U.S. Government’s Spending on Defense Contracts for Drones Leading to a Projected $47 Billion Market By 2032

NEW YORK, Oct. 16, 2025 (GLOBE NEWSWIRE) — The U.S. government’s spending on defense contracts for drones is projected to grow, with specific new funding allocated for unmanned systems and artificial intelligence. Projections indicate the global military drone market could reach $47 billion by 2032, with the U.S. leading the market share. A new law […]

October 16, 2025

NEW YORK, Oct. 16, 2025 (GLOBE NEWSWIRE) — The U.S. government’s spending on defense contracts for drones is projected to grow, with specific new funding allocated for unmanned systems and artificial intelligence. Projections indicate the global military drone market could reach $47 billion by 2032, with the U.S. leading the market share. A new law allocated $33 billion for direct spending on drones and AI for the DoD, with $13.5 billion for unmanned systems and $16 billion for government-wide AI initiatives. According to a report from Fortune Business Insights said that: “ The military drone market size was valued at USD 14.14 billion in 2023 and is projected to grow from USD 16.07 billion in 2024 to USD 47.16 billion by 2032, exhibiting a CAGR of 14.41% during the forecast period. North America dominated the military drone market with a market share of 36.1% in 2023. Moreover, the military drone market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 10.71 billion by 2030, driven by an increasing R&D investment by industry players.” The report continued: “A military drone, also known as an unmanned aerial vehicle (UAV), is a remotely piloted aircraft system used in military operations. These drones are equipped with advanced sensors and cameras that provide real-time situational awareness, aiding decision-making and improving the effectiveness of military operations. The military drone market is expected to grow significantly in the coming years, driven by increasing military spending and the growing procurement of military drones by defense forces.” Active Companies in the drone industry this week include ZenaTech, Inc. (NASDAQ: ZENA), Redwire Corporation (NYSE: RDW), Red Cat Holdings, Inc. (NASDAQ: RCAT), Kratos Defense & Security Solutions, Inc., (NASDAQ: KTOS), The Boeing Company (NYSE: BA).

Fortune Business Insights continued: “The integration of artificial intelligence and machine learning algorithms into military drones is improving autonomous flight capabilities, target recognition, and mission planning, leading to more effective and efficient operations. The growing use of Unmanned Aerial Vehicles (UAVs) in the defense and security industry for several applications, such as surveying, mapping, transportation, combat operations, and monitoring, will fuel the demand for military UAVs in the coming years. The rise in defense expenditure of various countries to procure modernized & technologically advanced military drones/UAVs for intensified combat capability is expected to support the global market growth. The adoption of Artificial Intelligence (AI) is modernizing military drone technologies from picking targets autonomously with precision. Furthermore, increasing investment in AI and autonomous systems for advanced technologies is boosting the market expansion.”

ZenaTech (NASDAQ:ZENA) ZenaDrone Subsidiary to Conduct Meetings with Members of Congress Highlighting its Drone Innovation Followed by Showcasing Drone Solutions at the AUVSI Defense Forum – ZenaTech, Inc. (ZENA) (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 its US drone subsidiary ZenaDrone will be in Washington, D.C. later this month for company representatives to meet with key Members of Congress and other stakeholders to discuss the company’s drone innovation and US manufacturing plans. This will be followed by participating and showcasing ZenaDrone’s drone solutions at the Washington, D.C. AUVSI Defense 2025 Forum.

“Our ZenaDrone subsidiary is committed to becoming a trusted supplier of drone solutions to US defense agencies and NATO. Through Capitol Hill engagement and participation at forums like AUVSI Defense, we believe we are building important relationships that will position us as an innovative and active voice in the drone industry,” said Shaun Passley, Ph.D., CEO of ZenaTech. “We want to ensure our perspective informs the conversations shaping the future of unmanned systems, while expanding our domestic footprint and supporting skilled US jobs.”

The Congressional meetings are supported by ZenaDrone’s government relations and business development partners, Bromelkamp Government Relations and Winning Strategies Washington. Together, the companies will meet with key Members of Congress to build relationships and brief them on ZenaDrone’s drone solutions and US manufacturing plans, with the goal to translate technical innovation into strategic government impact—helping to secure funding, shape policy, and expand presence.

AUVSI Defense, scheduled for October 28th and 29th at the Marriott Metro Center, Washington, D.C., is one of the premier policy and technology conferences for the drone and autonomous systems industry. At the event, the company plans to engage with military, industry and government leaders on critical discussions regarding multi-domain integration, rapid uncrewed adoption, and the future of interoperable defense technologies.

The company’s portfolio of drone offerings for the defense industry, currently at various development and cybersecurity certification readiness stages, includes:

  • The ZenaDrone 1000, a medium-sized VTOL (Vertical Takeoff and Landing) rugged construction drone capable of lifting ~40 kg, with AI-enabled autonomy, and secure communications via its proprietary DroneNet system. Designed for ISR- inspection, surveillance, and reconnaissance applications, critical cargo applications, and boarder patrol via an extended flying time gas version currently under development. it has undergone paid trials with both the US Air Force and Navy Reserve for critical cargo delivery such as medical supplies
  • The IQ Square, a VTOL drone (starting size 40”X40”) engineered for line-of-sight land surveys, infrastructure, road and bridge inspections, and defense reconnaissance tasks
  • The IQ Nano, a compact indoor drone (starting size 20″×20″), built to operate in GPS-denied environments like warehouses or military infrastructures for inventory management via barcode scanning and security applications, it features obstacle avoidance and AI-driven drone swarms or fleets

AUVSI (Association for Uncrewed Vehicle Systems International) is a global nonprofit organization dedicated to advancing the development and use of uncrewed systems and robotics across air, land, and sea. As an Advocacy-level member, ZenaDrone participates in the Air Advocacy Committee, shaping policies to expand drone operations in national airspace, and the Defense Advocacy Committee, influencing defense acquisition policies and promoting NDAA-compliant drone technology. This participation provides direct access to federal decision-makers and a voice in key policy initiatives such as BVLOS (Beyond the Visual Line of Sight) regulation, streamlined federal procurement, and Blue/Green UAS certification, while ensuring ZenaDrone’s platforms remain aligned with the evolving priorities of defense and government agencies. Continued… Read this full release and additional news for ZENA by visiting: https://www.zenatech.com/newsroom/

Other recent developments in the drone industry include:

Redwire Corporation (NYSE: RDW), a global leader in space and defense technology solutions, recently announced that its wholly owned subsidiary, Edge Autonomy, has partnered with Red Cat Holdings, Inc. (NASDAQ: RCAT), a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security. Together, the companies will integrate Red Cat’s Teal Drones Black Widow — a compact, small uncrewed aerial system (sUAS) quadcopter — with Edge Autonomy’s Stalker, a Group 2 fixed-wing VTOL UAS, to support U.S. Army echelon missions requiring advanced surveillance, reconnaissance, and situational awareness.

The Edge Autonomy Stalker is purpose built with a modular open systems approach (MOSA) to meet multiple mission needs. With flexible payload capacity, the Stalker can easily integrate compact drones to support the U.S. Army across multiple echelons including platoon, company, battalion, and brigade. The Black Widow can be mounted under the center wing of the Stalker as a deployable payload, extending mission range with the Stalker acting as a carrier, launch platform, and communications relay.

Kratos Defense & Security Solutions, Inc., (NASDAQ: KTOS) a technology company in defense, national security, and global markets, recently unveiled KTOS will display tactical and target unmanned jet drones, including the latest weapons-configured Valkyrie, at the upcoming Marine Corps Air Station Miramar Air Show September 26-28. Kratos’ tactical family of unmanned jet drones is designed for a range of military operations, including strike, ISR (intelligence, surveillance, and reconnaissance), RF (radio frequency), and communications. This lineup features the latest advancements, including the XQ-58 Valkyrie, UTAP-22 Mako, Tactical Firejet, and BQM-177 target system.

The Miramar Air Show invites both domestic and international visitors to explore full-scale Kratos tactical and target aircraft systems on display. These innovative systems exemplify the future of uncrewed air technology, providing proven and affordable solutions for mass production, deployment, and military engagement. Kratos’ unique approach aligns seamlessly with the Department of Defense’s latest technology initiatives and affordability strategies, enabling systems that can operate effectively from even the most remote locations worldwide.

The Boeing Company (NYSE: BA) is designing a tiltrotor drone wingman concept to support the Army’s helicopter fleet, similar to the Air Force’s push for collaborative combat aircraft, as the Army rushes to field unmanned drones.

Renderings for the CxR aircraft revealed by Boeing at the Association of the U.S. Army’s conference in Washington. The company’s pitch would place unmanned vertical-takeoff-and-landing aircraft alongside Army helicopters in combat and cargo operations.

“We see a lot of demand in that RSTA mission: reconnaissance, surveillance, target acquisition and attack,” Chris Speights, chief engineer for Boeing’s vertical lift division, told Defense One on the sidelines of AUSA. “How the Army is using the Apache is evolving. We expect it to continue to evolve, and this gives them options and flexibility with how they conduct those missions going forward.”

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