Even with military drones responsible for most of the frontline casualties in Ukraine and Russia’s unmanned aerial vehicles encroaching on European airspace, the head of Germany’s most valuable defense firm is warning this disruptive technology “could be a big bubble.”
Rheinmetall AG Chief Executive Officer Armin Papperger may have a point about the tricky economics of building ultra-low cost UAVs at scale and the potential of counter-drone technologies to blunt their impact. But incumbent military contractors like Rheinmetall face stiff competition from startups to secure lucrative defense contracts. There’s a lot riding on whether drones are central to future warfare, or overhyped.