Analysis of Insta360's Panoramic Drones Challenging DJI's Market Monopoly

I have now collected sufficient information and can provide you with a detailed analysis report.

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This judgment is based on the following key insights: Insta360 has chosen a differentiated competitive entry point—the niche blank market of panoramic drones—instead of directly competing with DJI head-on in its traditional strong areas. However, facing the technical barriers, supply chain advantages, and ecological moat built by DJI in the drone field, Insta360 will face significant challenges in its breakthrough path[1][2][3].

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DJI’s dominant position in the consumer drone market is extremely solid. According to public data, over the past decade, DJI’s market share in this field has never been lower than 70%; as of 2025, its global market share in consumer drones is as high as 75%-80%, with 2024 revenue reaching RMB 80 billion and a net profit margin approaching 40%[2][4].

DJI’s competitive advantages stem from its complete technical moat system:

• Technical Patent Barriers
  : As of October 2025, DJI has more than 38,000 technical patents worldwide, covering the entire industrial chain from software algorithms to core components[2]
• “Iron Triangle” Technology System of Flight Control, Gimbal, and Image Transmission
  : Flight control ensures stable and safe flight, the gimbal achieves cinema-level anti-shake, and image transmission provides long-distance, low-latency high-definition image transmission. Together, the three create an ultimate user experience[2]
• Supply Chain Cost Advantage
  : According to a teardown analysis by Nikkei Asia Review and a Japanese research firm, the component cost ratio of DJI drones is only about 20%, while competitors’ material costs can reach twice the whole machine price with the same performance[2]
• Ecosystem Stickiness
  : After purchasing a drone, users use DJI Fly to edit videos, DJI SkyPort to manage flight data, and join drone pilot communities, forming extremely strong user stickiness[2]

Insta360 has established a leading global position in the panoramic camera market, but is still a new entrant in the drone field:

Indicator	Insta360 Data
First three quarters revenue 2025	RMB 6.611 billion, YoY growth of 67%
Q3 2025 single-quarter revenue	RMB 2.94 billion, YoY growth of 92.64%
2024 global smart imaging device market share	35.6% (a significant increase from 28.4% in 2023)
2023 global consumer panoramic camera market share	67.2%, ranked first globally for 6 consecutive years
Q3 2025 global panoramic camera market share	Approximately 75%
Proportion of R&D personnel	Over 50%

Data sources: [1][3][5][6]

According to Insta360’s Q3 2025 financial report, the company achieved operating revenue of RMB 6.611 billion in the first three quarters, a YoY increase of 67.18%; net profit was RMB 792 million, a YoY decrease of 5.95%[5]. The main reasons for the profit decline are the substantial increase in R&D investment (RMB 1.085 billion in R&D investment in the first three quarters, a YoY increase of 127.02%) and the growth in sales expenses (RMB 1.13 billion in sales expenses in the first three quarters, a YoY increase of 102.5%)[5][6].

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Insta360 is laying out its drone track through the “Yingling Antigravity” series. According to public information:

• Yingling Antigravity A1
  : A panoramic drone co-incubated with a third party, which was selected for Time magazine’s “2025 Best Inventions” list in October 2025. The public beta is nearing completion, and it is expected to be launched for trial sales in some regional markets in Q4 2025[1]
• This will be Insta360’s first entry into the consumer drone market, and it is also an important strategic move to extend its technology landscape from ground handheld devices to aerial photography equipment[1]

Instead of directly entering the traditional aerial photography drone market to compete head-on with DJI, Insta360 has adopted a

:

1. Niche Market Focus
   : Choosing “panoramic drones”, a product category that DJI has not yet entered, as the entry point, which is threatening[3]
2. Technology Reuse Advantage
   : Insta360 has unique advantages in panoramic image stitching algorithms and software systems, and can extend its panoramic technology to the drone aerial photography field[1]
3. Filling Market Gaps
   : Panoramic drones are a new category, and there are no mature consumer products on the market currently. Insta360 is expected to become the definer and leader of this category[1]

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Facing Insta360’s strong position in the panoramic camera market and DJI’s entry into the panoramic camera market, the competition between the two companies has shown a “switch between offense and defense” trend:

On July 31, 2025, DJI released its first consumer panoramic camera, DJI Osmo 360, officially entering the panoramic camera market. The market performance of this product exceeded expectations:

• Shipped approximately 290,000 units within 90 days of launch, with sales reaching RMB 860 million[6][7]
• Quickly gained a 49% market share in China’s e-commerce channels, while Insta360’s share in the same channel was 47% during the same period[8]
• Broke Insta360’s long-term monopoly in the panoramic camera market in less than three months[3]

The pricing strategy of DJI Osmo 360 is highly competitive (RMB 2,999), which is RMB 800 lower than the original price of Insta360 X5. Insta360 then reduced the price of X5 by RMB 500 to respond[8].

Industry analysts believe that DJI plans to launch a panoramic drone product by the end of 2025, directly targeting Insta360’s Yingling Antigravity series[3]. Considering DJI’s technical accumulation, supply chain advantages, and channel resources in the drone field, once it launches a panoramic drone, it will pose significant competitive pressure on Insta360.

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1. Market Gap Opportunity
   : Panoramic drones are a new category, and DJI has not yet formed a first-mover advantage or market awareness. Insta360 has the opportunity to become the category definer[1]

2. Technology Synergy Effect
   : Insta360’s advantages in software algorithms such as panoramic image stitching and AI automatic editing can be extended to drone products, forming differentiated competitiveness[1]

3. Brand Momentum Accumulation
   : Insta360’s brand influence continues to rise. In 2025, it won the Engineering, Science & Technology Emmy Award (the first Chinese smart imaging brand to receive this honor) and was selected as one of MIT Technology Review’s “50 Smartest Companies”[1]

4. Market Expansion Dividend
   : The actual scale of the 2025 panoramic camera market has exceeded previous expectations (the combined sales of Insta360 and DJI may reach RMB 6.9-7.3 billion, exceeding the previous forecast of RMB 6.61 billion), indicating that the market is expanding rapidly[7]

1. Huge Volume Gap
   : Insta360’s 2024 revenue was RMB 5.574 billion, while DJI’s 2024 revenue was approximately RMB 80 billion, a volume gap of about 14 times[6]

2. Technical Accumulation Gap
   : DJI has been deeply involved in the drone field for many years, with more than 38,000 patents and an R&D team of over 6,000 people; Insta360’s accumulation of core drone technologies such as flight control and image transmission is relatively weak[2]

3. Supply Chain Disadvantage
   : DJI has a complete supply chain system in Shenzhen, with significant cost control advantages; as a new entrant, Insta360 is at a disadvantage in supply chain bargaining power and cost control[2]

4. Ecological Barrier
   : DJI has built a complete hardware and software ecosystem with extremely high user stickiness; Insta360 needs to build a drone ecosystem from scratch[2]

5. DJI’s Rapid Counterattack Capability
   : DJI released its panoramic camera product just one week after Insta360 announced its entry into the drone market, demonstrating its rapid response and strategic execution capabilities[6]

Dimension	Insta360	DJI
Panoramic Technology	★★★★★ Leading	★★★☆☆ New Entrant
Flight Control System	★★☆☆☆ Weak	★★★★★ Absolute Leader
Supply Chain	★★★☆☆ Average	★★★★★ Extremely Strong
Brand Influence	★★★★☆ Strong	★★★★★ Extremely Strong
Channel Network	★★★★☆ Wide	★★★★★ Extremely Wide
R&D Investment	★★★☆☆ Limited	★★★★★ Huge
Patent Reserve	★★★☆☆ Relatively Few	★★★★★ Extremely Many

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1. Market Competition Risk
   : After DJI entered the panoramic camera market, Insta360’s market share is being eroded; if DJI launches panoramic drones, it will further compress Insta360’s living space[3][8]

2. International Trade Friction and Tariff Risk
   : The U.S. market accounts for a relatively high proportion of revenue, and changes in tariff policies may affect performance[6]

3. U.S. 337 Investigation and Related Litigation Risks
   : Patent disputes may affect overseas business[6]

4. R&D Investment Pressure
   : In order to cope with competition, Insta360 needs to continue increasing R&D investment, which may further compress profit margins[5]

1. Market Expansion Exceeding Expectations
   : The industry is growing faster than expected, providing more opportunities for new entrants[7]

2. Product Innovation Dividend
   : If Insta360 can take the lead in launching mature panoramic drone products, it is expected to establish a first-mover advantage in the niche market[1]

3. “Mass Market Expansion” Strategy
   : Insta360 is expanding its user groups, penetrating from vertical groups such as sports and outdoor enthusiasts to the broader mass market, which is expected to open up new growth space[6]

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In the short term, the technical barriers, supply chain advantages, and ecological moat built by DJI in the drone field are difficult to cross. As a new entrant, Insta360’s accumulation of core capabilities such as flight control systems, image transmission technology, and supply chain management is relatively weak, making it difficult to pose a substantial threat to DJI in the traditional aerial photography drone market.

However, in the medium term, Insta360’s choice of “panoramic drones” as a differentiated entry point is somewhat wise. This category is currently a market gap, and DJI has not yet formed a first-mover advantage. Insta360 is expected to become the definer and leader of this category through technological innovation and rapid iteration.

In the long term, the competition between the two companies may move towards “co-opetition”—cultivating and expanding the market together while competing. The unexpected expansion of the 2025 panoramic camera market has proven that DJI’s entry did not lead to Insta360’s decline, but instead promoted the rapid growth of the overall market[7]. This “non-zero-sum game” competition pattern may also apply to the drone market.

: The market performance of Insta360’s Yingling Antigravity series in Q4 2025, as well as DJI’s response strategy, will be important indicators for judging the direction of competition.

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[1] Securities Times - Insta360’s first three quarters revenue 2025 increases by 67% to RMB 6.611 billion (https://www.stcn.com/article/detail/3416631.html)
[2] Tencent News - The Monopolist, DJI (https://view.inews.qq.com/a/20251113A05P8W00)
[3] Eastmoney.com - Rise of Tech Consumption: DJI and Insta360 Compete Head-to-Head (https://pdf.dfcfw.com/pdf/H3_AP202512051794538436_1.pdf)
[4] China Aerial Photography Network - DJI 2025 Annual Strategic Analysis (https://www.chinahpsy.com/detail-200040.html)
[5] Insta360 Inc. Q3 2025 Report (https://stockmc.xueqiu.com/202510/688775_20251028_MZZZ.pdf)
[6] Sina Finance - The “Panoramic Camera” Dispute Under Two Research Reports (https://finance.sina.com.cn/jjxw/2025-11-07/doc-infwqrft4615630.shtml)
[7] 21st Century Business Herald - The Unexpected Consequence of the Fierce Competition Between DJI and Insta360 (https://www.21jingji.com/article/20251113/herald/89342708fbaa207d584e5c78babc5112.html)
[8] CLS.cn - The Action Camera Market Shakes Up: DJI and Insta360 Compete Head-to-Head (https://www.cls.cn/detail/2187186)