Kitron Secures €16M Deal for Anti-Drone Systems Amidst Market Boom

OSLO, NORWAY – March 16, 2026 – Electronics manufacturing giant Kitron ASA has announced a significant EUR 16 million order for advanced ground station equipment, a critical component in modern Counter-Unmanned Aerial Systems (C-UAS). The contract underscores the company's growing footprint in the rapidly expanding global defense market and its key role in bolstering European security infrastructure.

The order encompasses the production and supply of ground-based command, control, and launch systems that form the backbone of a layered counter-drone architecture. Production is slated to occur at Kitron's European manufacturing facilities, with initial deliveries scheduled to begin later this year. This move highlights a strategic focus on regional production for critical defense technologies.

Fueling Ambitious Growth Targets

This latest contract is a significant milestone in Kitron's strategic plan to achieve EUR 1.5 billion in annual revenue, a long-term ambition detailed to investors in December 2025. The company, which posted EUR 738 million in revenue for 2025, views the Defence/Aerospace sector as a primary engine for this aggressive growth. Company executives have previously projected sustained growth of over 20% year-over-year in this segment for the next five years.

The EUR 16 million order adds to an already robust order backlog and reinforces investor confidence in Kitron's trajectory. This momentum is further supported by strategic acquisitions, such as the recent integration of DeltaNordic AB, which fortified the company's capabilities in specialized electronics for combat vehicles and expanded its presence in the Nordic defense market. The deal not only provides a direct revenue boost but also solidifies Kitron's reputation as a reliable, high-capacity partner for mission-critical defense projects.

“The C-UAS market is evolving at pace, and our customers need a partner who can match that speed and agility," said Mindaugas Sestokas, Vice President for Central Eastern Europe, in a statement. "This order reflects our ability to mobilise quickly — we are significantly scaling up ground station capacity to meet immediate demand — while delivering mission-critical systems without compromising on quality or reliability.”

The New Frontier of Airspace Security

The contract places Kitron at the heart of one of the fastest-growing sectors in modern defense. The global C-UAS market, valued at approximately USD 1.61 billion in 2024, is projected to surge to over USD 18 billion by 2035. This explosive growth is driven by the widespread proliferation of inexpensive yet capable drones, which pose a complex and evolving threat to military bases, critical infrastructure, and public spaces.

Recent geopolitical conflicts, particularly the war in Ukraine, have served as a stark proving ground, demonstrating the decisive impact of both drones and the systems designed to counter them. This has accelerated a shift in military and security doctrine, moving counter-drone technology from a niche interest to an essential component of any modern defense posture.

The equipment Kitron will produce—command, control, and launch systems—is the nerve center of a counter-drone strategy. These platforms integrate data from various detection sensors, such as radar, radio-frequency (RF) scanners, and electro-optical cameras, to create a comprehensive picture of the airspace. Using advanced analytics, often powered by artificial intelligence, the system identifies and tracks hostile drones, allowing operators to deploy effective countermeasures, which can range from electronic jamming and spoofing to kinetic interceptors or high-energy lasers. Kitron's role is to manufacture the highly reliable electronic hardware that makes this complex, high-speed decision-making process possible.

Bolstering European Defense and Industrial Autonomy

The decision to manufacture this critical equipment within Kitron's European facilities carries significant geopolitical weight. Amidst global supply chain disruptions and heightened security tensions, there is a strong political and strategic push across Europe for greater industrial self-reliance, particularly in the defense sector. By producing these systems locally, Kitron contributes directly to European strategic autonomy, ensuring that the continent can equip its forces without relying on external manufacturing partners for core defense capabilities.

Countries across the continent, from the United Kingdom and France to Germany and Poland, are substantially increasing their investments in C-UAS technology. Poland, in particular, has emerged as one of Europe's most dynamic defense markets, with a sharp focus on countering aerial threats. The demand is not only from military clients but also from law enforcement and operators of critical national infrastructure seeking to protect against espionage, sabotage, and terrorism.

This contract positions Kitron as a key enabler of this regional security build-up. The company's network of facilities in countries like Lithuania, Poland, and the Czech Republic, in addition to its Scandinavian base, creates a resilient and geographically distributed manufacturing footprint, enhancing supply chain security for NATO and its European partners.

A Strategic Partner in a Complex Supply Chain

While the C-UAS market is often associated with major defense primes like Thales Group or Raytheon, Kitron operates in a different but equally vital niche. As a leading Electronics Manufacturing Services (EMS) company, it functions as a strategic partner to these large system integrators and Original Equipment Manufacturers (OEMs). Its expertise lies in translating complex designs into robust, reliable, and scalable manufactured products.

Kitron's value proposition is built on its deep experience in high-complexity electronics for demanding sectors. The company's manufacturing sites hold critical certifications for the defense industry, such as AS9100, and operate under stringent security protocols. This allows them to handle sensitive projects and produce electronics that can withstand the harsh conditions of a modern battlefield.

The company's "one-company operating model," which standardizes processes and platforms across its global facilities, provides the flexibility to manage production surges and navigate complex supply chain logistics. This agility, highlighted by Sestokas, is precisely what defense clients require in a market where technological cycles are shortening and demand can spike with little warning. By providing world-class manufacturing services, Kitron allows its defense-sector clients to focus on system design, integration, and innovation, accelerating the delivery of next-generation capabilities to the front lines.

The EUR 16 million order is more than just a single business transaction; it is a clear indicator of Kitron's integral position within the European defense ecosystem, its alignment with pressing security needs, and its well-defined path toward becoming a billion-euro player in the global electronics industry.