The US military unmanned aerial vehicle space is experiencing robust growth, driven by advances in commercial off-the-shelf solutions, digitization, and national security priorities. In 2024, total contract value reached approximately USD 4.53 billion, with a mature outlook for growth as defense budgets, rapid procurement programs, and new mission profiles expand the unmanned aerial vehicles (UAVs) space. Leading demand segments include tactical UAVs, as mission needs focus on intelligence, surveillance, reconnaissance (ISR), force protection, and precision strike roles. Technology boosters—such as AI, swarming, digital engineering, and modular open systems—are transforming platform development, sustainment, and deployment. Resilience in supply chains and greater public-private-academic collaboration will continue to shape investment and innovation in the unmanned aerial vehicle (UAV) space.

• What are the major defense-wide investments in AI, ML, edge computing, and secure comms enabling the transformation of autonomy, drone swarms, and distributed mission profiles?
• How will the push for cost-effective, modular, and commercial off-the-shelf UAVs accelerate platform fielding and create new growth prospects?
• Which innovations in digital twin, additive manufacturing, and system interoperability are enabling rapid tech infusion, streamlined upgrades, and future growth potential?