Drones: a sector of exponential growth

BarcelonaThe war in Ukraine has brought drones into sharp focus due to their military applications. But behind the explosion of these devices lies an entire industry, a market, and an ecosystem of high economic value. The market is certainly relevant. Publicly traded drone manufacturers have seen their stock market value skyrocket since Russia invaded Ukraine. And even more so since it was proven that an unmanned aerial vehicle (UAV) costing less than $1,000 can disable a tank worth over two million dollars. Since February 2022, the leading drone companies listed on Wall Street have seen their stock prices rise by an average of more than 650%. On average, drone companies have increased their market value more than sevenfold. We're talking about companies like Red Cat Holdings, AeroVironment, Kratos Defense, the drone anti-aircraft company DroneShield (also listed in Australia), and others with smaller market capitalizations like Duke Robotics (UAS Drone Corp.). Their combined market capitalization was less than €4 billion when Vladimir Putin invaded Ukraine in February 2022. Today, that sum exceeds $32 billion.

Before the war, it was already a growing market due to its civilian uses, but the military applications of these devices have skyrocketed their value. Sales have also skyrocketed. Although China and the US remain the main designers and manufacturers of drones, Europe has clearly recognized the importance of developing the sector. Currently, there are approximately 200 manufacturers of civilian drones in the European Union, with France leading the ranking with 34 manufacturers, followed by Germany with 26 and the United Kingdom with 23. Spain follows closely with 21 companies dedicated to drone manufacturing, and Italy with 14. ~BK_SLT_NA

There are no official figures, but it is estimated that the sector in Spain generates around 700 million euros annually. The number of operators has grown exponentially and there are now more than 119,600, according to the latest data from the State Aviation Safety Agency (AESA), which reports to the Ministry of Transport.

As in many other countries, the defense sector has contributed to the strong growth of the drone sector, which was already on the rise due to civilian uses. "Undoubtedly, the Spanish armed forces and the Ministry of Defense have played an undeniable driving role in the development of this ecosystem," explained consultant Carlos Suárez on his blog at the Advanced Center for Aerospace Technologies (CATEC).

The armed forces incorporated the use of these systems into their operations very early on, initially with aircraft from other countries (Searcher, ScanEagle, Raven, Orbiter, and MQ-9 Predator B, among others), but they also invested in domestic industry or in their integration into major European projects. Thus, companies like SCR have achieved significant international success in the aerial targeting category. target dronesThe commitment to state-owned drones began to take shape with the Rapaz R&D program, which is already bearing fruit, as demonstrated, for example, by the recent contracting of several Aertec TARSIS systems for the Spanish Army. Spanish participation in the Euromale program, along with Germany, France, and Italy, in the FCAS project; the involvement of the Spanish consortium SATNUS (GMV, Sener, Tecnobit) and Airbus DNZAC S in the Remote Carriers pillar, as well as Airbus DNZAC D&S in SIRTAP, are clear evidence of the Ministry of Defense's commitment to boosting the national industry in the field of unmanned vehicles. The Catalan opportunity

Despite European efforts, "we don't have strong production lines, only nascent ones," Pere Ferrer, security and BDM consultant at Squadrone, explained to ARA. At least 70% of the market is in the hands of Asian countries, he explained. But Ferrer sees opportunities for industry growth in two major markets: service provision and countermeasures. Regarding services, he cites the use of drones for power line maintenance, agriculture, and other applications. Because, as with warfare, "it's a competitive advantage over other technologies." Just as a drone is cheaper than a fighter jet or a missile in war, it's also cheaper to work on a power line with drones than with a helicopter. However, Ferrer believes that "the services market isn't being fully exploited." But he also sees a clear growth market in countermeasures. In his opinion, drones will play an increasingly important role not only in public safety but also in the control and surveillance of private facilities such as factories, sporting events, and concerts. At the same time, it is necessary to establish mechanisms to prevent these facilities or events from being endangered by the use of drones. He even says that countermeasures are needed to protect trade secrets. Here, he says, there is an opportunity for Catalan companies. However, he states that "the market is evolving very quickly, and so is the technology," and that "cross-cutting platforms that can integrate various technologies" are necessary. Regarding military use, this consultant believes that "the market is different, and there will be developments specific to" the State.