Component Supplier Eyes Excellent Growth Potential in $163.6B Global Drone Market

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Leading NDAA-compliant drone component provider Unusual Machines Inc. (UMAC:NYSEAMERICAN) announced a strategic supplier agreement with BrooQLy Inc. (BRQL: OTCQB), operating as Dynamic Aerospace Systems (DAS), an innovative developer of next-generation unmanned aerial systems for both commercial and defense applications, according to a December 8 release.

This agreement includes the immediate integration of Unusual Machines' compliant flight controllers, ESCs, motors, and related subsystems into DAS's production lines for the Breacher counter-UAS (unmanned aircraft system) and loitering system, as well as the Sentinel long-endurance ISR (intelligence, surveillance, and reconnaissance) platform. All components adhere to NDAA (U.S. National Defense Authorization Act) and Blue UAS standards.

"DAS is expanding into new commercial markets, and our U.S.-made components provide them with a secure supply chain they can scale with," said Unusual Machines Chief Executive Officer Allan Evans. "As more logistics and delivery operators turn to American-built systems, partnerships like this diversify our revenue mix and emphasize the value of domestic production."

Additionally, the agreement extends to DAS's commercial drone initiatives, including upcoming deployments in the United Arab Emirates with the noon Group, the region's leading e-commerce platform, and Drops Smart Hubs in Greece. DAS plans to utilize Unusual Machines' components across platforms supporting autonomous pilot delivery, commercial logistics, and critical infrastructure monitoring.

"We chose Unusual Machines because they deliver compliant, American-made components at the scale our platforms require," said Kent Wilson, CEO of Dynamic Aerospace Systems. "Reliability and execution are central to our expansion into new commercial markets. Early work with our e-commerce partners in the UAE with the noon Group and Drops Smart Hubs in Greece shows the global demand for U.S.-made systems, and UMAC's technology helps us meet that demand with confidence."

Co. Makes Investment in Emerging 'Vertical Economy'

In November, Unusual Machines announced it had invested US$25 million in vertical-flight innovator XTI Aerospace Inc., following XTI's acquisition of another drone distribution company, as announced by XTI on November 12. XTI is a leader in vertical flight technology and the developer of the TriFan 600, an advanced vertical takeoff and landing (VTOL) aircraft designed for both commercial and defense applications, as well as the emerging "Vertical Economy."

XTI acquired Drone Nerds LLC, one of the largest drone distributors and service providers in the U.S., with over US$100 million in revenue for 2024 and more than US$55 million in revenue for the first half of 2025, maintaining a decade-long record of profitability.

Bohlig said the firm continued to view UMAC as positioned for significant growth in 2026 as these programs scale.

XTI issued 25,000 shares of Series 10 Convertible Preferred Stock to UMAC in a private placement, priced at US$1,000 per share. These shares are convertible into XTI's common stock at a conversion rate of US$1.492, pending shareholder approval as required by Nasdaq Listing Rule 5635.

"Drone Nerds has an unprecedented opportunity to define the entire domestic drone landscape over the next few years as the U.S. intensifies its ban on Chinese drone companies," Evans said at the time. "We are excited to be a part of the Drone Nerds-XTI strategy and look forward to further strengthening our years-long relationship with Drone Nerds, and we are demonstrating our confidence in the XTI strategy by our investment as we collectively build the American aerospace ecosystem."

XTI CEO Scott Pomeroy described the acquisition of Drone Nerds as a "foundational step as we advance our strategy to build the most comprehensive portfolio of vertical flight and UAS capabilities in the industry." He added, "The addition of Drone Nerds significantly expands XTI's scale, recurring revenue base, and near-term operating footprint."

Analyst: Co. Evolving Into 'Central Node' in Drone Ecosystem

Litchfield Hills Research Analyst Barry Sine commented on the XTI news in a November 13 research note.

"UMAC continues to evolve from a drone components manufacturer into a central node in the emerging American drone and VTOL ecosystem," Sine wrote. "This investment enhances strategic optionality, deepens vertical integration, and offers a uniquely asymmetric risk-reward profile."

Litchfield Hills maintained its US$25 per share target price on Unusual Machines, noted Sine.

"Even without strategic investments, UMAC's core business, positioned for a surge in U.S. drone demand, would justify our valuation," Sine wrote. "Yesterday's announcement simply underscores that UMAC is becoming far more than 'just' a components supplier. It is rapidly positioning itself as a key consolidator in a once-in-a-generation industry shift."

UMAC Well-Positioned to Capitalize on DDP

On December 2, the Department of War (DoW) announced the Drone Dominance Program (DDP) — Request for Information (RFI), marking the first step toward what is expected to be one of the largest procurement cycles for low-cost, attritable small UAS in U.S. history, according to a December 3 research note featuring Unusual Machines by Needham Analyst Austin Bohlig.

The RFI outlines a clear path for US$1 billion in orders, covering approximately 340,000 drones over four phases in the next two years. This development is considered highly significant, as it supports the belief that the unmanned supercycle is poised to accelerate substantially in 2026.

"While the program is structured to accommodate several drone OEM vendors, we believe Unusual Machines (UMAC) is particularly well positioned to capitalize on this opportunity, given its leadership as one of the few domestic suppliers of low-cost, flight-critical components essential for meeting the program's supply-chain requirements," Bohlig wrote. "Based on the anticipated unit volumes, we estimate this represents a US$170 million addressable market opportunity for UMAC across the program's initial phases."

Bohlig said the firm estimated it equates to a US$45 million available in just 2026. Combined with the company's existing US$16 million backlog expected to be fulfilled in the first half of 2026, as well as emerging opportunities tied to PBAS and Skyfoundry, Bohlig said the firm continued to view UMAC as positioned for significant growth in 2026 as these programs scale.

The Catalyst: 'Billions of Dollars at Stake'

According to a December 5 report for Business Insider, author Chris Panella said that "billions of dollars are at stake" in the battle to build defense drones.

"The Pentagon is preparing to spend US$9.4 billion on aerial combat drones in fiscal year 2026 as part of its larger US$13.4 billion investment in autonomous systems," the article said. "Furthermore, the Air Force is seeking US$789.4 million for research and development of autonomous 'loyal wingmen' drones that can fly and fight alongside crewed combat aircraft or carry out missions alone. The Department of Defense also aims to invest US$3.1 billion in counter-drone technology."

Pentagon leaders are increasingly directing competition toward emerging defense companies, arguing that large traditional contractors are unable to deliver new weapons quickly or cost-effectively enough to address today's rapidly evolving global threats and the demand for affordable mass, exemplified by the low-cost drones prevalent in the conflict in Ukraine, according to Panella.

Grand View Research reported that the global drone market was valued at US$73.06 billion in 2024 and is projected to reach US$163.6 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030. This growth is primarily driven by rapid technological advancements in drones, improvements in battery efficiency, AI-driven autonomous systems, and enhanced imaging sensors, which are expanding the use of drones across various industries, as noted by Grand View. In 2024, North America led the drone market, capturing over 39% of the market share. The hardware segment accounted for the largest revenue share by component, exceeding 58% in 2024, and the multi-rotor segment held the largest revenue share by product in 2024, according to researchers.

The integration of AI into the drone market has transformed drone capabilities, according to Markets and Markets. No longer just remote-controlled flying devices, today's drones use AI to navigate independently, recognize objects, make real-time decisions, and perform complex tasks with minimal human intervention. The AI-driven drone market is expanding rapidly. Although valuations vary slightly among analysts, the consensus is clear: the market is expected to more than triple in value over the next decade, with compound annual growth rates ranging from 15% to nearly 30%, the research firm noted.

Startups and defense technology companies in the U.S. are leading the way, developing autonomous drone platforms for real-world applications, the research firm said. Major defense initiatives are funding the creation of drones capable of thinking, coordinating, and carrying out missions with minimal input. In the commercial sector, AI-powered drones are inspecting pipelines, mapping agricultural land, and responding to emergencies more swiftly than ever before.

Ownership and Share Structure¹

As for ownership and share structure, seven strategic entities own 6.85% of Unusual Machines, including the CEO, Evans, with 2.89% and Chief Financial Officer Brian Hoff with 1.33%. More than 100 institutions hold 23.24%; one of them, Tudor Investment Corp., is the largest shareholder overall, with 3.27%. Retail investors have the rest.

Unusual Machines has 36.88 million shares outstanding. Its market cap is US$408.95 million. Its 52-week range is US$4.45–21.65 per share.