Australian Defence Firms Capitalise on Europe’s Surge in Drone-Warfare Ordering
Anti-drone and laser-countermeasure technology from Australia is in high demand as Europe ramps up defence spending amid Russia’s war in Ukraine
Australian defence-technology companies have emerged as pivotal suppliers to Europe’s newly intensified drive for counter-drone capabilities, reflecting a sharp shift in the nature of modern warfare and supplying opportunities for domestic industry.
Companies such as DroneShield and Electro Optic Systems (EOS) are enjoying dramatic growth as European countries rush to shore up defences amid incursions by drones linked to Russia and escalating defence budgets.
DroneShield reported year-on-year revenue gains exceeding 400 per cent through 2025, including a $60 million plus contract with an unnamed European military customer.
EOS has secured a high-power laser counter-drone deal worth about €71.4 million with a NATO-aligned nation.
The technology ranges widely: DroneShield’s systems include handheld “ drone-gun” style jammers and vehicle-mounted radio-frequency disruptors, while EOS’s “Apollo” laser system can neutralise more than 20 drones per minute at a remarkably low cost per shot.
Analysts describing the theatre around Ukraine as a “shadow drone war” say Australia is punching well above its weight in this field.
Europe’s spending surge—global defence outlays reached approximately US$3.8 trillion in 2024—has created a strong market for companies grounded in engineering and software.
The technology Australia supplies is seen as complementary to larger systems offered by the United States and Israel, particularly since Australia is perceived as a reliable Western supplier with fewer export-control constraints for certain platforms.
Industry observers nevertheless caution that the boom is subject to geopolitical risk and market dynamics: a recent review described defence-tech start-ups as entering a “hype cycle,” warning of an eventual shake-out when investor enthusiasm cools.
For Australia’s smaller players, staying ahead of drone innovation will require sustained R&D investment, rigorous quality-control and certification for export.
For now, however, the return of drone warfare and Europe’s renewed industrial focus have combined to create a robust commercial opportunity for Australia’s defence-technology sector—transforming what was once niche hardware into frontline global supply chains.
Companies such as DroneShield and Electro Optic Systems (EOS) are enjoying dramatic growth as European countries rush to shore up defences amid incursions by drones linked to Russia and escalating defence budgets.
DroneShield reported year-on-year revenue gains exceeding 400 per cent through 2025, including a $60 million plus contract with an unnamed European military customer.
EOS has secured a high-power laser counter-drone deal worth about €71.4 million with a NATO-aligned nation.
The technology ranges widely: DroneShield’s systems include handheld “ drone-gun” style jammers and vehicle-mounted radio-frequency disruptors, while EOS’s “Apollo” laser system can neutralise more than 20 drones per minute at a remarkably low cost per shot.
Analysts describing the theatre around Ukraine as a “shadow drone war” say Australia is punching well above its weight in this field.
Europe’s spending surge—global defence outlays reached approximately US$3.8 trillion in 2024—has created a strong market for companies grounded in engineering and software.
The technology Australia supplies is seen as complementary to larger systems offered by the United States and Israel, particularly since Australia is perceived as a reliable Western supplier with fewer export-control constraints for certain platforms.
Industry observers nevertheless caution that the boom is subject to geopolitical risk and market dynamics: a recent review described defence-tech start-ups as entering a “hype cycle,” warning of an eventual shake-out when investor enthusiasm cools.
For Australia’s smaller players, staying ahead of drone innovation will require sustained R&D investment, rigorous quality-control and certification for export.
For now, however, the return of drone warfare and Europe’s renewed industrial focus have combined to create a robust commercial opportunity for Australia’s defence-technology sector—transforming what was once niche hardware into frontline global supply chains.
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