Defense Industry Disrupted as Drone-as-a-Service Market Accelerates Toward $100 Billion

NEW YORK, March 31, 2026 (GLOBE NEWSWIRE) -- Market News Updates News Commentary - The defense world is starting to treat drones less like one-time purchases and more like a service you can "subscribe" to. Instead of buying fleets outright, militaries can now pay for Drone-as-a-Service (DaaS)—where a provider handles the drones, maintenance, software updates, and even operations. It's a lot like how companies moved from owning servers to using cloud computing. This shift makes things faster and more flexible, especially since drone tech evolves so quickly. Rather than being stuck with outdated hardware, defense teams can constantly access the latest capabilities, from surveillance to AI-powered targeting while active companies are seeking opportunities in this rapidly growing industry: ZenaTech, Inc. (NASDAQ:ZENA), Aureus Greenway Holdings Inc. (NASDAQ:AGH), AeroVironment, Inc. (NASDAQ:AVAV), Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), Ondas Inc. (NASDAQ:ONDS).

The money behind this trend is growing fast. The global military drone market is already huge—around $47 billion in 2025—and could climb to nearly $100 billion by 2033, which shows steady long-term demand. Some projections for more specialized defense drone segments are even more aggressive, estimating growth from about $10 billion today to over $30 billion within the next decade. A big reason for this expansion is that modern warfare increasingly depends on real-time data, intelligence gathering, and autonomous systems—all areas where drones (especially service-based ones) play a central role.

What's really driving DaaS, though, is a change in mindset. Defense organizations aren't just buying equipment anymore—they're buying outcomes. They want reliable surveillance, constant uptime, and actionable data, without worrying about managing fleets themselves. As drones become cheaper and more common, the real value is shifting to software, analytics, and operational support. That's why DaaS is expected to become a core part of the defense industry going forward, especially as autonomous drone swarms and networked systems become more important on the battlefield.

ZenaTech's (NASDAQ:ZENA) ZenaDrone Develops the IQ Aqua Prototype, an Autonomous Underwater Vehicle Intended to Integrate with its Maritime Defense Architecture and Address Underwater Mine Threats - IQ Aqua AI-Powered AUV intended to deliver autonomous underwater operations across defense and commercial markets, addressing a global underwater drone market projected to reach $16 billion by 2034 - ZenaTech, Inc. ($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, announces its ZenaDrone subsidiary has developed the IQ Aqua, an autonomous underwater vehicle (AUV) prototype intended for multiple underwater use cases across defense and commercial markets, including, importantly, undersea mine detection in a military context. The IQ Aqua marks the company's entry into underwater robotics, extending Zena Drone's IQ autonomous product family, which currently spans air, land, and water surface drone operations, to underwater operations. The IQ Aqua prototype has demonstrated baseline autonomous navigation and underwater mobility in controlled environments. The Company is now manufacturing several more prototypes to conduct outdoor underwater field testing in the U.S. and in other international locations to commence over the coming months.

"ZenaDrone IQ Aqua is positioned to address one of the most urgent gaps in modern maritime defense: autonomous mine detection. Mines represent an asymmetric threat that is inexpensive to deploy and extraordinarily expensive to counter using traditional manned methods, and we are building a technology specifically designed to detect them," said Shaun Passley, Ph.D., ZenaTech CEO. "We intend to change that calculus, enabling defense forces to detect and respond to underwater mine threats without putting divers or manned vessels at risk. Combined with our IQ Glider launch station and interceptor drones, the IQ Aqua will give defense forces an integrated above- and below-surface maritime defense architecture, while also addressing significant commercial demand for autonomous underwater inspection and surveillance across the offshore energy and port security sectors."

Intended future IQ Aqua defense applications include mine detection and countermeasure support, covert underwater intelligence, surveillance, and reconnaissance (ISR), and port and harbor threat detection. The current prototype operates with a tethered, battery-powered configuration. The company is currently developing the next generation intended to be tether-free and GPS-independent, enabling fully autonomous operation in contested and GPS-denied underwater environments.

In terms of commercial use, the ZenaDrone IQ Aqua's design is suited for autonomous inspection of offshore energy pipelines, subsea cables, and maritime infrastructure, reducing reliance on costly diver deployments and manned vessel operations. Gulf Cooperation Council nations — including the UAE, Saudi Arabia, and Qatar — represent a priority future commercial market given their extensive offshore hydrocarbon assets, major port facilities, and coastline protection requirements. 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:

Powerus recently announced a proposed merger with Aureus Greenway Holdings Inc. (NASDAQ:AGH), positioning Powerus to become publicly traded upon completion. Powerus, a U.S.-based autonomous systems company building next-generation drone infrastructure for defense and critical infrastructure, also recently announced that General CQ Brown Jr., USAF, Ret., former Chairman of the Joint Chiefs of Staff, has joined the company as Executive-in-Residence and Senior Advisor.

As the 21st Chairman of the Joint Chiefs of Staff, the nation's highest-ranking military officer, General Brown served as the principal military advisor to the President, Secretary of Defense, and National Security Council. As a Four-Star General, he brings nearly four decades of leadership overseeing global air operations, modernization initiatives, and the integration of emerging technologies across the U.S. Air Force and the broader Department of Defense.

AeroVironment, Inc. (NASDAQ:AVAV), a global defense technology leader, recently announced the release of LOCUST^® X3, the third generation of AV's high-energy laser weapon system that delivers precise, speed-of-light engagement for rapid defeat of unmanned aerial threats.

LOCUST X3 builds on lessons learned from widely deployed systems to set a new standard in modular, AI-enabled drone defense—delivering unprecedented precision, scalability, and operational flexibility to defeat current and emerging aerial threats, including Group 1-3 unmanned aircraft systems and unmanned surface vehicles.

Recently featured by CBS News' 60 Minutes, the LOCUST X3 offers cost-effective engagements below $5 per shot and sustained defense without the reload limitations of traditional defense systems, LOCUST X3 offers a transformative solution for modern air defense.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a technology, products, system and software company in defense, national security, and global markets, announced recently that it has been selected by the Naval Surface Warfare Center, Port Hueneme Division (NSWC PHD) for production and delivery of up to 36 Oriole™ solid rocket motors and three Thrust Vector Control (TVC) nozzle kits. The contract includes a funded base award for Oriole with options that, if fully exercised, bring the total contract value for solid rockets to $39,077,237. An option for 3 Oriole TVC production kits, valued at $10,136,009, is also included in the award.

The Oriole rocket system is an affordable, mission-relevant flight test solution, supporting the Navy's critical suborbital target and experimental hypersonic test requirements with rapid delivery and fielding. Kratos' proven capability and flawless track record delivering Oriole rocket systems and vehicle hardware components enables customers to maintain robust test and evaluation schedules in support of emerging national security requirements.

Ondas Inc. (NASDAQ:ONDS), a leading provider of autonomous aerial and ground robot intelligence through its Ondas Autonomous Systems (OAS) business unit and private wireless solutions through Ondas Networks, recently announced it has entered into a definitive agreement to acquire World View Enterprises, Inc. ("World View"), a leader in high-altitude balloon intelligence, surveillance and reconnaissance (ISR) and stratospheric remote sensing. The transaction builds on the companies' previously announced $10 million strategic investment and partnership agreement and reflects strong alignment in vision, operating tempo, and customer focus.

The acquisition will bring together Ondas and World View around a shared-and highly complementary-vision for a unified, multi-domain, AI-powered intelligence architecture. World View has evolved beyond a single-domain sensing company toward integrated, persistent stratospheric ISR, while Ondas has been building a portfolio of autonomous systems across air and ground domains with a core belief that the future of ISR is not platform-by-platform, but networked, interoperable, and decision-centric. Together, the companies will combine stratospheric persistence with tactical autonomy to advance an integrated intelligence platform spanning stratosphere, air, and land-designed to meet the rapidly evolving needs of defense, homeland security, allied governments, and critical infrastructure operators.

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