ZenaTech, Inc. (ZENA): A Strategic Expansion into Drone-as-a-Service and the Path to Market Dominance Through M&A-Driven Growth

ZenaTech, Inc. (NASDAQ: ZENA) has emerged as a formidable player in the rapidly evolving Drone-as-a-Service (DaaS) sector, leveraging strategic acquisitions and geographic expansion to solidify its market position. As the global demand for drone-enabled solutions surges-driven by industries such as agriculture, construction, and government-the company's aggressive roll-up strategy and focus on scalable growth position it to dominate a market projected to expand from $1.97 billion in 2023 to $11.49 billion by 2035.

Strategic Expansion and M&A-Driven Consolidation

ZenaTech's DaaS segment has become the cornerstone of its business, contributing 82% of total revenue in Q3 2025 ($3.57 million out of $4.35 million). This shift underscores the company's commitment to capitalizing on the fragmented drone surveying sector. By pursuing a roll-up strategy, ZenaTech aims to acquire 25 new companies by mid-2026, with 14 acquisitions already completed as of late 2025. These include the acquisition of Rampart Surveys Inc. in Colorado-a 12th U.S. acquisition-and a pending offer to acquire a survey firm in Queensland, Australia.

The company's geographic expansion into the U.S. Mountain West and Rocky Mountain regions is particularly noteworthy. A recent acquisition in the Mountain West/Rocky Mountain area aligns with ZenaTech's goal to establish 25 DaaS locations by Q2 2026. This focus on western and mountain states is strategic: challenging terrains in these regions create a competitive advantage for aerial surveying, while the DaaS model allows clients to access advanced drone services-such as wildfire management, precision agriculture, and land stewardship-without the costs of ownership.

Business Model and Competitive Advantage

ZenaTech's DaaS model is designed for scalability. By offering flexible, on-demand, or subscription-based access to drone services, the company enables industries like agriculture and construction to adopt cutting-edge technology without upfront capital expenditures. For instance, the acquisition of Rampart Surveys Inc. has allowed ZenaTech to introduce agricultural drone services in Colorado, including crop inspection, spraying, and health analysis. This not only diversifies revenue streams but also strengthens client retention through tailored solutions.

The company's CEO, Dr. Shaun Passley, has emphasized that DaaS is a "key growth area" for ZenaTech, with the potential to disrupt outdated surveying methods in natural resources and government sectors. By consolidating smaller surveying firms, ZenaTech is accelerating the adoption of drone-powered solutions, which offer cost efficiencies and data accuracy that traditional methods cannot match.

Market Potential and Long-Term Vision

The drone surveying market's projected growth to $11.49 billion by 2035 provides a vast runway for ZenaTech's expansion. Its focus on the U.S. Mountain West and Australia-regions with high demand for aerial surveying due to rugged landscapes-positions the company to capture market share in niche but lucrative sectors. Additionally, ZenaTech's ability to integrate acquired firms into its DaaS ecosystem ensures that each acquisition amplifies its technological capabilities and geographic reach.

However, the company's success hinges on its ability to execute its roll-up strategy efficiently. Rapid integration of 25 acquisitions by mid-2026 will require robust operational infrastructure and cultural alignment. If managed effectively, this approach could create a network effect, where each new acquisition enhances the value of the entire DaaS platform.

Conclusion

ZenaTech's strategic expansion into DaaS, fueled by M&A activity and geographic diversification, reflects a clear vision for market dominance. By targeting fragmented sectors and leveraging the scalability of its DaaS model, the company is well-positioned to capitalize on the growing demand for drone-enabled solutions. For investors, ZenaTech's aggressive growth trajectory and alignment with long-term industry trends make it a compelling case study in how strategic consolidation can drive sustainable value creation.