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US Drone Manufacturer Valued At $1 Billion As Government Continues Crackdown On Chinese Products

As per a Financial Times report, Skydio has surfaced as the first U.S drone developer with a valuation of more than $1 billion. This is the result of the U.S government banning drones made by Chinese manufacturers to promote US-made ones. Based in California, Skydio has raised $170 million in a D funding round run by VC firm Andreessen Horowitz.

Skydio’s drones are famous for their self-flying autonomous technology. It allows the drone to navigate obstacles autonomously and tracks users on the ground without asking for assistance. Skydio released its first-ever drone, R1, in 2018, at $2500. It was built to meet the consumer market needs of flying drones. Later, the company launched a smarter version with added options, but surprisingly, at a cheaper cost. Their produced third model, X-2, aimed to meet the demands of enterprise and military usage at large.

Putting more focus on enterprise products and meeting the target audience’s demands is sure a company’s smart move. Given that the sector is rapidly growing, more and more companies add cool features to make their produced drones stand-out in the market.

As per the Valuates Reports and FT reported data, commercial drones’ global market is expected to rise to $35 billion in industry. In contrast, for now, it stands at a $6.5 billion industry, showing the rapid growth in the demand for modern drones.

Since the U.S authorities have laid a ban on Chinese-produced drones, the American drone market has already started showing encouraging signs for the sector and new opportunities for American competitors. The Chinese drone maker DJI still holds seventy percent of the consumer sales. However, more of its products won’t be flowing into the U.S market.

HOWEVER, the U.S made Skydio X2 drone will fill in the market needs fulfilling the consumer demands. The U.S army will be deploying the X2 drones to their short-range reconnaissance program, respectively. According to a Wired report, Skydio has signed a contract with Air Force and DEA as well.

Skydio’s X2 drone will be deployed for emergency responses, surveillance, and other such missions. The company has also stated that they have no plans on weaponizing its tech shortly. On its working on the consumer drones, the company stated, We have more products coming in the market that we’re excited about.”

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