DJI and BYD may have just kick-started a new market segment
Plus The Headlines, Money Matters, and Recommended Reading (Week 11 2025: 10 - 16 Mar)
Welcome to this week’s Beyond Line of Sight!
Last month, DJI announced a partnership with BYD for vehicle-mounted drone-in-a-box system called “Lingyuan”. Bentley, Ford, and Jeep have previously filed patents for drones being launched from their vehicles, but none actually marketed for sale. The DJI and BYD’s partnership may be the catalyst that kick-starts the vehicle-mounted drones market segment.
This isn’t a new concept. It’s an extension of the fast growing drone-in-a-box systems. DJI’s influence and BYD’s growth globally may be the spark needed to get this market segment off the ground.
Vehicle-mounted drones can offer the same benefits of a stationary drone-in-a-box, and more, while being mobile.
Here’s a teaser video.
Based on this teaser video, DJI and BYD are marketing this to consumers for entertainment and exploration. The system is designed to overcome the traditional challenges of manually deploying drones.
While it may be good for entertainment and exploration, this will accelerate adoption of vehicle-mounted drone systems for other valuable use cases.
Here are a few example use cases:
Surveillance: Monitor surrounding areas for threats or find missing persons on the go.
Air Support: Provide an overwatch during convoy movements.
Intrusion Detection: Identify and track unauthorised crossings.
Rapid Response: Deploy drones to intercept potential threats or deliver small cargo from the vehicle to area of interest (or vice versa).
Terrain Mapping: Assess and monitor terrain on the go to provide early warning of threats or change in environment.
Comms Relay: Extend communication range in remote areas (e.g. in valleys).
Escape Planning: Identify safe extraction routes in real-time.
These are not new use cases. However, these stand to benefit from having the ability to be launched on the go at the press of a button.
DJI has been one of the first large companies in the drone industry to make such a move. Expect other small UAS OEMs and drone-in-a-box developers to jump on this.
Last year, at least once during his presidential campaign stop, a drone was following Trump’s motorcade. Drone deployment from a motorcade vehicle to respond to this would have been valuable in such an instance.
Trump motorcade may soon be using a Tesla-mounted drone deployed from its frunk. Who knows?
The Headlines
Defence and Security
Ukrainian engineers have developed a shotgun-equipped drone with recoil control, enabling precise aerial targeting of enemy drones and enhancing Ukraine’s defense.
Ukraine’s Defense Forces now acquire 200,000 drones monthly—up from 20,000 in early 2024—boosting reconnaissance, combat capabilities, and integrating robotic systems for logistics and de-mining.
Last week, Ukraine launched its largest drone attack on Russia, deploying 337 UAVs, with Moscow reporting 91 intercepted drones and multiple casualties, just ahead of U.S.-Ukraine talks in Saudi Arabia.
General Atomics’ Gray Eagle Extended Range (GE-ER) drone completed its first flight tests using Proliferated Low Earth Orbit (PLEO) satellites, improving secure and adaptable communications for the U.S. Army.
General Atomics is also preparing to mass-produce its Collaborative Combat Aircraft (CCA) prototypes at a rate of 12–18 per month but awaits funding to complete production lines.
BlueHalo successfully tested its Freedom Eagle-1 missile against large drones, demonstrating effective air defense capabilities in three controlled flights at Yuma Proving Ground.
The U.S. Defense Innovation Unit (DIU) selected four companies to develop long-range, one-way unmanned platforms, reinforcing the DoD’s capabilities in contested environments.
Commercial
ZeroAvia has successfully tested its SuperStack Flex fuel cell system, demonstrating enhanced capabilities for Unmanned Aerial Vehicles (UAVs) and Vertical Take-Off and Landing (VTOL) aircraft.
Partnerships
General Atomics and Radian Aerospace have partnered to develop next-gen aerospace technologies, focusing on advanced avionics, electrification, and space mission efficiency. Their collaboration also targets aerospace growth in the UAE through local manufacturing and workforce development.
Money Matters
Contracts
Kratos Defense: $59.33 million contract from NAVAIR to produce 70 more BQM-177A aerial targets.
Anduril: $642 million, 10-year contract with the USMC to enhance counter-drone defences at military bases.
Investment and M&A
Epirus raised $250 million to scale production of its Leonidas microwave weapon, expand its workforce, and develop a training center in Oklahoma.
Shield AI secured $240 million in funding, boosting its valuation to $5.3 billion and supporting the expansion of its AI-powered pilot software for autonomous aircraft.
Diamond Aircraft integrated Volocopter into its operations, supporting cost reduction and workforce retention while advancing electric urban air mobility certification by 2025.
Quantum-Systems acquired AirRobot to expand into copter drones, ensuring continued drone supply for the Bundeswehr and strengthening Germany’s defense technology sector.
Recommended Reading This Week
ABOUT THE AUTHOR
This newsletter is authored by Adit Shah, a UK-based business and strategy consultant specialising in aerospace, defense, and space sectors. For contact, please get in touch via LinkedIn.
What do you think about BYD and DJI's collaboration on the Lingyuan drone system? Do you see this as a game-changer for the automotive industry or more of a niche feature for enthusiasts?