Skydio has successfully delivered the first X10D drone systems to a U.S. Army unit preparing for imminent deployment, marking a significant milestone in the Tranche 2 phase of the Army’s Short Range Reconnaissance (SRR) Program of Record. The California-based manufacturer’s ability to fulfill this order within days highlights the growing focus on U.S. production capacity as domestic drone makers work to close the manufacturing gap with international competitors.
Rapid Response to Military Needs
According to the announcement made today, Skydio equipped a U.S. Army Transforming in Contact (TiC) unit with hundreds of X10D aircraft systems in preparation for their upcoming deployment. The X10D, which appears on the Department of Defense’s Blue UAS Cleared List, will provide crucial intelligence, surveillance, and reconnaissance capabilities to soldiers operating in contested environments.
“When the Army contracted Skydio to fill this urgent need, we shipped systems within 5 days, ensuring soldiers had this critical equipment before their deployment,” said Adam Bry, cofounder and CEO of Skydio. “We produce 1,000+ drones a month at our facility in California with the ability to rapidly scale beyond that rate, enabling us to ship at the speed of need.”
The X10D systems feature an impressive array of capabilities designed for battlefield operations, including a 48MP telephoto camera, Teledyne FLIR Boson+ thermal sensor, advanced obstacle avoidance, and proprietary technology that maintains positional awareness without conventional navigation methods. The drones are also designed with resilience against electronic warfare, featuring onboard AI and autonomy systems.
Manufacturing Capacity: A Strategic Advantage
Skydio’s delivery highlights the critical importance of domestic drone manufacturing capacity amid increasing global competition and security concerns. Bry emphasized this point, noting that “production readiness is deterrence.”
The company’s manufacturing facility in Hayward, California, stands as one of the largest drone manufacturing facilities outside of China. Having shipped its 55,000th drone, Skydio has refined its production process to the point where an X10 or X10D drone can be built in just nine minutes.
However, these achievements come against the backdrop of Chinese manufacturer DJI’s enormous production advantage. Around 400,000 DJI agricultural spray drones alone were estimated to be in use globally by the end of 2024, representing a 33% increase over 2023 and a 90% increase compared to 2020.
Investments Fueling U.S. Manufacturing Growth
Skydio’s manufacturing capabilities have been bolstered by substantial investment. The company has raised a total of $732 million in funding to date, with its most recent $170 million Series E extension maintaining the company’s $2.2 billion valuation.
These investments have enabled Skydio to establish and expand its U.S. manufacturing operations while other domestic manufacturers explore various approaches to scaling production. Skydio reported doubling its business since its initial Series E funding in early 2023, demonstrating strong growth momentum.
“By investing in our production capacity, we can accelerate delivery of war-winning capabilities, making America’s enemies think twice before challenging the world’s most capable fighting force,” Bry stated in today’s announcement.
Diverse Approaches to U.S. Drone Manufacturing
While Skydio has focused on building its manufacturing capacity within the United States, other U.S.-based companies have adopted different strategies to address production challenges.
Teledyne FLIR, for example, manufactures its SIRAS drone in Taiwan through partnership with Coretronic Intelligent Robotics Corporation (CIRC), while completing final payload integration and quality control in the United States. This approach leverages allied manufacturing capabilities while maintaining some domestic production elements.
In another model, Ascent AeroSystems, recently acquired by Robinson Helicopter Company, now builds its UAVs at Robinson’s vertically integrated manufacturing facility in Torrance, California. This acquisition allows Ascent to leverage Robinson’s established manufacturing infrastructure and expertise.
These varied approaches reflect the challenges U.S. manufacturers face in competing with Chinese drone producers, particularly DJI, which maintained approximately 79% of the drone manufacturing market share as of 2023. DJI’s competitive advantage stems in part from its substantial workforce of 14,000 employees, with 25% dedicated to product development, as well as vertical integration in its supply chain.
The Path Forward for U.S. Drone Production
The drone industry in the U.S. was projected to create over 100,000 jobs by 2025, indicating growth potential for domestic manufacturing. However, significant challenges remain in scaling production to meet both military and commercial demands.
Recent industry movements suggest increased focus on developing U.S.-based production of critical drone components, including motors and batteries. This push comes amid growing national security concerns regarding foreign-made drone technology, particularly from China.
Skydio’s successful delivery to the U.S. Army demonstrates that U.S. manufacturers are making progress in building domestic production capacity. The company has now delivered drones to every branch of the Department of Defense and armed forces in 25 allied nations, according to today’s announcement.
As the global drone market continues to expand, with projections indicating growth (optimistic estimates range from $34.5 billion in 2023 to approximately $101.1 billion by 2033,) the race to establish robust domestic manufacturing capabilities remains a critical factor in both commercial competitiveness and national security readiness.
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Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a professional drone services marketplace, and a fascinated observer of the emerging drone industry and the regulatory environment for drones. Miriam has penned over 3,000 articles focused on the commercial drone space and is an international speaker and recognized figure in the industry. Miriam has a degree from the University of Chicago and over 20 years of experience in high tech sales and marketing for new technologies.
For drone industry consulting or writing, Email Miriam.
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