The Ukrainian drone manufacturing industry is experiencing rapid growth. While only 5,000 drones were produced in Ukraine in 2022, this figure is expected to reach 4 million units by the end of 2024. Even more dynamic development is anticipated soon: in 2025, the Ministry of Defense plans to purchase 4.5 million unmanned aerial vehicles for a total of $2.7 billion.
This is reported by Business • Media
Rapid Growth in Production and Investment
Today, over 500 drone manufacturers operate in Ukraine, offering more than 1,000 models of various types. FPV drones hold the largest market share and are in particularly high demand. Notably, in 2023-2024, 96% of government procurement in this sector was attributed to domestic manufacturers, indicating a high level of trust in Ukrainian products.
Last year, investment in the drone sector exceeded $60 million. Startups were able to attract between $1 million and $3 million in the early stages of development, while more experienced companies can secure significantly larger amounts. The market is witnessing a trend towards mergers and acquisitions: about 30% of companies are willing to buy competitors or sell stakes in their businesses.
Opening Up Exports and Localizing Production
The opening of exports for Ukrainian drones could significantly reduce companies’ dependence on government contracts. This would not only ensure additional foreign currency inflows but also create new opportunities for research and design development.
Up to 70% of FPV drone components can be manufactured in Ukraine, which would help reduce dependence on imports and compete with Chinese manufacturers.
With the ability to locally produce a larger portion of components, Ukraine has every chance to strengthen its position in the global drone market and reduce the impact of imported components, particularly from China.