Prodrone announced a capital partnership with Howa Machinery and plans to establish a new mass-production plant. Japan's domestic drone market is expected to expand, while government and corporate efforts to strengthen supply capacity are gaining momentum.
Howa Machinery and Prodrone announced a capital partnership, along with plans to establish a new mass-production plant using Howa Machinery's existing site and facilities. Attention is focused on efforts to build a stable domestic supply base for drones beyond defense applications, while differences in the timing of revenue recognition should also be considered as the project moves toward implementation.
According to research by Impress Research Institute, Japan's domestic drone business market grew 13.8% year on year to ¥497.3 billion in fiscal 2025 and is expected to expand to ¥954.4 billion by fiscal 2030. The services market is structurally larger than the drone market, and outsourced data processing and field operations are viewed as important growth drivers for companies.
The survey also identified policy trends as an important factor. On 1 September 2026, Prodrone received certification for its plan concerning the secure supply of unmanned aircraft under the Economic Security Promotion Act. Policy support and corporate profitability are separate matters, and the feasibility of projects must be assessed with development costs, certification and mass-production facilities taken into account.
Among individual stocks, ACSL, which develops drones, and Liberaware, which specializes in indoor inspections, were highlighted. Factors including interim revenue and quarterly results in 2026, overseas expansion and the burden of investment were identified as potentially affecting future performance.