Defense companies are accelerating development of faster interceptor drones as Russia increasingly deploys jet-powered versions of its Shahed attack drones, creating a new arms race in low-cost aerial defense, Reuters reported Tuesday from the Farnborough International Airshow.
For investors, the shift highlights growing demand for inexpensive counter-drone technology. Companies that can produce high-speed interceptors at scale could benefit as militaries seek alternatives to using costly missiles against mass-produced attack drones.
Ukrainian drone manufacturer SkyFall introduced its P1-SUN Jetkiller at the Farnborough Airshow, a higher-speed version of its existing interceptor designed to engage Russia's newer jet-powered Shahed variants. The company said the upgraded drone can reach about 370 kilometers per hour, up from roughly 310 kph for the earlier model, and plans to begin mass production in August after battlefield testing.
SkyFall said its original P1-SUN interceptor has destroyed thousands of conventional Shahed drones since late 2025, although those claims could not be independently verified.
Russia has increasingly fielded jet-powered Shahed variants, known as Geran, which can fly at speeds approaching 500 kph. The higher speeds reduce warning times for Ukrainian defenders and have exposed the limitations of many existing interceptor drones.
Other companies are pursuing similar solutions. Ukrainian manufacturer General Cherry is developing a faster version of its Bullet interceptor with a target speed exceeding 400 kph, while British-Ukrainian startup Firebolt Engineering is advancing a jet-powered Griffen interceptor and working on a new engine designed to push speeds closer to 400 kph.
Across the sector, developers face a common challenge: increasing performance without sacrificing the low production costs that have made drone-on-drone interception an increasingly attractive alternative to traditional air-defense missiles.
More on Select STOXX Europe Aerospace & Defense ETF
- EUAD: A Primer For The Select STOXX Europe Aerospace & Defense ETF
- EUAD: My Favorite ETF Strategy On Top Of Europe Defense Tailwinds
- Trakka Systems to demonstrate airborne surveillance technologies at Farnborough
- Private capital seen as key to Europe's defense expansion amid hurdles
- Seeking Alpha’s Quant Rating on Select STOXX Europe Aerospace & Defense ETF