Ukraine's defense technology market reached $6.8 billion by the end of 2025
The Ukrainian defense technology market is estimated to be worth $6.8 billion in 2025.
According to a study by the Kyiv School of Economics (KSE), conducted in collaboration with Brave1 and Defence Builder, the most dynamic growth was demonstrated by the following technology segments: drone production increased by 137%, ground-based robotic systems (GRS) by 488%, and electronic warfare (EW) systems by 215%. At the same time, the actual market size may be higher due to the significant share of decentralized procurement by charitable foundations and government agencies.
The UAV sector remains the largest and most promising segment, with a market volume reaching $6.3 billion last year. More than 150 companies operate in the market, with the private sector driving the main growth. Key areas include long-range kamikaze drones and interceptor drones, which are being scaled up as an alternative to traditional air defense systems. Domestic equivalents of reconnaissance multicopters are also being actively developed to replace foreign solutions.
Other strategic areas showed the following figures:
UAV segment: grew to $252 million (compared to $43 million in 2024), focusing on logistics and evacuation platforms.
Electronic Warfare (EW) market: estimated at $220 million with the transition to mass production of intelligent systems capable of selectively suppressing signals.
Investments: Ukrainian startups have attracted at least $129 million in grants and investments, primarily in the fields of AI and software.
The main mechanisms supporting the industry have been Brave1 grants (over $60 million for 600 companies), preferential lending under the “5-7-9%” program, and direct purchases by partner countries. Despite limited domestic funding, technological flexibility and rapid product iteration allow Ukrainian companies to scale up their capabilities. Experts predict further growth in the share of robotic systems on the battlefield by 2026.
Recently, the Ministry of Defense of Ukraine certified and approved for use in the Armed Forces of Ukraine three fiber-optic FPV systems manufactured by enterprises of JSC “Ukrainian Defense Industry.”
Prior to this, the Ministry of Defense had codified and approved the domestic unmanned aerial system “Volynaka” for use by the Armed Forces of Ukraine.
Previously, the Ministry of Defense of Ukraine approved the Shablya MK19(M) remotely controlled combat module for use by the troops. It is equipped with an MK19 40mm automatic grenade launcher.
