Drones-as-a-Service Market Surges as AI, Automation, and Industrial Demand Drive Billion-Dollar Growth

Market experts predict substantial growth in the global DaaS market, with estimates pointing towards a potential market size of around $8.2 billion by 2026, a significant increase from the approximately $6.3 billion recorded in 2024. Key drivers propelling this industry forward include automation, workforce shortages, operational efficiency, and the growing demand for real-time aerial data collection. Businesses are turning to drones for a variety of tasks such as surveying, mapping, asset inspections, security surveillance, crop analysis, delivery services, and predictive maintenance, attracted by the speed, safety, and cost-effectiveness they offer compared to traditional methods. Factors like approvals for Beyond Visual Line of Sight (BVLOS) operations, AI-driven autonomous flight systems, cloud-based analytics, and advancements in battery technology are further fueling global commercial adoption.

Industry projections show strong growth in the global drone services market, forecasting an increase from about $33.5 billion in 2025 to over $555 billion by 2034. This reflects a strong long-term annual growth rate (CAGR) of about 36.6%. Additionally, specific sectors like Drone-as-a-Service could exceed $26 billion in the next ten years as companies worldwide become more accepting of these services. North America currently leads the DaaS market due to high demand from businesses, favorable regulations, defense investments, and widespread adoption across industries. Europe and Asia-Pacific are also seeing rapid growth. Sectors like agriculture, energy infrastructure, smart cities, defense, and logistics are expected to expand significantly as businesses adopt scalable drone operations with ongoing service models. Investors are paying close attention to this sector as mergers, acquisitions, and partnerships are becoming more common in the drone industry. Recent developments, including key acquisitions in drone and counter-drone technologies, highlight the increasing importance of aerial intelligence and autonomous systems for governments and businesses. As AI, autonomous navigation, and drone delivery networks continue to improve, experts believe DaaS could evolve into a major global opportunity worth billions over the next decade.

ZenaTech (NASDAQ:ZENA) Reports 640% Increase in First Quarter 2026 Revenue Year-over-Year Growth Powered by its Drone Division - ZenaTech, Inc. ($ZENA) (FSE: 49Q) (BMV: ZENA) ("ZenaTech"), a technology solution provider specializing in AI (Artificial Intelligence) drone, Drone as a Service (DaaS), enterprise SaaS, and Quantum Computing solutions, announces its financial results for the three months ended March 31, 2026. Highlights included revenue of $8.4 million representing a 640% increase from the same period in 2025. All financial figures are reported in Canadian dollars.

First Quarter 2026 and Recent Highlights

• Total revenue of $8.4 million for the first quarter of 2026, an increase of 640% over the prior-year comparable period revenue of $1.13 million, reflecting the cumulative contribution of the DaaS portfolio and acquisitions of land surveying and legacy service companies, integrating drones for data and speed benefits
• DaaS segment revenue of $7.8 million or approximately 93% of total revenue reflecting the continued focus on building the company's drone division, services and drone integration
• Expanded DaaS footprint bringing current acquisition count to 23 land survey and legacy service company acquisitions, covering 10 US states, Canada, UK and most recently Australia. Combined with three corporate stores including Orlando, Dublin and Dubai bring the total to 26 DaaS global locations
• The quarter brought new ZenaDrone commercial drone products to the IQ Series and marked the company's entry into the Counter-UAS defense product area with two new interceptor drones in an integrated defense system
• Enterprise SaaS Software segment revenue of $589,857, which now includes 12 brands with the most recent acquisition of Now Solutions
• Company maintained approximately $15 million of cash and marketable securities at the quarter end, providing flexibility to fund continued organic growth, strategic acquisitions, and ongoing investment in the Company's commercial and defense technology solutions

"The first quarter of 2026 was another record-breaking quarter for ZenaTech as we executed on our strategy of acquiring legacy land survey companies and experienced licenced operators with longstanding customers and migrating them to Drone as a Service drone-based automation," said Dr. Shaun Passley, ZenaTech Chairman, President and Chief Executive Officer. "Total revenue for the first quarter was $8.4 million, representing approximately 640% growth over the first quarter of 2025. Currently, with 26 DaaS locations now operating across ten US states, Canada, UK, Ireland, UAE and Australia, and the continued progression of our defense technology pipeline, we believe the fundamental trajectory of the business remains strong and will continue to grow as the demand for our integrated suite of cost-effective drone services and solutions accelerates in 2026.

"We remain focused on disciplined capital allocation, operating leverage, and long-term value creation for our shareholders," added Dr. Passley. "At the close of the quarter we have maintained $15 million of cash and marketable securities in addition to growth capital flexibility through recent funding initiatives. We believe that we are well positioned to continue executing on organic growth and strategic acquisitions across our DaaS and other business areas, advancing our product roadmap, and manufacturing capacity across our defense technology and commercial divisions."

First Quarter 2026 Operational Highlights

• Our DaaS portfolio expanded by one acquisition bringing the total to 21 acquisitions by the end of Q1, and we continue integrating of drones into land surveys, inspections and power washing. We continued the evaluation of additional acquisition targets to expand geographic coverage and add specialized service capabilities
• We are expanding ZenaDrone AI drones into the Counter-UAS category with prototype commencement and a provisional patent filed for our integrated interceptor defense system during the quarter. This includes the ZD2000 Maritime Interceptor gas-powered drone, the Interceptor P-1 low cost and expendable one-way drone, and the IQ Glider marine-based launch and refueling station
• Defense portfolio product development advancements included announcing the IQ Aqua underwater drone prototype for land mine detection, a Quantum navigation system for GPS-denied environments, and we submitted our application for the green/blue UAS pathway certification to enable qualification for U.S. defense agency procurement for the ZenaDrone 1000, our third drone in this pathway
• Product development advancements for commercial markets including launching the IQ Quad which is purpose-build for land surveys, the development and testing of the IQ Square drone power washing platform, and we made progress testing our IQ Nano indoor drone with drone swarms of multiple drones to more efficiently conduct inventory counts
• Continued buildout and recruiting of engineers for the Company's Zena AI research and development center and AI hub in Baton Rouge, Louisiana, supporting advanced AI U.S. defense technology applications
• Continued commissioning, production line set up, integration and supply chain planning work took place regarding Spider Vision Sensors, the Company's Taiwan-based sensor and drone component manufacturing production facility
• The DaaS business launched new land survey services designed specifically for the residential homebuilding developer market and for golf course operators that are building and revamping golf courses
• The Company's R&D and quantum computer project work continued to enable the next generation solutions including using drone swarms and processing real-time AI data and analysis. During the quarter the team commenced research work to commence building a 5-qubit quantum computer expected to be used for the testing and development of AI drone solutions for applications such as wildfire management, traffic management and defense-based AI projects

Financial Overview

• Total revenue for the first quarter of 2026 was $8.4 million, an increase of 640% compared to $1.13 million for the first quarter of 2025
• The DaaS segment contributed $7.81 million for the first quarter of 2026, primarily from the approximately 20 land surveying companies acquired during 2025
• The Enterprise SaaS Software segment contributed $589,857, a decrease of $143,031 over the prior year before reflecting the timing of software licensing renewal agreements
• Total assets increased almost 10% from $100 million at December 31, 2025, to $109.5 million at March 31, 2026

Outlook - Management believes ZenaTech is well positioned to continue growth throughout 2026.  Key drivers include:

• The DaaS segment benefits from a full year of revenue from the 2025 acquisitions in 2026. The Company is pursuing additional targeted land survey, inspection and other legacy service company acquisitions in additional U.S. states and internationally
• Product development investment in the ZenaDrone 1000 platform and IQ Drone Series is planned to yield additional revenue streams in defense, agriculture, logistics and warehousing, and inspection markets
• The Enterprise SaaS segment will continue to be a very positive margin contributor and will benefit from increased marketing and lead generation efforts as well as through the addition of future well selected acquisitions
• The Company will continue defense sector investments in the ZenaDrone 1000, IQ series drones, and Counter-UAS platforms, and will engage with program managers in various government defense agencies towards potential demos, pilots and contracts.  ZenaDrone is pursuing opportunities from the U.S. Department of War including initiatives supported through the Office of Strategic Capital (OSC)
• ZenaTech will continue expansion of its manufacturing capacity across its three facilities and continue to work towards establishing full operational status in the Arizona facility and Ukraine manufacturing sites
• The Company will continue strategic and targeted accretive acquisitions, and in addition, will be broadening its acquisition strategy to include strategic acquisitions that can also benefit other business areas, including its defense business

Additional information is available from ZenaTech's 6-K filing on the SEC EDGAR website -   Continued…  Read this full release and additional news for ZENA by visiting:  https://www.zenatech.com/newsroom/

In other Business/Military/UAV/Drone industry recent and current news of note:

Ondas Inc. (Nasdaq:ONDS), a leading provider of autonomous drone and advanced defense technologies, recently announced that its wholly owned subsidiary, World View Enterprises Inc. ("World View"), has been selected by the U.S. Naval Forces Southern Command (SOUTHCOM) U.S. 4th Fleet and SMX, a leader in next-generation cloud C5ISR solutions for defense and intelligence, as the high-altitude balloon provider for an operational Maritime Domain Awareness (MDA) program supporting counter-narcotics and illegal, unreported and unregulated (IUU) fishing missions in the SOUTHCOM area of responsibility (AOR).

The initial contract is valued at approximately $4.8 million over a three-month mission period, building on the growing relationship among World View, SMX and U.S. Naval Forces SOUTHCOM U.S. 4th Fleet. World View will immediately begin operational support, deploying high-altitude balloon systems in the program's area of operations to provide persistent intelligence, surveillance and reconnaissance (ISR) capabilities for maritime security missions.

Unusual Machines, Inc. (NYSE American:UMAC), a leading manufacturer of NDAA-compliant drone components, recently announced that Trish Ellis has been promoted to Vice President of Human Resources.

Over the past year, Unusual Machines has grown from fewer than 20 employees to more than 200 employees while expanding its manufacturing, fulfillment, and operational footprint in Orlando.

During that time, Ellis helped build and scale the Company's recruiting, onboarding, employee relations, leadership development, and people operations infrastructure to support rapid growth. In her new role, she will continue leading talent acquisition, employee development, HR operations, and organizational initiatives across the Company.

AgEagle Aerial Systems Inc. (NYSE: UAVS), a leading provider of full stack drone, sensors and software solutions for customers worldwide in the commercial and government verticals, recently announced the grand opening of its new global headquarters and state-of-the-art manufacturing facility, product and innovation center in Allen, Texas.

The new Allen facility will serve as the Company's North American hub for assembly, research & development, administrative, and marketing functions. The Company's advanced VISION high-performance drone will be assembled there, as well as the full line of MicaSense advanced multispectral sensors. The facility will also house the ThirdEye USA joint venture, which will manufacture next-generation Counter UAS (CUAS) systems, including the Meduza X, Chimera UL, and Argus Shield.

Quantum Cyber N.V. (Nasdaq: QUCY), a Nasdaq-listed autonomous defense technology company assembling an AI-powered System-of-Systems platform for drone warfare, counter-UAS, and border security applications, recently announced an expansion of its existing relationship with BP United Inc. ("BP United"), the developer of autonomous unmanned vehicle systems that form the foundation of the Company's autonomous drone platform.

Quantum Cyber Assumes Direct Manufacturing Control - The Company and BP United have executed a First Amendment to the Intellectual Property License Agreement dated May 12, 2026 (the "Amendment"), pursuant to which the parties have agreed that Quantum Cyber will assume direct responsibility for the manufacturing of licensed drone products, superseding the commercial supply arrangement originally contemplated under the License Agreement.

BP United will provide Quantum Cyber with ongoing technical assistance and consulting services, including access to qualified manufacturing personnel, technical documentation, formulations, standard operating procedures, and on-call engineering support. Quantum Cyber retains full discretion to establish and operate its own manufacturing facilities, engage third-party contract manufacturers, and scale production in accordance with its commercialization strategy.

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