Defense Tech Trends for 2026: Innovation in Action

Every passing year, technology innovations in the defense industry grow more sophisticated. In 2026, industry experts predicted a surge in defense technology innovation fueled by advancements in artificial intelligence (AI), cybersecurity compliance, hypersonics, Internet of Things, and more.

The future of defense tech in the U.S. will depend largely on domestic innovation and trending technologies. Technical progression will fall by the wayside without a renewed focus on rapid prototyping. Each of 2026’s tech trends, as listed below, will rely on utilizing the Other Transaction Authority (OTA), a flexible procurement mechanism.

Defense Technology Trends to Look for in 2026

These are the top trending technologies in the military tech industry:

Artificial Intelligence (AI): Agentic AI and Generative AI

Artificial Intelligence (AI) is pervasive across domains, powering predictive maintenance for equipment, enhancing autonomous systems for land, sea, and air, and bolstering cybersecurity defenses against sophisticated threats. Agentic AI is becoming especially useful in military defense innovation, allowing processes to be streamlined and intelligent workflows while reducing tech companies’ internal bandwidth.

Agentic AI vs Generative AI

In defense technology development, generative AI and agentic AI play distinct but complementary roles within the development of military AI technology, particularly within the flexibility of Other Transaction Authorities (OTAs). Generative AI focuses on producing content such as code, models, simulations, or design alternatives to accelerate ideation, analysis, and prototyping.

Agentic AI goes a step further by autonomously planning, making decisions, and taking actions across workflows, such as coordinating experiments, optimizing test plans, or managing iterative development cycles.

When paired with OTAs, generative AI helps rapidly create and refine technical solutions, while agentic AI enables continuous execution and adaptation, aligning well with OTA-driven objectives to shorten development timelines, reduce risk, and transition capabilities to the warfighter more quickly.

Hypersonic Weapons and Hypersonic Flight

The development of hypersonic weapons continues to be a priority, with OTA-funded projects exploring advanced materials, propulsion systems, and guidance technologies to achieve unprecedented speeds and maneuverability.

Hypersonic Initiatives in Action

Hypersonic flight is a key defense technology trend driven by the demand for speed, maneuverability, and survivability in contested environments. Operating above Mach 5, these systems, pose significant challenges in propulsion, thermal management, materials, and guidance.

Advances in modeling, simulation, and rapid prototyping—paired with flexible acquisition pathways like OTAs—are accelerating experimentation, flight testing, and fielding as hypersonics reshape deterrence and future aerospace capabilities.

Space Defense Initiatives

Space is increasingly recognized as a critical warfighting domain. OTA-enabled projects are pushing the boundaries of space situational awareness, satellite communications, management of space debris, and space-based weapons systems.

Space Situational Awareness

Space situational awareness is advancing through the integration of more sophisticated ground- and space-based sensors, improved data fusion, and AI-enabled analytics to better detect, track, and characterize objects and potential threats in increasingly congested and contested orbital environments.

Satellite Communications

Satellite communications are trending toward more resilient and proliferated constellations, with enhanced cybersecurity, lower-latency connectivity, and adaptive waveforms designed to maintain assured communications even in degraded or denied conditions.

Space Debris Management

Space debris management is gaining momentum through improved tracking, automated collision avoidance, and the development of active debris removal technologies to preserve the long-term sustainability of space operations.

Space-Based Weapons Systems

Space-based weapons systems are evolving with a focus on deterrence and space control, emphasizing counter-space capabilities and tightly integrated command-and-control architectures to operate effectively in contested domains.

The Role of OTAs in Space Defense Technology

OTAs are playing a part in developing each of these technology areas. An OTA is a contracting alternative that empowers the Department of Defense (DoD) to partner with non-traditional defense contractors, including startups and universities, that are often on the brink of the most cutting-edge technology.

Cybersecurity and Cyberwarfare

Cybersecurity and cyberwarfare are rapidly evolving as core components of modern defense, driven by the expansion of digital infrastructure, software-defined systems, and networked operations across all domains. As attack surfaces grow and adversaries become more sophisticated, defense organizations are prioritizing resilience, speed, and adaptability to protect critical systems and maintain operational advantage.

Cybersecurity

Cybersecurity technologies are increasingly focused on zero-trust architecture, continuous monitoring, and AI-enabled threat detection to prevent, identify, and mitigate intrusions in real time. Emphasis is also placed on securing supply chains, cloud environments, and embedded systems that underpin modern defense platforms.

Cyberwarfare

Cyberwarfare capabilities are advancing toward more integrated offensive and defensive operations, leveraging automation, advanced analytics, and cyber-electromagnetic convergence to disrupt adversary networks while protecting friendly forces. These trends reflect a shift from reactive cyber defense to persistent engagement and proactive operations in contested digital environments.

Cybersecurity Maturation Model Certification 2.0 (CMMC 2.0)

CMMC 2.0 is critical to protecting Controlled Unclassified Information and strengthening the cybersecurity posture of the defense industrial base as cyber threats continue to escalate. By enforcing consistent, NIST-aligned security practices, the framework helps ensure sensitive defense data is safeguarded across all contractors and suppliers. This compliance is essential not only for meeting DoW requirements, but for maintaining trust, operational resilience, and continued eligibility to compete for and perform defense work.

Projects Leveraging the OTA Vehicle in Defense Technology Innovation

Hypersonics Testing Development

The MACH-TB 2.0 project, powered by the S²MARTS OTA, is bridging the gap between ground testing of low Technology Readiness Level (TRL) technologies and full system flight testing of high TRL technologies. This will reduce overall hypersonic development risks and provide rapid innovative hypersonic technologies to the warfighter.

AI-Powered Logistics

Space Systems Command, through the SpEC OTA, is funding the OPIR TAP Lab AI/ML Applications opportunity. This project will solve the challenges fueled by the introduction of machine learning (ML) and other artificial intelligence (AI) technologies to a variety of applications, including target detection, tracking, and characterization of infrared (IR) events.

Space Command & Control

The FORGE C2 prototyping project will serve as the foundation for a government-owned, cyber-secure Modular Open Systems Approach (MOSA) for Missile Warning satellite command and control, including mission management, ground control, telemetry, tracking, and commanding. The next phase of FORGE C2 is expected to be awarded early in 2025. FORGE C2 is also powered by SpEC.

Using the OTA Vehicle to Propel Defense Technology Innovation

In conclusion, the future of U.S. defense hinges on embracing rapid innovation, particularly in the realms of AI, hypersonics, and space. The OTA is proving to be a crucial enabler, fostering collaboration with non-traditional defense contractors and accelerating the development of cutting-edge technologies. By leveraging OTAs, the DoD can navigate the complexities of modern warfare, ensuring that our military maintains a technological edge in an increasingly competitive global landscape.

NSTXL is focused on building a network of innovators and creators across the most sought-after emerging technology fields. Within the platform, NSTXL supports two OTAs, including the Strategic & Spectrum Missions Advanced Resilient Trusted Systems (S2MARTS) and Space Enterprise Consortium (SpEC).

Join the mission today.

Accessing technology for research and development can be challenging for government agencies. However, OTA government acquisition documents streamline this process so that your facility can quickly access the R&D resources it needs. S²MARTS Research is creating a more connected and streamlined Other Transaction Agreement (OTA) ecosystem, uniquely positioned to better establish the relationship between research and prototyping.

NSTXL‘s experts are committed to helping your government agency capitalize on trends in emerging technology.