Significant Rising Demand for Military Drones Generating Multi-Billion Dollar Opportunity for Drone Manufacturers

MarketNewsUpdates News Commentary

NEW YORK, Sept. 30, 2025 /PRNewswire/ -- The Global Military Drone market's robust growth in recent years is fueled by advancements in avionics technology, which enhance drone capabilities, and an increasing reliance on UAVs for strategic and combat operations. Innovations in precision-guided munitions and high-resolution surveillance have revolutionized military tactics, driving demand across the defense sector.  A report from MarketsAndMarkets said that the global Military Drone Market , which was valued at USD 15.23 billion in 2024 is projected to grow from USD 15.80 Billion in 2025 to USD 22.81 Billion by 2030, at a CAGR of 7.6% during the forecast period.  The report said: "Significant technological advancements have fueled the growth of the military drone industry. Breakthroughs in avionics, sensors, communication, AI integration in drones have massively boosted the capabilities of these drones. Improved navigation systems have made them more adept at maneuvering and reaching precise locations. Additionally, high-resolution cameras provide clearer, more detailed imagery, enhancing surveillance capabilities.  The incorporation of precision-guided munitions has been a game-changer, enabling drones to conduct more accurate and effective combat operations. These technological strides have made drones indispensable in modern warfare scenarios." Active Companies in the Drone Industry today include Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO), Red Cat Holdings, Inc. (NASDAQ: RCAT), Ondas Holdings Inc. (NASDAQ: ONDS), Unusual Machines (NYSE: UMAC), Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS).

MarketsAndMarket continued: "The rising demand for military drones has fueled investments in research and development, driving further innovations. This surge in technological enhancements is a key driver propelling the growth and evolution of the military drone industry.  Prominent companies and start-ups that provide military drones and their services, distributors/suppliers/retailers, industrial sectors, and end customers are the key stakeholders in the military drone market ecosystem. Investors, funders, academic researchers, distributors, service providers, and industries using military drones serve as the major influencers in the market."  It concluded: "The North American military drone market, encompassing the US and Canada, exhibited the largest share in (recent years). This dominance can be attributed to the presence of major military UAV manufacturers in the US. Technological advancements in armed UAVs have further propelled market growth. The substantial allocation of defense budgets by the US government… has played a crucial role in enhancing the capabilities of armed forces in air, land, and naval domains."

Draganfly Inc. (NASDAQ:DPRO) (CSE:DPRO) Selected by U.S. Army to Supply Flex FPV Drone Systems - Draganfly Inc. (FSE: 3U8) ("Draganfly" or the "Company"), an industry-leading developer of drone solutions and systems, today announced its selection by the U.S. Army to provide Flex FPV drone systems.

Under the initial order, Draganfly will deliver Flex FPV drones designed for high-performance operations as well as help establish onsite manufacturing of the Flex FPV within overseas U.S. Forces facilities to accelerate deployment and reduce supply-chain timelines. The Company will also provide both flight and manufacturing training to enable Army personnel to sustain operations, and will manage logistics to ensure a secure, NDAA-compliant supply chain practice. This marks a significant milestone in evolving critical drone capabilities closer to the theatre of operations, reducing logistical vulnerabilities and enhancing force readiness.

Recent exercises have underscored the importance of FPV technology for U.S. forces. During the Swift Response 2025 exercise in Lithuania, paratroopers operated and detonated in-house-built FPV drones against dismounted and vehicle-sized autonomous targets. The unit has also established its own drone lab for design, training, and rapid innovation. In August 2025, the U.S. Army's executed the first-ever air-to-air kill with an armed FPV drone, advancing the evolution of drone warfare. Draganfly's Embedded Manufacturing Program and the Flex FPV Drone systems are in direct support of this strategic shift to decentralized and agile innovation.

"We are honored to support the U.S. Army as it moves critical drone capabilities closer to front lines," said Cameron Chell, President & CEO of Draganfly. "By combining advanced Flex FPV Drone systems, embedded manufacturing, training and secure logistics, we are helping reinforce operational agility and sustainment for forward-deployed forces. This helps ensure personnel have the tools, training and capabilities required when and where they need them most."  Continued…  Read this full release and additional news for DPRO by visiting:  https://draganfly.com/news/ 

Other developments in the drone/UAV industries include:

Ondas Holdings Inc. (NASDAQ:ONDS), a leading provider of autonomous aerial and ground robot intelligence and private wireless solutions through its business units Ondas Autonomous Systems (OAS) and Ondas Networks, recently announced that it has recently secured a $3.5 million order from a major defense entity. The contract includes the purchase of multiple units of Apeiro's rugged unmanned ground vehicles (UGVs) and designated mission payloads, enhancing the customer's robotic capabilities for security, logistics, and tactical operations.

"We are proud to secure this important order under the Apeiro brand, which has quickly become a powerful innovation engine within Ondas," said Eric Brock, Chairman and CEO of Ondas Holdings. "Ground robots are rapidly becoming indispensable for logistics, ISR, and tactical missions, where autonomous systems extend operational reach while reducing risk to personnel. By integrating Apeiro's combat-proven ground platforms within Ondas, we are positioning ourselves at the forefront of this large, high-growth global market. This award not only validates the demand for Apeiro's rugged, modular technologies but also strengthens our vision to deliver a multi-domain portfolio of autonomous solutions across air and land."

Red Cat Holdings, Inc. (NASDAQ: RCAT), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, recently announced the pricing of an underwritten public offering of 17,968,750 shares of common stock, including the full exercise of the underwriters' option to purchase 2,343,750 additional shares on September 19, 2025. The gross proceeds from the offering to the Company were approximately $172.5 million, before deducting underwriting discounts and commissions and other offering expenses.

The Company intends to use net proceeds from the offering for general corporate and working capital purposes, including but not limited to operating expenditures related to its new unmanned surface vessel division.  Northland Capital Markets acted as sole bookrunner and Ladenburg Thalmann & Co. Inc. acted as co-manager for this transaction.

Unusual Machines (NYSE American:UMAC), a leading provider of NDAA-compliant drone components, recently announced the appointment of Nathaniel Kennedy as Vice President of Marketing. Kennedy will report to Stacy Wright, Executive Vice President of Revenue.

With over 25 years of experience in e-commerce, consumer, enterprise, and licensing, Kennedy has led digital transformation, forged high-profile partnerships-including a NASCAR collaboration-and scaled businesses into national leaders. At Unusual Machines, he will oversee marketing for Rotor Riot, Fat Shark, and the broader portfolio, in addition to supporting enterprise and defense growth.

"The pace of the drone industry demands marketing leadership with foresight and range-especially as we grow our domestic production. Nate brings that perspective, with broad experience across consumer and enterprise markets-including defense-to help guide how we connect our strategy to customers and scale what comes next," said Stacy Wright, EVP of Revenue at Unusual Machines.

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a technology company in Defense, National Security and Global Markets, recently has successfully completed the Preliminary Design Review (PDR) for the Space Development Agency's Advanced Fire Control Ground Integration (AFCGI) system. Kratos' successful completion of the PDR with zero liens allows the program to advance on an accelerated timeline, aligning with projected launch milestones.

As previously announced, in 2024 Kratos secured a $116.7 million prime contract for the AFCGI program. AFCGI integrates advanced software, resilient ground systems and secure networks into a unified architecture for real-time fire control. It is a complex capability providing the warfighter with immediate, mission-relevant advantages. Achieving zero liens signifies that all design challenges, risks and outstanding items identified during the review for this program were thoroughly addressed and resolved, ensuring no lingering issues remain that could impede the project's progress. Kratos completed the PDR in April of 2025, only five months from the award date.

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