What Innoviz Reveals About Next-Generation Counter-UAS

By Yohai Schwiger

Innoviz this week announced another partnership in the counter-unmanned aerial systems (Counter-UAS) market, this time with Israeli company AeroNous, developer of an open command-and-control (C2) platform designed to protect critical infrastructure, strategic facilities and sensitive sites. Under the agreement, Innoviz’s LiDAR technology will be integrated into AeroNous’ C2 platform to enhance real-time localization by providing highly accurate 3D positioning of aerial targets.

At first glance, this appears to be just another integration announcement. Viewed alongside the company’s recent string of partnerships, however, it points to a much broader shift in how modern Counter-UAS systems are being designed.

The AeroNous announcement follows several similar collaborations unveiled in recent weeks. Regulus is integrating Innoviz LiDAR to improve drone tracking in complex environments; Givon Defense is using it to enhance precision localization; Cogniteam has incorporated it into a new AI-powered aerial target classification module; and AeroNous is now embedding it within an open C2 platform. While these are different companies addressing different applications, the announcements repeatedly emphasize the same concepts: Localization, Perception, 3D Spatial Awareness, Classification and Situational Awareness.

Taken together, these partnerships suggest something more significant than Innoviz’s expansion into defense. They highlight the emergence of a new generation of Counter-UAS architectures.

From Single Sensors to Multi-Sensor Perception

Until only a few years ago, most counter-drone systems were built around a single primary sensor. In some cases it was radar for initial detection; in others, electro-optical cameras or RF sensors capable of identifying communication links between a drone and its operator. Once the target was detected, the system activated an appropriate jammer or interceptor.

Today’s battlefield has changed dramatically.

Small FPV drones, autonomous drones operating without RF links, drone swarms and low-altitude flight through dense urban environments have exposed the limitations of that approach. The challenge is no longer simply detecting that an object exists in the air. Modern systems must rapidly determine what the object is, precisely where it is located, where it is heading and how its trajectory is likely to evolve over the next few seconds.

As a result, Counter-UAS platforms are increasingly adopting an architecture that closely resembles autonomous driving perception systems.

Rather than relying on a single sensor, they build a sensor fusion layer that combines multiple information sources. Radar provides long-range detection and tracking; RF sensors identify communication signals when available; EO/IR cameras contribute visual identification and classification; AI algorithms correlate the incoming data; and the command-and-control system produces a unified operational picture from which engagement decisions are made.

Within this architecture, LiDAR plays a distinctly different role from the other sensors.

Across nearly every Innoviz announcement, the technology is described not primarily as a detection sensor but as a localization and perception sensor. In other words, its purpose is not simply to indicate that an aerial threat exists, but to provide the system’s spatial perception layer.

LiDAR contributes information unavailable from the other sensors: a detailed 3D point cloud of the environment, precise spatial coordinates, distance, altitude, shape and motion. This enables highly accurate localization, continuous target tracking and real-time positional updates for the C2 platform.

In Cogniteam’s implementation, for example, the point cloud also serves as the foundation for an AI module capable of distinguishing drones from birds and other airborne objects, significantly reducing false alarms.

In this sense, LiDAR is becoming the perception layer of modern Counter-UAS systems. It does not replace radar, cameras or RF sensors. Instead, it complements them by providing the spatial information upon which sensor fusion and tracking algorithms depend.

It is also noteworthy that most of Innoviz’s recent partners are not building interceptors. AeroNous, Cogniteam and Regulus focus on software layers, perception engines and command-and-control platforms. This reflects a broader shift in the industry, where competitive advantage is increasingly moving away from the interceptor itself and toward the software architecture that fuses multiple sensors into a single operational model of the airspace.

Why LiDAR? Lessons from Autonomous Driving

The comparison with autonomous vehicles is difficult to ignore.

The automotive industry reached a similar conclusion years ago: no single sensor can safely perceive the surrounding environment. Radar excels at measuring range and velocity but provides limited shape information. Cameras deliver rich visual context but depend heavily on lighting conditions. LiDAR adds precise three-dimensional mapping. Sensor fusion combines all of these inputs into a unified representation of the world, enabling autonomous driving decisions.

Counter-UAS systems are now following a remarkably similar path.

The difference is that, instead of detecting pedestrians and vehicles, they must identify small, fast and often autonomous drones navigating among trees, buildings and power lines. Here too, success depends on maintaining an accurate, continuously updated 3D representation of the environment.

This may also explain why Innoviz’s technology appears particularly well suited to these applications.

For more than a decade, the company developed its LiDAR platform for one of the world’s most demanding perception challenges: autonomous driving. Beyond the optical hardware itself, Innoviz built an extensive software stack that includes firmware, signal processing, point cloud processing, perception algorithms and object-level data generation.

Rather than outputting millions of raw laser points, the system can produce structured object data—including position, velocity and direction—ready for integration into higher-level command-and-control software.

The hardware itself offers additional advantages. Automotive-grade LiDAR must operate continuously under harsh environmental conditions while maintaining high reliability, low power consumption and resistance to vibration and temperature extremes—qualities equally valuable in military applications.

Ultimately, Innoviz’s recent partnerships reveal less about the LiDAR market than about the future direction of Counter-UAS technology.

The next generation of systems is no longer being built around a single sensor or a single interceptor. Instead, it relies on a multi-sensor perception architecture in which each component contributes a different layer of information to a unified operational picture.

If the previous objective was simply to detect a drone, the new objective is to construct an accurate, continuously updated three-dimensional model of the airspace—and LiDAR is rapidly becoming one of the key building blocks of that architecture.

ParaZero Deepens Defense Shift with XTEND Partnership

[Image credit: ParaZero]

By Yohai Schwiger

A collaboration between two Israeli drone companies is targeting the defense market: ParaZero has announced a strategic partnership with XTEND, under which XTEND will integrate ParaZero’s Net Pod into its Scorpio 1000 interceptor drone. The system deploys a net designed to capture hostile drones and is embedded as the interception mechanism within XTEND’s platform.

The combination of XTEND’s fast, semi-autonomous drone with ParaZero’s capture capability is designed to deliver a non-destructive counter-drone solution. Instead of destroying a target, the interceptor drone pursues it and captures it using a net. This so-called “soft-kill” approach is particularly suited for urban environments and sensitive infrastructure, where kinetic interception could cause collateral damage.

First order likely tied to partnership

The Net Pod is a compact interception module that includes a deployable net and a rapid-launch mechanism. It operates without explosives, using pressurized gas to propel the net forward. Upon deployment, the net opens within a fraction of a second, with weighted edges allowing it to spread and envelop the target drone. The net entangles the propellers, disrupting flight and causing the drone to lose lift and fall. Its lightweight, modular design enables integration across multiple platforms, including interceptor drones, without significantly impacting performance.

The partnership was announced in late March. Just days later, ParaZero reported an order worth over $650,000 from a “Tier-1 international drone interception company,” including a commitment to purchase at least 2,000 Net Pod units. While the customer was not disclosed, the timing, product type, and reference to platform integration strongly suggest XTEND — potentially marking the first commercial execution of the partnership.

The Net Pod is part of ParaZero’s broader DefendAir system, a multi-layered counter-drone solution that includes ground-based detection (such as radar and sensors), command-and-control systems, interceptor drones, and handheld tools. Within the XTEND partnership, ParaZero supplies only the Net Pod component, delivered under an OEM model that allows integration into third-party platforms.

From civilian safety to defense growth

The latest move reflects a broader transformation at ParaZero. Founded in 2014, the company initially focused on drone safety systems, developing parachute solutions (SafeAir) to prevent crashes in populated areas. It later expanded into precision airdrop systems (DropAir). Today, ParaZero is increasingly focused on the defense market, particularly counter-drone technologies.

In a recent shareholder letter, the company’s CEO described 2025 as a “transformational year,” stating that ParaZero is “positioning itself as a Tier-1 defense provider and focusing on execution and sales in the defense market.” Financial results reflect a company in transition: revenue reached approximately $1.05 million in 2025 (up about 12%), while net losses widened and operating expenses increased significantly. At the same time, ParaZero reported approximately $1.28 million in orders early in 2026 — exceeding its full-year 2025 revenue.

In recent months, ParaZero has announced multiple business developments, including partnerships with drone companies, orders from defense customers in Israel and abroad, distribution agreements in Europe, and live demonstrations for NATO-related stakeholders — all part of an effort to establish a foothold in the growing counter-UAS market.

ParaZero is listed on the NASDAQ with a market capitalization of roughly $20 million, reflecting its early-stage position. The company went public in July 2023 at a valuation of around $50 million, and its stock has since lost nearly 70% of its value.

TSG Goes on Acquisition Spree to Build End-to-End Drone Interception System

TSG, an Israeli company specializing in command-and-control (C2) systems, is accelerating its entry into the fast-growing counter-drone defense market, following a series of deals that signal a strategic shift in its business model.

In a filing to the Tel Aviv Stock Exchange on Monday, the company announced it had signed a binding agreement to acquire Mabat 3D Technologies, while also signing memoranda of understanding to invest in drone company Robotican and to acquire defense manufacturer Production Floor. According to TSG, all three companies align with its strategy to expand its footprint in the defense sector, with a focus on solutions for detecting and countering UAV and drone threats.

In a presentation released alongside its annual results, TSG framed these moves as part of a broader plan to build a comprehensive drone interception system—an integrated solution combining AI-based command-and-control software, connections to radars and sensors, and interceptor and capture drones.

Sensing, effectors, and manufacturing

The acquisition of Mabat adds a sensing and mapping layer to TSG’s capabilities. Based in Herzliya, Mabat specializes in 3D mapping and documentation using LiDAR technologies and provides solutions to defense customers. TSG says these capabilities will support the creation of precise spatial situational awareness, enabling improved detection, analysis, and operational planning in counter-drone systems.

Mabat generated approximately NIS 17.8 million in revenue in 2025, with operating profit of about NIS 4 million. The upfront consideration stands at roughly NIS 14.4 million, with contingent payments that could bring the total deal value to around NIS 45 million.

The planned investment in Robotican adds the effector layer. Under the terms of the MOU, TSG intends to invest $9 million for a 26% stake. Robotican, based in Omer, develops autonomous aerial and ground systems for intelligence and interception missions, including drones designed to capture hostile UAVs.

The move highlights TSG’s adoption of a growing concept in modern warfare: drones intercepting drones. This approach is gaining traction as it offers a more precise and cost-effective response to low-cost threats, reducing reliance on expensive missile-based interception systems.

The third deal, a proposed $5 million acquisition of Production Floor, adds manufacturing and integration capabilities. The Tirat Carmel-based company provides end-to-end production services, including engineering, manufacturing, assembly, and integration of complex systems, primarily for defense customers. This layer is intended to give TSG greater control over delivering fully integrated operational systems—not just software.

The core: TSG’s C2 backbone

At the center of this strategy is TSG’s core expertise in command and control. The company develops systems used for managing national airspace pictures, naval C2, border protection, special operations, and intelligence applications. These systems integrate data from radars, satellites, RF sensors, and other sources, fusing them into a unified real-time operational picture. Among other uses, they support threat trajectory analysis in Israel’s Home Front Command alert system.

In a recent conversation with Techtime, TSG President Pini Yungman described the company’s transition from a provider of core subsystems—primarily C2—to a company aiming to deliver full operational solutions. He said the company is expanding its systems so they not only manage the air picture, but also activate effectors, including interceptor drones. “The company is evolving from managing the air picture to enabling systems that can detect, track, and execute interception as an integral part of the same architecture,” he said.

Yungman also emphasized that one of TSG’s key assets is the data accumulated through its C2 systems, which are embedded in operational environments, including air defense frameworks in Israel. This data includes large volumes of information related to detection, tracking, and interception of threats—particularly UAVs. “The company has a data repository that no other company possesses, built on operational activity and massive volumes of data collected in recent years,” he said, adding that “the systems fuse inputs from multiple sensors, filter noise, and generate accurate predictions—enabling AI to deliver real operational advantage.”

The company’s focus on AI is also reflected in its investor presentation, where it highlights accelerated development of AI capabilities built on its data fusion and C2 expertise, including a dedicated large language model for intelligence and operational systems. The combination of operational data, accumulated experience, and advanced algorithms is presented as a key competitive advantage.

Growth driven by defense momentum

TSG’s strategic push comes on the back of strong financial performance. In 2025, the company reported revenue of approximately NIS 430.3 million, up 33.6% year-over-year. Operating profit reached NIS 37.2 million, net profit totaled NIS 16.3 million, and adjusted EBITDA stood at NIS 63.8 million. The defense segment accounted for NIS 336.5 million, or roughly 78% of total revenue.

The company also highlighted additional business developments in its presentation, including initial deliveries of low-altitude air defense licenses for the U.S. Army, expanded activity in Europe through defense partnerships, entry into markets in Asia and Africa, and new AI-related orders. Together, these moves suggest that TSG sees counter-drone and low-altitude defense not just as a technological direction, but as a major global growth engine.