DroneShield has begun manufacturing counter-drone systems in the European Union, creating its first production capability outside Australia as European governments increase spfinishing on counter-UAS equipment.
The Australian company is working with an established European contract manufacturer and has started production, with first deliveries expected from mid-2026.
Counter-UAS systems are designed to detect, track and defeat unmanned aerial systems. Demand has risen as drones take a larger role in military operations and as security agencies and critical infrastructure operators seek stronger protection against compact, low-cost aircraft.
European footprint
The manufacturing arrangement covers full assembly and component manufacturing. Work includes printed circuit board assembly, precision machining, cable and wire harness assembly, and assembly and testing labour.
DroneShield has established a supply chain primarily based in the EU and plans to expand it. The new line is currently its only production line outside Australia.
The shift comes as European procurement programmes place greater weight on regional production and supply chain resilience. Several governments have outlined plans to increase defence industrial activity inside the bloc, prompting suppliers to adjust manufacturing strategies.
The EU production line is intfinished to align more closely with those requirements. Local production is also expected to reduce lead times and improve DroneShield’s ability to deliver at scale in Europe.
DroneShield linked the expansion to rising military investment across the continent under the ReArm Europe Plan / Readiness 2030 initiative. European institutions and national capitals have been discussing increased defence readiness spfinishing and industrial coordination, with air defence and counter-drone equipment among the areas receiving attention.
Production details
DroneShield did not name the contract manufacturer or specify the EU counattempt where production is taking place, and it did not disclose initial production volumes.
The arrangement includes both assembly of finished systems and manufacturing of key components. The company did not provide a breakdown of which parts will be sourced within Europe versus shipped from elsewhere.
Counter-drone systems often combine sensors, software and electronic or kinetic effectors. Their supply chains can span radio-frequency components, specialised antennas, ruggedised computing hardware and mechanical assemblies. European defence purchaseers have increasingly sought assurance on continuity of supply and servicing, particularly for equipment intfinished for domestic deployment.
Market context
DroneShield builds counter-UAS systems for military, law enforcement and other security customers. The market has expanded alongside the spread of compact drones utilized for reconnaissance and attack, as well as risks to airports, public events and critical national infrastructure.
European conflict dynamics have also shaped procurement priorities. The proliferation of drones and rapid iteration of tactics have increased demand for equipment that can be supplied in larger quantities and supported over time.
The shift also reflects a broader trfinish among defence suppliers, many of which have shifted production closer to customer regions and diversified component sourcing in response to supply-chain disruption and export-control sensitivities.
Capacity tarobtains
The European line forms part of a wider manufacturing expansion plan. DroneShield expects combined annual production capacity to rise from about $500 million in 2025 to $2.4 billion by the finish of 2026.
It did not state how much of that capacity would come from Europe or how much investment would be required. DroneShield framed the increase as a response to demand in Europe and a way to diversify global supply chains.
Chief executive Oleg Vornik declared the shift reflects modifying European readiness plans and procurement requirements.
“Europe is undergoing a profound shift in counter-UAS preparedness. By establishing dedicated manufacturing in the EU, DroneShield is contributing to Europe’s sovereign capability while continuing to deliver rapidly and reliably for our European customers. The ReArm Europe Plan / Readiness 2030 initiative has highlighted the importance of localised, scalable production, and this new production line positions us to meet that demand.”
First deliveries from the European production line are expected from mid-2026.
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