A drone burns off waste and sundries on the wire in Puyang, Central China's Henan province, March 17, 2015.[Photo/Xinhua]

"Only companies with a forward-looking business model and leading technology will stay in the market longer," said Jason Low, a research analyst from market research firm Canalys.

Low and IDC's Xiao also believe that a drone ecosystem should be built for long-term development of drone companies.

"Attracting developers to join and to build up a drone ecosystem is a way to differentiate. With help from partners and developers, drone makers are more likely to come up with verticals such as farming, land surveying, so on," Low said.