There is no good time to be hit by a missile. The case of Aero Sentinel, however, is an extraordinary one. In April, a few days after American company Veloryx acquired 70% of the company for NIS 35 million, an Iranian missile hit its plant in Petah Tikva and completely destroyed it. Four months later, Aero Sentinel moved to Tel Aviv. Now it wants to become the first Israeli mass producer of intelligence-gathering drones, and to put an end to the use of Chinese products by IDF ground forces.
Chinese giant DJI controls 80% of the global drone market for both defense and civilian uses. Chinese companies have a better starting point than any Western company because the Chinese government is subsidizing 100% of export logistics costs of Chinese companies until 2027 and 40% of the cost of the exported goods.
The Chinese government also pays 15% of all import duties levied on exported Chinese goods at their destination.
The benefit that China derives from this policy alarms the West. Chinese law states that every technology company must provide access to the complete data on every exported product. The UK recently fell victim to this policy; "The Daily Telegraph" reported that a British K3 Scout unmanned vessel had broadcast data to an IP address in China via Chinese cameras purchased by a technology company.
Huge production costs gap
Aero Sentinel's shift to mass production is projected to reduce the unit cost of a drone from $30,000 to $20,000-$25,000. American drones, including those made by Skydio and Anduril Industries, are priced at $50,000 each, and those of French company Parrot at $35,000-$40,000.
In the case of China, the gaps are extreme. EVO drones manufactured by Autel Robotics, many thousands of which have been procured by the IDF, are priced at $10,000-$15,000 each. Bearing in mind the incident in the UK and the extent of the use of EVOs by the IDF, there is no knowing how much data must be reaching Chinese servers.
"The ability to manufacture advanced defense systems in Israel is a strategic necessity, especially drones, which have become a critical element in the success of defensive and offensive missions," Aero Sentinel chief marketing officer Ofir Avram told "Globes." "Our goal is to supply reliable systems at a fair price that can be integrated into existing operational systems and deployed as a real force multiplier, while reinforcing Israel's industrial independence and reducing its dependence on external suppliers, which is liable to become an Achilles’ heel in a geopolitical crisis or an emergency."
1,000 Drones a Year
The shift to mass production, which lowers the unit cost of Aero Sentinel's drones, is made possible by injection-molding machines. The company's drones are currently assembled manually, which limits peak production to 30 a month. This rate can be increased to 100-150 units a month with the new machinery.
In November, Aero Sentinel will launch a new drone that is proof against GPS problems, using vision-based geopositioning. Its location is determined by means of a camera, photographs, and visual intelligence. The product will incorporate a new camera purchased from NextVision Stabilized Systems, the hottest public company in Israel’s defense industry, which will upgrade the drones' capabilities. According to Aero Sentinel, fewer than 5% of the components in its products are Chinese.
Relations between NextVision and Aero Sentinel are reciprocal and close. When the public company wants to demonstrate its products to its customers, it does so using Aero Sentinel's drones.
Aero Sentinel's drones have always had one feature that is very attractive to customers: their operational duration of 80-90 minutes, double that of most competing products. As a result of this feature, half of the company's sales are made overseas to customers such as the Netherlands, Morocco, and Japan. Aero Sentinel's target is 1,000 drones a year by 2029.
Focus on Europe
Meanwhile, in the local arena, Aero Sentinel's drones are being used by both special IDF units and Israel Police for intelligence-gathering missions and spraying tear gas. Aero Sentinel wants to sell to the IDF ground forces, thereby increasing its domestic sales to hundreds of drones, instead of dozens, as at present. The company's overseas focus is on Europe, particularly Eastern Europe, where countries see the Russian army's use of Chinese drones and are looking for an alternative.
Aero Sentinel works with distributors, mainly in Eastern Europe, with the idea that if it obtains a substantial order, for example dozens of units, it will be able to move a production line to the relevant country. The company currently has local partnerships with representatives in countries such as Poland, Romania, Italy, and Greece.
Published by Globes, Israel business news - en.globes.co.il - on August 16, 2026.
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