Executive Summary
The importance of unmanned aerial vehicles (UAVs), or drones, is growing rapidly in national defense and security efforts. While the United States has historically led in military drone development, the global commercial market is now dominated by lower-cost, dual-use platforms, many produced by Chinese companies. In response to concerns over supply chain dependencies and Chinese export controls, the U.S. government is prioritizing the growth of a self-sufficient domestic drone industry, exemplified by the Trump administration’s executive order “Unleashing American Drone Dominance” and the Department of Defense’s Replicator initiative.
This report assesses the current state of the U.S. drone industry, focusing on the types of platforms marketed in the United States and the financial health of U.S.-headquartered UAV companies. Using data from the Association for Uncrewed Vehicle Systems International’s (AUVSI) Uncrewed Systems & Robotics Database (USRD) and PitchBook, the analysis finds that most U.S. drone companies focus on small UAVs (Groups 1-3), and only a handful of larger defense firms develop more complex military systems (Groups 4-5).
Most U.S. drone companies are privately held, venture-backed companies, many of which were founded after 2010. Investment activity is concentrated in companies that produce smaller, commercial drones, while venture interest is limited in developers of larger military systems. However, significant gaps remain in publicly available data, particularly regarding manufacturing capacity and supply chain resilience, both of which are critical factors for determining the broader health of the U.S. UAV ecosystem.
This report provides a snapshot of the U.S. drone industry, but a deeper analysis of component supply chains and manufacturing capabilities would allow for a fuller assessment of the industry’s ability to meet future national security needs. Greater data sharing between government and industry will be essential to identify supply chain vulnerabilities and guide future policy.