Drone Manufacturer Finds Growth in U.S. Market

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The global drone market is entering a new phase of rapid growth, supported by surging demand in defense, evolving technology, and an expanding array of commercial applications. Recent analyses suggest this trajectory will continue through the next decade as drones become increasingly integrated into government, industrial, and humanitarian efforts.

According to commentary published April 10, by FN Media Group, the global unmanned aerial systems (UAS) market is experiencing a notable rise due to heightened global defense budgets. As geopolitical tensions increase, countries are expanding drone fleets for reconnaissance, surveillance, and combat. Nations like the United States and China are allocating significant defense spending to advanced UAS platforms, while regions such as the Asia-Pacific, the Middle East, and Eastern Europe continue to see growing demand. The United States remains the largest operator of drones globally, with its military investing in autonomous and AI-driven systems to maintain technological superiority in modern warfare.

Beyond defense, innovation is reshaping how drones are used across industries. The global drone market is projected to grow at a compound annual growth rate (CAGR) of 22.4 % through 2032, reaching an estimated value of US$244.95 billion, according to a report cited by FN Media Group. This growth is driven by advances in artificial intelligence, machine learning, sensor integration, and battery technology. These innovations have significantly enhanced drone performance, enabling extended flight times, improved payloads, and autonomous decision-making capabilities.

Commercial Expansion and Strategic Connectivity

Urban air mobility is another emerging frontier. Companies are developing drone-based transport systems that could transform how people and goods move in congested cities. Meanwhile, industries ranging from agriculture and logistics to entertainment are finding new use cases for drones. This includes land surveying, precision farming, infrastructure inspections, and event broadcasting.

A separate report released on April 9 by Berg Insight highlights the global connected commercial drone market, which is projected to grow from US$18.6 billion in 2024 to US$37.3 billion in 2029. Military and defense account for the largest segment, representing 60 % of the market value in 2024. These connected drones benefit from robust communication systems including cellular and satellite connectivity, critical for long-range and beyond visual line of sight (BVLOS) operations. Ensuring uninterrupted communication during missions is essential for safety and success, particularly in high-stakes environments.

Leading players in the drone market include both established manufacturers and emerging technology providers. While China-based DJI holds a dominant share of the global drone market, U.S. companies such as AgEagle, Skydio, and AeroVironment are playing an increasingly important role. The market is expected to consolidate over time as application areas mature and regulatory frameworks evolve.

Unusual Machines Reports Record Revenue as Defense and Component Demand Expands

In the context of a booming drone sector, Unusual Machines Inc. (UMAC:NYSEAMERICAN) provides design and manufacturing components for commercial, recreational, and defense use, including drone motors and first-person-view (FPV) systems.

For the fourth quarter of 2024, Unusual Machines reported record revenue of more than US$2 million, a 31 % increase from the previous quarter. The company's total revenue for fiscal year 2024 reached US$5.65 million, exceeding its annual target by 13 %. According to CEO Allan Evans in a letter to shareholders, this was the company's best revenue quarter to date, with approximately 15 % of Q4 sales derived from enterprise customers.

Despite a reported net loss of US$31.98 million under GAAP standards, Evans noted that this figure includes significant non-cash items, such as a US$10 million goodwill adjustment and a US$16 million derivative-related expense tied to debt conversion. The company's practical operating loss for the year was approximately US$4.6 million.

Unusual Machines also reported that its fourth-quarter cash position improved from US$1.69 million to US$3.76 million. The increase was aided by private placement and warrant conversions totaling US$3.3 million during the quarter. The cash balance was further bolstered by an additional US$2.4 million in additional warrant conversions in early 2025. Evans stated that controlling cash burn remains a core focus and that the company plans to scale production while investing in its Rotor Riot brand and Blue UAS-certified products for government buyers. 

Analyst Barry Sine of Litchfield Hills Research, in a February 27 research note, maintained a Buy rating on the stock with a US$20 price target. Sine noted that the company's total addressable market expanded by 50 % following an initial order from Red Cat Holdings. That order marked the first time Unusual Machines was selected to build motors tailored to a U.S. drone producer's specifications.

As per the company's investor presentation, Unusual Machines aims to capitalize on broader industry tailwinds, including supply chain reshuffling and U.S. sanctions on certain Chinese component makers. Evans characterized the company as being in a “very healthy position,” with new market opportunities emerging from geopolitical shifts and domestic sourcing trends. With increasing demand for autonomous and component-based drone solutions, the company appears well positioned to grow alongside the wider drone industry.

Ownership and Share Structure

About 11.1% of the company is owned by management and insiders, UMAC said. The rest, 88.9%, is retail.

Unusual Machines has 16.83 million outstanding shares and 14.59 million free float traded shares. Its market cap is US$112.43 million. Its 52-week high and low share prices are US$23.62 and US$0.98 per share, respectively.