Drone startups are heading into 2026 with expectations of sustained revenue growth, larger contracts and deeper integration into defence, security and civilian operations, building on a year that marked a clear shift from pilots to deployment. Industry executives say the coming year will be defined less by experimentation and more by scale, performance and repeat orders, as government agencies and enterprises increasingly favour proven, indigenous systems.
Push for indigenous players with increased funding
The confidence around 2026 stems from developments in 2025, when drones moved into mission-critical roles, particularly in defence and national security. Faster regulatory clearances, clearer operating rules and a stronger policy push for domestic manufacturing helped reduce uncertainty across the value chain. This translated into funding as well. According to Tracxn data, drone startups raised $179.35 million in 2025, compared with $135.51 million in 2024.
Founders expect this base to support stronger commercial traction next year. “We will see higher deal sizes as customers move from single-site deployments to multi-location, long-term engagements,” Agnishwar Jayaprakash, founder and director of Garuda Aerospace, told Fe. He added that growth in 2026 is likely to shift from volume-led to value-led, with better margins driven by automation, improved utilisation and increased use of indigenous components.
Globally, ongoing conflicts have underscored the strategic value of drones, but they have also accelerated the pace of technological change. “The cat-and-mouse race between drones and counter-drone systems is resulting in application-level churn every 8–10 weeks. This is a reality startups will have to contend with in 2026,” Sai Pattabiram, founder and managing director of Zuppa Geo Navigation Technologies, said. The implication, he said, is sustained investment in R&D and faster upgrade cycles.
Expansion beyond defence sector
Beyond defence, startups operating in surveillance, logistics and critical infrastructure are expected to see wider deployments next year. Bodhisattwa Sanghapriya, founder and chief executive of IG Defence, said companies that have demonstrated reliability in real-world conditions are better positioned to secure repeat government orders and long-term contracts in 2026, rather than one-off trials.
Agriculture is also emerging as a key growth driver. With increasing use of drones for precision spraying, crop monitoring and rural services, executives expect steady demand from state governments and agri-businesses. Sanghapriya said startups with indigenous intellectual property, manufacturing depth and regulatory compliance could realistically see two to three times growth over the next year, even as the ecosystem becomes more selective.
For listed player ideaForge Technology, which was among the participants in Operation Sindoor, the next phase will raise baseline expectations. “Performance, reliability, resilience and autonomy will become table stakes,” Ankit Mehta, CEO and co-founder, said. He added that artificial intelligence will be central to enabling higher levels of autonomous operations as customers demand persistent monitoring and reduced human intervention.
Executives also expect a gradual shift from selling hardware to offering integrated drone-as-a-service models, combining equipment, software, training, maintenance and financing. Prem Kumar Vislawath, CEO and co-founder of Marut Drones, said startups with strong field performance could also see export opportunities and international pilot projects open up in 2026.
Policy continuity remains critical. Startups are looking for faster procurement cycles, continued preference for indigenous solutions, support for certification and testing infrastructure, and clearer export pathways. At the same time, founders acknowledge the need to focus on sustainable business models, after-sales support, safety and compliance. “A coordinated ecosystem approach will determine how quickly drones move from niche deployments to mainstream tools,” Vislawath said.