Lockheed Martin Corporation

Parrot S.A.

Saab AB (publ)

Kratos Defense & Security Solutions, Inc.

In 2024, the global drone market was <a href="https://www.grandviewresearch.com/industry-analysis/drone-market-report">valued</a>&nbsp;at about $73 billion. With a CAGR of roughly 14%, it is expected to reach $84 billion in 2025 and could exceed $160 billion by 2030. The expansion is supported by rapid advances in autonomy, AI integration, and imaging systems, as well as widening adoption of drones in agriculture, logistics, construction, infrastructure inspection, and defense.

Rising defense demand is buoying drone stocks. Who are the biggest winners?

DroneShield Limited

Some investment firms fear that DroneShield's fundamentals no longer justify its stock valuation

Bloomberg found a defense stock in Asia with nearly 400% growth in 2025

Alior Bank S.A.

Pepco Group N.V.

Poland says Russian drones shot down. Stocks in Warsaw fell, the zloty became cheaper

AeroVironment, Inc.

In recent years, the U.S. government has stepped up support for the drone industry. Under the Trump administration, Pentagon budgets for unmanned systems have been repeatedly increased, dedicated programs launched, and export restrictions eased. In 2020, during Trump’s first term, Washington <a href="https://www.armscontrol.org/act/2020-09/news/us-reinterprets-mtcr-rules#:~:text=The%2520Trump%2520administration%2520announced%2520on,See%2520ACT%2520%252C%2520July%252FAugust%25202020">revised</a>&nbsp;the Missile Technology Control Regime (MTCR) to allow more flexible exports of large armed drones to allied countries. This year, Trump has <a href="https://dronelife.com/2025/06/12/explained-what-trumps-executive-orders-on-drones-mean-for-u-s-exports/#:~:text=The%2520order%252C%2520Unleashing%2520American%2520Drone,%25E2%2580%259D">signed</a>&nbsp;new executive orders aimed at accelerating testing, boosting domestic production, and promoting U.S. drone exports.

Three U.S. and European drone stocks that could ride recent momentum in sector

AIRO Group Holdings, Inc.

Airo Group Holdings, a small-cap drone maker, has&nbsp;<a href="https://www.marketwatch.com/story/heres-why-drone-maker-airos-stock-is-still-hot-despite-weak-demand-for-the-ipo-e6a268f0?mod=home_lead">soared</a> to nearly three times its IPO price in the first two days of trading, though shares were offered at well below the expected price. Airo is set to benefit as demand for military drones grows worldwide, analysts say.&nbsp;&nbsp;

Drones