• A drone takes a video of a model during a rehearsal for the 2014 China Fashion Week in Beijing.

A drone takes a video of a model during a rehearsal for the 2014 China Fashion Week in Beijing. (Photo : Reuters)

State-owned defense contractors are scrambling to convert their military drones so they can grab a share of the lucrative civilian market, according to industry insiders.

"Several years ago, we were only a research studio," Ma Hongzhong, director of China Aerospace Science and Industry Corp's (CASIC) Unmanned Aircraft Research Institute, told the China Daily newspaper on Tuesday.

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"But the company recently expanded it into an institute in order to use the company's cruise missile experience and expertise in drone research," Ma added.

One of the country's biggest defense companies, CASIC specializes in missiles and multiple rocket launchers.

However, as the potential for civilian unmanned aerial vehicles (UAV) became clearer and with other defense contractors successfully entering the market, the company began allocating funds and engineering expertise to developing drones, Ma said.

Today, CASIC has developed a fleet of UAVs, ranging from piston-powered, low-speed drones to large, high-endurance, turbofan models.

"Many state-owned defense enterprises have dedicated considerable resources to developing drones, and a large number of private companies have also become involved," Ma said.

"The industry has a very low entry threshold--a flying model can be called a drone and can perform some simple tasks. My company will concentrate on high-end military and civilian drones that have similar designs and equipment."

Ma also noted that their drones can be used in aerial mapping, resource surveying, and pipeline and grip patrols.

"They can also play a significant role in counter-terrorism, riot control and other emergency response operations," Ma added.

"Drones can stay in the air for long periods as they carry out reconnaissance and surveillance operations, and can be used anytime, anywhere."

However, adopting armed military drones for civilian use is not as simple as removing the weapons.

"You must reduce the production and operational costs to a level that clients can afford," Ma said.