The U.S. and European defense industries are ramping up competition to develop low-cost interceptor weapons to counter the cheap drones deployed en masse by Iran and Russia. The shift comes as the conventional approach — firing missiles worth billions of won to shoot down drones costing only millions of won — has reached its limits, analysts say.
Perseus Defense, a Texas-based defense startup, is developing an interceptor missile priced at roughly $10,000 (approximately 15 million won) per round, the Wall Street Journal reported Wednesday. The company aims to slash costs dramatically compared with existing high-performance missiles while building a structure suited for mass production.
Founder Jason Cornelius pointed out that current interception systems have exposed their limitations in cost-effectiveness. Existing missile systems were never designed to counter low-cost drones deployed in swarms numbering in the thousands, he said.
The price gap becomes starker when compared with the AIM-9 Sidewinder, a widely used air-to-air missile. Turkey's deal to procure dozens of such missiles along with related equipment at a cost running into hundreds of billions of won is cited as an example of the structural burden posed by expensive weapons.
"Build Cheap, Fire Often" — Shift to Low-Cost, High-Volume Interception
The interceptor missile under development by Perseus Defense measures about 40 centimeters in length and is designed to be operable from drones, ground vehicles and naval vessels. Its range is limited to about 1 kilometer, but the company aims to secure sufficient performance for countering drones approaching at low altitudes.
The race to develop such low-cost weapons has accelerated rapidly in the wake of the war in Ukraine and conflicts in the Middle East. As drones have emerged as a critical battlefield tool, cost-driven defense strategies to counter them efficiently have become a pressing need.
Similar moves are unfolding in Europe. Frankenburg Technologies, an Estonian startup, is developing interceptor missiles priced at tens of millions of won while focusing on cutting production time to just a few hours per unit. The company has already delivered to some countries, and demand from the Middle East is growing rapidly.
Cambridge Aerospace of Britain has also entered the market with "Skyhammer," an anti-drone interceptor. The system boasts a range of about 30 kilometers and has reached the production stage in a notably short development period.
Lockheed Martin, MBDA Join the Fray — "Defense Landscape Reshaping Around Cost-Effectiveness"
Major defense contractors are also picking up the pace. Lockheed Martin in the U.S. is pursuing cost reductions through improved production efficiency, while Europe's MBDA has signed contracts for low-cost anti-drone missiles, joining the race to secure market share. Sweden's Saab is also reportedly in negotiations to expand exports of its low-cost missile line.
Industry observers note that these shifts could reshape the defense industry's overall structure. A transition is underway from strategies centered on expensive weapons to attrition-oriented systems built around mass-producible, low-cost munitions, according to market analysts.
The U.S. and European nations have already placed bulk orders for low-cost interceptor missiles and guided rockets, moving to ramp up production. Further unit-cost reductions are expected as production volumes increase.
