Planning on investing in drones? Here are the best drone stocks to invest in 2022! Check it out!
Investment in drone stock has peaked after the much-anticipated tech-driven applications in various fields. Get the best advice and tips to invest wisely in the drone stock in detail.
In one of the groundbreaking advances in recent years, drones stand out as multifunctional aerial vehicles. From mining, aerial surveys, agriculture to the military- drones have infiltrated the consumer market.
According to Statista, the market size of commercial drones is expected to reach a whopping USD 58 million by 2026. It is a clear indication that drone technology is evolving and paving the way for a better mode of communication and transmission.
- Related: How to Trade your Drone
For instance, gas corporations are incorporating drones to monitor pipelines. Governments are deploying drones for military surveillance and disaster management. It is convenient to extract sensitive data or supply cargo such as food and medicines.
Hence, the drone market is in demand with the rise in the stock price of drone companies in the 21st century. This article reflects on various aspects of drone technology and the top drone stocks to look for in 2022.
Top Drone Stocks To Invest In 2022
China is the leading manufacturer of commercial drones in the world, and every country is ramping up to utilize drone technology in the rush hour. As a result, more and more investors are buying drone stocks, with hundreds of hedge funds holding stakes with the top drone companies in the world.
Below are the top 10 international drone stocks to look out for in 2022. Let’s see one by one.
Kratos Defense & Security Solutions (KTOS)
KTOS is a drone manufacturer for U.S. defense and its allies and is famous for its pilotless aerial systems. KTOS marked a significant rank in the stock market after an Airforce deal in 2019. As a government contractor, KTOS has-
- XQ-58A Valkyrie demonstrator drone completed its maiden flight in 2019 from the U.S. Arizona research lab.
- High-performing and affordable jet drone, Air Wolf tactical drone system of KTOS aids in national security.
- As of Dec 2021, KTOS announced 14% revenue growth in the drone segment in the first quarter of 2021. The 2022 U.S. annual defense budget holds a promising stance for KTOS to equip with high-end drones.
Northrop Grumman Corporation (NOC)
With the U.S. defense segment boosting up pilotless aircraft systems, Northrop Grumman is the well-known multi-mission drone manufacturer providing military and civilian drones.
Below are the key highlights of the NOC drones and why this drone stock is a safe bet to invest in.
- NOC is famous for RQ-4 Global Hawk, a surveillance drone that can be piloted remotely and is suitable for high altitudes.
- MQ-4C Triton drone by NOC provides surveillance and intelligence over vast oceans.
- The stock gained 20% in the first quarter of 2021, and the upcoming explorations make it a worthy stock investment.
Boeing is an emerging U.S. drone stock in the world. Popularly known for fighter jets and airplanes, Boeing Company is expanding its horizon in drone manufacturing. Although the drones make up for a smaller revenue, Boeing has a one-of-a-kind space & defense security segment, and the following are the salient features of Boeing drones.
- The defense drone, Insitu, builds and designs unmanned aircraft systems for military service.
- Insitu also builds ScanEagle, a reconnaissance drone for lower altitudes.
- With a market capitalization of 128 billion, Boeing is building the first carrier-based drone in the Navy segment with the MQ-25 Stingray aerial-refueling drone.
Lockheed Martin Corporation (LMT)
An airspace company headquartered in the U.S., LMT is best known for manufacturing defense aircraft. LMT bagged many prospective deals in 2021, and hence, it is likely to have a positive impact on the stock price. Some significant contracts in 2020 and 2021 are-
- To improve the drone technology of the U.S. defense, LMT partnered with Airforce Test Pilot School in 2020 to incorporate artificial intelligence into the Unmanned Aircraft System(UAS).
- LMT secured a billion-dollar contract for Space-Based Infrared Surveillance.
AeroVironment is a top choice of the U.S. Department of Defense. AVAV is a tough contender in the stock market with these features-
- Raven Drone is the most popular unmanned vehicle of AVAV.
- AVAV is hands-on with the small hand-launched drones for the U.S. military.
- It locked in the deal with the allied nation of the U.S. to supply the small drones with a contract deal of more than USD 4 million.
Ambarella is not a drone manufacturing company but a semiconductor design company. Drone companies use the technology of Ambarella to embed computer vision processors and H.D. video features. Ambarella is the best choice among the top drone stocks with the best semiconductor chips. Its upcoming projects include-
- Building Artificial intelligence devices with Amazon to facilitate flexible data extraction.
- Ambarella launched the CV5 AI Vision Processor for 8K image processing in drones.
Draganfly Inc (DPRO)
Draganfly is a Canadian-based drone manufacturing company known for catering to diverse platforms. Some of the outstanding milestones of Draganfly that make a valuable stock investment are-
- Draganfly builds drones for military, public safety, mining, and insurance companies.
- Draganfly seized a USD 9 million deal in October 2021 to develop consumer drones for video games.
Alphabet Inc (GOOG)
Google’s parent company Alphabet provides drone delivery services globally. The drone company of Alphabet, Wing, is making headlines with food and essential items delivery services using drones.
What is unique about the Alphabet?
- Alphabet’s Wing serves as a mobile application wherein you can order online, and the items will be delivered.
- It is building prototypes similar to other packaging giants like Amazon and soon set to reach 1 lac deliveries since the launch.
- It is the first company approved by the FAA in the U.S. to start dropping packages using drones.
GoPro Inc (GPRO)
GoPro is a well-known manufacturer of portable cameras, drones, especially quadcopters. GoPro has made a significant impact in recording quality images and videos. The GoPro corporation has created a niche in the market for-
- 4K camera resolution.
- 5G FOV live video transmission.
- Fast charging of the batteries.
AgEagle Aerial Systems Inc (UAVS)
This drone manufacturing company is noteworthy for its services in the agricultural and energy sector. The notable acquisitions and accomplishments that have powered up the stock price of UAVS are-
- Acquisition of mapping-drone company, senseFly in 2021.
- An upgraded version of the SaaS software of UAVS marked the extension of its license to the Florida Department of Agriculture and Consumer Services.
How have drone companies managed to capture the stock market?
The UAV market is vast and divided into many segments, like passenger drones, military drones, special purpose drones, survey drones, spraying and seeding drones, and many others. Drones have all the features of electronic gadgets such as software, a high-resolution camera, and battery backup.
Above all, many industries are banking on drones in various applications due to the ease of usage and cost-effectiveness. The four primal fields of drone deployment are military, commercial use, personal use, and future technology.
Very soon, drones will overtake the manual delivery service with the autonomous drones at your doorstep. Apart from delivery, drones are functional in various industries for inspection, repairs, security, disease control, to name a few.
Are drones the future of technology? Yes, it is picking up momentum in the lesser-known industries, and the coronavirus pandemic changed the game by making drones valuable assets in the food and medical supply domains.
Worldwide, drone companies have seen a surge in the supply of drones, and the result is clear. There is an ongoing interest in investing in drone stocks of reputed companies forecasting the growth in drone research.
Drone industry and the critical market stats
The Federal Aviation Agency (FAA) of the U.S. ordered approximately 1.7 million drones in January 2021, which reiterates that drones have taken over military space in the U.S. With the integration of artificial intelligence, commercial drones have hit a record high production.
According to Marketsandmarkets report, the drone service market is appraised to reach USD 40 billion by 2026, with an increase in CAGR of 23% from 2021. An even detailed analysis suggests that drones can come as an angel in disguise in the agricultural sector.
With the world population targeted to reach 9.7 billion by 2050, the agricultural sector will dominate in the future. Many agricultural companies are likely to capitalize on the commercial opportunities using drones for irrigation, farming, and field mapping.
According to a report, the agricultural drone market is predicted to reach USD 5.7 billion in 2025, with a CAGR of 35.9% growth from 2020. These numbers give a clear-cut picture of the enormous opportunities in the drone market.
A decade ago, no one could have postulated the uprising of technology and seeping its way through the day-to-day lives of an ordinary person. The same is the innovation in drone technology. Today, drones are designed to perform various tasks like data extraction, transmission, relay of valuable videos, surveying, mapping, and delivering essentials to remote areas.
The possibility of a complete transformation of the manual world into the hands of a flying robot has put the stock prices of drone stocks above the chart.
However, the drone sector is a constantly evolving sector, and hence there is no linear growth in stock prices. So it’s wise to conduct thorough research before making any valuable investment in drone stocks.
FAQs on drone stocks
Does the drone company, DJI, have stock?
No, it does not. DJI is a Chinese drone manufacturer and a private company. Hence public investment is not allowed.
Why are drone stocks on the rise?
Since the countries are strengthening their military forte, they are investing more in the development of drone technology. Hence drone stocks are on the rise.
How is drone technology used in insurance companies?
Insurance companies have initiated the use of drones for risk management, pre and post-disaster assessment of the location, and reduced manual efforts.