By the end of 2025, the volume of the defense technology market in Ukraine is estimated to be around $6.8 billion. The largest share of this market is held by the unmanned aerial vehicle (UAV) sector, which is showing rapid growth in production and investment.
This is reported by Finway
Rapid Growth of Technological Segments
According to a study conducted with the participation of Brave1 and Defence Builder, the development rates of technological directions in the defense industry significantly outpace the overall market. In particular, UAV production increased by 137% compared to the previous period, ground robotic complexes (GRC) by 488%, and electronic warfare systems (EWS) by 215%.
“In 2025, the volume of the defense technology market in Ukraine reached approximately $6.8 billion. Meanwhile, the overall defense production volume grew more slowly due to limited domestic funding. In contrast, technological segments grew significantly faster: UAV production increased by 137%, ground robotic complexes (GRC) by 488%, and EWS by 215%,” the study states.
Experts emphasize that the actual scale of the market may be even larger, as a significant portion of purchases is made through decentralized channels: charitable foundations, direct contracts with units, and in-house production by brigades, which are not accounted for in official statistics.
UAVs — Leaders in Investment and Development
The unmanned aerial vehicle segment has the highest investment potential. In 2025, its volume reached $6.3 billion, with at least 150 companies operating in the market, mostly private. Despite this, the state sector retains a strategic role due to the scale of its activities. The production of long-range drones and interceptors is developing particularly dynamically, although the majority consists of FPV drones. Among the promising directions are the scaling of interceptors, the development of middle-strike drones, and the creation of Ukrainian analogs of reconnaissance multicopters as an alternative to Chinese DJI models.
The ground robotic complex sector is just forming but is already showing significant growth: in 2024, it was estimated at $43 million, and in 2025, it reached $252 million. The main drivers of development are logistics and evacuation platforms, as well as strike systems and demining tools, which open new directions with significant future demand.
The volume of the EWS market reached $220 million in 2025. The sector is transitioning from individual developments to serial production of proven platforms, focusing on software-defined systems capable of analyzing signals and selectively suppressing them.
Throughout 2025, Ukrainian defense companies and startups attracted at least $129 million in investments and grants; however, this amount is minimal, as several deals remain undisclosed for security reasons. The largest investments are directed towards artificial intelligence-based developments and software. The main funding mechanisms have been Brave1 grants (over $60 million, supporting more than 600 companies), venture investments, preferential loans under the “5-7-9%” program ($160 million for 108 enterprises), and funding from partner countries through direct purchases. Thanks to these tools, companies are rapidly scaling up their production capacities.
It is worth noting that NATO and Ukraine have outlined further steps for the first Ukraine-NATO competition on innovation, technology, and engineering (UNITE) — Brave NATO, the launch of which was announced in November 2025.
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