Soldier Systems Market Report 2026

The soldier systems market size has grown strongly in recent years. It will grow from $12.46 billion in 2025 to $13.13 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to increased adoption of infrared target locators enhancing precision targeting capabilities, rising deployment of personal counter-ied equipment improving soldier survivability, growth in battlefield communication systems strengthening real-time situational awareness, expansion of leadership development and training programs supporting modernization of soldier capabilities, advancements in laser target designators improving coordination with precision-guided munitions.

The soldier systems market size is expected to see strong growth in the next few years. It will grow to $16.04 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to development of integrated soldier systems combining sensors communications and protective gear into unified platforms, rising focus on augmented reality and wearable technologies enhancing battlefield visualization, increasing demand for lightweight and modular equipment improving soldier mobility, growth in autonomous and semi-autonomous support systems complementing dismounted soldier operations, advancement in data fusion and analytics improving decision-making and mission effectiveness. Major trends in the forecast period include increased adoption of wearable soldier technologies, enhanced battlefield situational awareness, integration of multi-domain systems, growth in soldier training and simulation programs, expansion of personal protection and counter-ied systems.

The rising incidence of terrorist attacks is expected to drive growth in the soldier system market in the future. Terrorist strikes are surprise assaults that deliberately target civilians with violence to achieve political or religious goals. Soldier systems enhance crew safety by integrating protective apparel, personal electronics, and survival equipment to improve aircrew lethality, mission effectiveness, and protection. The increasing number of terrorist attacks is expanding the soldier system market and driving demand. For instance, in February 2024, The Institute for Economics and Peace, an Australia-based international think tank, reported that terrorist attacks became more deadly in 2023, with an average of 2.5 deaths per attack compared to 1.6 in 2022. Therefore, the growing number of terrorist strikes is fueling the soldier system market.

The use of wearable technology and augmented reality is a key trend gaining traction in the soldier systems market. Major companies are increasingly developing advanced wearable and AR-enabled solutions to strengthen their market position and improve soldier capabilities. For instance, in February 2025, Rheinmetall, a Germany-based defense technology company, introduced its upgraded “IdZ-ES VJTF 2023 obsolescence-adjusted” soldier system. The enhanced system improves interoperability by integrating communication and data exchange functionalities with platforms such as the Boxer armored transport vehicle and the Puma infantry fighting vehicle. It is also designed for compatibility with the Digitisation of Land-Based Operations (D-LBO) network, which aims to connect 10,000 tactical vehicles and platforms by 2030. Additionally, the system features a chest-mounted interface that provides real-time situational awareness and connectivity, enabling faster and more informed tactical decision-making.

In March 2023, the Hungarian Defense Forces (HDF) acquired Elbit Systems' E-LynX software-defined radios, underscoring the growing importance of advanced communication systems in soldier systems. The E-LynX series of software-defined radios, part of the Zrínyi 2026 Defense and Force Development Programme, includes cutting-edge antenna and routing technologies, along with end-to-end satellite communication systems. These radios enhance soldier communication, situational awareness, and overall effectiveness on the battlefield. Elbit Systems, as a leading player in soldier systems, continues to provide advanced digital and communication solutions for military applications.

Major companies operating in the soldier systems market are Safran SA, Leonardo S.p.A., Rheinmetall AG, L3Harris Technologies Inc., Lockheed Martin Corporation, Saab AB, Aselsan Elektronik Sanayi ve Ticaret A.Ş., Elbit Systems Ltd., General Dynamics Corporation, Thales Group, Teledyne Technologies Inc., Inova Design Solutions LLC, The Boeing Company, Northrop Grumman Corporation, Avon Protection plc, Banc 3 Technologies, Inc., Inmarsat Global Limited, Metravib Defense SA, Teldat Group, S.A., Textron Systems Corporation, Raytheon Technologies Corporation, BAE Systems plc, Harris Corporation, Leidos Holdings Inc., KBR Inc., CACI International Inc., QinetiQ Group plc, Cobham plc, Ultra Electronics Holdings plc, Chemring Group plc, Hanwha Corporation, Bharat Electronics Limited, Israel Weapon Industries Ltd., ST Engineering, RUAG AG, Nexter Systems, Oshkosh Corporation, Navistar International Corporation, Kongsberg Gruppen ASA, FN Herstal S.A.

North America was the largest region in the soldier systems market in 2025. The regions covered in the soldier systems 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 soldier system market by increasing the costs of imported high-tech components, such as sensors, communication devices, and protective materials, affecting production and procurement cycles. Military and homeland security segments are most impacted, particularly in North America, Europe, and Asia-Pacific regions. Some domestic manufacturers gain a competitive advantage as tariffs encourage local production and innovation. Overall, tariffs create short-term supply chain challenges but incentivize domestic R&D and cost optimization in soldier system solutions.

The soldier systems market research report is one of a series of new reports that provides soldier systems market statistics, including soldier systems industry global market size, regional shares, competitors with a soldier systems market share, detailed soldier systems market segments, market trends and opportunities, and any further data you may need to thrive in the soldier systems industry. This soldier systems 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.

The soldier system encompasses a strategic battlefield framework designed to optimize warfighting capabilities by integrating cutting-edge technology and equipment, thereby enhancing the performance of military personnel in the field.

Key components of the soldier system include protection, communication, power and data transmission, surveillance and target acquisition, navigation, and various other elements. Protection involves the implementation of measures to ensure the safety and security of individuals or assets, utilizing a range of hardware and software solutions. These solutions encompass devices such as hardware components, software applications, display units, imaging tools, night vision equipment, tracking systems, wired and wireless communication devices, personal protection kits, and identification friend or foe (IFF) technologies. The adoption of advanced technologies such as artificial intelligence, 3D printing, internet of things (IoT), and wearable devices plays a crucial role in the development and deployment of soldier systems, serving the needs of both military and homeland security operations.

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

The soldier system market includes revenues earned by entities by offering services such as training, leadership development, doctrine, and situational awareness. The market value includes the value of related goods sold by the service provider or included within the service offering. The soldier system market also includes sales of infrared target locators, anti-sniper effectors, battlefield communications, laser target designators, and personal counter-IED equipment and systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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