Industry trends driving vehicle innovation in defense

Industry trends driving vehicle innovation in defense

We live in a time of unprecedented innovation in diverse fields, from computing to robotics and vehicle manufacturing. These innovations come together in the military vehicle industry, which stands at the cutting edge of today’s technological advancements, bolstering national security by staying two steps ahead of every threat.

If you're a keen watcher of defense innovations, this guide from Advanced Conversion Technology explains key trends you need to know regarding where the military vehicle industry is today and where it's headed tomorrow.

11 Trends Shaping Vehicle Innovation in Defense

The future of military vehicles waits at the intersection of several trends already in motion today. Here are the top 11 trends driving innovation in the military vehicle industry.

1. Autonomous Vehicles

The autonomous vehicle trend has captured the civilian market's imagination and has become increasingly relevant to defense. In 2019, the United States military announced the deployment of autonomous combat trucks to reduce accidents.

Advanced Conversion Technology


The global autonomous vehicle market is worth over $270 billion and is forecast to reach over $4,450 billion within the next decade. The defense industry contributed $17.53 billion in autonomous vehicle revenue during 2024 alone and has emerged as a leading source of demand for this technology.

Trailblazing manufacturers have already developed AI-driven aircraft, drones, weapons, and intelligence systems. These technologies are capable of executing complex defense missions without requiring human intervention. The latest autonomous defense vehicles benefit from enhanced situational awareness, integrating video streaming and recording with artificial intelligence (AI) analysis to capture and communicate real-time intelligence.

Achieving full autonomy for combat vehicles remains challenging because of the high-stakes, unpredictable environments in which these machines operate. Compliance with international laws and ethical standards is also a consideration with machines capable of executing autonomous lethal force.

Expect to see substantial progress in solving these problems over the coming years, with significant investment and concerns for the safety of human soldiers driving innovation.

2. Robotic Vehicles

While NVIDIA and Tesla may be the first names on many people's minds when discussing robotics, the U.S. Army and the Department of Defense (DOD) are at the forefront of robotic vehicle innovation. The robotic combat vehicle (RCV) is one of the most pertinent examples.

RCVs integrate robotics, AI, and advanced weaponry to navigate difficult terrain, gather intelligence, and confront enemy forces. They can operate semi-autonomously or via remote control, minimizing human vulnerability while maximizing efficiency. Light, medium, and heavy RCV variants exist, optimized for differing combat priorities from rapid deployment to intense combat situations.

Key features of the latest RCVs include:

  • Autonomous navigation systems.
  • Remote operation capabilities.
  • Advanced sensor integration.
  • Enhanced situational awareness.
  • Modular design for mission adaptability.
  • Precision targeting systems.
  • Stealth and reconnaissance capabilities.

These features help the military to enhance commanders’ battlefield awareness, bring greater force to combat situations, and save lives.

3. Avionics Advances

Defense vehicle innovations are going airborne as the field of avionics progresses. For example, the U.S. Air Force has contracted industry leaders to build and supply Collaborative Combat Aircraft (CCA). These are military drones with onboard AI control systems designed to collaborate with teams alongside manned aircraft.

Among the broader trends shaping tomorrow’s avionics, key developments include:

  • Resilient communication systems: Anti-jamming technologies and cybersecurity innovations are accelerating to protect aircraft communication systems from evolving threats.
  • Advanced sensor fusion: State-of-the-art sensor systems combine data from multiple sources, including radar, EO/IR, and SIGINT, to give pilots a comprehensive understanding of their operational environment.
  • Efficient propulsion: Advances in electric propulsion will deliver quieter, more sustainable, and more cost-efficient aerospace propulsion systems.
  • Open architecture: Prioritization of sustainability and reduced asset life cycle costs favors modular avionics systems with open architecture for easier upgrades and enhanced adaptability.

4. Vetronics Innovations

Military vehicle electronics systems are advancing in response to demand for increased efficiency, connectivity, and automation. Prevailing industry trends are driving vetronics innovations like:

  • Energy efficiency: Smart power management systems are gaining prominence, allowing for dynamic power allocation based on mission requirements. These systems help offset the increasing power demands of the latest sensors and protection systems. Electric and hybrid propulsion systems are also emerging to reduce fuel dependence and maximize operational efficiency.
  • AI integration: Embedded AI and machine learning algorithms within vetronics systems can automate tasks like diagnostics, predictive maintenance, and threat detection. These elements help minimize human error and increase vehicle uptime.
  • Open architecture: Like avionics systems, open-architecture vetronics systems will continue gaining popularity, as they are adaptable in the midst of rapidly evolving battlefield requirements.

5. Ruggedization

Advancing ruggedization is a mainstay of defense vehicle developments, and this trend will continue over the coming years. Vehicles and components must withstand harsh temperatures, intense vibrations, and impact by enemy forces.

Material scientists are developing superior lightweight composites, high-strength alloys, and enhanced coatings for optimal durability without excessive weight. These developments enable equipment to meet and exceed military standards, such as:

6. Extending Vehicle Lifespans

Extending military vehicle lifespans is a constant priority, as it helps to reduce acquisition spending, preserve operational readiness, and minimize downtime.

As today’s global security context demands maintenance strategies that keep technologically advanced machines ready for action within constrained budgets, extending life spans is even more important. This means the DOD and U.S. Army are paying increasing attention to modernization programs and sustainment strategies to keep vehicles in service longer.

Traditional lifespan extension protocols include routine maintenance, updates and upgrades, repairs, part replacements, and technical assistance. Every year, more advanced solutions are emerging for each of these processes.

One key area of innovation is predictive maintenance. Some new vehicles can carry onboard sensors to monitor the condition of components like engines, hydraulics, and transmissions. This technology automates proactive maintenance scheduling via machine learning analysis of sensor data. A predictive maintenance strategy can help reduce breakdowns, cut expenses, and optimize vehicle performance.

7. Sustainability Initiatives

Sustainability is a major concern motivating innovation in the military vehicle industry. Environmental regulations, resource scarcity, and increasing consciousness of how military operations impact ecosystems are steering the military toward efficiency and sustainability throughout the vehicle life cycle.

Key trends in defense vehicle sustainability include:

  • Fuel efficiency: Sustainable vehicle innovations aim to reduce fuel dependency through electric and hybrid fleets, as well as alternative fuels like biofuels, synthetic fuels, and hydrogen.
  • Waste reduction: Waste reduction strategies include using recyclable materials, implementing closed-loop manufacturing, and developing end-of-life recycling protocols for vehicles and components.
  • Additive manufacturing: As an additive manufacturing process, 3D printing is a more efficient method for creating vehicle components than subtractive processes like CNC machining. It is already used for replacement parts and will likely see expanded applications over the coming years.

8. Protecting Vehicle Networks

Cybersecurity is becoming paramount as defense and military vehicles become increasingly connected to networks. Vetronics and avionics systems rely on networks for communication, navigation, sensor data processing, and weapons control, creating potential points of vulnerability to cyberattacks. As threats become more sophisticated, cybersecurity is a focus of innovations aiming to protect vehicles, intelligence, and lives.

A fundamental aspect of military vehicle cybersecurity is its layered security architecture. Layered architectures involve multiple stages of security barriers, including firewalls, intrusion detection, and encryption. These cybersecurity systems may also involve secure boot and runtime integrity monitoring to ensure only authorized software loads onto vehicle systems and all vehicle software remains free from tampering during operation.

Robust authentication and access control protocols are also foundational to vehicle cybersecurity. Best practices in this area include:

  • Multifactor authentication.
  • Role-based access control.
  • Strong passwords.
  • Regular cybersecurity audits.
  • Penetration testing to identify vulnerabilities.

Recent breakthroughs in quantum computing have forced the rapid development of post-quantum cryptography (PQC), as many current cryptographic algorithms could be susceptible to attacks by quantum computers. Expect PQC to become a standard cybersecurity measure, especially for combat and intelligence vehicles.

9. Artificial Intelligence

AI’s applications in the military vehicle industry are expanding and improving at an astonishing pace. Along with autonomous navigation, predictive maintenance, and sensor fusion, key areas of development to watch include:

Advanced Conversion Technology
  • Decision support: AI can empower decisions at all levels of command, analyzing vast quantities of data, interpreting complex patterns, and distilling information into actionable insights when quick decisions are crucial.
  • Electronic warfare (EW) systems: AI-based EW systems can detect, identify, and counter electronic and electromagnetic attacks. For example, AI-based EW systems can recognize and stop jamming signals without human intervention. The latest developments involve predicting electronic attack patterns to prepare vehicles for proactive defense.
  • Sensor systems: AI-based sensor systems are improving at automatic target detection, classification, and prioritization. Embedded in RCVs and paired with video streaming, AI algorithms can distinguish enemy vehicles from friendly ones, even in obscured environments, and direct onboard weaponry to engage the threat.
  • Counter-unmanned aircraft systems (C-UAS): C-UAS can equip vehicles for defense against AI-driven drone swarms. The AI algorithms within C-UAS solutions can track multiple drones at once, predict their movements, and respond appropriately. Responses could include jamming the drones' communication lines or deploying kinetic interceptors.

10. Advanced Stealth Tech

Stealth technology is progressing to minimize vehicles’ visibility to enemies across radar, infrared, acoustic, and visual detection systems. Strides in stealth technology can be decisive in mission success in contested environments.

The current state of stealth tech includes shaping vehicles to deflect radar waves and applying radar-absorbing materials (RAM), advanced cooling, and specialized exhausts to conceal vehicles’ thermal signatures, adaptive camouflage for visual stealth, and reduced noise for acoustic stealth.

Looking to the future of stealth tech, expect to see more of the following:

  • Active multispectral camouflage that adapts to changing environments.
  • EW disguises systems that disrupt enemy sensors.
  • Enhanced stealth capabilities in unmanned vehicles for surveillance and covert operations.

11. Advanced Power Supplies

Advanced power supplies are essential to a wide array of military vehicles. The further vehicle innovations progress, the more imperative, reliable, and efficient power supplies become. Technological developments will drive significant growth in the military power supply market, reaching a predicted value of $20 billion by 2032. The top trends in advanced military power supplies include:

  • Reliability: Power supplies must withstand extreme conditions and comply with strict MIL-STDs.
  • Size, weight, and power (SWaP) optimization: The key design goal is high power density while minimizing size and weight for optimal functionality.
  • Switch-mode power supplies (SMPS): These are established in a wide range of military applications thanks to their small size, lightweight design, efficiency, and effective heat dissipation. However, they come with drawbacks, including noise and electromagnetic interference (EMI).
  • Wide bandgap (WBG) semiconductors: With a larger bandgap than regular silicon, these conductors allow higher switching frequencies, operating temperatures, and breakdown voltages, as well as lower losses. These characteristics help improve SMPS performance, reliability, and efficiency.
  • AI integration: AI can enable self-learning and self-service functions for power supply systems to enhance their reliability. Power supply engineers and designers can also use AI for power supply design, improvement, testing, and monitoring.
  • Modular power supplies: These systems contain multiple modules connected in parallel or series. This provides scalability, ease of maintenance, and strategic redundancy in case a module fails or needs upkeep.
  • Embedded power supplies: A power supply embedded within a military vehicle, system, or device can support SWaP optimization and thermal management. This means vehicles with embedded power supplies can benefit from greater efficiency, reliability, and performance.
  • Programmable power supplies: These power supplies allow configuration and control through software or hardware commands, supporting enhanced versatility.

From autonomous and robotic vehicles to sustainability, stealth, and superior power supplies, the military vehicle industry is seeing phenomenal growth and innovation.

Attentive industry observers will see today’s emerging trends become established norms of defense technology. In a complex and contested security landscape, this continued progress in military and defense vehicles is integral to national interests for worldwide peace and stability.

This story was produced by Advanced Conversion Technology and reviewed and distributed by Stacker.