There’s a quiet crisis happening in a relatively corner of the drone industry: the companies that build custom drone solutions are struggling. And according to the latest data, it’s not a temporary blip — it’s a fundamental market shift.

According to the Global State of Drones 2025 report from drone market research company Drone Industry Insights, drone integration and engineering companies experienced “the sharpest decline” of any sector, with below-average expectations of just 5.5 out of 10 for the next 12 months. That survey was based on data collected in mid-2025 via a survey of 768 people within the drone industry spanning 87 countries.

Drone integration and engineering companies are a typic of business that takes off-the-shelf drone components and creates bespoke solutions for specific customer needs. For example, that might be a thermal camera mounted on a custom frame for a particular inspection task, or a specialized payload integrated with specific software for unique applications.

A wave of standardization in the drone industry

So what’s up with the decline in custom drones? In short, drones are becoming standardized products.

“With more drones on the market specifically designed for a particular application, the demand for tailored solutions decreases,” DII’s report wrote.

Think about what happened with computers. In the 1980s and early 1990s, many businesses hired consultants to spec out and build custom computer systems. Today, you buy a Dell or a Mac, maybe add some software and you’re done. The market for custom-built computers still exists, but it’s tiny compared to the standardized product market. Drones are now following the same path.

For example, DJI now makes dedicated agricultural drones like the DJI Agras T50 with built-in spray systems. There are purpose-built inspection drones with integrated thermal cameras and zoom lenses. Mapping drones come with RTK GPS modules already installed. Companies like UVify sell dedicated light show drones.

These days, the question has shifted from “Who can build us a custom solution?” to “Which off-the-shelf product should we buy?”

The funding factor

The decline of custom drone solutions is accelerated by the broader funding crisis in the industry.

“Limited access to funding will prompt clients to think twice before investing in a tailor-made solution,” DII’s report noted

When a company can buy a DJI Matrice 30 for inspection work for around $10,000 to $14,000, the case for spending $50,000 or more on a custom solution becomes much harder to justify. That’s especially true when venture funding is scarce and CFOs are scrutinizing every expenditure.

Often a standardized solution that meets 85% of your needs for 20% of the price beats a custom solution that meets 100% of your needs at five times the cost — at least in most corporate finance departments.

So is customization good or bad?

Now before you go crying that the sky is falling, let me weigh out the argument for standardization (and why customization is not necessarily a good thing). But, I’ll also talk about why customization is truly great.

The counterargument: Standardization is good

Now before you go crying that the sky is falling, let me say this. Custom builds aren’t necessarily the best solution either. Maintenance requires specific expertise. Parts aren’t interchangeable. Scaling is nearly impossible. Standardized products solve all these problems.

A construction company can buy the same mapping drone that its competitor uses, train operators using the same online courses, swap parts from stock inventory and upgrade to newer models without starting from scratch. An employee switching companies might already be familiar with the yech at their new job.

Where custom still wins

There are still areas where custom solutions make sense:

Military and defense applications: Security requirements, specialized missions and unique operational environments still demand bespoke solutions. Off-the-shelf consumer drones typically don’t cut it when you need encrypted communications, specific payload capacities, or integration with existing military systems.

Industrial inspection in extreme environments: While standard inspection drones work for most applications, some industrial environments — confined spaces, extreme temperatures, explosive atmospheres — continue to require specialized builds.

Research and scientific applications: Academic researchers and scientists often need specific sensor combinations or flight characteristics that don’t exist in commercial products.

High-value infrastructure: When you’re inspecting a billion-dollar bridge or dam, spending $100,000 on a perfectly optimized custom system might make sense.

How to balance the move away from custom drones

So what should integration and engineering companies do to survive?

Become service providers: Instead of selling custom hardware, some engineering companies are pivoting to offering services using off-the-shelf equipment. They’re competing on expertise and execution rather than unique technology.

Focus on software and customization: Rather than building custom airframes, companies are creating specialized software, custom workflows or unique data processing pipelines that work with standard drones.

Partner with manufacturers: Some former custom drone makers instead are becoming regional specialists or certified integrators for major manufacturers, essentially becoming sophisticated dealers rather than independent engineers.

Vertically integrate into specific industries: Rather than being generalist integrators, some are going deep into specific industries (like mining or maritime) where they can build specialized expertise that justifies premium pricing.

Is the lack of cutom drones a bad thing?

For the engineers and businesses that built their livelihoods on custom integration, yes, it’s painful and disruptive. These are often highly skilled professionals who invested years learning specialized knowledge that’s becoming less relevant.

For the drone industry broadly? Probably not. Standardization enables scale, reduces costs, improves reliability and makes drones accessible to more users. That’s how technology progresses.

For end users? Definitely not. They get better products at lower prices with easier maintenance and more support options.

The parallel with other technology industries is instructive. The decline of custom computer builders didn’t hurt the computer industry — it enabled explosive growth. The shift from custom software development to SaaS products didn’t hurt the software industry — it created trillion-dollar companies.

The drone industry is experiencing what every technology industry eventually faces: the transition from craft production to mass manufacturing, from custom solutions to standardized products, from high-touch services to scalable platforms.

It’s uncomfortable, it’s disruptive and it leaves casualties. But it’s also necessary for the industry to reach its potential. The custom integration companies that survive will be those serving truly specialized niches or those that successfully pivot to new value propositions.

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The post Custom drones are becoming obsolete. That’s both good news and bad news appeared first on The Drone Girl.

The drone industry in 2025 is facing a reckoning. Consumer markets are struggling. Delivery companies are folding. But one sector is absolutely booming: defense.

Major venture capital firms are shifting investments away from commercial drone applications toward military and government contracts. Companies that once focused on civilian markets are pivoting hard toward defense. With the “first full-scale drone war” unfolding in Ukraine, militaries are adjusting how they think about drones.

PABLO AIR, a South Korean drone company that made its name setting world records with spectacular drone light shows, is now applying that same swarm technology to develop military drones and software.

Small drones are reshaping modern warfare

Years ago, military drones were massive aircraft — just without a person inside. These days, the drones that were dismissed as “toys” a decade ago are used in battlefields. As largely documented by the war in Ukraine, a $500 DIY drone can now destroy an $82.5 million F-35 fighter jet. 

Ukraine’s “Spider’s Web” operation demonstrated this new reality, evidenced by data provided to The Drone Girl from Dedrone by Axon. Using 117 explosive drones concealed in cargo trucks, Ukrainian forces inflicted an estimated $7 billion in damage on Russian nuclear-capable bombers across five regions. The total operational cost was roughly $234,000. That’s approximately $30,000 in defender losses for every $1 spent on the attack.

As the war in Ukraine has shown, both sides have pivoted heavily to smaller, cheaper first-person view (FPV) drones. Ukraine sidelined expensive systems like the Bayraktar TB2 — which proved increasingly vulnerable to Russian air defenses — and instead turned to smaller, domestically-made aircraft built from ad-hoc workshops nationwide.

In 2024, the Ukrainian government committed $2 billion to the production of FPV drones. According to Ukrainska Pravda, there are 200 suppliers across the country using easily accessible components and repurposed munitions, often taken from landmines and rocket-propelled grenades.

This is the battlefield context in which PABLO AIR is introducing its defense solutions.

Enter the PabloM S10s: tactical loitering munition

PABLO AIR’s flagship military product is the PabloM S10s, which the company describes as a tactical loitering munition independently developed in-house.

In military speak, a “loitering munition” is essentially a drone that can perform reconnaissance, identify targets and then become a weapon itself by executing strike missions.Consider it a combination of a surveillance drone and a guided missile. It’s also reusable if it doesn’t need to engage a target.

The S10s is a modular combat drone platform capable of performing reconnaissance and strike missions simultaneously. It’s not just about surveillance or just about attack — it’s about integrating both capabilities into a single, affordable platform.

Here are the key specs of the PabloM S10s:

Performance:

• Maximum speed: 150 km/h (about 93 mph)
• Flight range: 38 km (about 24 miles)
• Flight time: Over 30 minutes
• Maximum payload: 1 kg

Physical characteristics:

• Empty weight: 3.2 kg (with battery)
• Dimensions: 1,300mm x 1,032mm x 225mm

Payload: Warhead plus nose modules (modular and interchangeable)

4 key features of the S10s

PABLO AIR highlights four main selling points for the S10s, and each one addresses a specific military need:

1. Maximized combat capability through swarm operations

The same swarm drone technology that PABLO AIR’s light show drones to fly in beautiful sync is also what allows multiple S10s units to execute simultaneous or staggered attacks from multiple angles.

Swarm strikes can neutralize and suppress enemy defense systems more effectively than single-drone attacks. Even if defenders shoot down some drones, others get through. And the cognitive load on defenders trying to track and target multiple incoming threats simultaneously is enormous.

2. Rapidly replaceable modular mission equipment

The S10s is built using the K-MOSA (Korean Modular Open Systems Approach) framework. In short, that means it’s a modular design, so various payloads (e.g. cameras, night vision sensors, warhead types) can all be quickly swapped out depending on the specific mission requirements.

3. Low-cost, high-speed mass production

PABLO AIR made the S10s using foam board material, which allows for simple assembly and rapid large-scale production. Though that may seem cheap compared to carbon fiber or advanced composites, that’s exactly what you want in a system where some units will be lost in combat.

4. AI usage

AI is the hot word these days, and these drones certainly do leverage AI to automatically generate surveillance paths and process real-time visual data. The benefits?

Reduces operator workload: One operator can potentially manage multiple drones instead of piloting each one manually.

Maintains effectiveness under electronic warfare: If communication is jammed, the drone can continue its mission autonomously.

Enables swarm tactics: Autonomous path generation is what makes true swarm operations possible at scale.

Improves accuracy: AI-based terminal guidance can adjust for target movement and improve hit probability.

All that tech has earned PABLO AIR recognition. In June 2023, PABLO AIR received a commendation from the Ministry of National Defense for contributions to the drone industry in the Republic of Korea, indicating government support for their defense initiatives.

How PABLO AIR compares to other defense drone makers

U.S.-based drone companies like Red Cat (which acquired FlightWave Aerospace Systems and their Edge 130 tricopter) and Skydio (which killed its consumer drone business to focus on defense) have advantages in the U.S. market due to NDAA compliance and Blue UAS approval. However, PABLO AIR, as a South Korean drone company, should be able to qualify for similar trusted supplier status given the alliance relationship.

That stands in sharp contrast to Chinese drone companies that can often undercut on price, but that also face increasing restrictions in Western markets due to security concerns. 

PABLO AIR, being from an allied nation (South Korea), holds these strengths and an additional advantage with its swarm drone technology—proven through record-breaking drone light shows and validated through joint development and demonstrations with the South Korean military.

The future of small military drones

Current geopolitical tensions and the lessons from Ukraine suggest that demand for systems like the PabloM S10s will only increase. NATO allies have already committed to raising defense spending to 5% of GDP — more than double the previous target. The EU’s €800 billion ‘ReArm’ initiative specifically lists drone and counter-UAS systems as a “pressing capability priority.”

As recent conflicts have shown, a low cost drone might be the new king of the battlefield. PABLO AIR’s S10s and its swarm technology is one to watch.

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