3 Market Development and Public Sector Facilitation

As the drone and AAM sectors continue to evolve, the Norwegian government recognizes the importance of facilitating a competitive and innovation-driven ecosystem. The following outlines the development of the drone services market, the role of the public sector as both regulator and enabler, and the instruments available to support industry growth through research, education, and public sector procurement.

The drone services market in Norway has seen substantial growth in recent years, with services such as infrastructure inspection, mapping, and logistics now comprising 76% of the total industry turnover. 1 This highlights the central role of service providers as the main market drivers. Increasing professionalism and close public-private cooperation have significantly enhanced operational quality and compliance standards.

Public agencies play a pivotal role in market formation by procuring drone services from private operators. This stimulates innovation and capacity-building in the private sector while allowing the public sector to access cost-effective and specialized solutions.

At the same time the Norwegian government emphasizes that drone deployment in public services must balance flexibility, efficiency, and strategic autonomy – especially in sectors related to national security or critical societal functions.

Predictable and efficient regulatory processes are essential to enable innovation while ensuring safety and public trust. Industry stakeholders have emphasized the need to streamline airspace access, improve operation approval procedures – particularly for beyond visual line of sight (BVLOS) operations – and enable controlled testing of new technologies. Key regulatory priorities include integration with manned aviation, achieving real-time visibility and digital coordination, and improving collaboration among industry, regulators, and academia. The national test arena for zero and low-emission aviation, referenced in the previous chapter, plays an important role in bridging innovation and regulation.

The government supports innovation through a well-developed framework of funding instruments. Core actors in this ecosystem include Innovation Norway, the Research Council of Norway, Enova, Investinor, and Siva. These institutions provide a range of support mechanisms, including grants, loans, and guarantees; business development services; and access to networks and innovation clusters. Additionally, Norwegian companies can access European programs such as Horizon Europe and InvestEU, ensuring alignment with broader European goals for technological innovation and market integration.

The government places strong emphasis on building a skilled workforce and advancing technical knowledge. Key national initiatives include projects focused on medical drone logistics, research on anti-icing systems for drones operating in Arctic conditions, and the development of safe, traceable production methods for autonomous aircraft.

Educational pathways are also expanding. Currently, six secondary schools offer formal drone operator training. UiT The Arctic University of Norway offers a bachelor’s degree in drone technology, while the Norwegian University of Science and Technology (NTNU) supports interdisciplinary master-level research. Despite growing interest, a shortage of apprenticeship placements remains a challenge. Government efforts are underway to increase opportunities, particularly within the public sector.

The government aims to foster a sustainable, competitive drone and AAM industry by promoting knowledge-sharing between public and private actors, developing public procurement as a tool for market development, enhancing access to research funding and education, supporting international standardization and certification efforts, and encouraging industry-led development of commercially viable solutions.

To support the growth of a robust and internationally competitive drone industry, the government commits to:

• Enabling a competitive Norwegian drone sector that can continue to succeed in international markets
• Raising awareness of the potential of drone technology for both private and public sector applications
• Encouraging more private and public sector organizations to recognize the value of offering apprenticeship placements to upper secondary school students specializing in drone operations and technology
• Facilitating collaboration and knowledge exchange between public and private actors, and across different levels of government