Investments In U.S.-Made Drone Technology Are Gaining Strength — The Kiplinger Letter
The U.S.-Made drone aircraft, software sector has been boosted by a crackdown on Chinese drones amid security concerns.

To help you understand what the future holds for drone technology amid regulatory burdens and China-dominated sales, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
Hefty investment bodes well for the future for U.S. firms. Zipline, a delivery company, raised $330 million in funding this year, for example. Scores of other U.S. companies are raising similar, though smaller, sums, especially for drone hardware.
Even homegrown manufacturing is gaining, as a crackdown on Chinese drones by Congress amid security concerns boosts U.S.-made aircraft, flight controllers, software, etc. California-based Skydio, maker of autonomous drones, secured $230 million in February for a big expansion, partly due to China fears.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Among the notable U.S. drone vendors that are approved for military procurement include: AgEagle. Wingtra. Teal Drones. Vantage Robotics. BlueHalo. FlightWave. The enhanced security that is required for military compliance will spur business sales, too.
The elephant in the sky is still China’s DJI, a Chinese technology company that dominates global sales of small drones and is used extensively by U.S. firms, local police agencies and more, because of its leading systems and low prices.
But the ecosystem of American-made drones will grow, buoyed by further federal and state China restrictions.
Amid an exciting advance of technology, including sensors, batteries, autonomous navigation, and artificial intelligence, look for lightweight delivery as a standout service that will grow fast over the next five years. Zipline, Alphabet, Amazon, FedEx and others are working on it. Walmart has already flown 10,000-plus deliveries and recently announced an expansion with Wing, an Alphabet division. It charges $4 per package under 10 pounds and can arrive in under 30 minutes. Expect rapid drone expansion in areas offering delivery.
Though the federal government is making headway on some key regulatory burdens, sanctioning flights over people and at night, and finalizing “license plates” for drones, the commercial industry is still clamoring for fully autonomous flight with a sweeping rule that clears the way for beyond-line-of-sight flights. Exemptions in recent weeks help, but only a new federal rule will unlock the full potential.
Meanwhile, look for more states to prepare for drones by cutting red tape and clarifying laws. Arkansas is particularly drone-friendly, according to one report.
Related

John Miley is a Senior Associate Editor at The Kiplinger Letter. He mainly covers technology, telecom and education, but will jump on other important business topics as needed. In his role, he provides timely forecasts about emerging technologies, business trends and government regulations. He also edits stories for the weekly publication and has written and edited e-mail newsletters.
He joined Kiplinger in August 2010 as a reporter for Kiplinger's Personal Finance magazine, where he wrote stories, fact-checked articles and researched investing data. After two years at the magazine, he moved to the Letter, where he has been for the last decade. He holds a BA from Bates College and a master’s degree in magazine journalism from Northwestern University, where he specialized in business reporting. An avid runner and a former decathlete, he has written about fitness and competed in triathlons.
-
-
What Is Market Cap?
What is market cap? Here we discuss the basics, significance and related issues of the metric that is often used to gauge a company's size and value.
By Mark R. Hake, CFA Published
-
How tax laws can help you if you're a victim of a hurricane, wildfire or other federally declared disaster
Kiplinger Tax Letter Did you know that some losses — attributable to federally declared disasters — can be deducted, in addition to the tax filing and payment extensions?
By Joy Taylor Published
-
Congress Races to Pass a Spending Bill as a Gov. Shutdown Looms — The Kiplinger Letter
The Kiplinger Letter McCarthy faces push-back from Congress and moderate House Republicans as they move to avoid a Gov. shutdown
By Sean Lengell Published
-
Auto Industry’s Electric Transition Sparks Tension With Autoworkers: The Kiplinger Letter
The Kiplinger Letter DoE announces $12 billion to support factory retrofits, which autoworkers fear may mean the end of numerous auto manufacturing jobs.
By Matthew Housiaux Published
-
Will the U.S. Dodge a Recession?: Kiplinger Economic Forecasts
Kiplinger Economic Forecasts The labor market is healthy enough to dodge a recession, even though job growth is lethargic.
By David Payne Published
-
Don't Overlook Tax on Crypto Staking Rewards: Kiplinger Tax Letter
Tax Letter The IRS has issued guidance on crypto staking rewards, but broker reporting on digital asset sales won't start until 2025.
By Joy Taylor Published
-
New Regs Crackdown on Incandescent Bulbs and CTC Exposure: Kiplinger Forecasts
Economic Forecasts The EPA and Dept. of Energy are planning to enforce rules on hazardous CTC and inefficient incandescent light bulbs.
By Matthew Housiaux Published
-
State Legislators Are Switching Parties at a Fast Rate: Kiplinger Economic Forecasts
Economic Forecasts Switching is pacing well above the 30-year average, with Dems losing more than the GOP.
By Sean Lengell Published
-
Falling Prices in China Could Be a Boon For the U.S.: Kiplinger Economic Forecasts
Economic Forecasts Falling prices in China could be a boon for the U.S. as the country's weakened economy shows no clear signs of improvement.
By Rodrigo Sermeño Published
-
Domestic Airfare Is Still Cheaper Than Pre-Pandemic Prices: Kiplinger Economic Forecasts
Economic Forecasts Although domestic airfare is cheaper, some international flights are still more expensive than usual.
By Sean Lengell Published