Japanese manufacturer of civil uncrewed aerial systems (UAS) TerraDrone is launching a foray into the defence market, citing an “increasingly unstable” geopolitical environment and rapid rise of drones as military weapons.
The Tokyo-headquartered company announced the creation of a US subsidiary named Terra Defense on 23 March, with the goal of launching by the end of fiscal year 2026.
The new company will be focused on supplying international customers with defence assets and a supporting logistics network.
“The global security environment is undergoing a profound transformation,” says TerraDrone chief executive Toru Tokushige. “Advancements in technologies, particularly unmanned systems, are reshaping the very nature of defence.”
The company specifically identifies wireless and fibreoptic-guided first person view drones, counter-UAS interceptors and reconnaissance assets as its initial areas of focus. Japan, the US, Ukraine and NATO are noted as target customers.
For its first product, Terra Defense plans to unveil a counter-air interceptor drone, which the company says was developed in “close collaboration” with partners in Ukraine. The new system, which will be formally unveiled on 31 March in Kyiv, will be ready for immediate operational deployment.
Terra Defense says it assesses the current value of the military UAS market to be worth $15.8 billion in 2025 valuations, with the potential to reach $22.8 billion by 2030.
The newly-formed company also notes that Japan’s 2026 military budget allocates nearly $2 billion to strengthen defence capabilities related to unmanned assets, which TerraDrone describes as Tokyo’s largest-such investment to date.
AloJapan.com