Europe’s biggest drone factory could be built near Budapest

A Hungarian technology company based just outside Budapest is preparing to build what could become Europe’s largest civilian drone manufacturing facility, following a EUR 7 million investment round that is considered exceptional for the sector. The development shows the value of their innovative solutions and the rapidly expanding market for non-military drones.

Hungarian drone startup to receive huge boost. But what do they offer?

According to Forbes, ABZ Innovation, headquartered in Szentendre, has secured funding from an international investor consortium led by Germany’s Vsquared Ventures. The round also includes Hungary’s DayOne Capital and US-based Assembly Ventures.

The capital injection will finance a major expansion of ABZ’s production capacity, allowing the company to scale up manufacturing while staying firmly focused on civilian applications.

Founded in 2021, the company designs and produces so-called “heavy-duty action drones”, often referred to as work drones. These aircraft are capable of carrying payloads of at least five kilograms and are built for demanding professional tasks rather than hobby use.

Their devices are used across a wide range of sectors, including agriculture, industrial maintenance, logistics and film production. Depending on configuration, they can spray crops, distribute granular materials, clean building façades, transport equipment, or carry high-end camera systems.

Professional devices, not for the military

While drones have recently dominated headlines due to military use, the civilian market is expanding at remarkable speed. Lower-cost Asian manufacturers dominate consumer and hobby drones, but Europe has carved out a niche in reliable, high-performance machines designed for long-term professional use, with durability, safety and precision being increasingly decisive factors in this segment.

A key element of ABZ’s strategy is its strict commitment to civilian use. Unlike many Western manufacturers, the company has deliberately avoided developing dual-use or military-oriented drones.

Instead, it focuses exclusively on sophisticated civilian platforms designed for reliability over long operational lifecycles. According to the company’s leadership, this approach requires more complex engineering but results in products better suited to professional users.

Despite its relatively short history, ABZ Innovation has already become one of the leading players in Europe’s civilian drone market, alongside France’s DroneVolt. The company sells its products in 28 countries, with the United States currently its largest single market. Since its founding, ABZ’s revenue has roughly tripled year on year, even with a deliberately cautious growth strategy.

Multiplying their production area

At present, the company operates from a 1,300-square-metre site in Szentendre, where around 250 square metres are dedicated to assembly. With a team of eight specialised technicians, ABZ currently manufactures between 250 and 300 drones annually. However, demand has begun to outpace capacity, prompting the need for significant expansion.

Using the newly raised capital, ABZ will construct a 1,060-square-metre manufacturing hall on its existing site, more than quadrupling its production space. The new facility is scheduled to begin operations in the summer. By the end of the year, the company aims to reach around 50 per cent capacity, producing roughly 85 drones per month, or close to 1,000 units annually.

Once fully operational, the factory will be capable of manufacturing up to 2,000 drones per year, employing between 40 and 45 people. The plant is being designed around lean manufacturing principles, with integrated quality control and optimised logistics intended to reduce waiting times and improve efficiency across the entire supply chain.