Soldier Modernization Market Report 2025

The soldier modernization market size has grown strongly in recent years. It will grow from $14.67 billion in 2024 to $15.54 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth during the historic period can be linked to the rise in counterinsurgency operations, increased demand for enhanced soldier survivability, advancements in personal protective equipment technology, heightened military spending following 9/11, and the early adoption of night vision and communication systems.

The soldier modernization market size is expected to see strong growth in the next few years. It will grow to $19.33 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The projected growth in the forecast period is driven by the integration of AI and robotics, increasing demand for wearable battlefield sensors, a shift toward network-centric warfare, greater focus on soldier lethality and mobility, and the expansion of unmanned and cyber-integrated soldier systems. Key trends include the use of artificial intelligence to enhance decision-making, adoption of wearable health monitoring devices, development of lightweight and modular body armor, deployment of augmented reality (AR) head-up displays, and the use of exoskeletons to boost soldier endurance and mobility.

The increase in geopolitical tensions is expected to drive the growth of the soldier modernization market. Geopolitical tensions involve strained political relations between countries or regions, often resulting in conflict or heightened military readiness. These tensions are on the rise due to intensifying global power rivalries, which lead to more border disputes and military posturing. Soldier modernization enhances defense readiness by equipping personnel with advanced tools that enable faster, safer, and better-informed actions. In times of geopolitical tension, it allows nations to respond quickly, project power, and maintain a strategic advantage without escalating into direct conflict. For example, in December 2024, the Armed Conflict Location & Event Data Project (ACLED), a US-based nonprofit specializing in conflict data analysis, reported over 165,273 political violence events worldwide from July 2023 to June 2024, representing a 15% increase compared to the previous year. Thus, rising geopolitical tensions are fueling the growth of the soldier modernization market.

Leading companies in the soldier modernization market are developing advanced products like ballistic helmets to improve soldier protection and operational efficiency in combat situations. Ballistic helmets are specialized combat headgear designed to shield soldiers from gunfire, blasts, and flying debris. For instance, in May 2025, Gentex Corporation, a US-based fire protection company, launched its next-generation Ops-Core FAST SF Headborne System. This helmet sets a new benchmark for lightweight ballistic protection for defense and law enforcement personnel. While providing the same level of ballistic defense as its predecessor, the helmet features a shell that is 10-15% lighter. It also includes a new universal lockdown liner system that improves comfort, fit, and stability, especially when used with heavy night vision equipment and other accessories.

In June 2025, NP Aerospace, a UK-based supplier of advanced survivability solutions for personnel and platforms, formed a partnership with Logistik Unicorp to enhance soldier survivability through integrated innovations. This collaboration aims to create a next-generation, user-centered soldier system by combining cutting-edge armor technology with high-performance apparel. The goal is to improve protection, comfort, and operational efficiency for UK forces while supporting local industry and Ministry of Defence programs such as the VIRTUS re-let. Logistik Unicorp is a Canada-based provider of military apparel.

Major players in the soldier modernization market are RTX Corporation, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, Rostec State Corporation, BAE Systems plc, 3M Company, Safran Group, Thales Group, Singapore Technologies Engineering Ltd., Rheinmetall AG, Elbit Systems Ltd., Saab AB, Gentex Corporation, Safariland LLC, Avon Protection, Sarcos Robotics, ArmorSource LLC, Galvion, Hardshell Ltd., and MKU LIMITED.

North America was the largest region in the soldier modernization market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in soldier modernization report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the soldier modernization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Soldier modernization involves upgrading military personnel with advanced technology, equipment, and systems to improve their overall capabilities. The main aim is to boost combat effectiveness, protection, and tactical decision-making, enabling armed forces to respond more efficiently and accurately to the challenges of modern warfare.

The key categories of soldier modernization include weapons and ammunition, personal protection, communication, surveillance and target acquisition, exoskeletons, training and simulation, among others. Weapons and ammunition encompass modern combat systems such as firearms, explosives, and precision munitions designed to improve battlefield performance and accuracy. This modernization incorporates technologies like artificial intelligence, augmented reality and virtual reality, the Internet of Things (IoT), big data and analytics, and robotics, across various platforms including airborne, naval, and land. These advancements find applications in national defense, homeland security, special forces, and law enforcement, serving a range of end users such as defense forces, emergency services, and private security providers.

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

The soldier modernization market consists of revenues earned by entities by providing services such as weaponry integration, power and energy solutions, navigation and mobility support, and command and control integration. The market value includes the value of related goods sold by the service provider or included within the service offering. The soldier modernization market also includes sales of wearable health monitoring systems, environmental adaptation systems, cognitive enhancement tools, and power and energy management 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 and 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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