How Australia’s counter-drone surge reshapes Europe’s defense market.

Australian firms DroneShield and Electro Optic Systems are rapidly supplying European militaries with counter-drone systems, from handheld jammers to 100 kW class lasers, as demand spikes with the war in Ukraine and recent drone incursions over Poland. The surge positions Australia’s industry as a dependable C-UAS supplier for Europe, tightening supply chains and expanding layered air defense.

On October 27, 2025, ABC’s business coverage spotlighted a quiet shift in Europe’s arms market: European customers are turning to Australian counter-drone companies for gear they can field now, not later. DroneShield reports a record wave of orders, including a follow-on contract worth about 61.6 million dollars destined for a European military end user via a regional reseller, while Electro Optic Systems is booking European orders for its Slinger turret and unveiling the Apollo high-energy laser, pitched for swarm defense at tactical ranges. The buying spree follows repeated airspace violations over Poland on September 10 and the European Commission’s new push for an EU-wide drone defense initiative.
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DroneShield’s catalog spans RF detectors that warn of approaching drones to a rugged handheld jamming gun that severs control links and GPS to force hostile platforms down, with demand rising due to battlefield attrition dynamics and the low unit cost of attack drones. (Picture source: DroneShield)

DroneShield is central to the report. The company announces year-on-year sales growth of more than 400 percent and a contract exceeding 60 million dollars with an unnamed European military customer. Its catalog ranges from radio-frequency detectors that alert operators when a drone approaches to the now well-known handheld jamming gun, a ruggedized device that severs control links and GPS, forcing hostile platforms to land or crash. Demand grows with attrition dynamics and the low unit cost of attack drones. DroneShield says it is active in about fifty countries and has several hundred systems in service in Ukraine. The company reports 193 million dollars in revenue this year and a planned increase in manufacturing capacity from 500 million to 2.4 billion dollars next year, with sites in Australia, Europe, and the United States. For planners, drones are no longer a nuisance but a baseline risk, and counter-drone systems (C-UAS) shift from niche equipment to organic force protection.

Electro Optic Systems (EOS) operates at the “hard-kill” tier. Its Canberra-assembled Apollo laser is presented with an engagement rate of up to 30 drones per minute and a range of about 6 kilometers. This rate-range combination matters in layered defense where “soft-kill” jamming can be saturated by swarms. EOS notes feedback from Ukrainian units that refines target libraries and algorithms as engagements occur. In parallel, the Slinger mobile counter-drone turret is exported under a 53 million dollar contract to a Western European government customer. These concrete and verifiable elements show how Australian engineering translates into effectors mounted on vehicles and base-defense nodes, from sensing to defeat.

The naval domain also features. Kongsberg, in partnership with local industry, is establishing a guided-weapons capacity in Newcastle and has signed an 80-million-dollar package of launchers for Poland, Denmark, and Spain. Following Australia’s acquisition of the Naval Strike Missile (NSM), a share of launcher components is manufactured in Australia, an offset mechanism designed to distribute risk and shorten supply chains. At the outset, Naval Strike Missile (NSM) integration raises interoperability issues with allied combat systems and networks; once deployed, NSM units expand maritime denial envelopes without overloading training pipelines.

On the ground, the tactical problem is straightforward and unforgiving. Ubiquitous micro and mini-drones push surveillance and strike down to company and platoon echelons. Units tighten Electromagnetic Emission Control (EMCON) to avoid detection and require C-UAS coverage that does not cut their own Intelligence Surveillance Reconnaissance (ISR) feeds or disrupt friendly Command and Control (C2). The pragmatic answer remains a layered architecture. Handheld jammers and vehicle-mounted modules counter short-range, line-of-sight threats, while directed-energy systems engage above small-arms trajectories. Fire units feed a Common Operational Picture (COP) and, at sea, a Recognized Maritime Picture (RMP), so deconfliction becomes routine and friendly communications remain intact while denying the adversary information. The operational effect is attrition of the attacker’s drone stock, protection of depots and critical points, and preservation of maneuver tempo. Constraints persist, notably laser power requirements, weather sensitivity, and the need for rapid software updates as hostile waveforms evolve.

ABC relays the International Institute for Strategic Studies' estimate of global defense spending at 3.8 trillion dollars in 2024 and recalls European concern after the September 10 drone incursions over Poland. Whether introducing Australian C-UAS at the front, sharing NSM launcher production, or opening factories in Newcastle and Adelaide, the supply chain is reorganizing for redundancy and surge capacity. For Europe, the immediate effect is protection of air bases, ammunition depots, and urban infrastructure against low-cost platforms; for Australia, it is a durable place in allied rearmament and a deepening of its BITD. The broader effect is political. As counter-drone, laser, and missile programs mature, alliance planning becomes more distributed and partners consolidate options that sustain the war effort while mitigating shocks to any single node.