When any sector has a 46% compounded annual growth rate projection, it should grab the attention of most investors.

Part of the reason for this significant growth spurt is the fact that it’s starting at a low level. At that rate, it will go from a $17 billion niche industry to a $235 billion industry in six short years.

From that point, growth may slow, but the industry will start closing in on a $1 trillion valuation in the next decade.

One company that has timed its entrance into this sector well is Palantir Technologies (NASDAQ: PLTR). It’s been working on AI-based software integration into robots and other mechanical equipment to help create more autonomous vehicles, as well as standardize production at scale.

Two other companies to watch in this space are private companies Anduril and Shield AI. They’re not only building the autonomous software (Shield AI’s is called Hivemind), but also autonomous vehicles as well. The one above and similar models are called RCVs, or robotic combat vehicles.

Anduril is also working with South Korean defense company Hanwah on a Small – Multi-Purpose Equipment Transport (S-MET) to haul equipment alongside troops.

In the broadest terms, this sector is called uncrewed ground vehicles (UGVs), but the tech also works in the air and sea as well.

Switching GEARS

Another military project in the US Army Defense Innovation Unit is called Ground Expeditionary Autonomous Retrofit System (GEARS).

The goal of GEARS is to build heavy-duty vehicles capable of independently navigating rugged terrain and restocking soldiers in the field – again, no roads or stop light monitoring needed!

Oshkosh (NYSE: OSK) – the heavy-duty vehicle maker – is heavily involved. Certainly, firms like Caterpillar (NYSE: CAT), Cummins (NYSE: CMI) and other front-footed industrial and Old Economy heavy equipment makers will also be involved.

Watch this space!