Figure 2.1
From Europe to Asia, all major world powers are now investing and researching into the use of nanotechnology for materials and systems for military use. Evident from 'Figure 2.1' which shows the US Department of Defense's spending on nanotechnology for military purposes. Countries are showing increasing focus on developing nano-products to be used in today's warfare. Below there is a list of  products which millions and millions of dollars has been put towards.

Nanofabrics are currently being researched for use in military camouflage. A development called 'active camouflage' allows the wearer or object to blend into its surroundings. Active Camouflage uses panels and coatings that can change their appearance, from luminance and reflective properties to colour. This technology is perfect for military purposes as it provides complete concealment from visual detection. Interestingly, similar to a lot of nanotechnological breakthroughs, nature has been using the method for millions of years. The cuttlefish uses a form of 'active camouflage' to protect themselves from predators. Cuttlefish is known as the 'chameleon of the sea' due to its remarkable ability to change colour, which is what military corporations are trying to replicate.

Liquid Body Amour:

A soldier protected by liquid amour
(and a hard exoskeleton)
Another development courtesy of nanotechnology, that is being used for military and protection purposes, is 'liquid body amour' in Kevlar vests. Under normal conditions the new vest acts in a similar way to water. However upon impact it stiffens, thus providing adequate protection. The key component in the 'liquid armor vest' is shear thickening fluid (or STF) which is what provides the vest with its strong properties. STF is composed of hard particles, which are suspended in a liquid form. Nanoparticles of silica are highly important to the chemical make-up of this solution. The combination of hard kevlar and the flowable STF components results in a material that is suitable for the future soldier. Liquid body amour gives the wearer an impact resistant vest from bullet damage to pointed objects such as needles and swords.
                  "During normal handling, the STF is very deformable and flows like a liquid. However, once a bullet or frag  hits the vest, it transitions to a rigid material, which prevents the projectile from penetrating the soldier's body," 
[Dr. Eric Wetzel, a mechanical engineer from the Weapons and Materials Research Directorate]

How Liquid Body Amour Works Diagram: