Leonardo and Baykar Form JV for UAVs, Targeting $100 Billion European Market

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Leonardo-Baykar Sign MoU, JV Will Target $100 Billion EU Drone Market: Rome, Italy – Leonardo and Baykar Technologies have announced a strategic partnership, formalized through a Memorandum of Understanding (MoU), to establish a Joint Venture dedicated to the development and production of unmanned aerial systems (UAS). The collaboration signals a significant move in the rapidly evolving landscape of defense technology, with a particular focus on the lucrative European market.

The agreement, signed on March 6, 2025, is built upon the strong industrial synergies and complementary capabilities of the two companies. Baykar brings to the table its industry-leading unmanned platforms, which have demonstrated operational effectiveness across various global markets. Leonardo contributes its expertise in mission systems, payload design, and the complex process of aerospace certification within the European Union.

The Joint Venture, to be based in Italy, will encompass the design, development, production, and maintenance of a wide range of unmanned aerial systems. The partnership aims to capitalize on the projected $100 billion European market for unmanned technologies over the next decade, which includes unmanned fighters, armed surveillance drones, and deep strike drones.

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Leonardo-Baykar Tech form JV for UAVs, Drones.

Leonardo-Baykar Tech form JV for UAVs, Drones.

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Both Leonardo and Baykar are already deeply involved in the development and production of UAVs, electronic systems, payloads, C4I (Command, Control, Communications, Computers, and Intelligence), Artificial Intelligence, integrated mission systems, space equipment, and services. The new partnership will ensure seamless interoperability within multi-domain ecosystems, enabling the companies to offer comprehensive solutions to their clients.

The collaboration will also extend beyond aerial systems, with both companies seeking to leverage additional synergies in the space sector. The partnership aims to jointly pursue opportunities in both the European and international markets, capitalizing on the combined strengths of the two companies.

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Baykar Technologies' Bayraktar KIZILELMA System.

Baykar Technologies’ Bayraktar KIZILELMA System.

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“With Baykar,” stated Roberto Cingolani, CEO and General Manager of Leonardo, “we are creating a new reference player in unmanned technologies, which will play an increasingly central role in the future of Defense. Today, we are signing a new international alliance that marks a significant leap forward in unmanned systems, opening up new market opportunities, particularly in Europe. The defense industry is facing unprecedented challenges, such as unmanned systems, artificial intelligence, sixth-generation fighters, cybersecurity, and space. In this context, we are convinced that technological cooperation is both necessary and urgent to accelerate progress and ensure global security.”

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Selçuk Bayraktar, Chairman and CTO of Baykar, echoed this sentiment, saying, “As the global leader in armed UAV development, production, and export in the world, Baykar has always focused on pushing the boundaries of innovation in unmanned aviation. Leonardo’s globally renowned capability in C4I systems and its advanced AI technology backbone make this collaboration even more impactful. This strategic partnership with Leonardo marks a significant milestone in expanding our technological footprint and strengthening our presence in the world. Baykar will combine ethical AI-driven technologies together with Leonardo’s immense capability in the AI technologies to develop next-generation solutions that will define the future of unmanned aerial systems. Together, this synergy will bring ultimate AI-driven air supremacy for the future.”

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Baykar Technologies' Bayraktar TB3 System.

Baykar Technologies’ Bayraktar TB3 System.

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The Leonardo sites involved in the activities developed by the Joint Venture will be those in Ronchi dei Legionari (Friuli), a specialist center in the unmanned sector; Torino (Piedmont) and Roma Tiburtina, respectively for production aspects and the development of integrated multi-domain technologies; and Nerviano (Lombardy) for the joint solutions offered for the space sector. This strategic alliance between Leonardo and Baykar is poised to reshape the unmanned technologies landscape, particularly within the European defense market.

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