Risks of the Iranian Drone Industry

This technical report by Insikt Group outlines the significant challenges posed by Iran's burgeoning drone industry to global businesses and Western governments. It identifies five major risks associated with compliance, reputation, technology transfer, proliferation, and cybersecurity. The report explains how Iran's procurement network for drone components is evolving, which increases the likelihood of compliance violations for companies involved in drone-related technologies. It details the strategic prioritization of drone development by Iranian military entities and their relationships with state and non-state actors that enhance the geopolitical relevance of Iran's drone exports. The report also presents measures for corporations and governments to mitigate these risks, including the establishment of robust compliance programs and the enhancement of cybersecurity practices. The findings emphasize the need for heightened vigilance among businesses and governments to counter the threats associated with Iran's drone capabilities and their implications for global security.