European defense industry giant CEO warns: The military drone market is very likely just the next giant bubble.

On September 12th, Eastern Time, according to The Wall Street Journal, Rheinmetall CEO Armin Pappert said that the military drone manufacturing business may be the biggest bubble in the defense industry. Military drones have played a crucial role in the Ukraine war, prompting companies like Lockheed Martin, Anduril, and many other defense startups to enter the industry with ambitious expansion plans. Pappert is the first industry giant to publicly question this market. Rheinmetall, under his leadership, has been the fastest growing defense giant in global market value in recent years. In a recent interview, Pappert said, "The military drone market is likely just the next giant bubble." He pointed out that the lack of drone orders from governments makes it difficult for companies to be confident in achieving the goal of 1 billion in drone sales by 2030. Rheinmetall expects drone business revenue to be between 120 million and 140 million this year. Pappert explained, "The prices of short-range military drones are low, and profitability can only be achieved through large-scale production. To achieve 1 billion in sales, you must produce a huge number of drones, but countries do not need tens of thousands of drones." He also mentioned that drone prices are dropping rapidly, with most short-range drones now priced at around 1,000 and long-range drones at around 2,500. Additionally, the rapid development of anti-drone technology has greatly weakened the effectiveness of drones on the battlefield.