Drones and the €800 Billion ReArm Europe Plan
Plus The Headlines, Money Matters, and Recommended Reading (Week 10 2025: 03 - 09 Mar)
Welcome to this week’s Beyond Line of Sight!
European defence spending is undergoing a dramatic transformation.
For decades, Europe has relied on allies like the U.S. for its security. However, with the U.S. freezing military aid to Ukraine and broader concerns about the U.S. government’s reliability, European leaders are now accelerating plans to modernise their defence infrastructure. The EU is set to unlock up to €800 billion in defence spending through ReArm Europe plan, including a €150 billion in loans to boost national military capabilities of member states.
Drones and counter-drone systems have proven to be invaluable for Ukraine, and has meant that drone warfare has proliferated. We are already seeing an increasing procurement of drones, counter-drone systems, and focus on autonomous technologies from European nations.
The result will be a stronger European defence and drone industry. This means, European players need to:
Develop resilient supply chains capable of scaling up.
Focus on autonomy — more public (and private) money will be available for R&D and innovation. In the fast-changing drone warfare theatre, there is an urgent need for more resilient, reliable, and robust hardware /software capabilities to make drones and counter-drone solutions more autonomous.
Develop solutions that are interoperable with current European systems and standards. It’s difficult to justify procurement of solutions that cannot be integrated easily with existing systems and standards.
This is already happening. With the perceived loss of U.S. as a reliable ally for Europe, the Europeans will ultimately end up with a more modern, resilient, and independent military. This will also mean a stronger and more diverse drone ecosystem within Europe.
For business leaders in the drone industry, the takeaway is clear: build for autonomy, build for interoperability, build for Europe.
The Headlines
Defence and Security
Morocco has acquired Chinese-made TB-001 drones to strengthen its military, enhancing border surveillance and counter-terrorism with long-range, high-endurance capabilities.
Türkiye’s first unmanned fighter jet, the Bayraktar KIZILELMA, has passed a key Aerodynamic System Identification Test.
During the Cobra Gold exercise in Thailand, U.S. and Thai forces used Dronebuster devices to counter simulated drone swarm attacks, revealing the ongoing challenges of defeating coordinated aerial threats.
The U.S. Air Force has designated the YFQ-42A and YFQ-44A as prototype collaborative combat aircraft, designed to operate autonomously alongside manned jets under the Next-Generation Air Dominance program.
UAE’s EDGE Group has unveiled a mobile counter-drone system integrating the Ajban 442A armored vehicle with advanced detection technology and the Shadow 3 drone for real-time aerial threat interception.
The U.S. Department of Defense is shifting $50 billion toward drone and counter-drone technology.
Bluelight
The National Police Air Service (NPAS) will trial Schiebel's CAMCOPTER S-100 drone in summer 2025 to assess its role in UK police operations, focusing on BVLOS capabilities and integration with manned aircraft.
Policy and Regulations
The Commercial Drone Alliance (CDA) has urged the Trump administration to accelerate FAA rule-making for BVLOS drone operations, arguing that clear regulations are crucial for industry growth, domestic manufacturing, and national security.
The Blue sUAS Cleared List, identifies U.S. government-approved drones, has reduced from 15 to 10 vendors, with eight companies removed and three new ones added following the Blue UAS Challenge evaluation.
Partnerships
Just Eat has partnered with Manna Air Delivery to launch three-minute drone food deliveries in Dublin, with plans for international expansion.
Money Matters
Contracts
GA-ASI — secured a $31.7 million contract modification to support the Royal Netherlands Air Force’s MQ-9A Reapers, bringing the total contract to over $92 million through 2025.
BRINC Drones — Newport Beach approved a $2.17 million contract to deploy seven emergency response drones, integrating with 911 dispatch and SWAT operations.
Schiebel — the European Defence Agency (EDA) selected CAMCOPTER S-100 for its military logistics program, testing unmanned air and ground system integration in simulated missions with the Italian Army.
Anduril — awarded a £30 million deal from the UK Government to supply Ukraine with Altius 600M and 700M loitering munitions, strengthening Ukraine’s defense amid ongoing conflict.
Investment and M&A
German startup Alpine Eagle raised €10.25 million to develop its AI-powered air-to-air counter-drone system, expanding its Sentinel-OS technology and military partnerships.
General Atomics acquired North Point Defense to enhance its ISR capabilities, leveraging AI-driven SIGINT solutions for real-time intelligence and national security applications.
Recommended Reading this Week
NATO armies unprepared for drone wars, Ukraine commander warns
ABOUT THE AUTHOR
This newsletter is authored by Adit Shah, a UK-based business and strategy consultant specialising in aerospace, defense, and space sectors. For contact, please get in touch via LinkedIn.