IDC: Camera Drone Shipments In China Will Surge To 3 Million Units In 2019 From Just 390,000 Units In 2016

Camera drone shipments are expected to surge over the coming years to three million units in 2019 from just 390,000 units in 2016, according to a report by the IDC.

According to the IDC data, noted that camera drones are becoming increasingly popular in China and will experience a compounded annual growth rate of 68 percent over the next few years. The report added that demand will be fueled by new applications in areas such as mineral exploration, traffic law enforcement, disaster monitoring and vocational education.

IDC added that the market for entry-level camera drones (priced under $770) will face increasing competition. Domestic manufacturers such as DJI, Wingland and Sim Too have all released camera drones in the entry price level range, DigiTimes further noted.

IDC didn't detail which companies are expected to be a winner in the space but it stands to reason that Ambarella Inc (NASDAQ: AMBA), a China-based developer of semiconductor processing solutions that are used in drones, stands to benefit from the uptick in shipments.