Emerging tech-focused firms like Kratos Defense and Security Solutions are reshaping the defense industry, with the potential for more business opportunities and contracts for mid-tier firms specializing in technologies central to the Defense Department's modernization plans. The Air Force's acquisition and testing of Kratos-made autonomous drones showed the emerging possibilities for smaller firms. The defense market is evolving to offer better and more work to mid-tier firms, particularly those specializing in emerging technologies. The Top 100 list of defense contractors may see a reshuffling in the coming years as smaller companies experience growth and new entrants emerge. The Pentagon must start awarding significant contracts to smaller firms to foster growth and diversity in the industrial base.