Global Production Quickly Ramping Up for Drone Industry Specific to Defense and Military Operations

MarketNewsUpdates News Commentary

NEW YORK, Aug. 28, 2025 /PRNewswire/ -- The military drone market is experiencing significant growth due to increasing demand for unmanned aerial vehicles (UAVs) in various military applications such as intelligence, surveillance, and reconnaissance (ISR), combat operations, and border patrolling. Drones are being increasingly adopted for these purposes because they can provide real-time data and reduce human casualties. Looking at the future, advancements in drone technology, such as improved endurance and autonomous capabilities will add to the drones' popularity.  Many countries are significantly increasing their defense spending to modernize their military capabilities and acquire advanced military technologies like drones. This surge in government spending is expected to create lucrative growth opportunities for military drone manufacturers. A report from industry insider, Coherent Market Insights predicted that: "The Global Military Drone Market is estimated to be valued at USD 24.37 Bn in 2025 and is expected to reach USD 51.56 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 11.3% from 2025 to 2032."  Active Companies in the Drone Industry today include ZenaTech, Inc. (NASDAQ: ZENA), ParaZero Technologies Ltd. (NASDAQ: PRZO), Safe Pro Group Inc. (NASDAQ: SPAI), AeroVironment, Inc.  (NASDAQ: AVAV), EHang Holdings Limited (NASDAQ: EH).

Coherent Market Insights said: "Strategic Drones Lead Due to their Crucial Role in Modern Warfare and Advanced Capabilities: The strategic drones segment leads the market holding an estimated share of 48.4% in 2025. Strategic drones, also known as High-Altitude Long Endurance (HALE) drones, are the largest segment, holding a share of 48.4% in 2025. Strategic drones provide military forces with real-time intelligence, surveillance, and reconnaissance (ISR) data, enabling them to monitor large areas, track targets, and gather critical information about enemy activities. These drones can also be used for border patrol, maritime surveillance, and communication relay, further expanding their utility in various military applications. Moreover, artificial intelligence (AI) and machine learning (ML) technologies will improve the drones' autonomous capabilities, such as decision-making and target identification."

ZenaTech (NASDAQ:ZENA) Spider Vision Sensors Expands Drone Component Manufacturing Capabilities Enabling Compliant Global Supply Chain for 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, announces the establishment of a new component parts manufacturing facility in Taiwan. The new facility represents an important step to advancing a compliant global supply chain for the company's US Defense-destined drones.  Operated by its Taiwan-based Spider Vision Sensors (SVS) subsidiary, the facility is expected to reduce the reliance on third-party suppliers ensuring a stable, NDAA-compliant supply chain of component parts such as sensors and motors, for its ZenaDrone drones for US defense agencies and NATO use. SVS will sign a long-term lease for a 16,000 square foot manufacturing facility that it plans to have operational by year end 2025, along with expansion of the Taiwan-based team.

"Establishing a new Taiwan component manufacturing facility marks a pivotal milestone in advancing our mission to deliver vertically integrated, NDAA-compliant drone technologies at scale," said Shaun Passley, Ph.D., ZenaTech CEO. "By expanding Spider Vision Sensor's production capacity, we are increasing our capability to have ZenaDrone's drones meet the most rigorous defense standards, including Green and Blue UAS certifications. This investment also positions us to respond rapidly to rising demand from the US Defense Department and NATO allies, while enhancing operational efficiency, strengthening supply chain resilience, and cementing our leadership in drone innovation."

The Taiwan SVS facility will manufacture critical components, including PCB boards, motors, cameras, and sensors. Taiwan was selected for its position as a leading electrical and technology hub in Asia, providing advanced expertise and infrastructure for high-precision electronics manufacturing. The facility will also support compliance with US and NATO standards, including Green and Blue UAS certification, ensuring that components meet those rigorous quality and security requirements. The facility will support the ramp-up in production for ZenaDrone's drone models—ZenaDrone 1000, IQ Square and the IQ Nano. Components produced in Taiwan will be assembled into drones at ZenaDrone's facilities in Arizona and Sharjah, UAE, maintaining high-quality standards and end-to-end operational control.

ZenaTech plans to move into the facility by the end of this year and will be initiating discussions with machinery suppliers in the upcoming weeks to acquire and install production equipment, while completing all necessary registrations, safety, and government approvals to ensure full operational readiness. The facility will be staffed by approximately 30–40 personnel, including a factory manager, technicians, engineers, and R&D staff, forming a multidisciplinary team.  Continued…  Read this full release and additional news for ZENA by visiting:  https://www.zenatech.com/newsroom/

Other developments in the drone/UAV industries include:

ParaZero Technologies Ltd. (NASDAQ: PRZO), an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry, recently announced the successful completion of a field trial of its Defend Air Hand-Held Net Gun System ordered by the main branch of Israel's defense sector. ParaZero demonstrated the system's operational effectiveness in protecting critical infrastructure and other sensitive facilities against hostile drone threats.

During the demonstration, DefendAir achieved, again, a 100% interception success, neutralizing every real-time operational scenarios. The system proved its accuracy and effectiveness in layered defense, offering a unique last-line solution for critical infrastructure and other sensitive facilities. This demonstration follows a prior demonstration that ParaZero completed in July 2025 with a select group of Israeli security and defense professionals where the DefendAir also achieved 100% interception success, effectively neutralizing every fast-incoming multirotor drone threat in real-time scenarios.

Safe Pro Group Inc. (NASDAQ: SPAI), a leader in artificial intelligence (AI)-powered defense and security solutions, recently announced that it has successfully demonstrated the Company's SpotlightAI™ AI-powered drone imagery analysis ecosystem at a training event for Philippine Military Explosive Ordnance Disposal (EOD) teams at Camp Aquino in Tarlac, Philippines.

Safe Pro took part in a one-week training program on Humanitarian Unexploded Ordnance (UXO) and land mine detection hosted by the Philippine Army on held at Camp Aquino in Tarlac, Philippines. The event was facilitated by Golden West Humanitarian Foundation under a grant provided by the U.S. Department of State. Safe Pro's patented AI-powered drone imagery analysis and computer vision technologies demonstrated their utility in a humanitarian mine action setting. This included the use of the Company's patented Safe Pro Object Threat Detection (SPOTD) technology which is designed to rapidly detect over 150 different kinds of small, hard-to-spot threats including landmines, anti-personnel mines, cluster munitions and UXO. At the event, Safe Pro's team trained 30+ EOD technicians in attendance on how AI-powered drone imagery analysis technology could rapidly enhance the detection and identification of explosive threats.

AeroVironment, Inc.  (NASDAQ: AVAV) recently announced that it will report its financial results for the first quarter of fiscal year 2026, which ended August 2, 2025, after the market closes on September 9, 2025. Management will host a conference call and live audio webcast at 4:30 p.m. Eastern Time that same day to discuss the results.

The call will be led by Wahid Nawabi, AeroVironment's chairman, president, and chief executive officer; Kevin P. McDonnell, executive vice president and chief financial officer; and Denise Pacioni, director, investor relations.  Investors may access the conference call by registering through the following link up to 10 minutes before the event begins:

Conference Call Details

Date: September 9, 2025

Time: 4:30 p.m. ET | 1:30 p.m. PT | 2:30 p.m. MT | 3:30 p.m. CT

Participant registration URL:  https://register-conf.media-server.com/register/BIf4109420eefa4372bb704709cbb246df 

The live audio webcast will also be accessible via the Investor Relations section of AeroVironment's website, http://investor.avinc.com. Please access the site 15 minutes before the event to ensure any necessary software is downloaded.

EHang Holdings Limited (NASDAQ: EH), the world's leading Urban Air Mobility ("UAM") technology platform company, recently announced its unaudited financial results for the second quarter ended June 30, 2025.

Mr. Huazhi Hu, Founder, Chairman and Chief Executive Officer of EHang: "In the second quarter, we achieved an increased delivery volume of 68 units of EH216 series products, a strong rebound from the first quarter—a clear reflection of the sales ramp-up following the issuance of our OC. Additionally, we received over 150 units of new orders, underscoring strong demand for our pilotless eVTOLs. Our first two certified operators have launched trial commercial operations of the EH216-S, and now logged more than 700 flights in Guangzhou and Hefei since the second quarter, clearing the path for the expected public commercial service within this year. In the first half of the year, we and our customers completed over 10,000 safe, autonomous eVTOL flights across more than 40 operational sites in China and overseas. Looking ahead to the second half of the year, our main priority will be to support and expand eVTOL flight operations with our strong existing customer base, before shifting our focus to increasing delivery volumes in the next phase. Meanwhile, bolstered by new battery and lightweight-structure alliances with Gotion High-Tech and Minth Group, our joint research institute with Tsinghua University, and our deepened collaboration with Hefei government on both the EH216 series and VT35 series, we will accelerate our innovation and keep improving our technologies and new models, reaffirming our unwavering commitment to safe, intelligent, and sustainable urban air mobility worldwide."

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