Ukraine’s unmanned systems sector expanded rapidly over 2024–2025, shifting from a niche activity to a leading segment of the defence-industrial base by unit volume and revenue.

 Companies registered in Ukraine’s aircraft- and spacecraft-manufacturing category reported aggregate revenue of ₴17bn (≈€496m) in 2022, ₴40bn (≈€1.00bn) in 2023 and ₴99bn (≈€2.28bn) in 2024. On 2022 figures, the nationalised Motor Sich accounted for roughly two thirds of sector turnover; in 2024 about three quarters of revenue was generated by the twenty largest producers.

The number of firms has risen in parallel. At the start of 2023, around 280 legal entities were active in this category. By early 2024 the count exceeded 700, and by early August 2025 it was above 800. New entrants range from small engineering teams specialising in first-person-view (FPV) platforms to serial manufacturers producing reconnaissance, loitering and strike airframes.

Official output statistics are not consolidated. State procurement data indicate that 1.2–1.7 million drones were purchased in 2024. When volunteer and direct business-to-unit deliveries are included, sector estimates place total production at about four million units for the year. The product mix spans quadcopter reconnaissance systems, FPV platforms for short-range precision strikes, loitering munitions and longer-range airframes used for deep-rear targets.

Early 2025 reporting points to further growth. Company filings for January–March 2025 show sales of drones and related products amounting to ₴39bn (≈€845m). A simple straight-line extrapolation would imply about ₴160bn (≈€3.47bn) in full-year revenue. However, first quarters are typically weaker, and some firms submit financial statements later in the year, so the final total may exceed that baseline. Compared with the first quarter of 2024, the January–March 2025 figure is 2.4 times higher.

Budget allocations support the run-rate. The 2025 state budget earmarks more than ₴110bn (≈€2.38bn) for drone procurement, including over ₴102bn (≈€2.21bn) through the Defence Procurement Agency. The Ministry of Defence has indicated a plan to acquire about 4.5 million domestically produced FPV drones this year. These volumes reflect both demand from frontline units and the increase in domestic assembly capacity for airframes, payloads and communications modules.

Policy measures have lowered entry barriers and accelerated production cycles. Imports of UAVs and specified components for security and defence customers have been exempted from VAT and certain customs burdens. In addition, targeted grants introduced in 2024 allow eligible manufacturers to receive awards of up to 80% of project costs, subject to programme rules. These steps have supported tooling, testing and certification, and have helped new suppliers reach serial production.

Pricing parameters for state defence orders have been clarified. Under government contracting rules, manufacturers factor a profitability margin of up to 25%. Based on company filings, reported net profit in 2024 was ₴14bn (≈€322m). The concentration of revenue in a small cohort of large producers indicates ongoing scale effects and the potential for further consolidation as firms seek assured component access and quality-control capacity.

Operational considerations remain. Many assemblies rely on imported electronics and materials, making customs processing, export-control compliance and supplier diversification material to delivery schedules. As volumes rise, testing capacity and quality assurance are central to reliability and cost control. Skills demand is increasing in electronics, software, guidance, additive manufacturing and production engineering.

On current evidence, unmanned systems will remain a significant element of Ukraine’s defence-industrial activity in 2025. If procurement plans are implemented and first-half momentum carries into the fourth quarter, full-year sector revenue could reach ₴200–₴300bn (≈€4.34bn–€6.50bn). This trajectory would mark a second consecutive year in the triple-digit-billion-hryvnia range and consolidate Ukraine’s position as a high-volume producer across several classes of airframes.

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