Skydio became the first US drone maker with an valuation of more than $ 1 billion, a sign of increased investment in American-made drones after the US government blacklisted Chinese manufacturers. California-based Skydio raised $ 170 million in a Series D financing round led by VC Andreessen Horowitz, as first reported by The Financial Times.
Skydio drones are best known for their automatic flight technology, which allows the aircraft to autonomously navigate obstacles and track users on the ground. The company launched its first drone in 2018, the R $ 2,500.00, aimed at the consumer. Then came the smarter and much cheaper $ 999 Skydio 2 in 2019, and last year announced its first drone aimed specifically at business and military customers: the X2.
Putting a new emphasis on business products makes sense, as the sector is the fastest growing in the drone market. Data collected by Valuates Reports, and reported by 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 topography, where autonomous drones can be used to map land and buildings with minimal pilot training, the United States government is also expected to be a major future customer for companies like Skydio.
After the United States Armed Forces, the Pentagon and the Department of the Interior blocked drones with Chinese components for fear of espionage, new opportunities arose for American competitors. Although Chinese drone giant DJI still dominates consumer sales, with an estimated 70% market share, it can no longer sell to US government customers. DJI’s influence in the sector, however, has already contributed to the demise of American companies like GoPro and 3D Robotics, which abandoned consumer sales in recent years.
Skydio’s X2 drone, which comes with an integrated thermal camera and enterprise-grade controller, looks set to fill this new gap in the market. The X2 should already be an official U.S. Army drone after reaching the final round of acquisitions in the Army’s Short Range Recognition Program, and Wired reports that Skydio also has contracts with the Air Force and the DEA. The company is also working with at least one police department in California.
Skydio’s drones will be used for emergency response, surveillance and reconnaissance missions, and the company says it has no plans to turn its technology into a weapon. It is also working on new consumer drones. “We have more products coming into this market that we are excited about,” said Skydio CEO Adam Bry The Verge last year, although it is unclear when they will be released.