On December 22, the US Federal Communications Commission (FCC) sent shockwaves through the US drone market, adding not just market leader DJI, but all new foreign made drones and critical components to the covered list of communications equipment and services “deemed to pose an unacceptable risk” to national security.
In an instant, this cut off FCC authorization for any new drone models—or essential components such as motors, flight controllers, navigation systems, and batteries—manufactured outside the US, a sweeping intervention in a sector where overseas suppliers dominate.
Crucially, the restrictions do not apply to foreign-made drones that already hold FCC authorization. That carve-out has averted an immediate supply shock, allowing US farmers to continue buying and operating existing models—no small concession in a market where, by DJI’s own estimate in 2024, roughly four out of every five ag spray drones used by US farmers were DJI-made.
But while today’s fleets remain legal, tomorrow’s upgrades are in doubt. Drone technology evolves rapidly, with manufacturers rolling out new platforms, sensors, and flight systems on a near-annual basis. Blocking new authorizations therefore places Chinese players such as DJI and XAG at a long-term disadvantage in the US.
The result is likely a rapid reshaping of the market, as domestic manufacturers scale up and overseas firms explore partnership models—licensing designs or software to US companies that can assemble and manufacture drones domestically.
According to FCC chairman Brendan Carr, the FCC is now poised to work with US drone makers to “unleash American drone dominance.”
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