The aim of this chapter is to review the industry sector in Europe, which involves big companies as well as SMEs. The leading European countries, the main competitors, and the main competitive advantages of the industry are analysed. We have identified five different segments in which companies compete based on distinctive features (toys, hobby/leisure, professional, commercial, and military). The homogenization of the industry, especially in the toy, hobby, and commercial subsectors, is mainly led by big companies, which at the same time also represent the largest market share. We have concluded that there are no entry barriers besides technology and commercial distribution, but the main difficulty that is hampering the industry's expansion is regulation. This affects in particular the hobby/leisure and commercial drone segments, some areas more than others; while agricultural and military drones are expanding and evolving rapidly, professional filming and photography and toys are still too dependent on safety or legal issues, such as privacy concerns. It is also remarkable that companies from China and the USA are reaching the top positions. This should be taken into consideration by European policy makers, as the decisions made in the next years will be the key to the development of the sector in Europe.