This story was produced by our colleagues at the BBC.

High-flying and high-tech, the very latest in drone technology took to the skies over an airfield near the Danish city of Odense.

At the International Drone Show, 50 exhibitors showed off their wares. And because more money is flowing into military budgets, the emphasis was on defense.

Danish company Quadsat makes drones with satellite reading software. Besides civilian uses, the devices can also identify enemy radar.

"Over the years, we have seen an increasing interest from the defense side, no doubt about that, and that's also where we have a lot of work currently being carried out," said Klaus Aude, Quadsat’s chief commercial officer.

Leaders of the NATO military alliance have agreed to ramp up defense spending to 5% of their countries' economic output by 2035, following months of pressure from President Donald Trump.

Nordic countries have already committed to bigger budgets. Among them, NATO’s newest members Finland and Sweden, as well as long time members Norway and Denmark.

As Europe races to re-arm, drones are a sought-after technology. One estimate suggests the global market for defense drones is already worth over $24 billion, and could double by 2032.

"The Nordics have always been very strong in drone adoption, drone development," said Kay Wackwitz, chief executive of Drone Industry Insights.

"You can definitely see that those countries that have borders with Russia are really stocking up on those technologies. The commercial market is now struggling for its fourth year in a row with declining venture capital,” added Wackwitz. “And on the other side, we see a huge demand on the military end of things, which means a lot of companies are refocusing from the commercial space to the military space."

In June, low-cost Ukrainian drones carried out an audacious mission, destroying dozens of prized Russian fighter jets in a conflict that’s reshaped modern warfare.

North of Copenhagen in a hangar, Danish firm Nordic Wing makes drones used for battlefield surveillance and combat. Its customers are NATO countries, but they are largely destined for Ukraine, where “there was a huge need and a calling to have these systems helping on the front lines,” said Jonas Münster, CEO of Nordic Wing. “And therefore, the production went into overdrive. Now we have a European Union that is looking into what we've learned in Ukraine and realizing that we don't have a drone capability in Europe."

With a 2,000-square-kilometer flying zone, the drone port in Odense has grown into a hub for tech startups. Next year, military personnel will also be training there at a new $110 million army facility.

"Some militaries have actually made a shift from saying ‘every soldier is a rifleman,’ to ‘everyone is going to be a drone operator at some level,’” said Major Rasmus Ros, who’s part of Denmark’s Defense Command. “We're going to have drone operators in the whole joint military of Denmark. They can come here, get their basic training, share ideas and technology development, and then go back to their units and further develop that."

But not everyone is so positive about this. Outside the trade fair, protestors chanted "drones for peace, not war." New geopolitical realities are reshaping this fast-paced industry. And as this technology advances, ethical and regulatory concerns over the use of AI to pilot drones are also being raised.

Jessica Steinberg

The AI-powered Podcast Player