Military Simulation and Training Market Report 2026

The military simulation and training market size has grown strongly in recent years. It will grow from $14.06 billion in 2025 to $15.12 billion in 2026 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to increasing adoption of virtual and constructive training environments by armed forces, rising need to reduce operational costs associated with live training exercises, advancement of simulation hardware and software enabling higher-fidelity military training, growth in procurement of complex military platforms requiring advanced simulation systems, early integration of simulation in pilot and vehicle crew training programs.

The military simulation and training market size is expected to see strong growth in the next few years. It will grow to $19.58 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to expansion of defense modernization programs driving demand for next-generation simulation solutions, increasing use of artificial intelligence and data analytics to enhance simulation realism and readiness assessment, rising focus on interoperability and joint-force training environments, growing adoption of cloud-based and distributed simulation architectures, increasing demand for immersive technologies such as augmented and virtual reality for mission rehearsal and operational training. Major trends in the forecast period include increased adoption of virtual battlefields for real-time training, integration of simulation technology in ab-initio training, focus on mission rehearsal and scenario-based training, demand for multi-domain training platforms (land, air, maritime), shift towards cost and labor efficient training solutions.

The anticipated growth of the military simulation and training market is expected to be driven by the increase in defense expenditure. Defense expenditure refers to the financial resources allocated by a government for military purposes. This spending is rising due to escalating security challenges, including violent extremism and separatist insurgencies, which necessitate effective military training through various means, including synthetic or virtual training. For example, in April 2024, the Stockholm International Peace Research Institute, a Sweden-based international organization, reported that global military spending in 2023 rose by 6.8% in real terms to $2.44 trillion compared to 2022. Consequently, the increase in defense expenditure is projected to significantly contribute to the growth of the military simulation and training market.

Major companies operating in the military simulation and training market are developing innovative products such as Virtual Battle Space (VBS) solutions to reach larger customer bases, increase sales, and boost revenue. Virtual Battle Space (VBS) products comprise a suite of military simulation and training software. For instance, in June 2023, Bohemia Interactive Simulations (BISim), a US-based training and simulation software company, launched VBS4 and VBS Blue IG. VBS4 serves as an accessible and comprehensive virtual and constructive simulation platform, providing seamless support for a wide range of military-specific training and mission rehearsal applications worldwide. In contrast, VBS Blue IG is a high-performance, CIGI-compliant, 3D whole-earth image generator designed to support diverse use cases across land, sea, air, and space domains. The latest versions, VBS4 and VBS Blue IG 23.1, feature numerous enhancements, including improved user-friendliness and performance upgrades, all available for download via the customer portal. Key additions in VBS4 version 23.1 include customizable radio antennas, damage charring, a redesigned mission briefing interface, a new weather panel, and several other improvements.

In February 2024, Indra Sistemas S.A., a Spain-based provider of consulting and technology services for the aerospace, defense, transport, and mobility sectors, acquired Global Training Aviation S.L. (GTA) for an undisclosed amount. Through this acquisition, Indra aimed to expand its offerings across the full value chain of simulation and training, from manufacturing advanced simulators to providing pilot and cabin-crew training services, thereby accelerating its growth in the civil and military aviation training markets. Global Training Aviation S.L. is a Spain-based provider of pilot and cabin-crew training services.

Major companies operating in the military simulation and training market are BAE Systems PLC, Cubic Corporation, FAAC Incorporated, Israel Aerospace Industries Ltd., L-3 Communications Holdings Inc., Lockheed Martin Corporation, Meggitt PLC, Northrop Grumman Corporation, Raytheon Technologies, Rheinmetall AG, Rockwell Collins Inc., SAAB AB, Textron Inc., Thales Group, Aechelon Technology Inc., Antycip Simulation, Barco NV, Bohemia Interactive Simulations, CAE Inc., DiSTI Corporation, Elbit Systems Ltd., Epic Games Inc., General Dynamics Corporation, Intelligent Decisions Inc., Presagis Canada Inc., Quantum3D Inc., Scalable Display Technologies, SimCentric Technologies Pty Ltd., Unity Technologies, Virtual Heroes Inc., MAK Technologies.

North America was the largest region in the military simulation and training market in 2025. The regions covered in the military simulation and training market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the military simulation and training market by increasing the cost of imported simulation hardware, software, and advanced training equipment, particularly affecting segments such as virtual simulators and autonomous system training platforms. Regions heavily reliant on international imports, including North America, Europe, and Asia-Pacific manufacturing hubs, are most affected. While tariffs raise production and deployment costs, they may encourage local production and innovation in domestic simulation technologies, fostering greater self-reliance within national defense sectors.

The military simulation and training market research report is one of a series of new reports that provides military simulation and training market statistics, including military simulation and training industry global market size, regional shares, competitors with a military simulation and training market share, detailed military simulation and training market segments, market trends and opportunities, and any further data you may need to thrive in the military simulation and training industry. This military simulation and training market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Military simulation and training involve the utilization of simulation technology to handle military equipment and weapons. This approach offers significant time and labor savings while potentially reducing wear on technical equipment. It's a widely adopted method across various military equipment training modules due to its effectiveness.

The primary categories within military simulation and training encompass life, virtual, and constructive simulations. Live simulations involve real individuals using genuine systems, demanding substantial logistical efforts and expenses. On the other hand, simulations provide a safer, cost-effective alternative but lack the exact experiential match for participants. These simulations occur through synthetic and gaming environments, leveraging technologies like IoT, 5G, big data analytics, AI, cloud computing, AR, VR, digital twin, and robotic process automation. They cater to diverse platforms such as land, maritime, and airborne operations, serving applications within the army, aviation, and naval sectors.

The countries covered in the military simulation and training market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The military simulation and training market consists of revenues earned by entities by providing training-related products and services such as virtual battlefield in real-time, enabling ab-initio training, mission rehearsal, and flight operations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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