RISING TIDES
Observations from the IMC Research Process

Drones Are Taking Off

 

The global drone market is set to more than double by 2030, surging from $73B to $163B.

  • Defense spending surge. Increased global defense spending is significantly propelling the UAV (Unmanned Aerial Vehicle) market. At the 2025 NATO Summit, member states agreed to increase defense spending to 5% of GDP by 2035. The proposed US defense budget for next year totals over $1 trillion (+13.4% increase) with a focus on modernizing and accelerating the acquisition of advanced combat drones.
  • Next-gen tech. AI-powered autonomous systems, improved battery efficiency, enhanced imaging sensors – these innovations are expanding the capabilities of drones across industries such as agriculture, logistics, construction and energy.
  • UAV stocks on the move. To name a few: $DRSHF specializes in counter-drone technology, $KTOS developing hypersonic drones capable of speeds exceeding 5x the speed of sound, $AXON integrating AI into its drone operations, and $AVAV doubled its funded backlog and recently acquired technology company BlueHalo.

The sky isn’t the limit – it’s the starting line.

This report is provided for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. IMC or its clients may hold positions in securities mentioned; the mention of specific companies does not imply endorsement or a recommendation. Past trends do not guarantee future results.