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US drone maker Skydio rises to $ 1 billion thanks to sanctions against Chinese DJI
Skydio became the first drone manufacturer in the United States with a valuation of more than $ 1 billion — this indicates a large investment in an American-made UAV. And although Skydio has good products, the lion’s share of these successes is due to the work of the «invisible hand of the market» — the US government sanctions against Chinese competitors.
Skydio recently raised $ 170 million from Andreessen Horowitz in Round D. The drones of this Californian company are best known for their advanced autopilot technology, which allows the quadcopter to automatically avoid obstacles and track users on the ground. The company launched its first $ 2,500 R1 drone in 20221, with a focus on consumer sales. Following this, in 2021, the company introduced the smarter and much cheaper Skydio 2 at $ 999, and last year announced its first drone designed specifically for corporate and military customers — the X2.
It makes sense to create products for corporate clients, given that this sector is not so critical to price and is the fastest growing in the UAV market. According to Valuates Reports, the global commercial UAV market will grow from $ 6.5 billion in 2021 to $ 35 billion in 2026. In addition to opportunities in areas such as construction and surveying, where drones can be used to map terrain and buildings with minimal pilot training, the US government is also looking to become a major future customer for firms such as Skydio.
After the U.S. Armed Forces and the Home Office demanded a ban on drones with Chinese components due to fears of espionage, new opportunities for American manufacturers have opened up due to the lack of key competitors. Although China’s DJI continues to dominate consumer sales with roughly 70% of the US market, it can no longer sell its products to US government clients, agencies and contractors. In the past, DJI’s successes in this sector have led to the decline of American firms like GoPro and 3D Robotics.
The Skydio X2 drone that comes with a built-in thermal imaging camera and an enterprise-class controller is ready to fill this market gap. The X2 will likely soon become an officially approved drone for the US Army after the final round of procurement under the close-range reconnaissance program. Wired Says Skydio Has Also Received US Air Force And Drug Enforcement Contracts. Finally, the firm has at least one police department in California.