Drone Market Soars: AI & War Fueling Exponential Growth to $250 Billion by 2035

• The global drone market is entering a hyper-growth phase, projected to reach $250 billion by 2035, driven by AI advancements and rising geopolitical tensions.
• Barclays analyst Zornitsa Todorova highlights drones as a core expression of AI in defense, with defense use accounting for up to half of recent market growth.
• Companies like AeroVironment and Kratos Defense & Security Solutions are well-positioned to benefit from increased demand for tactical and counter-unmanned aerial systems.
• Drone production in Ukraine is expected to surge from 800,000 units in 2023 to nearly 5 million in 2026, reflecting heightened military adoption.
• Beyond defense, civilian drone applications in agriculture, logistics, and delivery are also expanding rapidly, expected to comprise 65% of the market by 2035.