Achieves its first order within a short period of time following its full-scale entry into the high-barrier defense sector; strengthens its domestic drone supply capabilities amid expanding defense demand in Japan
Tokyo, May 8, 2026 –Terra Drone Corporation, a leading drone and Urban Air Mobility (UAM) technology company headquartered in Japan, announces that it has secured an order through a public competitive tender conducted by Japan’s Acquisition, Technology & Logistics Agency (“ATLA”) and entered into a manufacturing contract valued at JPY 115,434,000 for 300 units of the domestically produced “Modular UAV (General-Purpose), Training Model.”
This project involves the supply of 300 units to ATLA and represents a significant order achievement for the Company’s defense business. The fact that the Company secured its first order within a short period of time following the announcement of its full-scale entry into the defense sector—an industry characterized by high barriers to entry and stringent requirements unique to defense procurement—demonstrates, in the Company’s view, the competitiveness of its technological capabilities, development speed, and supply structure, as well as the strong alignment of its offerings with market needs.
Order Overview
- Product Name: Modular UAV (General-Purpose), Training Model
- Quantity: 300 units
- Contract Value: JPY 115,434,000
- Delivery Date: September 30, 2026
- Delivery Location: Site designated by the Ministry of Defense
Background
In recent years, the global security environment has been undergoing a major transformation, with countries around the world increasing defense spending and reassessing their procurement strategies. In addition to conventional large-scale, high-cost equipment, demand is rising for lower-cost systems that can be deployed rapidly.
One of the clearest examples of this shift is drones. In recent conflicts, including those in Ukraine, unmanned assets have been used across a wide range of functions, including intelligence gathering, surveillance, rear-area support, air defense, and deterrence, making them an increasingly important component of modern defense architectures.
In particular, the rise of low-cost unmanned systems has highlighted the limits of relying solely on expensive conventional systems to address evolving threats. As a result, the adoption of unmanned assets offering superior mobility, scalability, and cost efficiency is accelerating worldwide.
In Japan as well, the draft budget for fiscal year 2026 allocates approximately JPY 277.3 billion to strengthening defense capabilities related to unmanned assets, marking the largest budget of its kind to date and underscoring the national policy of positioning unmanned systems at the core of defense capability enhancement. As Japan moves forward with a fundamental strengthening of its defense capabilities and the resilience of its defense industrial base, securing domestically produced equipment, stabilizing supply chains, and developing personnel capable of operating unmanned assets have become key priorities.
We believe this order reflects recognition of Terra Drone’s capabilities in developing, supplying, and fielding domestically produced drone systems amid these broader market and policy trends.
Future Outlook
As Terra Drone advances its full-scale entry into the defense sector, the Company is pursuing a multifaceted strategy that includes interceptor drones, operational support UAVs, and the development of a global supply chain.
In Japan, the defense-related market is expected to expand over the medium to long term, supported by rising defense budgets and the growing importance of domestically produced equipment. Through this project, Terra Drone aims to further build trust and a proven track record in the defense sector, while continuing to strengthen its development and mass production capabilities for domestically produced drones and enhance its ability to respond to defense demand in Japan and overseas.
Contact Information Regarding Defense Business
Business Website：https://terra-defense.com/
Contact Form：https://terra-defense.com/contact/
Terra Drone Corporation, Defense Division, Morita
Email：defense@terra-drone.co.jp
TEL：080-4329-7881
About Terra Drone Corporation
Terra Drone Corporation, headquartered in Japan, is a global leader in drone and Advanced Air Mobility (AAM) solutions. Dedicated to the mission of “Unlock ‘X’ Dimensions”, the company is committed to creating a prosperous future by “crossing” bridges—integrating diverse fields to foster innovation and find solutions. Specializing in surveying, inspections, agriculture, and UAS Traffic Management (UTM), Terra Drone serves industries such as oil and gas, construction, chemicals, energy, and agriculture.
With a portfolio of over 3,000 completed projects worldwide, Terra Drone has achieved significant milestones in the drone operations field. In July 2023, the company acquired a majority stake in Unifly, a world-leading provider of UTM platform, with deployments in over eight countries, followed by an investment in U.S.-based Aloft Technologies in February 2024, further expanding its capabilities in UTM.Terra Drone was listed on the Tokyo Stock Exchange Growth Market (Stock Code: 278A) on November 29, 2024. It also secured top spot in Global Drone Service Provider Rankings for 2024.
Recognized by Drone Industry Insights as one of the top three industrial drone service providers globally for five consecutive years, Terra Drone aims to build the digital infrastructure necessary to unlock the full potential of drones and AAM solutions. For more information, please visit our website: http://www.terra-drone.net
Media Contact:
PR Team, Terra Drone Corporation
Tel: +81-3-6419-7193
Email: pr@terra-drone.co.jp
