Ukrainian drone industry: uAH 99 billion and counting
15 August 09:48
In 2024, Ukraine became one of the world’s leading manufacturers of military drones. The industry, which until recently was considered highly specialized, has demonstrated the dynamics of a rapid startup: new manufacturers appear every month, and Ukrainian drones perform tasks ranging from reconnaissance to precision strikes against the enemy. This was reported by Ekonomichna Pravda, according to "Komersant Ukrainian".
The rapid development has been made possible by a combination of factors: the emergence of hundreds of new companies, huge demand from the Armed Forces, and government support for the industry.
New companies are actively registering under the CEA code 30.30 (Production of aircraft). While at the beginning of 2023 there were about 280 of them, at the beginning of 2024 there were more than 700. As of August 2025, according to Opendatabot, the number of such companies exceeded 800.
State support has stimulated development: the government has abolished VAT and import duties on drone components, and manufacturers with the appropriate KVED can receive compensation of up to 80% of the project cost. This has significantly reduced barriers to entry and accelerated production processes.
There are no official production statistics. The state uses its own procurement data: 1.2-1.7 million units in 2024. According to the publication, experts estimate total production at 4 million drones, including supplies from volunteers and private businesses to specific military units.
Financial indicators demonstrate the scale of growth. An analysis of official company reports available on data.gov.ua shows that the total revenue of companies with CEA 30.30 increased from UAH 17 billion in 2022 to UAH 40 billion in 2023. In 2024, this figure more than doubled, reaching UAH 99 billion.
Manufacturers include up to 25% profitability in the cost of drones in accordance with government contracts. The companies’ official net profit in 2024 amounted to UAH 14 billion.
About 75% of the total revenue of the drone industry in 2024 came from the twenty largest manufacturers.
The state budget for 2025 provides for more than UAH 110 billion for the purchase of drones, including UAH 102 billion through the Defense Procurement Agency, the article says.
Quarterly reports of companies show that from January to March 2025, drones and related products were sold for UAH 39 billion. When extrapolated to the entire year, the industry’s turnover could be about UAH 160 billion, but the real amount is likely to be significantly higher.
Not all market participants have submitted quarterly reports, and some data will be available later. In addition, the first quarter is traditionally weak, with the bulk of sales occurring in the second half of the year. Comparison of the first quarter of 2025 with the same period last year shows a 2.4-fold increase. At this rate, drone production could reach UAH 200-300 billion in 2025.
The Ministry of Defense confirms this growth rate of orders. In 2025, the ministry plans to purchase 4.5 million FPV drones from Ukrainian manufacturers, according to Hlib Kanevsky, director of the Defense Ministry’s procurement policy department.
Therefore, the Ukrainian unmanned aerial vehicle sector will remain a driver of the defense industry and an important factor in economic growth, becoming critical to both victory and the country’s post-war development.
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“Army of drones”: the beginning
The decision to maximize state support for the production of drones was made in March 2023, when the government approved a resolution. Since then, the Ministry of Digital Transformation has been actively working to expand production, maximize support for drone manufacturers, and remove bureaucratic obstacles to the creation of UAVs. Minister Fedorov launched the People’s Drone initiative, under which every citizen can assemble a drone at home at their own expense.
In late 2023, President Volodymyr Zelenskyy expressed confidence that Ukraine would produce one million drones for the frontline by 2024, referring to FPV drones. Minister Fedorov assured him that this target would even be exceeded. And so it was – in 2024, the state purchased 1.2-1.7 million drones. In 2025, drone production is estimated at about 4 million units.
In his last article in the Western press, on the eve of his dismissal from the post of Commander-in-Chief of the Armed Forces, Valeriy Zaluzhny emphasized the need for a technological breakthrough in the army with a special focus on unmanned technologies. The Commander-in-Chief claimed that it would take only 5 months to reorient the army to unmanned systems.
After his dismissal, Supreme Commander-in-Chief Volodymyr Zelenskyy instructed the government to work on the creation of a separate type of troops in the Armed Forces – the Unmanned Systems Forces. They were formally established on February 6, 2024.
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