Skydio, the American drone manufacturer, has recently announced that it will be exiting the consumer drone market. The company has made this tough decision in order to focus on serving enterprise clients instead. This move comes as a surprise, considering DJI’s products have been banned in many US government agencies and organizations.
Founded in 2014, Skydio became the first US drone manufacturer to be valued at over $1 billion in 2021, and it is now valued at $2.2 billion. In 2018, the company released the Skydio R1, a consumer-oriented drone that was marketed as a “flying camera.” Although it had advanced features like 4K video shooting and collision prevention, it was larger and more expensive than its competitors, including DJI.
In 2019, Skydio introduced the Skydio 2, a compact and affordable self-flying drone aimed at taking on DJI. It boasted the best collision avoidance system in the market, and the company even offered to repair or replace the drone for free if it collided with anything within certain guidelines. However, the non-folding design of the Skydio 2 lacked the convenience offered by competing drones like the DJI Spark.
Despite some success in the consumer market, Skydio has made the decision to shift its focus to government and public sector clients, where it has seen great success. The company believes that trusted and secure drones are crucial for industries such as public safety, transportation, energy, construction, and defense.
This decision follows in the footsteps of Parrot, another drone manufacturer that halted consumer drone production in 2019 to focus on enterprise clients. Ultimately, businesses prioritize profit, which means pursuing avenues that yield the highest returns.
As a result, there will be no Skydio 3, and existing consumer drone models will be discontinued. However, the Skydio 2+ Enterprise Kit will still be available for purchase by companies. Skydio assures customers that it will continue to provide support and software updates for existing drone owners, as well as maintain an inventory of accessories for as long as possible.
Although DJI has faced challenges in the US due to geopolitical tensions, it remains the dominant player in the consumer drone market. Unless another American drone manufacturer emerges to challenge DJI, the status quo is likely to continue, regardless of government bans.
While competition drives innovation, currently, consumers simply want a drone that meets their needs at a reasonable price. DJI has been successful in providing that, and without competition, innovation may be stifled. Therefore, it is hopeful that Skydio and other companies will reenter the consumer market in the future.