Drone Companies Thriving as Global Surveillance Drone Market is Expected to Reach $27.70 Billion By 2035

10/23/25 9:05:00 AM ET

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NEW YORK, Oct. 23, 2025 (GLOBE NEWSWIRE) -- The surveillance drone industry is accelerating toward autonomous, AI-integrated operations, driven by increasing geopolitical risks and growing demands for critical infrastructure security. Governments and private security providers stand to benefit the most as real-time, beyond visual line of sight (BVLOS)- enabled surveillance becomes standard. Legacy defense firms that fail to pivot toward software-defined platforms risk losing ground to agile UAV startups and telecom-aligned innovators. The global surveillance drone market is projected to be valued at USD 7.2 billion by 2025. According to a report from FactMR analysis, the market is expected to grow at a CAGR of 14.4% and reach USD 27.70 billion by 2035. The report said: "In 2024, the industry underwent a structural evolution fueled by sharp increases in national security budgets and growing urban vulnerability. Fact.MR research identified that geopolitical disruptions, threats to critical infrastructure, and increased civil unrest in cities prompted governments in North America, East Asia, and Europe to increase drone procurement. Public agencies have prioritized the incorporation of AI-enhanced capabilities, such as facial recognition, thermal imaging, and autonomous swarm coordination, into both border and city surveillance protocols. Municipal-scale security deployments have skyrocketed, particularly near transport routes, energy facilities, and for public event surveillance, indicating an increased civilian use of tactical drone systems." Active Companies in the markets today include Draganfly Inc. (NASDAQ:DPRO) (CSE:DPRO), AeroVironment, Inc. (NASDAQ:AVAV), Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), Northrop Grumman Corporation (NYSE:NOC), Lockheed Martin Corporation (NYSE:LMT).

FactMR continued: "The industry is expected to undergo a scaling transformation by 2025. Fact.MR proposes that regulatory advances in facilitating BVLOS operations in nations such as the USA, Germany, and South Korea are removing operational roadblocks for both government and commercial actors. This regulatory momentum, combined with the increasing adoption of insurance for autonomous flights, is opening up new applications in emergency response, critical asset inspection, and rural security operations. Vendors are shifting toward modular platforms that seamlessly integrate with command-and-control systems and can deliver mission-critical insights through edge computing." It continued: "By 2035, strategic convergence between drone Original Equipment Manufacturers, developers, and satellite telecommunication providers is likely to delineate the competitive edge. Fact.MR research discovered that combined surveillance ecosystems, powered by predictive analysis, 5G networks, and elastic cloud infrastructure, will reposition UAVs from point surveillance drones to multi-mission platforms."

Draganfly Inc. (NASDAQ:DPRO) (CSE:DPRO) to Host Exclusive Invite Only Border Drone Security Summit in Partnership with Cochise County Sheriff's Office - Draganfly Inc. (FSE: 3U8A) ("Draganfly" or the "Company"), an award-winning, industry-leading drone solutions and systems developer, today announced it will host an exclusive, invitation-only event the Cochise County Border Drone Summit taking place November 16–17, 2025, in Sierra Vista, Arizona.

Held in partnership with the Cochise County Sheriff's Office, the summit will bring together select leaders from law enforcement, defense, and security sectors to explore how advanced, U.S.-built drone systems are redefining border security and public safety operations.

During the event, attendees will get an exclusive first look at Draganfly's Outrider technology, showcased through a live operational demonstration in real-world field conditions. Purpose-built for the elements of the border, Outrider embodies Draganfly's commitment to developing rugged, reliable, and U.S.-built systems capable of performing in the harshest terrain.

"Draganfly is honored to partner with the Cochise County Sheriff's Office for this important initiative," said Cameron Chell, CEO of Draganfly. "This summit provides an opportunity for agencies and industry leaders to collaborate, share insights, and see firsthand how American developed drone technologies, designed for the realities of the border, are advancing mission success and safety." Continued… Read this full release and additional news for DPRO by visiting: https://draganfly.com/news/

Other developments in the drone/UAV/military industries include:

AeroVironment, Inc. (NASDAQ:AVAV), a leading provider of Counter-Unmanned Aircraft Systems (C-UAS) and advanced air and missile defense technologies, has recently been selected to deliver the U.S. Army's Next-Generation C-UAS Missile (NGCM). Along with this selection, AV was awarded a $95.9 million contract for the U.S. Army's Long-Range Kinetic Interceptor (LRKI) program through the U.S. Army Combat Capabilities Development Command Aviation & Missile Center (CCDC AvMC) Aviation & Missile Technology Consortium^® (AMTC). As part of the LRKI program, AV will manufacture and deliver its Freedom Eagle (FE-1) kinetic C-UAS missile.

"FE-1 strengthens our nation's air defense arsenal by providing an urgently needed kinetic C-UAS solution–built to fill the gaps in today's defense capabilities and meet the adversarial threats of tomorrow," said Jimmy Jenkins, Executive Vice President of AV's Precision Strike and Defense Systems Group. "This selection by the U.S. Army is a testament to AV's intentional investments, unmatched agility and technical expertise, and unwavering commitment to our nation's national security priorities. We are quickly scaling production to deliver FE-1 to the frontlines, where they'll provide critical warfighter protection and inform our development for full-rate manufacturing."

Kratos Defense & Security Solutions, Inc., (NASDAQ:KTOS), a technology company in defense, national security, and global markets, recently unveiled its innovative "Ragnarök" Low-Cost Cruise Missile (LCCM) system, representing a significant advancement in tactical strike capabilities. The Ragnarök LCCM features an optimized design that enables exceptional performance metrics for a system in its class. This strike-focused platform offers an impressive 500 nautical mile range while carrying an 80-pound payload, making it ideal for precision engagement missions across a variety of operational scenarios.

"The Ragnarök LCCM represents our commitment to developing high-performance strike systems, for Valkyrie, that meet the evolving needs of today's warfighter in conjunction with the budget realities that dictate what systems ultimately make it to the field," said Steve Fendley, President of Kratos Unmanned Systems. "Its modular design delivers maximum combat capability for carriage and launch options. With complementary capability to the Northrop Grumman's Lumberjack that's recently been in the news, weapons in this new class which support unmanned and manned applications are coming to the forefront demonstrating their performance value per cost."

Northrop Grumman Corporation (NYSE:NOC) has recently released its third quarter 2025 financial results. A copy of the earnings release has been furnished in the company's Form 8-K filing and is also available on the company's investor relations website at http://investor.northropgrumman.com.

Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world, and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers' toughest problems, our employees define possible every day.

Lockheed Martin Corporation (NYSE:LMT) recently reported third quarter 2025 sales of $18.6 billion, compared to $17.1 billion in the third quarter of 2024. Net earnings in the third quarter of 2025 were $1.6 billion, or $6.95 per share, compared to $1.6 billion, or $6.80 per share, in the third quarter of 2024. Cash from operations was $3.7 billion in the third quarter of 2025, compared to $2.4 billion in the third quarter of 2024. Free cash flow was $3.3 billion in the third quarter of 2025, compared to $2.1 billion in the third quarter of 2024.

"Based on the effectiveness and reliability of our products and systems, strong demand from Lockheed Martin's customers—both in the United States and among our allies—continues. As a result of this unprecedented demand, we are increasing production capacity significantly across a wide range of our lines of business," said Lockheed Martin Chairman, President, and CEO Jim Taiclet. "Our record $179 billion backlog—more than two and a half years of sales—underscores the trust our customers place in us and underpins our company's long‑term growth prospects. Major contract awards for the CH‑53K and PAC‑3 MSE programs are the largest ever for our Rotary and Mission Systems and Missiles and Fire Control businesses, respectively. Additionally, in close collaboration with our customers, we finalized the contracts covering Lots 18 and 19 of the F‑35 early in the fourth quarter. Lockheed Martin has delivered a record 143 F‑35 Lightning II jets through the end of the third quarter."

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