The military landscape has always been a dynamic arena, shaped by technological advancements, geopolitical shifts, and evolving threats. As we stand in 2025, the world is on the cusp of transformative changes that will redefine how nations defend their interests, project power, and maintain peace—or wage war. From artificial intelligence to space-based operations, the next decade promises to usher in a new era of military innovation and strategy. Below, we explore ten bold predictions for the future of the military over the next ten years, delving into the technologies, doctrines, and global trends that will shape this evolution, along with some stocks that could benefit from these developments.
1. Artificial Intelligence Becomes the Backbone of Military Operations
Artificial intelligence (AI) is no longer a futuristic concept—it’s here, and its integration into military systems will deepen significantly by 2035. AI will move beyond its current role in data analysis and logistics to become the central nervous system of military operations. Autonomous drones, tanks, and submarines will operate with minimal human oversight, making split-second decisions on the battlefield based on real-time data from satellites, sensors, and intelligence networks.
By 2035, AI-driven command-and-control systems will enable militaries to simulate entire campaigns in minutes, predicting enemy movements and optimizing resource allocation with unprecedented accuracy. However, this reliance on AI will also raise ethical questions: Who is accountable when an autonomous system makes a fatal error? Nations will likely establish international treaties to regulate AI in warfare, though enforcement will remain a challenge as rogue states and non-state actors exploit these technologies for asymmetric advantages.
Stocks to Watch:
- NVIDIA (NASDAQ: NVDA) – A leader in AI chip technology, NVIDIA’s GPUs power many military AI applications, from autonomous vehicles to simulation software.
- Palantir Technologies (NYSE: PLTR) – Known for its data analytics platforms, Palantir already contracts with the U.S. Department of Defense, positioning it as a key player in AI-driven military intelligence.
2. Space Becomes a Contested Warfighting Domain
The militarization of space is accelerating, and by the mid-2030s, it will be a fully recognized theater of war. Satellites already play a critical role in communication, navigation, and reconnaissance, but the next decade will see the deployment of space-based weapons platforms, including laser systems and kinetic interceptors designed to disable enemy satellites. The U.S. Space Force, established in 2019, will mature into a dominant entity, while China and Russia expand their own space capabilities.
Expect a new "space race" focused on anti-satellite (ASAT) weapons and defensive countermeasures. By 2035, nations may deploy orbital "guardians"—small, maneuverable satellites equipped with AI to protect critical assets or neutralize threats. The risk of space debris from destroyed satellites could render low Earth orbit unusable, prompting calls for a global framework to prevent an all-out space war.
Stocks to Watch:
- Lockheed Martin (NYSE: LMT) – A major defense contractor with significant involvement in satellite and space systems for the U.S. military.
- Rocket Lab USA (NASDAQ: RKLB) – A smaller, innovative player in the space sector, specializing in affordable satellite launches that could support military applications.
3. Cyber Warfare Evolves Into a Primary Mode of Conflict
Cyberattacks have already proven their disruptive potential, but by 2035, cyber warfare will rival traditional kinetic operations in scope and impact. Militaries will invest heavily in offensive and defensive cyber capabilities, targeting not just enemy systems but entire national infrastructures—power grids, financial networks, and healthcare systems. The line between military and civilian targets will blur, as state-sponsored hackers deploy AI-generated malware that adapts to defenses in real time.
A key development will be the rise of "cyber-physical" attacks, where digital breaches trigger physical destruction, such as sabotaging nuclear reactors or autonomous vehicles. By the end of the decade, major powers will likely establish "cyber deterrence" doctrines, akin to nuclear deterrence, threatening massive retaliation for significant attacks. Smaller nations and terrorist groups, however, will level the playing field by exploiting off-the-shelf hacking tools.
Stocks to Watch:
- CrowdStrike (NASDAQ: CRWD) – A cybersecurity leader offering advanced threat detection and response, likely to benefit from increased military demand.
- Booz Allen Hamilton (NYSE: BAH) – A consulting firm with deep ties to U.S. government cyber operations, providing expertise in defense against cyber threats.
4. Hypersonic Weapons Redefine Strategic Power
Hypersonic missiles, capable of traveling at speeds exceeding Mach 5, are already in development by nations like the United States, Russia, and China. By 2035, these weapons will be fully operational, rendering traditional missile defense systems obsolete. Their speed and maneuverability will shrink decision-making windows to mere minutes, forcing militaries to rely on automated interception systems.
The proliferation of hypersonic technology will shift the global balance of power, as smaller nations acquire these relatively affordable yet devastating weapons. Naval warfare, in particular, will transform, with hypersonic anti-ship missiles threatening aircraft carriers and other high-value targets. The race to develop countermeasures—such as directed-energy weapons—will dominate military R&D budgets over the next decade.
Stocks to Watch:
- Raytheon Technologies (NYSE: RTX) – A key developer of hypersonic weapons and missile defense systems for the U.S. military.
- Northrop Grumman (NYSE: NOC) – Involved in advanced aerospace and defense projects, including hypersonic technology research.
5. Directed-Energy Weapons Enter Mainstream Use
Lasers and other directed-energy weapons (DEWs) will transition from experimental prototypes to standard-issue systems by 2035. These weapons, which use concentrated energy to disable or destroy targets, offer precision and cost-effectiveness compared to traditional munitions. Militaries will deploy DEWs on ships, aircraft, and ground vehicles to counter drones, missiles, and even enemy personnel.
The U.S. Navy’s ongoing tests of laser systems, like the 150-kilowatt weapon demonstrated in 2021, will pave the way for widespread adoption. By the mid-2030s, expect to see "laser grids" protecting military bases and cities from aerial threats. However, the energy demands of DEWs will necessitate advances in portable power generation, such as compact nuclear reactors or next-generation batteries.
Stocks to Watch:
- L3Harris Technologies (NYSE: LHX) – A defense contractor working on directed-energy systems and advanced power solutions.
- General Dynamics (NYSE: GD) – Known for its work on naval and ground-based systems, likely to integrate DEWs into future platforms.
6. Autonomous Swarms Dominate the Battlefield
The concept of "swarm warfare"—coordinated attacks by large numbers of small, autonomous units—will become a reality by 2035. Drones, robots, and even underwater vehicles will operate in synchronized swarms, overwhelming enemy defenses through sheer numbers and adaptability. These systems will use AI to communicate, strategize, and execute missions without human intervention.
Imagine a fleet of a thousand palm-sized drones descending on an enemy position, each carrying explosives or electronic jammers. Such swarms will be cheap to produce, making them accessible to both advanced militaries and insurgent groups. Countering swarm attacks will require new tactics, such as electromagnetic pulse (EMP) weapons or AI-driven "counter-swarms," further escalating the technological arms race.
Stocks to Watch:
- AeroVironment (NASDAQ: AVAV) – A leader in small drones and unmanned systems, well-positioned for swarm technology development.
- Kratos Defense & Security Solutions (NASDAQ: KTOS) – Specializes in affordable drones and autonomous systems for military use.
7. Climate Change Drives Military Adaptation
As climate change intensifies, militaries will face new challenges and responsibilities by 2035. Rising sea levels, extreme weather, and resource scarcity will destabilize regions, sparking conflicts over water, arable land, and migration routes. The Arctic, in particular, will emerge as a strategic hotspot as melting ice opens new shipping lanes and exposes untapped resources.
Militaries will adapt by developing climate-resilient equipment, such as amphibious vehicles and solar-powered bases, while also preparing for humanitarian missions on an unprecedented scale. The U.S. military, for instance, may shift resources from traditional combat to disaster response, as floods and droughts displace millions. Climate-driven instability will also fuel proxy wars, with superpowers vying for influence in vulnerable regions.
Stocks to Watch:
- Oshkosh Corporation (NYSE: OSK) – Produces rugged military vehicles that could be adapted for climate-related missions.
- First Solar (NASDAQ: FSLR) – A solar energy company that could supply renewable power solutions for military bases.
8. Biotechnology Enhances Soldier Performance
The soldier of 2035 will be a fusion of human and machine, thanks to breakthroughs in biotechnology and human augmentation. Exoskeletons will boost strength and endurance, while neural interfaces—connecting the brain directly to computers—will enhance decision-making and situational awareness. Gene editing, such as CRISPR, could produce troops resistant to disease, fatigue, or even radiation.
Ethical debates will rage over "super soldiers," with some nations embracing augmentation while others ban it. By the end of the decade, expect a divide between "enhanced" militaries and those relying on traditional forces, potentially widening the gap between global powers and developing nations. The psychological toll of augmentation, including identity crises and post-traumatic stress, will also demand new approaches to soldier care.
Stocks to Watch:
- Ekso Bionics (NASDAQ: EKSO) – A small-cap company developing exoskeletons for military and medical applications.
- Illumina (NASDAQ: ILMN) – A leader in genetic sequencing, potentially involved in military biotech advancements.
9. Private Military Companies Gain Unprecedented Influence
Private military companies (PMCs) like Blackwater (now Academi) have long supplemented state forces, but by 2035, they will play a central role in global conflicts. Advances in technology will enable PMCs to field their own drones, cyber units, and even space assets, offering turnkey solutions to nations or corporations. Wealthy states may outsource entire campaigns to PMCs, while poorer countries hire them for defense against stronger neighbors.
This privatization of war will complicate accountability, as PMCs operate outside traditional military chains of command. By 2035, expect a handful of "mega-PMCs" to rival mid-tier national armies in capability, raising concerns about loyalty and the potential for these firms to act as independent power brokers in unstable regions.
Stocks to Watch:
- Constellis (Private) – Parent company of Academi, a major PMC; though not publicly traded, its growth could influence related defense stocks.
- Leidos Holdings (NYSE: LDOS) – A defense and tech contractor that could expand into PMC-like services with its government contracts.
10. Nuclear Deterrence Faces New Challenges
Nuclear weapons have maintained a tense global stability since 1945, but the next decade will test this deterrence model. The spread of hypersonic delivery systems, AI-driven targeting, and cyber vulnerabilities will erode the predictability of mutually assured destruction (MAD). Smaller nations may develop "boutique" nuclear arsenals, while non-state actors seek radiological "dirty bombs."
By 2035, arms control agreements will struggle to keep pace with these changes, prompting a new wave of proliferation. At the same time, advances in missile defense—such as space-based interceptors—could destabilize the nuclear balance, tempting some powers to strike first. The result will be a more volatile world, where the threat of nuclear conflict looms larger than it has in decades.
Stocks to Watch:
- Huntington Ingalls Industries (NYSE: HII) – Builds nuclear-powered submarines, critical for modern deterrence strategies.
- BAE Systems (LSE: BA) – A UK-based defense firm involved in nuclear submarine programs and missile defense.
Conclusion: A Brave New Battlefield
The military of 2035 will bear little resemblance to today’s forces, driven by a convergence of technology, environmental pressures, and shifting power dynamics. While these innovations promise greater efficiency and precision, they also introduce risks—ethical dilemmas, escalation potential, and the empowerment of non-state actors. The next decade will demand not just new tools but new strategies, as nations grapple with a world where war is faster, more complex, and increasingly unbound by traditional borders.
Investing in these trends offers opportunities but also requires caution, as defense stocks are influenced by government contracts, geopolitical stability, and technological success. Companies like Lockheed Martin (NYSE: LMT), NVIDIA (NASDAQ: NVDA), and Raytheon Technologies (NYSE: RTX) are established players, while smaller firms like AeroVironment (NASDAQ: AVAV) and Ekso Bionics (NASDAQ: EKSO) represent high-risk, high-reward bets on emerging technologies. As we look ahead, one thing is clear: the future of the military will be defined by adaptability—both on the battlefield and in the markets.