"The booming American drone market is having a moment. From niche gadgets to strategic infrastructure, the growing industry is getting another boost from the Trump administration's supercharged defense spending and the military's growing interest in heavily investing in drones. The resulting boom isn't just benefiting the legacy players. Early-stage drone startups are suddenly winning contracts once typically reserved for more established defense companies, a frenzy that has turned 2025 into a breakout year for drones across both defense and commercial markets."
"Defense-focused drone startups are motivated to work on the tech and "make sure the West wins in the emerging era of unmanned wars," Ethan Thornton, CEO and founder of Mach Industries, said in an email to Business Insider. His startup recently won a US Army contract for its cruise missiles. This is the first installment in a three-part series on the major players in the drone industry."
The American drone market experienced rapid expansion in 2025 driven by heightened defense spending and military interest in unmanned systems. Early-stage drone startups began securing contracts historically held by large defense firms, accelerating innovation and competition. Both defense-focused and commercial drone companies saw increased funding and opportunities to supply government buyers. Some startups emphasized strategic goals such as ensuring Western advantage in unmanned conflict while winning Army contracts for systems like cruise missiles. The surge has broadened the customer base for drone technology and elevated the role of smaller firms in shaping deployment and procurement across defense and commercial sectors.
Read at Business Insider
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