#DECEMBER2025 NEWSWIRE

Rheinmetall Awarded $1B Netherlands Skyranger 30 Deal

Rheinmetall, the German defence prime, announced a €1 billion contract with the Kingdom of the Netherlands to procure and integrate the Skyranger 30 air defence system for counter-UAS and traditional air defence roles. The contract is among the largest NATO counter-UAS procurements in history and signals significant European commitment to air defence modernization.

The Skyranger 30 is a modular air defence platform featuring a 30mm cannon, radar, optical tracking, and integrated command and control. Rheinmetall's configuration for counter-UAS emphasizes rapid tracking and engagement of small unmanned aircraft, with engagement rates and accuracy optimized for drone-class targets.

The Netherlands contract includes procurement of 18 systems, training, spare parts support, and through-life logistics over a 15-year period. Initial deployments are scheduled for 2026, with full operational capability by 2027.

The deal signals Rheinmetall's market positioning: as a European alternative to American-sourced C-UAS (RTX LIDS, Raytheon air defence). For NATO allies, Rheinmetall offers security of supply, NATO interoperability, and integration with European air defence architectures. The contract demonstrates that European air defence primes can compete with American incumbents for major NATO procurement.

AeroVironment $874M IDIQ Executes Significant Task Orders

AeroVironment is executing substantial task orders under its $874 million five-year IDIQ contract for tactical counter-UAS systems. In December, the company announced new orders totaling $65 million from Pacific Command and Special Operations Command Central, for procurement of Switchblade loitering munitions and tactical integration support.

The rapid execution of the IDIQ indicates strong demand from field commanders for AeroVironment's tactical counter-UAS capability. Field units are experiencing near-peer unmanned aircraft threats and are prioritizing rapid procurement over lengthy formal acquisition cycles.

AeroVironment's success with the IDIQ validates the market preference for tactical, near-peer counter-UAS solutions that differ from the LIDS infrastructure-focused architecture. The company is positioned as the primary alternative to RTX for tactical air defence and counter-UAS roles.

Ondas/Sentrycs Announce Second $8.2M Airport Contract ($16.4M Total)

Ondas Holdings and Sentrycs announced execution of a second $8.2 million contract for airport counter-UAS systems, bringing their total recent airport contract value to $16.4 million. The two contracts cover RF detection deployment and operational integration at four major airports across Europe.

The rapid success in the airport market signals strong demand for specialized, airport-optimized counter-UAS solutions. Airports are prioritizing procurement following October 2025 incidences and regulatory pressure to demonstrate counter-UAS capability.

Ondas/Sentrycs' success also demonstrates that pure-play detection vendors can compete effectively against defence primes in commercial and civilian segments. The airport market is less constrained by military procurement regulations and more focused on cost, integration simplicity, and rapid deployment than defence ministry acquisition processes.

December Procurement Surge: $1B+ in C-UAS Contracts

December 2025 saw extraordinary procurement activity. In addition to the major contracts noted above (Rheinmetall $1B, Ondas/Sentrycs $8.2M), additional contracts and awards included:

• U.S. Department of Defense: $340 million in counter-UAS supply orders under LIDS, AeroVironment, and other standing contracts
• European Defence Spending: $250–$300 million across multiple nations for C-UAS procurement and integration
• U.S. Civilian Infrastructure: $150+ million in FEMA-funded airport and critical infrastructure procurements
• International Orders: $200+ million in exports to allied nations (Canada, Australia, Nordic countries)

Total December 2025 C-UAS procurement exceeded $1 billion globally—higher than any previous month on record.

This surge reflects the cumulative effect of legislation (SAFER SKIES), funding (FEMA $250M), and operational pressure (October 2025 airport incidents). Procurement budgets that were previously allocated to other priorities have been redirected to counter-UAS.

Industry analysts expect that procurement velocity will moderate in early 2026 but remain elevated. The long-term structural demand for counter-UAS is solid.

FCC Adds Foreign-Made Drones to Covered List

The U.S. Federal Communications Commission, on December 22, 2025, published an updated list of foreign-made unmanned aircraft deemed security risks to U.S. critical infrastructure. The "Covered List" includes dozens of commercial drone models manufactured in China, Russia, Iran, and other strategic competitors.

The regulatory action makes procurement of these drone models by U.S. federal agencies illegal and encourages state and local agencies to adopt the same restrictions. The Covered List includes popular platforms: DJI Avata, DJI Air 3, Parrot Anafi, and others.

The regulatory action is significant for counter-UAS vendors because it creates legal clarity around adversarial drone proliferation. Drones on the Covered List are presumed to represent foreign intelligence collection or covert surveillance threats. This shifts procurement and operational decision-making for C-UAS from threat assessment to rule-based blocking.

For Dedrone, DroneShield, and other RF identification vendors, FCC Covered List integration into detection software is now essential. These vendors must be able to identify covered drones in real-time and flag them for immediate response.

JIATF-401 Reaches 100-Day Milestone

The Joint Inter-Agency Task Force on Counter-UAS (JIATF-401), established in September 2025, reached its 100-day milestone in early December with a summit at MacDill Air Force Base, Florida. The task force brings together representatives from DoD, law enforcement, intelligence, FAA, and civilian agencies to coordinate U.S. counter-UAS strategy and operations.

The 100-day summit included participation from 200+ subject matter experts representing 50+ agencies. Topics included: - International Coordination: Information sharing on transnational drone threats and joint operations - Technology Roadmap: Assessment of counter-UAS technology development and procurement priorities - Regulatory Harmonization: Alignment of counter-UAS regulations across federal, state, and local authorities - Threat Assessment: Evaluation of evolving drone threats, including near-peer systems and criminal applications

JIATF-401 released an unclassified summary noting that counter-UAS is now considered a national security priority equivalent to cyber defence. The task force recommended sustained investment in detection technology, training, and operational procedures across all government levels.

The establishment and 100-day milestone of JIATF-401 signals that U.S. government counter-UAS is moving from tactical/operational focus to strategic, inter-agency coordination. This institutional maturation is expected to accelerate procurement and drive adoption of standardized procedures.

FEMA Distributes $250M World Cup Grants

The Federal Emergency Management Agency completed distribution of $250 million in grants for counter-UAS and related security capability at World Cup 2026 venues, supporting infrastructure, and critical facilities. The grants were distributed to state governments and stadium operators, enabling deployment of detection systems, training, and operational procedures before the tournament.

World Cup 2026 will be held in North America (U.S., Canada, Mexico) with 16 venues across three nations. All major venues will have counter-UAS detection capability deployed by tournament start in June 2026.

FEMA's investment in World Cup security has a secondary effect: demonstration of counter-UAS capability at major events will generate operational lessons learned, training templates, and best practices applicable to other critical infrastructure. Post-World Cup, these lessons will inform airport, power plant, and water utility counter-UAS deployment more broadly.

Project FlyTrap 4.5: NATO Exercise Germany

NATO conducted Exercise FlyTrap 4.5 in December, a joint counter-UAS exercise held in Germany involving participants from 12 NATO nations. The exercise tested integration of air defence systems, counter-UAS sensors, and engagement platforms across multinational forces.

FlyTrap 4.5 included participation from RTX (LIDS), Rheinmetall (Skyranger), Leonardo, Kongsberg, and other major NATO air defence contractors. The exercise simulated contested airspace with small unmanned aircraft and near-peer aerial threats.

Results remain largely classified, but unclassified reporting indicates successful integration of national air defence systems, real-time information sharing across multinational architectures, and validated engagement procedures for small unmanned aircraft. The exercise validated that NATO air defence can be adapted for counter-UAS roles without major architectural changes.

FlyTrap 4.5 also served as a de facto military parade for counter-UAS vendors. Major procurers from participating nations observed system performance and integration, informing future procurement decisions. NATO air defence procurement is expected to shift toward platforms with documented counter-UAS capability.

U.S. Army Certifies Rapid Anti-Drone Response Team

The U.S. Army Rapid Anti-Drone Response Team (RADRT) achieved full operational certification in December. RADRT is a rapidly-deployable, multi-service counter-UAS capability designed for tactical deployment in contested environments and forward-positioned threats.

RADRT packages RF detection, optical targeting, and engagement coordination into a field-portable, 12-person element capable of deployment by helicopter or ground transport. The team can establish operational counter-UAS capability at a remote location within 6 hours of deployment.

The certification of RADRT signals Army intent to embed counter-UAS into tactical operations at battalion level and below. Historically, counter-UAS has been a higher-echelon (brigade and above) capability. RADRT's certification opens counter-UAS availability to company and platoon-level commanders.

RADRT is expected to be deployed in 2026 to forward-positioned units in Europe and the Pacific, providing rapid counter-UAS response to emerging threats.

Commercial Drone Manufacturers Respond to Regulations

Major commercial drone manufacturers (DJI, Parrot, others) issued statements in December regarding FCC Covered List designations and international regulatory restrictions. The manufacturers emphasized:

1. Geo-fencing: Drones geofence certain countries and regions to comply with local regulations
2. Data Privacy: Commercial drones do not transmit user data externally; all processing occurs on-device
3. Civilian Benefits: Drones support construction, agriculture, search-and-rescue, and other civilian applications and should not be categorized as security threats

The manufacturer statements are partly defensive response to regulatory pressure. However, they also signal that major commercial manufacturers are adapting operations to regulatory constraints. This adaptation will likely reduce foreign regulatory barriers to commercial drone deployment in Western markets.

Industry Trends and Outlook

December 2025 crystallized several strategic trends:

European Air Defence Modernization: Rheinmetall's $1B Netherlands deal signals that European air defence primes are gaining market share. NATO procurement is shifting toward multi-source, interoperable architectures rather than single-vendor dominance.

Tactical C-UAS Maturation: AeroVironment's IDIQ execution and Army RADRT certification signal that tactical counter-UAS is moving from niche to standard. Division and brigade-level commanders now expect counter-UAS capability.

Civilian/Commercial Market Acceleration: Airport, FEMA, and World Cup procurement demonstrates that commercial counter-UAS is scaling faster than military. Pure-play detection vendors (Dedrone, Sentrycs) are competing effectively against defence primes.

Strategic and Institutional Focus: JIATF-401 100-day milestone and NATO FlyTrap 4.5 exercise signal institutional maturation. Counter-UAS is no longer a tactical ad-hoc response; it is a strategic priority with inter-agency coordination and international alignment.

Supply Chain Consolidation: December's $1B+ procurement surge suggests that smaller vendors will face acquisition pressure. Major defence primes (RTX, Rheinmetall, Leonardo) and well-funded commercial startups (Anduril, Sentrycs) will consolidate market share.

The December 2025 newswire reflects a market in rapid maturation: from emerging capability to enterprise-scale deployment across military, tactical, civilian, and commercial segments. Procurement velocity is accelerating, and competitive dynamics are shifting toward pure-play specialists and well-capitalized players capable of scaling rapidly.

Looking forward to 2026: expect continued high procurement velocity, further market consolidation as larger players acquire leading smaller vendors, and increasing focus on non-kinetic and commercial-compatible counter-UAS capability. The market that was niche in 2023 is mainstream in 2026 and is expected to approach $3–5 billion annually by 2028.

Related Reading

• Sentrycs
• Rheinmetall
• FCC Covered List