Integrated Visual Augmentation System Market Report 2026

The integrated visual augmentation system market size has grown rapidly in recent years. It will grow from $3.96 billion in 2025 to $4.51 billion in 2026 at a compound annual growth rate (CAGR) of 13.9%. The growth in the historic period can be attributed to modernization of soldier equipment, demand for battlefield awareness, defense digitization programs, night combat requirements, tactical communication needs.

The integrated visual augmentation system market size is expected to see rapid growth in the next few years. It will grow to $7.45 billion in 2030 at a compound annual growth rate (CAGR) of 13.4%. The growth in the forecast period can be attributed to increased defense spending, adoption of smart soldier programs, AI based threat detection, integration with autonomous systems, demand for real time command systems. Major trends in the forecast period include integration of ar with night vision, enhanced soldier situational awareness, multi sensor data fusion systems, lightweight wearable military displays, real time battlefield data visualization.

The increasing defense modernization programs are expected to drive the growth of the integrated visual augmentation system market going forward. Defense modernization programs are structured initiatives undertaken by a nation’s military to upgrade and enhance capabilities through advanced technologies, improved infrastructure, and updated equipment and systems. The rise in these programs is primarily fueled by growing geopolitical tensions, as countries aim to strengthen military capabilities and maintain strategic advantage. Integrated visual augmentation systems support defense modernization by offering advanced augmented reality features, enhancing soldier situational awareness and decision-making. They improve mission effectiveness through real-time data, sensor integration, and seamless battlefield communication. For example, in March 2023, the European Security and Defence College, a Belgium-based autonomous institution, reported that by 2030, the ongoing US Army modernization program is expected to field 35 new future force systems, forming the core of over 500 development, acquisition, or upgrade initiatives currently underway. Therefore, the increasing defense modernization programs are driving the growth of the integrated visual augmentation system market.

Companies in the integrated visual augmentation system (IVAS) market are focusing on developing innovative technologies such as advanced optical filter assemblies to improve visual clarity, sensor accuracy, and augmented reality (AR) performance in combat situations. These optical filter assemblies are specialized components designed to enhance image quality, sensor function, and AR displays across different lighting conditions. For instance, in April 2024, Optex Systems Inc., a US defense optics manufacturer, announced its support for the Integrated Visual Augmentation System (IVAS) Filter Assembly, a next-generation optical component made specifically for military-grade AR systems. The filter assembly features precision-engineered coatings that allow selective light filtering, high impact resistance, and durability against harsh environments. It integrates with AR-enabled headsets used by the U.S. Army to provide clearer battlefield vision in varying light and weather while remaining compatible with thermal imaging and head-up display overlays.

In February 2025, Anduril Industries Inc., a US defense technology firm, formed a partnership with Microsoft Corporation to advance the U.S. Army’s integrated visual augmentation system (IVAS) program. This collaboration aims to accelerate and expand the IVAS initiative by combining Anduril’s defense manufacturing and artificial intelligence expertise with Microsoft’s cloud computing and software capabilities. The partnership seeks to ensure faster program delivery, improved system performance, and enhanced soldier effectiveness. Microsoft Corporation is a US-based technology company involved in developing the integrated visual augmentation system.

Major companies operating in the integrated visual augmentation system market are Microsoft Corporation, RTX Corporation, Lockheed Martin Corporation, BAE Systems plc, Thales Group, CACI International Inc., Elbit Systems Ltd., ASELSAN Elektronik Sanayi ve Ticaret A.Ş., Gentex Corporation, Anduril Industries Inc., FLIR Systems Inc., Magic Leap Inc., Kopin Corporation, RealWear Inc., Thermoteknix Systems Ltd., Optex Systems Inc., InVeris Training Solutions Inc., Vuzix Corporation, Rivet Industries LLC, InfivR Labs Pvt. Ltd.

North America was the largest region in the integrated visual augmentation system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the integrated visual augmentation system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the integrated visual augmentation system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The integrated visual augmentation system market consists of revenues earned by entities by providing services such as augmented reality (AR) integration services, sensor fusion and data processing, simulation and training support, system maintenance and upgrades, and cloud and edge computing support. The market value includes the value of related goods sold by the service provider or included within the service offering. The integrated visual augmentation system market also includes sales of body worn compute packs, thermal imaging cameras, augmented navigation aids, and heads-up display (HUD) software interfaces. 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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