ParaZero Receives MOD Approval for Marketing of the DefendAir, Its Counter-Drone Solution

Rhea-AI Summary

ParaZero Technologies (Nasdaq: PRZO) has received approval from the Israeli Defense Export Controls Agency (DECA) under the Ministry of Defense (MOD) to market its Counter-Unmanned Aerial Systems (C-UAS) solution, the DefendAir. This system is designed to intercept unauthorized or hostile drones, providing protection for critical infrastructure, military operations, and public safety.

The approval enables ParaZero to market and deploy its solution to international customers, including governments, defense organizations, and private enterprises. According to MarketandMarkets, the global C-UAS market is expected to reach $7.05 billion by 2029. The DefendAir leverages ParaZero's proprietary technology, building on the company's 11-year expertise in drone technologies. The company plans to integrate additional advanced capabilities to address more complex battlefield scenarios.

Positive

• Received official MOD approval for international marketing of DefendAir C-UAS solution
• Enables access to global defense and security markets
• Targets growing C-UAS market projected to reach $7.05B by 2029

Negative

• None.

Insights

Defense Technology Analyst

The MOD approval for ParaZero's DefendAir system represents a strategic entry into the lucrative C-UAS market. The timing is particularly advantageous given the $7.05 billion market projection by 2029. The approval's significance extends beyond mere market access - it validates the technology's effectiveness and compliance with stringent military standards.

The DefendAir system's integration into the C-UAS landscape comes at a critical juncture when drone threats are evolving rapidly. ParaZero's 11-year expertise in drone safety systems provides a unique advantage in understanding both defensive and offensive drone capabilities. Their focus on last-line defense fills a important tactical gap in layered air defense strategies.

The development roadmap suggesting integration of advanced capabilities indicates potential for system scalability and adaptation to emerging threats, important for maintaining competitive advantage in the defense sector.

Market Research Analyst

This regulatory milestone unlocks significant revenue potential for ParaZero, considering their modest market cap of $20.3 million. The global C-UAS market's projected CAGR presents a substantial growth opportunity, particularly given the increasing frequency of drone-related security incidents worldwide.

The company's strategic positioning as both a commercial drone safety provider and defense solutions developer creates valuable cross-market synergies. This dual expertise could provide competitive advantages in product development and market penetration. The MOD approval also serves as a powerful marketing tool, potentially accelerating international sales cycles with government and military clients who prioritize validated solutions.

TEL AVIV, Israel, Jan. 10, 2025 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (the "company” or “ParaZero”), an aerospace company focused on safety systems for commercial unmanned aircrafts and defense Counter UAS systems, announced today that it has received official approval from the Israeli Defense Export Controls Agency (DECA) under the Ministry of Defense (MOD) for the marketing of its cutting-edge Counter-Unmanned Aerial Systems (C-UAS) solution. This milestone marks a significant step in ParaZero’s efforts to expand its presence in the global defense and security markets.

The company’s counter-drone system, The DefendAir by ParaZero, leverages ParaZero’s proprietary technology to intercept unauthorized or hostile drones, providing a robust last-line of defense for critical infrastructure, sensitive military operations, and public safety. With DECA approval, ParaZero is now authorized to market and deploy this innovative solution to international customers, including governments, defense organizations and private enterprises.

The global C-UAS market is rapidly expanding, driven by the increasing use of drones in military, commercial, and recreational applications, which pose growing security challenges. According to MarketandMarkets, the global C-UAS market is projected to reach $7.05 billion by 2029. With this approval, ParaZero is well-positioned to address the demand for effective counter-drone technologies, offering solutions that ensure safety while minimizing operational disruption.

Boaz Shetzer, CEO of ParaZero, commented: “Receiving the MOD approval is a key milestone for ParaZero, reflecting our efforts of meeting the highest regulatory and ethical standards in the defense sector. This approval enables us to offer critical protection against aerial threats to customers worldwide. We look forward to partnering with global organizations to help safeguard people, assets and airspaces from hostile threats.”

Yuval Gilad, Chief Product & Technology Officer adds: "Building on over 11 years of expertise in drone technologies and operations, we have rapidly developed an effective solution to address a wide range of relevant battlefield threats. We work closely with end-users to ensure our solutions are tailored to meet the precise needs of the field. Our roadmap includes plans to integrate additional advanced capabilities, enabling the system to tackle even more complex and challenging scenarios.”

About ParaZero Technologies

ParaZero (Nasdaq: PRZO) is an aerospace company focused on drone safety systems for defense and commercial drones and urban air mobility aircraft. Started in 2014 by a passionate group of aviation professionals and drone industry veterans, ParaZero designs smart, autonomous parachute safety systems designed to enable safe flight operations over populated areas and beyond-visual-line-of-sight (BVLOS) as well as for various military applications including Counter UAS. For more information about ParaZero, please visit https://parazero.com/

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, ParaZero is using forward-looking statements when it discusses growth in the global C-UAS market, how ParaZero is well-positioned to address the demand for effective counter-drone technologies, offering solutions that ensure safety while minimizing operational disruption, partnering with global organizations to help safeguard people, assets and airspaces from hostile threats and its plans to integrate additional advanced capabilities, enabling the system to tackle even more complex and challenging scenarios. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s Annual Report on Form 20-F filed with the SEC on March 21, 2024. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. ParaZero is not responsible for the content of third-party websites.

Investor Relations Contact:

Michal Efraty
Investor Relations
michal@efraty.com

ParaZero Technologies Ltd. | 30 Dov Hoz, Kiryat Ono, Israel 5555626
P: +972-36885252 | E: contact@parazero.com | F: +972-3-688-5246

FAQ

What is the market potential for ParaZero's (PRZO) DefendAir counter-drone system?

According to MarketandMarkets, the global Counter-UAS market that ParaZero's DefendAir targets is projected to reach $7.05 billion by 2029.

What approval did ParaZero (PRZO) receive for its DefendAir system in January 2024?

ParaZero received approval from the Israeli Defense Export Controls Agency (DECA) under the Ministry of Defense (MOD) to market its Counter-UAS solution internationally.

What applications does ParaZero's (PRZO) DefendAir system target?

The DefendAir system targets protection of critical infrastructure, sensitive military operations, and public safety by intercepting unauthorized or hostile drones.

What future developments are planned for ParaZero's (PRZO) DefendAir system?

ParaZero plans to integrate additional advanced capabilities into the DefendAir system to address more complex and challenging battlefield scenarios.