Since its founding, Terra Drone has pursued its vision of transforming mobility in the sky, developing and operating drone technologies around the world while accumulating extensive expertise in drone applications across a wide range of industries.
In recent years, as the international situation has become increasingly unstable, the importance of deterrence through technology to protect the lives and property of citizens has grown more than ever before.
Leveraging the technological capabilities and practical operational expertise it has cultivated in the drone sector across global markets, Terra Drone will contribute to the development of a sustainable next-generation defense foundation by providing defense assets that are rapid to deploy, cost-efficient, and highly capable.
Background and Purpose
Since March 2026, the global geopolitical environment has been rapidly evolving, particularly in the Middle East, where tensions are escalating, as well as in the Indo-Pacific region. As the global security environment enters a major turning point, the very concept of defense is being redefined. Against the backdrop of major countries strengthening their defense capabilities, global defense-related spending in fiscal year 2024 exceeded a record high of USD 2.71 trillion (1), making the response to geopolitical risks one of the most critical shared challenges facing the international community.
In the recent Russia-Ukraine war, low-cost drones were deployed on an unprecedented scale as unmanned assets capable of reducing risks to human life, becoming one of the key applications in modern warfare. In response to these developments, countries around the world are now accelerating the development of new defense systems built on the premise of utilizing various unmanned assets, backed by expanding budgetary investment.
Specifically, the global military drone (UAV) market is estimated to be worth USD 15.8 billion in 2025 and is projected to reach USD 22.8 billion by 2030, representing a compound annual growth rate (CAGR) of 7.6% over the period (2).
Japan’s security environment is also becoming increasingly severe. With intensified military activities in surrounding regions and the emergence of new threats such as missiles and unmanned aerial vehicles, it is becoming increasingly difficult to maintain sufficient deterrence through conventional defense systems alone.
In Japan’s proposed fiscal 2026 budget, approximately USD 1.96 billion (3) has been allocated to strengthen defense capabilities involving unmanned assets, marking the largest budget of its kind to date and clearly demonstrating the national policy of positioning unmanned systems (4) at the core of defense.
In addition, under the “SHIELD” concept (5), a multilayered coastal defense framework targeted for establishment in fiscal 2027, Japan is considering a defense structure that combines unmanned assets and various sensors to provide wide-area, phased protection of coastal regions. Drones are expected to serve as one of the core unmanned assets within this framework.
Terra Drone views the defense market—where further expansion is expected across areas, applications, and operational domains—as a field with layered growth opportunities and significant medium- to long-term growth potential. By leveraging the operational expertise in drones that it has cultivated around the world, Terra Drone will work to accelerate the early implementation of solutions tailored to defense needs.
Future Initiatives
Going forward, Terra Drone believes that in the field of unmanned systems for defense, market demand will increasingly emerge and expand along the following three key axes. Terra Drone will position these areas as core strategic priorities.
1. Establishment of U.S. Subsidiary “Terra Defense” and Development of a Global Logistics Network
Terra Drone will establish “Terra Defense” in the United States to build a rapid and flexible supply structure capable of responding to international defense needs. In carrying out import/export operations and technology collaboration, the U.S. entity will oversee the import/export and logistics of defense assets.
The establishment of “Terra Defense” is planned to be completed within FY2026.
2. Phased Global Market Entry
Challenges such as rising geopolitical risks and the growing need to respond to unmanned assets (6) are increasingly becoming common across borders. Of global defense-related spending, which continues to remain at record-high levels, the unmanned systems sector in particular is regarded as a priority investment area, with annual growth projected to exceed 7.6% (7).
In addition to Japan, Terra Drone will promote the deployment of unmanned assets overseas through its “Terra Defense” including Ukraine, NATO member states, and Asian countries.
- Japan: A market where the adaptation of advanced civilian technologies to strengthen the domestic defense base is increasingly required, including under the government-led multilayered coastal defense concept known as SHIELD.
- Ukraine: A market in which operational knowledge from rapidly evolving modern warfare is updated on a daily basis, making agile product development based on real combat feedback and a highly reliable supply structure essential.
- NATO countries: Markets where, amid rising geopolitical tensions, demand is growing for technologies that support both efficient use of defense budgets and the rapid strengthening of defense capabilities.
- United States: An environment where compliance with strict Western defense standards is a prerequisite, and where interoperability and sustained cooperation within the international joint defense network centered on the Japan-U.S. alliance are emphasized.
- Other regions: Markets in which adoption by major allied countries serves as a benchmark of credibility, and where demand for versatile defense platforms is expected to emerge in phases in regions facing common security challenges, such as Asia and the Middle East.
3. Expansion of a Next-Generation Asset Portfolio Across Land, Air, and Sea
In the defense market, while multilayered air defense and coastal defense systems for protecting critical infrastructure remain central, demand is steadily expanding for unmanned assets across land, air, and sea. These include FPV drones (including fiber-optic models), interceptor drones (rocket-type, fixed-wing, and jet-engine-powered), unmanned surface vessels, reconnaissance drones, and OSA (Official Security Assistance) -related drones. Terra Drone will continue to advance product development to expand its lineup of drones and other systems tailored to these various applications.
- FPV drones: Primarily intended for responding to low-altitude threats such as reconnaissance drones. Certain models will incorporate fiber-optic systems to enable extremely stable operations even in jamming environments.
- Rocket-type interceptor drones: An interception solution with high cost efficiency and mass-production capability. These are designed to serve as an effective final line of defense against saturation attacks involving large numbers of small drones.
- Fixed-wing interceptor drones: Designed for wide-area patrol enabled by the characteristics of fixed-wing aircraft. If a target is detected but not intercepted, the drone can return to base and be reused, balancing operational efficiency with preventive defense capability.
- Jet-engine-powered interceptor drones: Core next-generation assets offering superior speed and range, designed for earlier detection and response at greater distances.
- Reconnaissance drones (ISR): Assets equipped with advanced imaging recognition and sensor technologies, specialized for real-time battlefield awareness and intelligence gathering.
- Unmanned surface vessels (USVs): Unmanned assets that support coastal and maritime security operations.
- Response to OSA (Official Security Assistance): Japanese-made aircraft provided through the “OSA” framework, which aims to enhance the security capabilities of like-minded countries. These platforms feature performance specialized for defense and security operations.
Representative’s Comment
Toru Tokushige, CEO of Terra Drone stated:
“The evolution of drone technology is irreversibly transforming the nature of security and defense. Our decision to enter this market marks an important first step in Terra Drone’s long-term business strategy. In line with the accelerating efforts to strengthen defense capabilities, we will focus on the deployment of products that address the needs of each country. By leveraging the real-world operational expertise in drones that we have cultivated around the world, we will actively promote digital transformation in defense that supports public safety and strengthens international deterrence.”
Future Outlook (Impact on Financial Results)
The impact of this matter on our financial results, as currently anticipated, has already been incorporated into the full-year consolidated earnings forecast for the fiscal year ending January 2027, announced on March 16, 2026. Should any matters requiring disclosure arise in the future due to the progress of this business, we will promptly make an announcement.
Editor’s Notes
(1) Aggregate estimate based on the Stockholm International Peace Research Institute (SIPRI) Military Expenditure Database and publicly disclosed defense budgets of major countries. https://www.sipri.org/databases/milex
(2) Based on data from the MarketsandMarkets research report, Military UAV Market – Global Forecast to 2030. https://www.marketsandmarkets.com/Market-Reports/military-drone-market-221577711.html?gad_source=1&gad_campaignid=272040196&gbraid=0AAAAADxY7SzVD22fsOVrWz5AQyFMwvLtz&gclid=Cj0KCQiA2bTNBhDjARIsAK89wlHf0R6tkhU4KUr5BG_YRYEaIFRnEe_HGFm8xq3hCC51eIShHtxTsB0aAsmoEALw_wcB
(3) Ministry of Defense, Defense of Japan and Budget (Overview of the FY2026 Budget Request). https://www.mod.go.jp/j/budget/yosan_gaiyo/index.html
(4) Unmanned systems refer to the overall frameworks, operational structures, and networks that utilize unmanned assets (see Note 6). Source: Ministry of Defense, Ground Staff Office, Ground Research & Development Command, publicly available materials.
https://www.mod.go.jp/gsdf/tercom/img/file2705.pdf
(5) Ministry of Defense, published materials on Development of the Multilayered Coastal Defense Framework (SHIELD). https://www.mod.go.jp/gsdf/tercom/img/file2705.pdf
(6) Unmanned assets refer to individual physical defense equipment and platforms, including drones (unmanned aerial vehicles), unmanned surface vessels (USVs), and unmanned underwater vehicles (UUVs). Source: Ministry of Defense, Ground Staff Office, Ground Research & Development Command, publicly available materials.
https://www.mod.go.jp/gsdf/tercom/img/file2705.pdf
(7) For further details, see the MarketsandMarkets research report, Military UAV Market – Global Forecast to 2030.
https://www.marketsandmarkets.com/Market-Reports/military-drone-market-221577711.html?gad_source=1&gad_campaignid=272040196&gbraid=0AAAAADxY7SzVD22fsOVrWz5AQyFMwvLtz&gclid=Cj0KCQiA2bTNBhDjARIsAK89wlHf0R6tkhU4KUr5BG_YRYEaIFRnEe_HGFm8xq3hCC51eIShHtxTsB0aAsmoEALw_wcB
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Uvision Group, a global pioneer in smart integrated systems and loitering munitions, announced today the successful completion of an extended and comprehensive operational training program with one of Europe’s leading defense customers.
The program included the qualification of dozens of operators, the certification of local instructors to enable independent national training capability, and the establishment of a dedicated maintenance framework to ensure long-term system availability and technical readiness. As part of the training process, a substantial number of HERO loitering munition systems were successfully launched with a very high success rate, serving as the primary live-fire training platform for the broader HERO family of systems.
Beyond the training scope, the customer has strategically equipped across the HERO family, including the HERO-30, HERO-120 and HERO-400, establishing a multi-layered operational strike capability across tactical, medium and long-range missions. This wide-scale adoption further reinforces the customer’s long-term commitment to Uvision’s solutions and the maturity of the HERO ecosystem as a comprehensive force multiplier.
Uvision’s training framework is designed to enable rapid and scalable operational readiness, combining structured operator qualification, instructor certification, and independent maintenance training. The methodology allows operators to reach live-fire execution capability within days, progress to autonomous mission planning shortly thereafter, and sustain long-term system availability through trained organic maintenance teams. This integrated approach supports fast force build-up, continuous proficiency, and independent national sustainment of operational capabilities.
The training program enables the customer to rapidly establish a modern, effective, and sustainable fire capability, while preparing the operational framework for future system adoption and continued force development.
Dr. Ran Gozali, CEO of Uvision Group, stated: “This program reflects the operational maturity of the HERO systems and our ability to support customers not only with advanced capabilities, but with complete, end-to-end training and sustainment frameworks. The speed at which operators reach operational proficiency, together with the ability to preserve independent national readiness, demonstrates the effectiveness of our approach to force build-up and long-term operational support.”
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OGRE utilises C2 Robotics‘ revolutionary visual navigation and terminal precision guidance system. This system is capable of precision targeting without the need for GPS, radio data links, laser designation or similar targeting systems that assume high infrastructure targeting support. It is available both as a complete system or as a software module for integration into 3rd party platforms.
AFFORDABLE
Low cost and mass manufacturable for deployment in high volumes.
CONFIGURABLE
Long range powered or glide variants available. Customer integrated payloads.
REUSABLE
Vertical soft landing or parachute options enable multiple flights for soldier training activities.
HIGH ACCURACY
Visual terrain matching and terminal guidance with sub 1m accuracy without GPS or RF (A2AD capable). GPS terminal guidance option also available.
CUSTOMISABLE TARGETING
Wide range of terminal guidance options including movement-based targeting (direction, size, speed), object classification, location (visual or coordinates) and area-based target zone.
AUTOMATED WAVE-OFF
High speed auto wave-off (<100 ms) capability based on specified motion or object classes. RF based wave-off trigger also available. Termination via parachute or self-detonation.
Technical Specifications
| Size | 350mm (w) x 250mm (d) x 245mm (h) |
| Weight (exc. payload) | 2kg |
| Payload weight | 1kg |
| Range | 20km (Range variable with optional battery kits) |
| Cruise velocity | 60m/s |
| Terminal velocity | 80m/s |
| Max Alt | 10,000m AGL |
| Accuracy | <1m |
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Robotican, a leading Israeli pioneer in the development of autonomous robotic and drone technologies, has introduced a powerful new capability for its combat-proven ROOSTER hybrid drone system: a precision-guided warhead, turning the ROOSTER into a loitering munition designed specifically for indoor missions and urban operation.
The newly integrated configuration includes a total payload capacity of up to 300-gr enabling the installation of a precision warhead alongside additional mission-specific payloads. This allows the ROOSTER to deliver high-precision engagement inside buildings, tunnels, and confined environments. Retaining its signature hybrid design, the ROOSTER can seamlessly switch between rolling and flying, allowing it to navigate tight spaces and deliver targeted strikes with minimal collateral damage.
This breakthrough capability is supported by AI-based object detection and target Tracking & locking, enabling the ROOSTER to autonomously identify, track, and lock on to user operator objects or threats. A built-in multi-layered safety mechanism ensures secure handling and controlled activation, protecting friendly forces throughout operation.
“With the armed ROOSTER, we are bringing precision and autonomy to environments that were previously off-limits to loitering munitions,” said Hagai Balshai, CEO of Robotican. “Forces can
now conduct surgical strikes inside structures with a compact, intelligent platform that minimizes risk to operators and surrounding civilians.”
The armed ROOSTER expands the system’s mission scope beyond ISR, rescue, and inspection to include neutralization of threats in urban warfare, subterranean operations, and hostage rescue scenarios- all while maintaining the system’s lightweight, single-operator portability and NATO-registered reliability. Thanks to its modular design and mission-specific payload integration, the ROOSTER offers unmatched operational flexibility, allowing forces to configure the system for diverse operational requirements, from intelligence gathering to precision engagement. This adaptability significantly increases its tactical utility in dynamic and unpredictable combat environments.
About Robotican
Founded in 2013, Robotican is a leading Israeli pioneer in the field of advanced autonomous robotic systems for aerial, ground and C-UAS systems. The company combines academic expertise with real-world operational insight to deliver reliable, mission-ready solutions for defense, homeland security, and commercial global partners.
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At the 2025 Paris Air Show, MBDA is presenting ONE WAY EFFECTOR. Development of this sovereign long-range solution is taking place through an innovative production setup, in partnership with a drone manufacturer and industry players, notably from the automotive sector. ONE WAY EFFECTOR represents a trade-off between the need for mass and performance at lower cost to meet the challenges faced by armed forces in a high-intensity context. ONE WAY EFFECTOR is a new attrition proposition based on feedback from the armed forces, particularly from the conflict in Ukraine. Fired from the ground in salvoes, the ONE WAY EFFECTOR is aimed at exhausting enemy resources by exerting constant pressure on hostile air defence systems, with a warhead large enough to compel the enemy’s defences to destroy it. In so doing, the new effector is intended to force even the most sophisticated air defences to reveal themselves, making them easier to detect and neutralise, in conjunction with other long-range strike systems.
Eric Béranger, CEO of MBDA, declared: “ONE WAY EFFECTOR once again demonstrates MBDA’s agility to innovate and seek new ways to meet the challenges of the new conflicts doctrines. MBDA has already demonstrated its ability to scale up, and continues to adapt through the development of new effectors that meet the need for mass, thanks to unique partnerships with civilian industry. MBDA is currently the only player in Europe offering a complete range of systems enabling forces to fulfil all of their missions, from decision-making weapons to saturation effectors.”
The ONE WAY EFFECTOR proposition combines MBDA’s expertise in cruise missiles and remote-controlled munitions. Thanks to innovative partnerships, it benefits from new drone technologies and from civilian industry’s production capabilities. This new proposition, expressly designed for high-volume production, follows a new industrial model. An unprecedented cooperation with the automotive industry that will enable mass production on demand, with an output of up to a thousand units a month. With the development of ONE WAY EFFECTOR, MBDA is expanding its portfolio of saturation weapon solutions and once again demonstrating its ability to adapt to the needs of armed forces, enabling them to carry out their missions in a new strategic environment.
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Ukraine unveils its cutting-edge combat drone, the UAS SETH, a next-generation loitering munition that boasts electro-optical guidance, artificial vision, and automatic target acquisition. Drawing inspiration from the Shahed-136, this Ukrainian-designed UAV significantly improves precision strike capabilities while minimizing the operator’s workload.
Key Features:
- AI-Powered Targeting: A sophisticated electro-optical guidance system allows for autonomous target recognition and engagement.
- Shahed-136 Inspired Design: Incorporating lessons learned from Russia’s deployment of Shahed drones, the SETH is optimized for high-speed, precision strikes.
- Confirmed Battlefield Deployment: Reports confirm the UAS SETH has already been utilized in combat, enhancing Ukraine’s ability to neutralize Russian assets.
Strategic Impact:
- Reinforcing Ukraine’s Drone Warfare: The introduction of these advanced, AI-driven kamikaze drones highlights Ukraine’s increasing proficiency in autonomous warfare.
- Challenging Russian Air Defenses: The SETH drone introduces a new level of complexity for Russian air defenses, compelling them to adapt their electronic warfare strategies.
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