Military Simulation and Virtual Training Market Report 2026

The military simulation and virtual training market size has grown strongly in recent years. It will grow from $12.99 billion in 2025 to $13.91 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to increasing shift from live training to virtual simulation to reduce training costs, early advancements in simulation software improving training fidelity, rising demand for safe training environments for high-risk military scenarios, growth in military equipment complexity requiring simulation-based skill development, expansion of virtual training adoption driven by the need to minimize wear on weapons and equipment.

The military simulation and virtual training market size is expected to see strong growth in the next few years. It will grow to $17.67 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to growing integration of artificial intelligence to enhance adaptive and personalized military training, rising deployment of immersive technologies such as augmented and virtual reality for realistic mission rehearsal, increasing demand for interconnected and multi-domain simulation platforms, expansion of defense modernization programs driving investments in advanced simulation systems, adoption of cloud-enabled simulation architectures supporting scalable and remote training environments. Major trends in the forecast period include increased adoption of equipment skill simulation training, expansion of campaign tactics simulation training, growth of strategy simulation and operational planning training, demand for multi-platform training (flight, vehicle, battlefield, virtual boot camp), emphasis on time and cost-efficient training methods.

The rise in territorial conflicts is expected to contribute to the growth of the military simulation and virtual training market in the coming years. Territorial conflicts refer to disputes over control of specific geographic areas. Individuals undergo military training each year to safeguard national security. Military simulation and virtual training are used in various military equipment training programs because they save time and effort while reducing technical wear on weapons and equipment. For example, in September 2025, the Home Office, a UK government department, reported that in the year ending 30 June 2025, 83 people were tried for terrorism-related offenses, five more than in the year ending 30 June 2024. Therefore, increasing territorial conflicts are supporting the expansion of the military simulation and virtual training market.

Companies in the military simulation and virtual training market are emphasizing technological innovations such as radio over internet protocol (RoIP) integration to improve realism, interoperability, and communication efficiency between live and simulated training environments. RoIP integration connects traditional radio systems to IP networks, enabling the transmission of voice and data over the internet for long-distance communication, improved system compatibility, centralized control, and cost-effective connectivity. For instance, in June 2024, PLEXSYS Interface Products, Inc., a US-based simulation and training solutions company, introduced Sonomarc 4.11, featuring major enhancements to support improved simulation and training experiences. Key capabilities include Dynamic Weather, which delivers real-time weather updates that affect RF propagation, and Virtual People Integration, which enables voice recognition and response through the radio. The virtual entity can carry out commands, interact with ASCOT 5/7, and respond to radio communications. Users can customize voice settings and configure commands. The system integrates smoothly with ASCOT 7 using the Sonomarc REST API, allowing dynamic voice control configurations without altering the software.

In December 2024, Zen Technologies Limited, an India-based manufacturing company, partnered with Applied Visual Technology Inc., doing business as AVT Simulation, to strengthen its presence in the U.S. defense market. Through this partnership, the two companies aim to develop next-generation, cost-effective training platforms by combining advanced defense technologies with specialized simulation expertise, enhancing readiness, safety, and operational effectiveness for U.S. defense and security forces. Applied Visual Technology Inc. (AVT Simulation) is a US-based company that designs customized simulation systems for defense, government, and commercial sectors.

Major companies operating in the military simulation and virtual training market are Northrop Grumman Corporation, Cubic Corporation, CAE Inc., RTX Corporation, Lockheed Martin Corporation, BAE Systems PLC, The Boeing Company, Saab AB, Thales Group, Rheinmetall AG, Raytheon Technologies Corporation, General Dynamics Information Technology Inc., Kratos Defense & Security Solutions Inc., L3Harris Technologies Inc., Elbit Systems Ltd., AAI Corporation, Barco NV, Fidelity Technologies Corporation, Meggitt Training Systems, Simthetiq Inc., Bohemia Interactive Simulations, Presagis Inc., Epic Games Inc., DiSTI Corporation, MAK Technologies Inc., Antycip Simulation Limited, SimCentric Technologies, QuantaDyn Corporation, ThoroughTec Simulation (Pty) Ltd., Leonardo S.p.A.

North America was the largest region in the military simulation and virtual training market in 2025. The regions covered in the military simulation and virtual 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 influenced the military simulation and virtual training market by increasing costs for imported simulation hardware, software, and advanced training platforms, impacting segments such as flight simulators, vehicle training systems, and virtual boot camps. Regions like North America, Europe, and Asia-Pacific, which depend on international imports, are most affected. While tariffs raise production and deployment costs, they can encourage domestic manufacturing, local innovation, and self-reliance within the defense simulation sector.

The military simulation and virtual training market research report is one of a series of new reports that provides military simulation and virtual training market statistics, including military simulation and virtual training industry global market size, regional shares, competitors with a military simulation and virtual training market share, detailed military simulation and virtual training market segments, market trends and opportunities, and any further data you may need to thrive in the military simulation and virtual training industry. This military simulation and virtual 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 virtual training encompass the utilization of simulation technology to replicate the use of weaponry and equipment, commonly employed in diverse military training programs. This method significantly saves time and resources, reducing technical wear on weaponry and equipment while providing an immersive training experience for armed units or individuals.

The realm of military simulation and virtual training, several platform types prevail, including flight, vehicle, battlefield, and virtual boot camp simulations. Flight simulations replicate airborne travel through the use of simulation technology, mimicking the operation of aircraft. These training methodologies encompass gaming solutions and virtual, constructive, and live training scenarios, catering to various end-users such as the air force, army, navy, and medical personnel.

The countries covered in the military simulation and virtual 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 virtual training market include revenues earned by entities by providing simulation training services such as equipment skill simulation training, campaign tactics simulation training, and strategy simulation training. 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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