A person from DJI said: There's no need to cooperate with any company to expand the (drone) business.

Author | Yuan Silai

Competition is fierce.

On November 4th, at the third - quarter earnings briefing of Insta360, an investor asked how Insta360 would respond to DJI's price war. Liu Jingkang, the chairman of Insta360, responded that "increasing the market volume through competition is a common goal of the industry."

Recently, however, Yingke learned from relevant sources that a DJI representative said at a product experience event targeting the capital market: "There is only one profitable company in the global consumer - grade drone market... To be honest, DJI doesn't need to cooperate with any other company to expand this business."

According to Yingke, this event was organized by DJI for some secondary brokers, fund managers, etc., to experience the panoramic drone Avata 360 and introduce DJI's subsequent strategies for this market. Multiple participants said that DJI rarely communicates with the capital market. At this experience event, DJI representatives also stated that the company has no plans for financing or going public.

The atmosphere at the event was filled with the smell of an impending battle. DJI representatives said that after the launch of the Avata 360, it will directly compete with Insta360's drone, the Antigravity, in terms of price. According to the recollection of the participants, DJI analyzed the BOM cost (Bill of Materials cost) of panoramic drones and announced its pricing plan, which is quite aggressive.

Image source/Igor Bogdanov

Multiple participants told Yingke that DJI's presenters said that the growth of the consumer - grade drone market has been slowing down year by year, and DJI doesn't plan to seek significant growth in the panoramic drone segment.

DJI's Avata series was launched in 2022, focusing on sports and first - person view (FPV). It is compact and lightweight, capable of performing complex stunts. This is a relatively niche category. Third - party data shows that in 2024, the global FPV drone market was worth 1.852 billion yuan, while the global consumer - grade drone market sales exceeded 50 billion yuan.

As of press time, Yingke has reached out to DJI and Insta360 for verification, but neither has responded.

There are differences between DJI's and Insta360's panoramic drones.

According to the technology media TechRadar, the Avata 360 looks similar to the Avata 2 racing drone but is equipped with 360° dual cameras. The Antigravity A1 is similar in shape to traditional aerial photography drones, using fixed fisheye lenses, and it has both first - person view and dynamic shooting functions.

Each form has its own advantages and disadvantages. Racing drones have good maneuverability, fast acceleration, and more impactful footage, but they are difficult for beginners to operate. Aerial photography drones have a lower entry threshold but are less capable of shooting highly dynamic videos.

Regardless of their different positioning, panoramic drones are one of the most - watched products this year.

According to the statistics and forecasts of QYResearch, from 2024 to 2031, the compound annual growth rate of the global consumer - grade drone market will be 8.0%, a decline compared to the previous double - digit growth. Panoramic drones may inject growth momentum into the drone market. An industry insider analyzed to Yingke that DJI's actions are mainly a "counter - attack" after its core business was challenged.

In the upcoming confrontation, both sides have their own advantages. DJI has a strong say in the drone supply chain, while Insta360 has more experience in panoramic camera software.

High - quality hardware is the baseline, and software is related to the difficulty of video editing and the final video effect. The drone supply chain is long and complex. For Insta360, a new entrant, mass - producing products with a high yield rate is a significant challenge. For DJI, it needs to further optimize its software. The above - mentioned industry insider recalled that an investor at the event asked DJI representatives to compare their software with Insta360's, and the representatives said they were "catching up through iterations."

The quality of consumer electronics can only be judged by hands - on experience. Before both products are fully launched, we can't determine who will capture this market.

Chart by 36Kr