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
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

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.
-
ESPN to Acquire NFL Network and RedZone in Exchange for 10% Equity Stake
ESPN will take control of NFL Network and RedZone, while the NFL secures a 10% stake in ESPN — a move that could change how fans watch football.
-
Stocks Rally on Apple Strength: Stock Market Today
The iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
How to Adopt AI and Keep Employees Happy
The Kiplinger Letter As business adoption of AI picks up, employee morale could take a hit. But there are ways to avoid an AI backlash.
-
The Rise of AI: A Kiplinger Special Report
The Kiplinger Letter Our special report looks at the opportunities and challenges of generative AI and how its rapid move into the mainstream is impacting every aspect of our lives.
-
Big Changes Are Ahead for Higher Ed
The Kiplinger Letter A major reform of higher ed is underway. Colleges are bracing for abrupt change, financial headwinds and uncertainty.
-
AI-Powered Smart Glasses Set to Make a Bigger Splash
The Kiplinger Letter Meta leads the way with its sleek, fashionable smart glasses, but Apple reportedly plans to join the fray by late 2026. Improved AI will lure more customers.
-
Breaking China's Stranglehold on Rare Earth Elements
The Letter China is using its near-monopoly on critical minerals to win trade concessions. Can the U.S. find alternate supplies?
-
Things that Surprise Business Owners When It’s Time to Sell
The Kiplinger Letter When it’s time to retire and enjoy the fruits of growing their business, owners are often surprised by how tough it is to give up their baby!
-
What New Tariffs Mean for Car Shoppers
The Kiplinger Letter Car deals are growing scarcer. Meanwhile, tax credits for EVs are on the way out, but tax breaks for car loans are coming.
-
AI’s Rapid Rise Sparks New Cyber Threats
The Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.