Unmanned aerial systems (UAS), commonly referred to as drones, have evolved from niche tools into critical assets for modern defence. Today, drones are reshaping surveillance, reconnaissance and strike missions. At the same time, they are becoming increasingly autonomous and networked platforms, integrating AI-driven target recognition and operating as part of broader defence systems. As their role expands, the Nordic region finds itself at the intersection of technological capability, strategic necessity and uniquely demanding operating environments.
The new brainpower behind drones: AI and connectivity
The Nordic drone R&D ecosystem has advanced significantly in recent years. Modern platforms are now increasingly defined by software rather than hardware alone. AI-based solutions enable autonomous navigation, real-time threat detection and adaptive mission planning, transforming drones from passive sensors into active, collaborative systems.
Connectivity is another critical enabler. Secure communications, mesh networking and edge computing allow drones to share data and operate as integrated elements within a wider defence architecture. This shift towards networked autonomous systems is essential for future multi-domain operations.
Reducing supply chain dependencies
Despite these advances, the global drone industry faces a strategic vulnerability: a heavy reliance on Chinese components and materials. China currently dominates the commercial drone market and controls critical inputs such as rare-earth magnets, lithium-ion cells and carbon fibre. For the NATO-aligned Nordic countries, this dependency presents a clear supply chain security risk.
Mitigation strategies include reshoring production, diversifying suppliers within trusted regions and investing in material sovereignty and innovation in semiconductors, batteries and propulsion systems. European initiatives, such as the European Defence Fund (EDF), aim to accelerate this shift.
Snow-how as a strategic asset
The Nordics also offer unique advantages for drone testing in Arctic conditions. Nordic test environments include critical conditions for defence applications, where icing, extreme cold and limited visibility can severely impact performance. This “snow-how” is a strategic asset that sets the Nordic region apart.
War as a lab: what Ukraine teaches the drone industry
The war in Ukraine has accelerated drone innovation at an unprecedented pace. Ukraine has become a real-world proving ground for unmanned systems, offering insights that cannot be replicated through testing alone. Lessons learned include resilience against electronic warfare, rapid iteration cycles, counter-drone techniques and the operational value of low-cost, attritable platforms.
Closing the gap: true swarming as the next frontier
While individual drones have proven their value, the next transformative leap lies in true swarming. This goes far beyond formation flying or operating large numbers of units simultaneously. Swarms consist of coordinated groups of drones functioning as a single networked system, offering scalability, resilience and significant tactical advantages.
The development of swarms is primarily a software challenge, requiring robust distributed algorithms, predictable system behaviour, edge-based AI and secure communications. Current R&D at VTT and other institutions focuses on areas such as distributed control, concepts of operations, human-swarm interaction and deployment across varied operational environments. VTT has also recently developed intellectual property in this domain, reflecting ongoing efforts to advance foundational swarm technologies.
Although some commercial actors claim to have fully operational drone swarms today, true swarming capabilities have yet to be realised. Closing this gap is urgent. The ability to deploy dozens or even hundreds of semi-autonomous drones will fundamentally reshape future deterrence and combat strategies.
The future is being built now
Drone R&D today is about laying the foundation for resilient systems, increasing levels of autonomy and preparing for swarm-enabled operations. For Nordic defence stakeholders, the priorities are clear: secure supply chains, leverage regional test infrastructures and engage in collaborative European innovation – including with Ukraine – to remain competitive in this rapidly evolving domain.