Image credit: Messe Düsseldorf / ctillmann
The European Drone Forum 2025, held at XPONENTIAL Europe in Düsseldorf, brought together industry leaders to discuss the challenges and opportunities facing the drone and autonomous mobility sectors.
While technological advancements are accelerating, slow regulatory approvals and financial constraints are stifling commercial growth, forcing many companies to shift their focus towards government and military markets.
Benjamin Spiske, one of the hosts of the European Drone Forum, told Zag Daily: “Xponential and European Drone Forum was a strong industry gathering, bringing together key players across uncrewed systems and AAM. One of the biggest takeaways was the continued push for harmonization between regulatory frameworks—especially as FAA, EASA, and other global authorities work toward scalable, safe integration.”
He added that there was also a clear focus on infrastructure readiness, with discussions on vertiports, airspace management, which will significantly impact UAM operations in Europe and the U.S.
Regulatory deadlock stalls commercial progress
A major discussion point was the slow pace of regulatory approvals. Kay Wackwitz, CEO of global drone market research platform Drone Industry Insights, explained that these regulatory hurdles, combined with limited civil funding, are pushing companies toward the defence sector.
“One thing that was very obvious is the tendency to serve the governmental/dual-use sector more strongly,” Wackwitz told Zag Daily. “This may be due to the difficulty of acquiring civil funding, combined with the huge market opportunity on the military side currently. Germany’s defence budget alone was €90.6 billion in 2024.”
Georgia-based air taxi manufacturer Archer Aviation has demonstrated the lucrative advantages of pivoting into the defence space.
Archer launched its defence division in December 2024, unveiling plans for a hybrid-propulsion VTOL aircraft aimed at military applications.
The company’s new defence focus earned it a $300 million investment from BlackRock, bringing total liquidity to a record $1 billion.
CEO Adam Goldstein recently highlighted the unexpectedly large market potential for vertical lift aircraft in defence.
“I believe the opportunity for advanced vertical lift aircraft across defence appears to be substantially larger than I originally expected. As a result, we are raising additional capital to help us invest in critical capabilities like composites and batteries to help enable us to capture this opportunity and more,” he said.
Digital solutions and infrastructure gaps
The integration of Advanced Air Mobility (AAM) into urban environments was another key topic. Experts stressed the need for digital solutions, infrastructure advancements, and public trust to enable large-scale deployment.
Rasha Alshami, CEO of LYNEPorts, an AAM planning software company, highlighted how AI-driven data could improve planning and accelerate regulatory processes.
“Machine-learned data can help optimise aerodrome locations and networks, allowing stakeholders to make smarter, faster decisions,” Alshami said. “Digitisation can also speed up regulatory processes, boost innovation, and make it easier and safer to integrate AAM into urban environments.”
For AAM to succeed, improvements in propulsion technology and refuelling infrastructure are crucial. Freshta Farzam, CEO of eVTOL manufacturer LYTE Aviation, stressed the need for hydrogen and battery-based systems to support widespread adoption.
She also called for stronger collaboration between stakeholders, arguing that regulators, manufacturers, insurers, and customers must align to drive progress.
