2025-08-27
In recent years, drones have rapidly expanded from conventional military to civilian and commercial use, encompassing smart agriculture, energy inspections, disaster response, logistics, and urban surveillance. As such, it has empowered automation and digital transition. Advancements in AI computing, flight control systems, sensor modules, and communications technology has driven the drone industry towards smartification, multi-mission capabilities, and domain specification. Grand View Research estimates that in 2024, the worldwide drone market was valued at approximately $73.06 billion and is expected to grow to $163.3 billion in 2030. With a compound annual growth rate (CAGR) of 14.3% and as major tech and aerospace companies worldwide are increasing investments in drone technology and applications drones are fasting becoming critical elements in worldwide industrial innovation.
The global drone industry has transitioned from technology verification to application propagation, aiming at achieving high efficiency, autonomous systems, and modular integration. Many countries have relaxed regulations and established airspace management frameworks to accelerate the development of the low-altitude economy. The Federal Aviation Administration (FAA) is promoting the Unmanned Aerial System Traffic Management (UTM) system and supporting numerous field trials. Skydio, a US company specializing in autonomous navigation and AI sensor technology, has become an major technology partner for the US Department of Defense. Logistics giants such as Amazon, UPS, and DHL have also carried out drone delivery trials, which exhibit significant potential, particularly for deliveries to remote or inaccessible areas.
In Europe, a French company, Parrot, excels in precision agriculture and image-based surveillance technologies; while a German company, Quantum-Systems, specializes in developing VTOL drones for military and civilian applications in mapping and border surveillance. The EU has also launched the "U-space" framework, which emphasizes low-altitude airspace sharing, mission coordination, and safety control measures – demonstrating that the low-altitude economy has become a regional strategic priority. Israeli company, Elbit Systems, and Aeronautics, are actively developing modular military drones with many demands from the international market. Japanese companies such as Sony's Aerosense and ANA Group are leveraging their technological prowess in aerospace manufacturing and component technology to develop industrial and logistics drones for urban low-altitude transportation.
Taiwan has strong drone capabilities in core components for sensors, electronics control, and AI technologies and possesses the fundamentals to excel in the international drone supply chain. From 2023 onwards, the US government has actively pursued an initiative to established a drone supply chain network with technologies from countries other than China, dispatching multiple drone industry, technology, and business delegations to Taiwan for tech collaborations with US companies such as Skydio, Honeywell, and Teledyne. Potential collaboration encompasses imaging modules, flight control systems, and wireless transmission. And through industry networks such as the Taiwan Excellent Drone International Business Opportunities Alliance (TEDIBOA), Taiwan has established cooperative frameworks for agricultural surveillance and land monitoring with Lithuania, the Czech Republic, and Poland. Taiwan has also signed a memorandum of understanding with the Japan UAS Industry Development Association (JUIDA) to promote bilateral industry integration and technological exchanges. Furthermore, the French company, Dassault Systèmes, has also established a presence in Taiwan, promoting its 3D design and digital twin platform technologies to support R&D and verification ventures. Such international collaborations not only demonstrate Taiwan's strengths in mid-to-high-end manufacturing, AI integration, and system module development, but also further expand its export channels and application domains – strengthening Taiwan's potential as a global hub.
The key players in Taiwan's drone industry include benchmark companies such as Thunder Tiger Corp., Coretronic Intelligent Robotics Corp., Galaxy Software Services Corp., and Taiwan UAV, offering services in R&D, manufacturing, system integration, and application development. Many startups, such as Earthgen Tech, which specialize in drone development and services for agriculture and fishery conservation, are also actively involved in innovative applications and opportunities for market expansion. The semiconductor giant, TSMC, has deployed a drone system in Arizona, enabling aerial inspections, traffic monitoring, and disaster response. TSMC has also integrated AI visual recognition, thermal imaging, and edge computing technologies, facilitating participation from companies such as Marketech International Group, Fanxuan, Asia Opticals, Solomon Technology Corp, VisEra Technology, PARPRO, and Evergreen Aviation Technologies Corp. – a move that has garnered international attention for Taiwan.
In recent years, the Taiwan government has supported the deregulation of low-altitude airspace and associated drone management through policy initiatives, making way for actual flight testing with adequate regulatory support. Furthermore, to bolster infrastructure, the Asia UAV AI Innovation Application R&D Center was established in Chiayi, and a dedicated testing airspace at the Hengchun Airport in Pingtung is under planning. The testing airspace in Pingtung will also serve as an industrial cluster and application demonstration site. In addition, leading universities such as National Yang Ming Chiao Tung University and National Formosa University are fostering industry talents by offering courses on AI integration of unmanned vehicles, which combine flight testing, avionics design, and data processing practices – paving the way to cultivate talents via collaboration between the drone industry and academia.
Drones have gradually cemented their presence in key domains such as smart manufacturing, urban management, and low-altitude logistics, as one of the vital driving forces for the future airspace economy. By leveraging strong component manufacturing, AI and communications integration, a flexible SME ecosystem, and diverse applications, Taiwan is rapidly accumulating technological prowess and international experience. With the growing global demand for trusted supply chains and diverse solutions, Taiwan is expected to gain a competitive edge in drone core modules, mission systems, and application integration – distinguishing itself as a hub for drone innovation, R&D, and application verification in the Asia-Pacific region.
Source： Industrial Technology Research Institute (ITRI) Industry Service Center Research Team
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