There’s a quiet crisis happening in a relatively corner of the drone industry: the companies that build custom drone solutions are struggling. And according to the latest data, it’s not a temporary blip — it’s a fundamental market shift.
According to the Global State of Drones 2025 report from drone market research company Drone Industry Insights, drone integration and engineering companies experienced “the sharpest decline” of any sector, with below-average expectations of just 5.5 out of 10 for the next 12 months. That survey was based on data collected in mid-2025 via a survey of 768 people within the drone industry spanning 87 countries.
Drone integration and engineering companies are a typic of business that takes off-the-shelf drone components and creates bespoke solutions for specific customer needs. For example, that might be a thermal camera mounted on a custom frame for a particular inspection task, or a specialized payload integrated with specific software for unique applications.
A wave of standardization in the drone industry
So what’s up with the decline in custom drones? In short, drones are becoming standardized products.
“With more drones on the market specifically designed for a particular application, the demand for tailored solutions decreases,” DII’s report wrote.
Think about what happened with computers. In the 1980s and early 1990s, many businesses hired consultants to spec out and build custom computer systems. Today, you buy a Dell or a Mac, maybe add some software and you’re done. The market for custom-built computers still exists, but it’s tiny compared to the standardized product market. Drones are now following the same path.
For example, DJI now makes dedicated agricultural drones like the DJI Agras T50 with built-in spray systems. There are purpose-built inspection drones with integrated thermal cameras and zoom lenses. Mapping drones come with RTK GPS modules already installed. Companies like UVify sell dedicated light show drones.
These days, the question has shifted from “Who can build us a custom solution?” to “Which off-the-shelf product should we buy?”
The funding factor
The decline of custom drone solutions is accelerated by the broader funding crisis in the industry.
“Limited access to funding will prompt clients to think twice before investing in a tailor-made solution,” DII’s report noted
When a company can buy a DJI Matrice 30 for inspection work for around $10,000 to $14,000, the case for spending $50,000 or more on a custom solution becomes much harder to justify. That’s especially true when venture funding is scarce and CFOs are scrutinizing every expenditure.
Often a standardized solution that meets 85% of your needs for 20% of the price beats a custom solution that meets 100% of your needs at five times the cost — at least in most corporate finance departments.
So is customization good or bad?
Now before you go crying that the sky is falling, let me weigh out the argument for standardization (and why customization is not necessarily a good thing). But, I’ll also talk about why customization is truly great.
The counterargument: Standardization is good
Now before you go crying that the sky is falling, let me say this. Custom builds aren’t necessarily the best solution either. Maintenance requires specific expertise. Parts aren’t interchangeable. Scaling is nearly impossible. Standardized products solve all these problems.
A construction company can buy the same mapping drone that its competitor uses, train operators using the same online courses, swap parts from stock inventory and upgrade to newer models without starting from scratch. An employee switching companies might already be familiar with the yech at their new job.
Where custom still wins
There are still areas where custom solutions make sense:
Military and defense applications: Security requirements, specialized missions and unique operational environments still demand bespoke solutions. Off-the-shelf consumer drones typically don’t cut it when you need encrypted communications, specific payload capacities, or integration with existing military systems.
Industrial inspection in extreme environments: While standard inspection drones work for most applications, some industrial environments — confined spaces, extreme temperatures, explosive atmospheres — continue to require specialized builds.
Research and scientific applications: Academic researchers and scientists often need specific sensor combinations or flight characteristics that don’t exist in commercial products.
High-value infrastructure: When you’re inspecting a billion-dollar bridge or dam, spending $100,000 on a perfectly optimized custom system might make sense.
How to balance the move away from custom drones
So what should integration and engineering companies do to survive?
Become service providers: Instead of selling custom hardware, some engineering companies are pivoting to offering services using off-the-shelf equipment. They’re competing on expertise and execution rather than unique technology.
Focus on software and customization: Rather than building custom airframes, companies are creating specialized software, custom workflows or unique data processing pipelines that work with standard drones.
Partner with manufacturers: Some former custom drone makers instead are becoming regional specialists or certified integrators for major manufacturers, essentially becoming sophisticated dealers rather than independent engineers.
Vertically integrate into specific industries: Rather than being generalist integrators, some are going deep into specific industries (like mining or maritime) where they can build specialized expertise that justifies premium pricing.
Is the lack of cutom drones a bad thing?
For the engineers and businesses that built their livelihoods on custom integration, yes, it’s painful and disruptive. These are often highly skilled professionals who invested years learning specialized knowledge that’s becoming less relevant.
For the drone industry broadly? Probably not. Standardization enables scale, reduces costs, improves reliability and makes drones accessible to more users. That’s how technology progresses.
For end users? Definitely not. They get better products at lower prices with easier maintenance and more support options.
The parallel with other technology industries is instructive. The decline of custom computer builders didn’t hurt the computer industry — it enabled explosive growth. The shift from custom software development to SaaS products didn’t hurt the software industry — it created trillion-dollar companies.
The drone industry is experiencing what every technology industry eventually faces: the transition from craft production to mass manufacturing, from custom solutions to standardized products, from high-touch services to scalable platforms.
It’s uncomfortable, it’s disruptive and it leaves casualties. But it’s also necessary for the industry to reach its potential. The custom integration companies that survive will be those serving truly specialized niches or those that successfully pivot to new value propositions.
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The post Custom drones are becoming obsolete. That’s both good news and bad news appeared first on The Drone Girl.