Geopolitical Monitor: Second Karabakh War redefined modern drone warfare

Azerbaijan remains the most advanced and institutionally developed drone operator in the South Caucasus, Geopolitical Monitor writes in its “Unmanned arms race: Integrating drone warfare in the South Caucasus” article. 

“The country continues actively expanding its unmanned warfare capabilities through both procurement and domestic development efforts. In recent years, Azerbaijan adopted several new drone systems into service, including domestically produced UAVs such as the ‘İti Qovan.’ Azerbaijan’s leading defence producer ‘Azersilah’ is also actively involved in UAV design and production efforts,” the piece states. 

According to the article, alongside local production initiatives, Azerbaijan continues operating a diverse fleet of Turkish and Israeli unmanned systems, including Bayraktar TB-2 and Akıncı drones, while also showing interest in acquiring additional advanced UAV platforms in the future. The country also established dedicated training and maintenance facilities for Akıncı drones. 

The article also noted that the military cooperation framework established with Türkiye under the 2021 Shusha Declaration further strengthened cooperation in defence technologies, training, and military-industrial development.

The author states that Azerbaijan also increasingly seeks to deepen cooperation with Turkish defence companies beyond simple procurement by exploring possibilities for joint drone production and broader defence-industrial collaboration with Baykar. 

“In recent years, both sides signed cooperation agreements and memorandums regarding technology exchange, industrial cooperation, and potential localised production of Baykar systems in Azerbaijan, signalling Baku’s long-term interest in developing more sustainable domestic unmanned systems production,” the piece stresses. 

One of the most important developments, which received little international attention, was the formal establishment of dedicated Unmanned Systems Troops within the Azerbaijani Armed Forces. 

Additionally, the author points out that the experience of Ukraine demonstrated that such an institutionalisation of unmanned forces allows for better coordination and battlefield results, the article notes. The sequence of units presented during the 2025 military parade suggests that the new forces are likely integrated into the Azerbaijani Air Force structure.

Azerbaijan’s expanding drone capabilities are also supported by steadily increasing military expenditure. The country’s defence budget grew from approximately $2.24 billion in 2020 to a planned $5.1 billion in 2026, reflecting Baku’s continued emphasis on military modernisation and technological development.

The author reminds that the military use of unmanned aerial vehicles dates back decades, with early reconnaissance drones appearing during the Vietnam War and subsequent conflicts. The use of drones reportedly leapt even further during the 2020 Karabakh War between Armenia and Azerbaijan, which became the first major interstate conflict where unmanned systems played a central battlefield role, as per the article. Azerbaijan’s extensive use of drones demonstrated how deadly drones can be against armoured vehicles, artillery systems, and air defences, the article stated. 

“The South Caucasus remains one of the regions where the importance of unmanned systems is most visible,” the article notes. 

The experience of the Karabakh wars, followed by the lessons emerging from Ukraine, demonstrated to regional actors that drones are a crucial weapon in 21st-century warfare, according to the piece. It notes that as a result, all three South Caucasus states show at least some level of interest in developing unmanned warfare capabilities, although the scale of implementation varies significantly. 

“Azerbaijan currently stands out as the clear regional leader in drone warfare integration due to its domestic production, diversified procurement, and creation of dedicated unmanned systems structures,” the article reads.