Once dominated by flashy camera drones flown by influencers and hobbyists, the skies are now increasingly filled with aircraft designed for a far different mission: war. That’s even more evident as Skydio this week announced that it had fulfilled the first order under the U.S. Army’s Short Range Reconnaissance (SRR) Tranche 2 program. With it, the U.S. military will receive a batch of Skydio X10D drones.
Skydio’s X10D is built for the battlefield, offering a 48-megapixel telephoto camera, thermal imaging via a Teledyne FLIR Boson+ sensor and AI-based navigation that continues to function even when GPS fails. The Department of Defense added the Skydio X10D drone to its Blue UAS list in late May 2024, signaling it meets the U.S. government’s strict cybersecurity and performance standards.
It’s a powerful signal of how drone priorities have changed. While early Skydio drones, like the R1 and 2+, were marketed to action-sports fans looking for a hands-free flying camera, the company’s flagship products are now more likely to be used to assess enemy movements than follow a mountain biker down a trail.
What Is the Short Range Reconnaissance (SRR) program?
The U.S. Army’s SRR program is a multi-phase effort to equip its soldiers with small, lightweight, rapidly deployable drones that can provide real-time intelligence, surveillance, and reconnaissance (ISR) in the field. These drones are meant to be rucksack-portable, launched within minutes, and rugged enough for battlefield conditions. Essentially, they’re the eyes in the sky for squads on the ground.
Of course, this is hardly the first time the U.S. military has used small drones. But, the Tranche 2 phase of the SRR program aims to build on earlier development by fielding more capable systems that integrate advanced sensors, improved autonomy, and better resistance to electronic warfare — all while keeping the aircraft compact and easy to use for non-specialist operators.
Skydio’s X10D is one of the systems fulfilling that need — and it’s the first to deliver their drones to the U.S. military under that program. But it’s not the only one. Red Cat Holdings, the Puerto Rico-based parent company of Teal Drones, also secured a position in the Tranche 2 Program of Record. Its Teal 2 drone was selected by the Army for its advanced ISR capabilities and modular, open-architecture design.
Like Skydio, Red Cat has increasingly positioned itself as a defense-first drone company, especially after shedding its consumer-focused businesses and focusing on military-grade platforms. And also similar to Skydio, Red Cat’s systems are built in the U.S. and listed on the Pentagon’s Blue UAS Cleared List — a critical requirement for many federal buyers.
The Army’s decision to diversify suppliers under SRR Tranche 2 reflects a targeted strategy in the defense industrial base. It’s not just about building capable drones — it’s about ensuring a secure and reliable supply of them, especially as tensions rise globally and concerns around Chinese-manufactured drones grow.
Skydio’s made-in-America edge
Even as competition heats up, Skydio remains uniquely positioned. Skydio assembles its drones in Hayward, California — a notable advantage as the U.S. government ramps up tariffs and restrictions on drones with ties to China.
The latest round of proposed tariffs under Section 301 of the Trade Act could hit Chinese-made drones with levies as high as 60%. That’s especially problematic for hobby drone giant DJI, which is already blacklisted from federal procurement and whose drones are no longer carried by major retailers like Best Buy. Meanwhile, Skydio and Red Cat can both market themselves not just as tech leaders, but as politically safe bets.
“We produce 1,000+ drones a month at our facility in California with the ability to rapidly scale,” Skydio CEO Adam Bry said in a prepared statement.
That kind of speed matters. In this latest deployment, the U.S. Army needed drones quickly — and Skydio says it answered the call in just five days.
Despite its head start and domestic advantage, Skydio hasn’t been immune to the challenges of scaling military-grade hardware. Supply chain issues have hit even its U.S.-based operations. particularly when it came to batteries. For example, China announced sanctions on Skydio for selling drones to Taiwan in late 2024. In light of that, Skydio had to ration batteries for customers because the batteries were sourced from China.
The future of the SRR program — and how drone companies like Skydio fit in
Still, Skydio appears to be navigating the turbulence better than most. Skydio has delivered drones to every branch of the Department of Defense, as well as the armed forces of 25 allied nations. For example, Skydio landed a major Spanish military contract just earlier this year.
The SRR Tranche 2 awards to both Skydio and Red Cat highlight a broader truth in the drone industry: the era of drones as consumer toys is fading, replaced by an age where they’re tools of national security, emergency response and infrastructure monitoring.
And with defense contracts driving innovation and revenue, it’s likely that Skydio, Red Cat and others like them will keep focusing on drones that are battle-ready, not backyard-ready.
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