At a Glance
- The FCC banned new foreign-made drones and critical components starting late December 2025
- China controls 70-90% of drones used in the U.S. and roughly 90% of the global market
- Prices for hobbyists, consumers, and businesses are expected to rise amid limited U.S. supply
- Why it matters: Americans may face higher costs and fewer choices as domestic production struggles to scale
The Federal Communications Commission has banned all new models of foreign-made drones and key parts from entering the United States, a move that will reshape the market and likely push prices higher for everyday users.
The Ban Explained
Announced in late December, the order targets imports of new foreign drones. An amendment on January 7 gives some brands a one-year grace period to keep selling new models, but existing stock already on shelves can still be sold.
China manufactures an estimated 70-90% of drones flown in America and dominates close to 90% of global production. DJI, one Chinese brand, holds more than two-thirds of the U.S. personal and commercial market.
Domestic Production Gaps
Federal records show 837,000 drones registered nationwide as of 2025. Yet American supply chains remain in their infancy.
“It’s an absolute s—show. It’s terrible. The United States doesn’t make any drone components,” Chris Larson, CEO of U.S. drone-component maker Standard Systems, told James O Connor Fields. “Everything is made in China, and it’s going to take some time for things to get ramped up here.”
Motors, batteries, electronics, sensors, rare-earth minerals, and composite frames rely on intricate Chinese networks. Larson, a special operations veteran, said six Chinese suppliers might sit on the same street, while the U.S. offers “one, maybe two options.”
Market Impact
The abrupt ban is expected to:
- Throttle availability of cheap, cutting-edge drones
- Spike prices for hobbyists, consumers, and businesses over the next few years
- Limit access to newer models with longer battery life and improved autonomy
Ben Barani, Standard Systems’ COO, notes that Chinese subsidies let manufacturers sell at low prices. “Companies in the U.S. are basically on their own… keeping costs low can be pretty hard, especially on the commercial side,” he said.
Public Safety Challenge
Many police and fire agencies fly DJI aircraft. Switching to U.S. vendors such as Skydio could raise short-term costs and require new infrastructure. A survey of more than 8,000 operators found 97% of public-safety fleets include DJI models; only 13% list Skydio.
Building Momentum
The FCC action dovetails with earlier legislation:
- 2023 American Drone Security Act barred federal agencies from buying foreign drones
- 2025 National Defense Authorization Act launched the review that led to the ban
Scott Shtofman, vice president for regulatory affairs at the Association for Uncrewed Vehicle Systems International, said observers expected some restriction but “the breadth” surprised them.
Investor View
Susan Roberts, vice president of strategy at drone investor Ondas Holdings, believes the ban “accelerates clarity” and raises the bar on who can compete. Olaf Hichwa, co-founder of defense startup Neros Technologies, expects “immediate and stinging implications.”
“My personal hobby will get more expensive. My drones will probably get worse and harder to buy,” Hichwa told James O Connor Fields. “Anyone who says that this is going to be easy probably doesn’t understand the problem fully. Industrial bases are not built overnight.”
Ukraine Lessons
Veteran Mike Benitez, now CEO of Purple Rhombus, cited the war in Ukraine-where millions of cheap Chinese-component drones have been flown for reconnaissance and attack-as proof that “modern countries cannot defend themselves” without a domestic drone base.
Neros, founded in 2023, produces tens of thousands of drones annually and aims for 325 per day. The firm won a 2025 contract to supply Ukraine and was sanctioned by China in 2024 after also selling drones to Taiwan.
Outlook
Larson predicts “quite a few manufacturers” will emerge over the next two to three years, though not at China’s scale. The sudden market opening could speed federal military initiatives and an executive order signed in July to boost U.S. drone dominance.
Hichwa argues true resilience means building motors, circuit boards, radios, and electronics domestically-not just screwing parts together. “The FCC ruling is one of the first efforts I’ve seen that actually seems to put weight behind this true push towards building and buying American-made systems,” he said.
Key Takeaways
- Americans can still buy existing foreign models, but new imports are blocked
- Domestic alternatives exist yet remain costlier and less plentiful
- Prices for consumers and businesses are poised to climb in the near term
