Fledgling UAV sector helps Chinese companies take off

"This is also due to the research and development talent in the country," Shen said. "The Internet has also opened up the global marketplace for consumers and this has helped Chinese companies stay ahead of international rivals."

But it is not all clear skies ahead for China's drone manufacturers. One problem is putting together a network that can coordinate UAVs at low altitude for built-up areas such as cities.

"If UAVs from different companies can be connected to a network, it will be huge step forward, and highly valuable," Xiong Yifang, co-founder of Ehang Technology Co Ltd, said.

Competition in the sector will also increase in the future, he pointed out, although the market is expanding at a tremendous rate.

Regulation is another area that will affect the UAV industry. China, for example, has yet to produce a concrete policy on zones. Australia, Canada and the United Kingdom have limited regulations for individual leisure use of UAVs, but that is likely to change as the sector grows. There are tighter restrictions in the US.