Although Europe began laying the regulatory foundation for advanced drone operations in 2019 with its flagship EU Drone Strategy 2.0, the full realization of the European drone industry will require renewed strategy and commitment at a national level from individual European members, according to the latest report by EY.
Download Building a national drone industry: Lessons from Denmark
Denmark: a national case study
Denmark is Europe’s most innovative economy, according to the European Innovation Scoreboard [1], and its emerging drone industry stands at a formative and interesting juncture in 2024. Denmark’s first national drone strategy in 2016 spawned a range of innovative projects and, notably, further developed its 1900 km2 UAS Denmark Test Center based at Hans Christian Andersen Airport in Odense, which is now one of Europe’s leading drone testing facilities.
Drone operations and technology have matured considerably since 2016 and have outgrown their initial technological awkwardness. The modern drone is a technological marvel – a reliable, AI-enabled, user-centric roaming data platform that has applications from critical infrastructure monitoring to precision agriculture, maritime operations, and national security. Drone operators in Denmark believe the technology is ready for broader integration into commercial operations in an array of industries but feel increasingly frustrated by regulation and challenging flight application procedures.
As a result, in late 2023, Denmark began to re-examine its drone strategy at a national level, engaging key stakeholders and experts, including EY, in the process. The final version of the reviewed strategy will be finalized in mid-2024.
For these reasons, Denmark presented itself as a prime candidate for a national case study on how European members can best develop their own drone industries, considering their own unique strengths. The successes and failures of Danish drone companies, and market demand for a new national strategy, highlight key challenges faced by the drone sector across Europe. Drone operators need to navigate substantial regulatory hurdles and find sustainable business models amid a fast-changing environment. Governments cannot sit back after early successes and assume continued growth is assured.
What European members can learn from Denmark
Our case study involved interviewing over 40 stakeholders in the Danish drone ecosystem – from operators and infrastructure providers to regulators – to take a pulse on the opportunities and challenges facing the industry and suggest productive paths forward for European members.
The report analyzes in detail:
- The European context, including the most salient commercial trends that will shape drone operations in the present term in Europe (distribution, inspection, military and dual-use drones, USSPs and U-Space).
- Strategic advantages for drone operations in Denmark, including key sectors, national clusters, infrastructure, intellectual and financial capital.
- Ten examples of specific innovative projects in Denmark.
- Analysis of why drone companies succeed or fail in Denmark, following interviews with a wide range of drone operators.
In the final chapter, the report identifies six key insights that Denmark’s drone industry offers to other countries looking to foster a successful national drone ecosystem in Europe:
- Sustained growth requires national vision and commitment.
- Getting drones in the sky benefits from a positive approach.
- Effective industry connections and local regulation are necessary to create market demand.
- Building on existing strengths is a powerful national approach.
- A robust foundational infrastructure is essential for innovation.
- Inaction comes at a cost.
