Ukraine: A New Player in the Global Drone Arena

Over the past few weeks, Commercial UAV News has explored how robust and growing UAV industries in European countries such as France, Switzerland, Denmark, Belgium, Spain, Italy, Germany, and the Netherlands are pushing the worldwide industry forward.

But there’s a new major player in the global drone market: Ukraine

This vast Eastern European country is home to a thriving technological sector, with uncrewed systems playing an increasingly vital role. “Today, there are about 200 companies in Ukraine actively working on creating drone technologies and component bases,” according to Valerii Iakovenko, the co-founder of DroneUA and Futurology. “In total, there are about 700 various enterprises in the market that are engaged in the development and implementation of technologies in this field. This indicates that the market is segmented, multi-profiled, and there is a whole cluster of associations of players.”

To showcase this vibrant sector, representatives of various drone-related companies will come together at the Ukrainian Pavilion at the upcoming Commercial UAV Expo in Las Vegas. Supported by Ukraine's diplomatic missions in the United States, including its Embassy in Washington, D.C. and the Consulate General in San Francisco, the pavilion will feature companies in the UAS robotics sector that demonstrate how Ukraine is a leading producer of drones and components.

“As ambassadors of technological diplomacy, we aim to promote Ukraine on the international stage as a technological hub and a country with a high level of innovation,” Iakovenko asserted.

To learn more about the Ukrainian drone industry and what to expect at the Commercial UAV Expo Ukrainian Pavilion, Commercial UAV News spoke with Valerii Iokovenko.

Commercial UAV News: How would you describe the drone sector in Ukraine?

Iakovenko: Over the past two and a half years, drones have become an integral part of the technological sector and manufacturing in Ukrainian business. We have observed the creation of an entire ecosystem of enterprises working in the high-tech sector, capable of not only using these technologies but also manufacturing them—from the simplest components to state-of-the-art, high-end devices.

When we talk about the number of drones currently produced in Ukraine, it is safe to say that it is millions of units per year. Compared to the production capacities of other countries, Ukraine demonstrates one of the largest capacities in the world. Over the past two and a half years, Ukraine has become one of the largest and most prolific producers of drones globally. This applies not only to the drones themselves but also to the component base, potential scenarios for civilian use, and the experience Ukraine already had in using drones in industrial sectors.

Commercial UAV Expo: I understand that both state-owned and privately owned companies play major roles in the Ukrainian drone sector.

Iakovenko: Yes, the Ukrainian drone technology market consists of both state-owned enterprises and commercial companies. An important feature is that the market has mainly developed due to private initiatives. It is the private companies that have become the main driving force behind the growth of the Ukrainian drone manufacturing segment.

Commercial UAV News: Is the industry focused on certain use cases or specific industries?

Iakovenko: Drones in agriculture are the most prominent element of the drone-related business in Ukraine. In terms of the size of this market, Ukraine surpasses all possible European countries in the field of agricultural drone use. At Commercial UAV Expo, we talk about Ukraine as an agrarian state. We are the granary of the world, producing one of the largest amounts of calories when we talk about food supplied to global markets. We are exporters of agricultural products, both raw and processed products, such as sunflower oil, where we are the No. 1 exporter in the world. The active use of drone technologies in agriculture allows us to get up to an additional 10% yield on certain crops, thanks to spraying drones.

Commercial UAV Expo: What companies will be participating in the Ukrainian Pavilion at Commercial UAV Expo?

Iakovenko: At the Ukrainian Pavilion, we aim to represent all possible players of the Ukrainian drone ecosystem for commercial use, and some of these companies that have already become known in the market and will be representing the Ukrainian drone ecosystem at the Commercial UAV Expo. These companies include DroneUA, Bavovna AI, RadioBird, KARA DAG, FREEUA, FarmFleet, Boxo Ukraine and Piranha Tech, as well as the Fleet of Millions initiative, which aims to promote and expand the global footprint of Ukrainian robotic technology. These companies demonstrate the powerful potential of the Ukrainian drone technology market and its ability to be competitive on the global stage. 

Commercial UAV News: Let's discuss possible cooperation scenarios with Ukrainian companies and what format it might take. Could it be partnerships, joint production, opening new markets, etc.?

Iakovenko: We are interested in having Ukraine perceived as a reliable partner in forming the drone fleets of the future. We are responsible for creating the largest drone fleet on the planet in our country. And we clearly understand that every country now aims to create its own ecosystems and production capacities to localize production processes and all verticals within its country as much as possible.

For this, we actively cooperate with our partners and neighbors, such as Slovakia, Poland, or the Baltic countries. But when we talk about the United States, it is something more. It is a path to global expansion. America is the opportunity to be globally recognized, which no other country in the world can provide. American partners can create technologies that will be distributed worldwide, not just in a single country. American business is an example and icon when we talk about innovation and entrepreneurship. All known technologies in the world that change our world have American origins.

So, when we talk today about partnership opportunities, cooperation, etc., we are looking for opportunities to gain American experience to expand our own ecosystems. And we want to provide our Ukrainian experience in building an ecosystem in a very short time and localizing production, which we managed to do in the harshest times. Initially, we are talking about spreading the partnership so that the path already started by Ukraine and actively developed by the United States goes as quickly as possible.

Therefore, the companies represented today at the Ukrainian pavilion are potential and reliable partners for forming production sites on the territory of the United States. They are equipment manufacturers that have already proven themselves well in the context of civil technologies. Ukrainian businesses are seeking partnerships to strengthen their capabilities through joint developments and creating joint projects with American businesses.

Commercial UAV News: What can Commercial UAV Expo attendees expect to find or learn at the Ukrainian Pavilion?

Iakovenko: The Ukrainian Pavilion is an example of an ecosystem that has been created in Ukraine over the past few years. The Ukrainian ecosystem includes manufacturers of ready-made drone and robotics solutions, component manufacturers, and professional teams engaged in the specialized industrial application of technologies.

At the Ukrainian pavilion, opportunities will be presented to obtain contacts not only from the companies physically present today but also from those representing the Ukrainian ecosystem as a whole. Visitors will have the opportunity to obtain contacts from the entire ecosystem and connect with any business represented in the Ukraine directory.

Even those Ukrainian businesses that, for some reason, could not join the Ukrainian pavilion will receive all the necessary contact bases to seek and create new partnerships with American businesses.

Commercial UAV News: What specific events will Ukrainian representatives participate in at Commercial UAV Expo?

Iakovenko: In addition to the Ukrainian pavilion itself as an exhibition area where visitors can get acquainted with technologies and join partnerships with Ukrainian businesses, the Ukrainian pavilion delegation participates in two events and forms two additional activities.

The first event is a panel discussion on the possibilities of the Ukrainian drone ecosystem titled "Fleet of Millions: Ukraine's Secrets to Mass Drone Production" on Thursday, September 5, from 11:00 to 11:45. This presentation is a very large-scale direction that continues the movement to present the Ukrainian drone ecosystem for partnership opportunities and localization of drone and other robotics production on the territory of the USA. It is an example and story of how the Ukrainian drone system was created over the past two and a half years, where the state took direct participation, and individual enterprises formed their vision of the need to localize the production of certain components and built million-strong drone fleets.

The second important direction is understanding that Ukraine uses drone technologies for the country's reconstruction. The use of drones and other robotics, innovative technologies to increase the efficiency of civilian areas, is extremely important. We must use the full potential of innovative technologies for the country's restoration. That is why we seek partnerships among Western companies, particularly American ones, to create cooperations for the future reconstruction of our country.

We will also talk about Ukraine as an agrarian state. We are the granary of the world, producing one of the largest amounts of calories when we talk about food supplied to global markets. We are exporters of agricultural products, both raw and processed products, such as sunflower oil, where we are the No. 1 exporter in the world. The active use of drone technologies in agriculture allows us to get up to an additional 10% yield on certain crops, thanks to spraying drones.

This experience will be discussed as part of a Roundtable discussion, which I’ll be moderating along with the Chair of the Agricultural Committee of the Pennsylvania Drone Association and Ashley Hanson, the Unmanned Aviation Systems Manager at John Deere and Advisory Board member at Commercial UAV Expo. We will discuss how drones change approaches to agribusiness, ensure sustainability of agricultural production, save water, reduce the carbon footprint and the use of fuel and lubricants, and reduce the amount of pesticides used, which positively affects ecology.

The Ukrainian experience and partnership with American businesses will be discussed at a round table dedicated to the agricultural use of drones. The United States is one of the largest markets in the world for the production of agricultural products, and it is the largest market for drone technologies in the agricultural sector worldwide.

Commercial UAV News: What do you hope to achieve by coming to Commercial UAV Expo?

Iakovenko: As a result of the Commercial UAV Expo 2024 and the participation of the Ukrainian pavilion, we want to see the creation of partnerships and new cooperation directions between Ukrainian and American businesses in various industries. We expect the localization of production and the participation of Ukrainian components in American developments, especially in creating new solutions and drones. We want to see trends and directions for opening production locations in different states to create high-tech equipment and components with the participation of Ukrainian engineers, by Ukrainian design.

Some businesses that actively operate in Ukraine dream of expanding their activities by opening representative offices in the United States. Therefore, we are looking not only for commercial partners but also for opportunities to build communication channels with government representatives and economic development departments of different states to discuss opportunities for the development of Ukrainian engineering companies and the opening of their locations in the USA to build new fleets of the future.

Commercial UAV News: Are there other connections you hope to make at Commercial UAV Expo?

Iakovenko: Cooperation with the academic community of the United States is extremely important for us, with universities to confirm our experience, which we have formed in a very short time. We need American experience and examples of applying innovative technologies to improve Ukrainian drone technologies.

Ultimately, the main parameter by which we will evaluate the effectiveness of the participation of Ukrainian teams in the Ukrainian pavilion is the number of new partnerships. We want to see the development and joint creation of the future around innovations and technologies of drones and robotics.