The unmanned aerial vehicle (UAV) or drone sector is experiencing global momentum driven by technological revolutions, alongside its growing use in recent wars, dubbed by some as “drone wars."
In February 2025, Air Force Commander Maj.-Gen. Tomer Bar called the UAV “the king of the battlefield in the Swords of Iron War,” while speaking at a UAV operators’ graduation ceremony.
In June, he further stated, “The UAV array is heavily engaged in suppressing Iranian missile fire,” emphasizing that enemy soldiers “do not function” when Israeli UAVs hover above them.
Defense tech and global shifts
This trend is part of a broader global movement known as defense tech, reflected in NATO’s decision to increase defense budgets from 2% of GDP to 5% by 2035.
Specifically regarding UAVs, US President Donald Trump issued an executive order on June 5, 2025, titled Unleashing American Drone Dominance. It mandates a clear, time-bound work plan to accelerate UAV development and integration into American society, using national resources and investments.
The understanding is sharpening: A strategic shift is currently required to secure a global economic and security advantage in this domain, both civilian and military.
This strategic process, based on several significant vectors, has accelerated and matured over the past three years, since the outbreak of the Ukraine-Russia War and the Israel-Hamas War.
The first major vector is technology, shifting from evolution to revolution and greatly expanding the players involved. This technological revolution is evident in several areas:
The communications spectrum: Moving into cellular and satellite domains, requiring high quality, low latency, secrecy, etc. For example, Deutsche Telekom CEO Timotheus Höttges announced at the 10D DefenseTech Conference that Germany’s defense investment fund will invest directly in UAV technologies.
AI and autonomy: Strengthening UAV capabilities, from mega-projects, such as the US Air Force’s Autonomous F-16 program, to smaller intelligence applications, namely decoding targets or locating munitions. UAV companies increasingly define themselves as “software companies.” This change is also naturally reflected in the civilian sphere of software capabilities, artificial intelligence (AI), image processing, cloud technologies, edge computing, and embedded systems.
Other technological domains undergoing rapid changes and leaps in capability include energy and propulsion technologies, such as batteries and fuels. The world of materials is transforming, both in types of materials and in manufacturing and printing processes; the domain of command-and-control and simulations is developing to enable swarm and flock control, while simultaneously allowing the ability to distinguish between “friend and foe” to defend against hostile UAVs, alongside the autonomous operation of self-directed UAV systems, and more.
Part of this technological change is possible thanks to shifts in organizational processes worldwide – from traditional companies and processes to “out-of-the-box” firms and rapid trial-and-error processes. Global combat arenas, including the Israel, have created an operational need for fast, unconventional innovation.
This global need in recent years has driven major change, exemplified by the actions of Elon Musk, but also more specifically in the UAV world by the start-up giant Anduril Industries (valued at $30.5 billion), founded in 2017 by Palmer Luckey, which today challenges established defense companies such as Lockheed Martin, Raytheon, and Northrop Grumman.
I would not be surprised if in the coming years we hear that the US government, through these companies and specifically these individuals, completes a “level up” move in the field of civilian UAV systems against the Chinese company DJI, which currently controls 70 to 80% of the global drone market.
At the same time, airspace regulation is advancing. In the past year, in the US, FAA Part 108 (complementing Part 107) now addresses beyond visual line of sight (BVLOS) operations and in Israel the Civil Aviation Authority has approved updated regulations for “light UAVs”( weighing up to 25 kg.)
Operational lessons from Israel-Hamas War
However, the central factor establishing UAVs as strategic was their operational role in the Israel-Hamas War. UAVs were widely used, during the 12 Day War against Iran amid a continuous presence over the Islamic Republic, to targeted strikes in Lebanon and Gaza, in the skies, against targets inside buildings, close by and far away, at high altitudes, and close to the ground.
For the first time, the IDF integrated the capabilities of massive UAV use down to team, platoon, and battalion levels who adapted quickly to their use.
Enemy UAVs also posed real threats, accelerating defense system development. UAVs are now also used in terrorism, notably for smuggling operations across the Egyptian border, redefining border defense challenges.
These processes highlight the need to operate in a “multi-domain” environment, integrating UAVs with other uncrewed systems in the air, sea, and on land – requiring strategy, infrastructure, human capital, and national vision.
Israel’s lag and the call for action
Since 2017, UVID and Israel’s UAV community have promoted UAVs as a national growth engine, as did the Trump administration. Yet Israel faces gaps: lack of ground and air infrastructure, regulatory barriers, business development challenges, and human capital (in education and academia). These gaps risk losing global leadership and failing to keep pace with the global UAV race.
In 2025, more than ever, efforts are converging toward national action. At UVID, we are leading with two key partners:
Governmental: The Defense & Cyber Cluster in the Economy Ministry’s Growth Directorate (Minister Nir Barkat, Shlomo Levy, Elinor Jacobson) provides resources and modeling of how communities influence national processes.
Operational: The town of Yeruham has been branding itself “the UAV city” since 2021, when it established Israel’s national UAV test field. With major investments (led by attorney Nili Aharon and Muna Ben Yishai), Yeruham will inaugurate Aerolabs – Israel’s UAV innovation hub – in early 2026.
The future is in our hands. A call for government action
We, the UAV community – thousands of people across 300+ companies exporting systems and services worth billions – must gain recognition from the state and its institutions, so that UAVs are seen as a national growth engine that connects defense, industry, academia, the economy, and innovation. A similar process occurred in 2025 when a government decision established the Nagel Committee on AI, leading to a global leadership plan.
The goal is for the government to adopt UAV recommendations in a decision similar to AI Decision 3375 (September 2025), and establish a national UAV directorate in the Prime Minister’s Office, with an initial budget of 100 million NIS for 2026-2027.
For Israel’s security and future, the government must, alongside the UAV community, formulate a national UAV strategy, allocate resources, and establish a leading framework for implementation.
This is especially urgent now, as many nations are competing to dominate UAV leadership. Now more than ever, to realize our current strength and secure Israel’s place among the world’s top UAV powers (military, security, civilian, and dual-use), we must reach a government decision and implement a funded, managed work plan for the short, medium, and long term.
It is time to transform Israel from a technology leader into a global UAV ecosystem leader.
The writer is chairman and founder of the UVID Conference, which will take place on November 26, hosting top local and global UAV industry leaders.