Drone makers see soaring growth but dark clouds circle industry

A drone sprays pesticide in a field in Duchang County of Jiujiang city, East China's Jiangxi province, July 2, 2015. 2015 is the dawn of the drone age. Drone is no longer a high-tech military equipment, but also be used in photography, fire extinguishing, agricultural control and other private and commercial areas. [Photo/Xinhua]

As the industry becomes more regulated and mature, market players and analysts believe it is technology that will finally decide the fate of drone companies.

"Adjustment and knock-out are the natural laws in any industry," said Lin Weidong, president of Shenzhen Art-Tech R/C Hobby Co Ltd. "Only those with core technologies and a precise positioning (of their products) can survive."

Lin expects the percentage of drone companies with manufacturing and operational capability would decrease to 2 percent, or less, of the current number within five years.