Global Military Drone Market Size on a Trajectory Toward $88 Billion as Demand Skyrockets

MarketNewsUpdates News Commentary

NEW YORK, July 24, 2025 /PRNewswire/ -- The global military drone market is experiencing significant growth, fueled by increased defense spending, technological advancements, and evolving national security priorities. The defense and government drone market, driven by rapid technological advancements and evolving strategic needs, presents significant opportunities for companies that can navigate the complex regulatory environment and meet the demand for advanced and reliable unmanned systems. A report from Grandview Research said: "The global military drone market size was estimated at USD 36.14 billion in 2023 and is projected to reach USD 88.01 billion by 2030, growing at a CAGR of 13.8% from 2024 to 2030. North America holds the largest share of this market, primarily due to the significant investments in drone technology by the U.S. defense sector., Fast track contracts and policies." It continued: "The Pentagon's 'Replicator' program, focused on fast-tracking drone production, is estimated to cost around $500 million per year. The Defense Innovation Unit (DIU) launched the Blue UAS program to rapidly vet and integrate commercial unmanned aerial systems (UAS) for the Department of Defense, recognizing the rapid advancements in commercial drone technology. Recent legislative measures, including executive orders like 'Unleashing American Drone Dominance', aim to prioritize American-made UAVs and streamline the procurement process for NDAA-compliant manufacturers. The new 'Cleared List' under the Blue UAS program leverages third-party verification, drastically reducing approval timelines for compliant manufacturers." Active Companies in the Drone Industry today include ZenaTech, Inc. (NASDAQ: ZENA), AgEagle Aerial Systems Inc. (NYSE: UAVS), Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), Draganfly Inc. (NASDAQ: DPRO), L3Harris Technologies (NYSE: LHX).

Grandview Research continued with Market trends and drivers: "Growing demand for unmanned systems: UAVs offer numerous advantages, including reduced risk to personnel, persistent surveillance, and versatility in various missions. Technological advancements: Integration of AI and machine learning, miniaturization, improved battery life, and drone swarming technology are driving innovation and expanding drone capabilities., Rising geopolitical tensions and defense budgets: Nations are investing heavily in modernizing their defense capabilities, including unmanned aerial systems (UAS), to address evolving security threats. Shift towards smaller, tactical drones: These drones are ideal for short-range missions and provide real-time situational awareness to ground troops."

ZenaTech (NASDAQ: ZENA) ZenaDrone Partners with Eagle Point Funding to Win US Defense Customers - ZenaTech, Inc. (FSE: 49Q) (BMV: ZENA) ("ZenaTech"), a business technology solution provider specializing in AI (Artificial Intelligence) drones, Drone as a Service (DaaS), Enterprise SaaS, and Quantum Computing solutions, today announces that its subsidiary ZenaDrone has signed a strategic partnership agreement with Eagle Point Funding, a specialized consultancy for technology and defense-focused companies, to help win US defense contracts. By leveraging Eagle Point's deep expertise in R&D grant program opportunities, the company will gain structured support in identifying and preparing competitive proposals, and in establishing and expanding relationships within key US defense and government agencies.

"Our collaboration with Eagle Point Funding will accelerate testing, pilot deployments, and enable long-term procurement discussions—helping ZenaDrone to advance as a key provider of American-made drone solutions," said Shaun Passley, Ph.D., ZenaTech CEO. "Their expertise in navigating federal R&D funding programs such as SBIR and Department of Defense solicitations (DoD BAA), gives us a powerful advantage as we develop next-generation drone technologies aligned with US defense priorities. This partnership enhances our ability to accelerate product development, expand defense agency relationships, and unlock new growth without equity dilution."

Eagle Point Funding helps technology companies secure non-dilutive federal R&D grants and contracts from agencies such as the DoD, Air Force, Navy, and others. They specialize in programs such as the Small Business Innovation Research (SBIR), Air Force Works (AFWERX), and the Defense Advanced Research Projects Agency (DARPA), guiding clients through the application process to win contracts.

ZenaDrone has previously completed paid trials with the US Air Force and Navy Reserve, demonstrating its ability to deliver solutions including delivery of critical supplies such as blood in the field. The companies' suite of drones for military use includes the ZenaDrone 1000, the IQ Nano and the IQ Square drone that are designed for a variety of applications including inspections, surveillance, reconnaissance, and indoor inventory management for warehouses and armories. Continued… Read this full release and additional news for ZENA by visiting: https://www.zenatech.com/newsroom/

Other developments in the drone/UAV & Military industries include:

AgEagle Aerial Systems Inc. (NYSE: UAVS), a leading provider of advanced drone and aerial imaging solutions, recently announced that its eBee VISION is now Blue UAS certified. This designation comes just a week after the Company's eBee TAC received Blue UAS certification. The Blue UAS certification makes the AgEagle drone eligible for procurement by the U.S. Department of Defense (DoD) and other federal agencies and recognizes the drone as compliant with security and performance standards required by the DoD.

"This is very welcome news, and we are so proud that now the eBee VISION joins our eBee TAC on the Blue UAS Cleared list for the Department of Defense," said Bill Irby, CEO of AgEagle Aerial Systems. "This is another pivotal achievement for AgEagle and will allow for fast acquisition and delivery of this much-needed capability into the hands of our Defense community to address swiftly evolving battlefield and security scenarios."

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a technology company in Defense, National Security and Global Markets, recently announced the successful demonstration of an end-to-end 5G-NTN network that combines the Kratos OpenSpace® software-defined satellite ground system with Intelsat's space and ground network, including its cloud-native, virtualized 5G core. This event represents a key milestone towards the seamless extension of terrestrial 5G networks with satellite technology, providing critical validation of satellite's role in the delivery of ubiquitous 5G services.

The Third Generation Partnership Program (3GPP) incorporated Non-Terrestrial Networks (NTNs) into its 5G specifications with 3GPP Release 17, paving the way for the seamless extension of 5G services beyond terrestrial limits. Both Kratos and Intelsat are leading the market in 5G-NTN adoption; Kratos is working with key industry partners to develop cloud native 5G-NTN solutions for satellite operators, while Intelsat is focused on building a multi-layer, next-generation software-defined network.

Draganfly Inc. (NASDAQ: DPRO), an award-winning developer of drone solutions and systems developer, recently announced the sale of Commander 3XL Unmanned Aerial Vehicle (UAV) systems to a globally recognized defense contractor specializing in persistent surveillance technologies for military operations.

A trusted partner to U.S. and allied defense forces for decades, the client is one of the world's leading providers of persistent surveillance platforms. Its systems are deployed across key Department of Defense (DoD) and allied installations, delivering reliable, persistent intelligence, surveillance, and reconnaissance (ISR) capabilities.

The Commander 3XL's modular payload architecture, extended endurance, and AI-enabled mission control make it an ideal asset for military-grade surveillance programs. The systems will support perimeter security, early warning, and real-time situational awareness, operating seamlessly alongside and integrated with persistent platforms and ground-based command centers.

L3Harris Technologies (NYSE: LHX) recently debuted a pack of launched effects vehicles, demonstrating the company's ability to respond to the U.S. Department of Defense's urgent need for advanced, capable and affordable munitions it can employ across services and domains.

Red Wolf™ and Green Wolf™ are the first in L3Harris' expanding family of multi-role vehicles that can easily integrate and launch from air, ground or maritime-based platforms. Red Wolf is a kinetic platform for long-range precision strikes, while Green Wolf is an electronic warfare platform equipped with electronic attack and detect, identify, locate and report capabilities. Both vehicles are flexible, modular and feature advanced software for in-flight collaboration and re-targeting. They also support swarming capability of autonomous aircraft.

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