Skydio became the first U.S. drone maker with a valuation of more than $ 1 billion, a sign of deeper investment in U.S.-made drones after the U.S. government blacklisted Chinese manufacturers. The Skydio in California raised $ 170 million in a series of D funding rounds led by VC firm Andreessen Horowitz, as first reported The Financial Times.
Skydio’s drones are especially known for their self-flying technology, which enables the aircraft to navigate through obstacles autonomously and locate users on the ground. The company released in 2018 its first drone, the $ 2500 R1, which targeted the product at consumers. It followed suit with the smarter and much cheaper $ 999 Skydio 2 in 2019, and last year announced its first drone aimed specifically at enterprise and military customers: the X2.
Placing new emphasis on enterprise products makes sense, as the sector is the fastest growing in the bumblebee market. Data collected by Valuates Reports, and reported by the FT, says the global commercial drone market will grow from $ 6.5 billion in 2020 to $ 35 billion in 2026. As well as opportunities in areas such as construction and surveyors, where self-aircraft can be used to map terrain and buildings with minimal pilot training, the US government will also be a major future customer for companies like Skydio.
After the U.S. military, the Pentagon and the Department of the Interior grounded drones with Chinese components over espionage fears, there were new opportunities for U.S. rivals. Although Chinese drone giant DJI still dominates consumer sales, with an estimated market share of 70 percent, it can no longer sell to U.S. government customers. However, DJI’s influence in the sector has already contributed to the downfall of US companies such as GoPro and 3D Robotics, which have been slowing down consumer sales over the past few years.
Skydio’s X2 drone, equipped with an integrated thermal camera and an operating regulator, looks like it will fill this new gap in the market. The X2 will most likely be an official U.S. drone after penetrating the Army’s short-range reconnaissance program in the final round of purchases, and Wired reports that Skydio also has contracts with the Air Force and the DEA. The firm also works with at least one California police department.
Skydio’s drones will be used for emergency response, surveillance and reconnaissance missions, and the company says it has no plans to use the technology. It is also working on new consumer bumblebees. “We have more products in the market that we are excited about,” said Adam Bry, CEO of Skydio. The edge last year, although it is not clear when it will be launched.