A $550 Billion Opportunity: Drones-as-a-Service Emerges as Defense's Next Growth Engine

Governments are accelerating investments in scalable autonomous drone operations without the burden of fleet ownership

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NEW YORK, April 23, 2026 /PRNewswire/ -- Drones-as-a-Service (DaaS) is quickly becoming a major shift in how military and defense organizations actually use drone technology in the field. Instead of spending heavily to purchase and maintain their own fleets, agencies can now tap into drone capabilities like aerial surveillance, mapping, logistics delivery, and ISR (intelligence, surveillance, and reconnaissance) whenever they're needed. It works a lot like a cloud subscription model—giving operators access to the latest hardware, AI-powered analytics, maintenance support, and trained pilots without having to manage everything themselves. That kind of flexibility matters more than ever as technology evolves quickly and real-time battlefield awareness becomes essential. Because of this, defense groups are increasingly leaning toward contracts that focus on mission readiness and reliability instead of simply owning equipment. A growing group of forward-moving companies are rapidly expanding operations and positioning themselves at the forefront of the high-growth DaaS and UAS industries, including: ZenaTech, Inc. (NASDAQ: ZENA), AgEagle Aerial Systems Inc. (NYSE: UAVS), Unusual Machines, Inc. (NYSE American: UMAC), Red Cat Holdings, Inc. (NASDAQ: RCAT), ParaZero Technologies Ltd. (NASDAQ: PRZO).

At the same time, the market opportunity around military DaaS is growing fast alongside the broader drone industry. The global Drone-as-a-Service market was valued at about $33.5 billion in 2025 and is projected to climb to more than $550 billion by 2034, pointing to strong long-term adoption across defense, infrastructure, and logistics sectors. The military drone market itself is also expanding steadily, expected to grow from roughly $47.4 billion in 2025 to around $98.2 billion by 2033, driven by continued demand for surveillance, electronic warfare support, border protection, and autonomous supply missions. Taken together, these trends show that service-based drone deployment is becoming a key part of next-generation defense strategy—not just a niche capability anymore.

A big reason behind the rise in defense-focused DaaS adoption comes down to speed, scalability, and efficiency. Today's military operations require constant surveillance coverage, quick deployment in complex or contested environments, and flexible logistics support in remote areas—all strengths of service-based drone platforms compared to traditional procurement approaches. Governments are also putting significantly more funding into autonomous systems. For example, the U.S. Department of Defense has proposed investing tens of billions of dollars into unmanned and AI-driven warfare initiatives, signaling strong long-term demand for scalable drone services. As defense strategies continue shifting toward AI-enabled autonomy and real-time decision-making, DaaS is positioning itself as a foundational layer supporting the future of military readiness.

ZenaTech's (NASDAQ: ZENA) Registers Phoenix Aero LLC in Ukraine and Establishes Lviv as Base for its Counter-UAS and Interceptor Drone Systems Manufacturing and Testing - ZenaTech, Inc. ($ZENA) (FSE: 49Q) (BMV: ZENA) ("ZenaTech"), a technology solution provider specializing in AI (Artificial Intelligence) drone, Drone-as-a-Service (DaaS), enterprise SaaS, and Quantum Computing solutions, provides an update on its Ukraine operations and announces it has formally registered Phoenix Aero LLC as a Ukrainian limited liability company. Phoenix Aero will be based in the Western Ukraine area in the city of Lviv, where it will engage in drone manufacturing and testing of counter-UAS solutions including the Interceptor P-1 one way interceptor drone.

"Establishing Phoenix Aero in Lviv is a strategic step that positions us in Western Ukraine at the center of one of the most dynamic real-world environments known for its ecosystem of drone companies and drone innovation," said Shaun Passley, Ph.D., ZenaTech CEO. "We are establishing the foundation for a regionally anchored, cost-efficient production and testing capability designed to support the scale-up of our counter-UAS and Interceptor P-1 systems. This will help strengthen our production agility, accelerate product validation and deployment timelines, and help us to respond more effectively to growing demand from US, allied and Gulf country defense customers."

Phoenix Aero will function as part of ZenaTech's EMEA operations, overseen from the Company's regional headquarters in Dublin, Ireland, and supported by its directors and Ukrainian team. The company is currently in the process of hiring engineers, drone pilots manufacturing technicians, software developers, and business development specialists. Management believes that Western Ukraine offers a relatively stable operating environment, a deep technical talent pool, and efficient access to European logistics corridors and Gulf country customers.

Phoenix Aero is intended to support the production of ZenaTech's counter-UAS defense systems, including its Interceptor P-1 platform, a one-way expendable interceptor drone targeted to sell for less than $5000 USD. The entity forms part of the Company's vertically integrated strategy spanning hardware design and development, software and AI engineering, and manufacturing of advanced drone systems. The Ukraine entity is aligned with the Company's broader plans to pursue defense opportunities globally, including in the United Arab Emirates, the Kingdom of Saudi Arabia, and the State of Qatar, where demand for cost-effective counter-drone capabilities continues to accelerate.

ZenaTech is committed to compliance with all applicable regulations including export and trade controls. Further updates on Ukraine operations and operational milestones will be provided over the upcoming months as they are achieved. Continued… Read this full release and additional news for ZENA by visiting: https://www.zenatech.com/newsroom/

In other Military/UAV/Drone industry news of note:

AgEagle Aerial Systems Inc. (NYSE: UAVS), a leading provider of full stack drone, sensors and software solutions for customers worldwide in the commercial and government verticals, recently announced the successful sale of nine eBee VISION Intelligence, Surveillance, and Reconnaissance (ISR) UAS kits to the U.S. Army's National Training Center (NTC) at Fort Irwin, California.

The eBee VISION is a portable, backpack-carried, hand-launched fixed-wing drone engineered for rapid deployment in dynamic environments. Weighing just 4.1 pounds (1.85 kg) with a 46.4-inch wingspan, it enables single-operator setup in under three minutes, delivering real-time situational awareness through high-resolution video feed, varying sensor settings, extended endurance, and modular payload options.

Unusual Machines, Inc. (NYSE American: UMAC), a leading manufacturer of NDAA-compliant drone components, recently announced a $5 million-plus order from Autonomous Power Corporation, doing business as Powerus, to supply U.S.-made components for counter-UAS systems and related drone platforms.

The order includes core components used across both counter-UAS interceptor systems and 10-inch class drones, reflecting growing demand for flexible, domestically produced platforms that can be deployed across multiple mission sets.

Deliveries are scheduled to commence in April and are expected to be completed within the second quarter.

Red Cat Holdings, Inc. (NASDAQ: RCAT), a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security, recently announced a strategic partnership between its maritime division, Blue Ops, and HADDY, a leader in large-scale robotic 3D printing and distributed manufacturing.

The partnership will equip Blue Ops' manufacturing facility in Valdosta, Georgia with advanced Agentic AI-powered robotic production systems to support the rapid development and production of its line of Unmanned Surface Vessels (USVs), effectively doubling overall manufacturing capacity.

By combining Blue Ops' expertise in ship building and autonomous maritime systems with HADDY's microfactory approach, the companies are working to streamline how USVs are designed, built, and delivered. The collaboration reflects a broader shift underway in maritime manufacturing, as large-scale 3D printing reshapes how vessels are produced, enabling faster timelines, greater flexibility, and the ability to scale production in ways not possible with traditional shipbuilding methods.

ParaZero Technologies Ltd. (NASDAQ: PRZO), an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry, recently announced it has received a new purchase order from another defense entity for its advanced DefendAir Counter-Unmanned Aerial Systems (CUAS) solution.

This latest order is the second order from this particular defense entity following evaluation and training. The order affirms ParaZero's expanding footprint with strategic defense partners worldwide as it includes the delivery of DefendAir Personal Net Launchers, net pods, and a comprehensive training package featuring live exercises and simulation modules. These elements are designed to enable rapid operational deployment, maximize system readiness, and equip forces with layered, non-kinetic protection against hostile drones in urban and battlefield environments.

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