel is more interested in providing solutions for drones, particularly in the area of drone vision. Intel’s greatest advantage lies in its RealSense technology, which uses infrared lasers to avoid the extensive calculations required for computer vision recognition of objects, effectively improving accuracy.
In the market, Intel spent $60 million in 2015 to hire Ehang Typhoon H as a promoter of RealSense in the consumer market. Its developer-oriented Aero drone also features RealSense technology.
Moreover, Intel had previously invested in two drone companies, Airware and Precisionhawk, and in 2015 acquired wearable device and smart glasses manufacturer Recon, as well as the German drone manufacturer Ascending Technologies, which focuses on algorithm research.
③ STMicroelectronics
Control: STM32 series. ST provides a full suite of MEMS gyroscopes, accelerometers, sensors, and power management chips.
STMicroelectronics’ STM32L0 series microcontrollers are based on ARM’s Cortex-M0+ architecture, focusing on ultra-low power consumption, primarily used in wearable, medical, and industrial sensor applications. Previously, many STM32 F0 and F4 series products were used in drones.
④ Texas Instruments
Control: TI OMAP3630. Micron flash memory, Texas Instruments power management + USB solutions, Atheros 802.11b/g/n WiFi controllers, Bosch BMA150 accelerometers, BMP180 barometric sensors, and other components.
⑤ Samsung
Control: Samsung Artik chips. Artik 10 features a 1.3GHz octa-core processor, 2GB of RAM, and 16GB of flash memory. It includes Wi-Fi, Bluetooth, Bluetooth Low Energy, ZigBee, and Thread.
Samsung launched the low-power Artik chip in May 2015, available in three specifications, with Artik1 measuring only 12mm*12mm and priced under $10. It is reported that specifications vary in processing speed, storage capacity, and wireless communication capabilities. This chip targets drones and smart home devices. The industry generally believes that Artik will become Samsung’s key weapon against Qualcomm and Intel, but strictly speaking, Samsung is still a latecomer.
➅ Atmel
Control: ATMEL MEGA2560 development board. AT91M55800A, ARM7TDMI core, embedded ICE interface, memory, and peripherals.
➆ NVIDIA
Unlike Intel, which is trying to use its processors to enter the drone market to compensate for the sluggish PC sales, NVIDIA has no urgent reason to enter the drone market, as its core GPU business grows at a rate of 7%, accounting for 82% of its revenue in the first half of 2016.
In 2015, NVIDIA provided chips for both Parrot and its competitor DJI and developed the Jetson TX1 chip solution for the drone market, capable of handling various image recognition and advanced AI tasks, allowing drones to stay airborne longer.
Previously, NVIDIA also provided chip solutions for both DJI and Parrot. Of course, NVIDIA does not limit the potential of the TX1 motherboard to drone applications; it can also be used in robotics, IoT devices, or laboratory equipment. NVIDIA also provides developers with vision libraries like OpenVX1.1 to assist them in utilizing the motherboard.
➇ Nuvoton
Control: Nuvoton MINI5 series. Low-end remote controllers use SOP20 packaged 4T 8051 N79E814; mid- to high-end remote controllers use Cortex-M0 M051 series with ARM9 and H.264 video encoding and decoding capabilities.
⑨ XMOS
Control: XMOS XCORE multicore microcontroller. 32-bit RISC core with a frequency of up to 500MHz, equipped with Hardware Response I/O interfaces. Multi-axis drones require four to six brushless motors to drive the drone’s rotors.
⑩ Rockchip
Control: Rockchip RK3288. Rockchip has showcased drone products based on RK3288, marking its first domestic demonstration and test flight.
This drone product adopts a quadrotor design with a wheelbase of 300mm, based on the Rockchip RK3288 processor, with an integrated design for the camera and body, supporting 1080p video recording. The weight of the body is approximately 730g, with a flight time of 14 minutes. Functionally, it supports one-click panorama, return-to-home, waypoint navigation, one-click selfie, one-click orbit, and geofencing.
⑪ Allwinner Technology
Founded in Zhuhai, Guangdong, Allwinner launched the R8 portable internet TV solution last year; in collaboration with JD Smart, it launched the “Dingdong” smart speaker (Allwinner R16 solution); and successfully crowdfunded nearly $2 million for the $9 Banana Pi computer from Next Thing (Allwinner R8 solution).
These three products are based on Allwinner’s R series chips targeting the IoT market. Remix launched the “first Android PC” Remix Mini based on Allwinner A64 chips, successfully raising nearly $1.5 million on Kickstarter. The main control solution used in Xiaomi drones is also based on Allwinner Technology’s latest R16 platform.
⑫ Leadcore Technology
The DJI Phantom 4 has used Leadcore’s LC1860 solution, and ZeroTech has also launched a stereo vision solution based on Leadcore LC1860. It is reported that Leadcore has also jointly established Pinecone Electronics with Xiaomi, focusing on the smart hardware field.
⑬ Huawei HiSilicon
In the drone field, Huawei’s wholly-owned subsidiary HiSilicon previously held a 70% market share in the security camera market. In July 2016, to give wings to these security cameras, it launched the Huawei drone platform, collaborating with local startup Zhoxin Technology to introduce a series of drone solutions based on Huawei HiSilicon chips.
Top 10 Drone Suppliers in China
Currently, there are about 200 drone manufacturers in China, with only about 10 possessing core technologies, most of which focus on the consumer market, accounting for 90% of the global share, with DJI, Yihang, XAG, and ZeroTech standing out.
① DJI Innovations
Dubbed the “Apple of the drone industry,” DJI ranks first in the global civilian drone market and is also a leading pioneer in flight imaging systems. Representative products: DJI Phantom 3 4K, DJI Inspire 1 Pro.
② China Academy of Remote Sensing Technology
Controlled by the Institute of Remote Sensing and Digital Earth of the Chinese Academy of Sciences, established in 2007, it has five wholly-owned subsidiaries and is strong in the field of drone remote sensing, having measured remote sensing images during the Wenchuan earthquake.
③ ZeroTech
Founded by Shenzhen Rapoo Technology and Beijing ZeroTech, the company focuses on the R&D and manufacturing of small intelligent drones and is a pioneer and leader in the global intelligent flying vehicle field. It currently has a leading product system for intelligent drones, multi-axis gimbals, and high-definition image transmission. Representative product: Explorer 2.
④ Ehang
In the field of model aircraft and flying vehicles, it independently develops communication transmission hardware and mobile navigation control systems. Representative product: Ehang 184.
⑤ XAG
Dedicated to the R&D and manufacturing of civilian drones and flight control systems, it is a leading player in the drone industry and a leading developer of commercial drones in China, achieving significant breakthroughs in commercial and agricultural drones. Representative product: XMission (all-weather drone).
⑥ Nine Eagles Technology
Its control system has revolutionarily improved the balance, stability, and controllability of single-rotor remote-controlled helicopters, opening a new chapter for single-rotor model helicopters. The “Nine Eagles” brand is self-created, with products mainly exported to over 150 countries and regions, including North America, South America, Japan, and the EU. Representative product: MOLAX1 drone.
⑦ FLYPRO Technology
A professional innovative technology company engaged in drone design and R&D, FLYPRO has an international drone product R&D team with industry-leading innovative drone design and R&D capabilities and advanced flight control systems, visual positioning systems, and automatic obstacle avoidance technologies. Representative product: FLYPRO XEagle drone.
⑧ AEE Technology
A global leader in multi-rotor drone system manufacturing, the world’s first integrated multi-rotor drone system.
⑨ Ait Technology
Manufactures receivers, transmitters, aircraft models, coaxial dual-rotor helicopters, simulation aircraft models, and micro mechanical gyroscopes.
⑩ Dagu Technology
Dagu Technology Co., Ltd. integrates cutting-edge technologies and resources in the IT wireless communication transmission field, collaborating with military manufacturers to establish a high-tech joint-stock company with rich customer resources and market presence, aiming to provide customers with various access methods for wireless communication products and services.
Military/Civilian Drone Manufacturer Rankings
In the civilian drone field, it is almost dominated by Chinese companies. DJI ranks first with an absolute advantage, while AEE Technology, ZeroTech, Yihang, and others also rank among the world’s top players. In the military drone sector, however, it is primarily dominated by European and American manufacturers.
In recent years, drones have risen rapidly, but due to the huge initial investment and a relatively narrow consumer base, coupled with the influx of many new companies, the fierce market competition has led many enterprises to collapse prematurely.
Since 2017, the global drone industry has been hit by a chill. The top three drone manufacturers in the world, Parrot, announced massive layoffs, and the drone star company Lily filed for bankruptcy due to exhaustion of funds. Recently, mainland China has also begun to implement real-name systems for drones, which may accelerate the retreat of the drone market.
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