This Holding Will Benefit From a U.S. Army Update, But There Is an Even Bigger Market Opportunity Ahead

When it comes to the shares of Axon (AXON), the typical focus is on the adoption of body cameras, AI and other software and services in the public safety market, and the positive mix shift as AI and software becomes a larger part of the company’s revenue mix. We can also toss in sequential growth in the company’s future contracted bookings, too.

But there are other avenues of growth for the company, including drones and Axon’s Dedrone offering. Two years ago, Axon acquired Dedrone and the company counts airports, critical infrastructure, entertainment venues and others among its customer bases.

We bring these up as we are reading that the U.S. Army is testing counter-drone technology in the U.S.-Mexico border area against the growing threat of drone use by drug cartels. Army officials said drones crossing the southern border are typically systems sold commercially and ⁠used by criminals for surveillance linked to their smuggling and human trafficking operations.

But the market size for “dedrone” technology or the counter unmanned aircraft system (UAS) market is far larger than that. The uptick in unauthorized drone activity incidents, amplified defense and homeland security budgets, heightened requirements for protecting critical infrastructure, and broader commercial drone adoption have counter drone technology on a growth trajectory. How fast that growth rate is depends on who we ask.

Research and Market finds the Drone Defense System Market grew from $11.67 billion in 2025 to $14.74 billion in 2026. It is expected to continue growing at a CAGR of 28.08%, reaching $66.01 billion by 2032.

MarketsandMarkets estimates the global counter UAS market will grow from $6.6 billion in 2025 to $20.3 billion in 2030, and the U.S. market will reach $8.60 billion by 2030 from $2.49 billion in 2025.

The Business Research Company (and yes, that is its actual name) forecasts a dramatic increase in just the dedrone technology market to $3.85 billion in 2030, up from $1.38 billion in 2025.

This is where we remind you that when we come across forecasts like these, we are less focused on the dollar amounts than the slope of the forecast curve. Across those three forecasts and others, the vector and velocity for anti-drone technology is on the upswing. In some respects, it reminds us of the adoption of AI (drones) and the need to protect assets and IP that is driving spending on cybersecurity (dedrone or anti-drone technologies).

Axon has not shared the percentage of revenue derived from its Axon Air business, which includes Dedrone, however, we see it as another piece of the product and services addressable market for its key public safety customer base. As of February 2026, over 1,000 public safety agencies — including police, fire and other emergency management agencies — had received Federal Aviation Administration (FAA) waivers needed to automate drone operations and launch a drone-as-first responder program.

As you can imagine, the above reaffirms our decision last week to pick up some additional AXON shares for the Portfolio near $425.

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At the time of publication, TheStreet Pro Portfolio was long AXON shares.