The European drone technology landscape is soaring to new heights with the recent merger of HHLA Sky and Third Element Aviation. This strategic alliance combines the strengths of two innovative companies, positioning the newly formed HHLA Sky as a dominant European provider of integrated drone solutions and setting new standards for automation and networking of drone systems.
A New Powerhouse in European Drone Tech
The merger integrates HHLA Sky’s award-winning mobile robot management software and portfolio with Third Element Aviation’s advanced drone technology. The company will continue to operate under the name HHLA Sky. This unified approach allows for the simultaneous, safe, and secure control of multiple automated drone and robot operations beyond visual line of sight (BVLOS) from a single control hub.
Wiebke Kropp-Büttner and Matthias Gronstedt, Managing Directors of HHLA Sky, stated, “By merging our expertise, we are strengthening Europe’s leadership in automated drone technology. Together, we are setting the standard in automation and drone network integration, which is critical given the increasing global competition in this field”.
The Key Players
HHLA Sky
HHLA Sky, a subsidiary of Hamburger Hafen und Logistik AG (HHLA), has established itself as a global leader in developing scalable drone and mobile robot management systems. Their solutions integrate drones into business operations and provide efficient UAS traffic management (UTM) in lower airspace (U-Space), ensuring safe coordination with manned aviation. The company’s Integrated Control Center (ICC) is an open system platform for managing mobile robots. Certified with the IEC 62443 Cybersecurity standard, the ICC enables the remote operation (BVLOS) of over 100 automated drones and mobile robots simultaneously.
HHLA Sky offers a comprehensive portfolio of industrial drones, including:
- X11: A versatile hexacopter designed as an instrument platform but also capable of short-range cargo transport.
- X25: An octocopter ideal for “last mile” logistics, with a range of up to 25 kilometers and a payload capacity of up to 10 kilograms.
- Capra Hircus: A mobile multi-purpose robot serving as a ground-based complement to HHLA Sky’s drone program.
Third Element Aviation
Founded in Bielefeld, Germany, in 2017 by Benjamin Wiens and Marius Schröder, Third Element Aviation has become a leading force in B2B drone technology. The company develops automated drone solutions for industrial and governmental use. Third Element Aviation is known for its expertise in regulatory compliance for commercial drone flights, particularly in securing operating permits for automated drone operations over residential and industrial areas under SAIL III standards.
Third Element Aviation’s portfolio includes:
- ConVecDro: The first member of their drone family, featuring internal space for control electronics and batteries, and a cover plate for mounting various payloads.
- Auriol: A drone with high payload capacity, suitable for inspection, logistics, and security applications.
- CarryAir VTOL: A vertical take-off and landing (VTOL) drone with a take-off weight of up to 25 kg and a speed of up to 100 km/h, with a range of up to 220 km.
- Capra Rover: A multifunctional driving rover with a specially designed chassis for navigating uneven terrain and stairs.
Revolutionizing Industries with Drone Technology
Drones are revolutionizing various industries across Europe, offering solutions for:
- Logistics and Transportation: Drones are being used for package delivery, the swift transport of specialized tools and spare parts, and enhancing access to remote locations. Germany’s first commercial drone logistics service, launched in partnership with HHLA Sky and the Koerschulte Group, enables the efficient transport of goods over residential and industrial areas.
- Infrastructure Inspection: Drones equipped with high-resolution cameras and sensors are used for inspecting infrastructure such as roads, railways, bridges, power lines, and wind turbines. HHLA Sky uses Sony Alpha 7R cameras on its automated drones for crane safety inspections in the Port of Hamburg, improving efficiency and results.
- Agriculture: Drones are employed in precision agriculture for crop monitoring, pest detection, and optimizing irrigation and fertilization.
- Security and Surveillance: Drones provide real-time data for surveillance and reconnaissance, enhancing situational awareness and reducing risk in security operations.
- Emergency Services: Drones are used in search and rescue operations, disaster relief, and delivering essential provisions to remote areas.
- Environmental Monitoring: Drones collect real-time data for environmental monitoring, facilitating conservation efforts and climate resilience.
The European Drone Market: A Skyrocketing Trajectory
The European drone market is experiencing significant growth, driven by technological advancements, increasing adoption across various sectors, and evolving regulations.
- The European drone market was valued at €7.32 billion in 2025 and is projected to reach US$ 36,337.3 million by 2030.
- The market is expected to grow at a compound annual growth rate (CAGR) of 13.4% from 2025 to 2030.
- The commercial drones market in Europe is expected to witness a CAGR of 11.8% during the forecast period (2024-2031).
Key factors driving this growth include:
- Technological Advancements: Improvements in drone stability, flight times, camera technology, and autonomous flight capabilities.
- Increasing Adoption: Growing use of drones in construction, agriculture, energy, and other sectors.
- Evolving Regulations: Positive developments in drone regulations across European countries, fostering greater acceptance and use.
- Cost-Effectiveness: Drones offer cost-effective alternatives to traditional methods in surveying, inspection, and other applications.
- EU Funding and Initiatives: The European Union offers funding mechanisms like Horizon Europe and the LIFE Program to stimulate innovation and incentivize sustainable drone use. The European Drone Strategy 2.0 recognizes drones as a key driver of innovation and economic growth.
Challenges and Opportunities
While the European drone market presents significant opportunities, it also faces certain challenges:
- Data Security and Privacy: Concerns over data security and privacy, particularly regarding the use of drones for surveillance.
- Stringent Regulations: Strict regulations in some European countries can limit operations and increase costs.
- Public Acceptance: Addressing public concerns and ensuring responsible and ethical usage of drones.
Despite these challenges, the overall outlook for the European drone market remains positive. The merger of HHLA Sky and Third Element Aviation exemplifies the industry’s potential for innovation and growth. By combining their expertise and resources, the new HHLA Sky is poised to lead the way in developing and deploying advanced drone solutions that address the evolving needs of various industries and contribute to a more sustainable and efficient future.
The Future of Drones in Europe
The European drone sector is expected to undergo significant transformation in the coming years, with advancements in technology, evolving regulations, and increasing adoption across various industries.
- U-Space Implementation: The development and implementation of U-Space, Europe’s UAS Traffic Management (UTM) system, will enable the safe and efficient integration of drones into European airspace.
- Focus on Sustainability: The European Green Deal emphasizes the importance of drones in achieving sustainability goals, particularly in transportation and environmental monitoring.
- Growth in Urban Air Mobility: The emergence of electric Vertical Take-Off and Landing (eVTOL) vehicles and “flying taxis” will revolutionize urban mobility and logistics.
- AI and Automation: Increased use of artificial intelligence (AI) and automation in drone operations, enabling more complex and autonomous missions.
- Customized Solutions: A trend toward tailored drone solutions that address specific sector requirements, leading to a dynamic and varied market.
The merger of HHLA Sky and Third Element Aviation marks a significant milestone in the European drone industry. As the market continues to evolve, companies that can offer integrated, innovative, and sustainable drone solutions will be well-positioned for success. With its combined expertise and cutting-edge technology, HHLA Sky is ready to lead the charge in shaping the future of drones in Europe and beyond.
