The global soldier modernization systems market was valued at USD 14.8 billion in 2025. The market is estimated at USD 16.0 billion in 2026 and is projected to reach USD 31.6 billion by 2036, at a CAGR of 7.0% during the forecast period 2026-2036. This report provides a detailed assessment of the market, covering weapons, optics, protection, communications, and power technologies, lessons from Ukraine, major national soldier programs, standards and export controls, pricing, the supplier landscape, and future growth opportunities.
The market, also called the future soldier or integrated soldier systems market, includes the gear that armies hand to individual soldiers and small teams, from weapons and armor to sensors, radios, power, and mobility aids, to make them more lethal, better protected, better informed, and able to operate longer. It covers rifles, squad weapons, and fire control; armor, helmets, CBRN gear, uniforms, and carrying systems; radios, heads-up displays, navigation equipment, and headsets; night vision goggles, thermal sights, and target locators; batteries and power management; and exoskeletons and health monitoring, together with software, integration, training, and support.
According to the Stockholm International Peace Research Institute (SIPRI), world military spending hit a record USD 2.88 trillion in 2025, up 2.9% in real terms, with European spending climbing 14% to USD 864 billion. Germany now ranks among the biggest buyers of complete soldier systems: Rheinmetall's IdZ-ES framework contract with the Bundeswehr, signed in February 2025, runs to the end of 2030 with a ceiling of EUR 3.1 billion, and an April 2026 call-off of around EUR 1.04 billion for 237 more platoon systems will equip 8,600 additional soldiers. The U.S. Department of Defense FY2026 request for its Next Generation Squad Weapon (NGSW) effort covers 16,154 M7 rifles, 2,636 M250 automatic rifles, and 19,524 M157 fire control units.
Every new capability adds weight to soldiers who already carry heavy loads of weapons, armor, ammunition, and batteries, and the U.S. Army restructured its Integrated Visual Augmentation System (IVAS) into the Soldier Borne Mission Command (SBMC) program after troops criticized its weight, form factor, and nausea effects. Programs take years from requirement to fielding because of testing, integration, and user trials; IdZ-ES deliveries under the April 2026 call-off run from November 2027 to December 2029, and an SBMC production decision may not come before fiscal 2028. Soldier equipment must also compete for funds with vehicles, aircraft, air defense, and munitions. Key challenges include making equipment from many suppliers work together and with vehicles and allied forces, winning soldier acceptance, and limiting the electronic signatures and cyber exposure that come with more networked devices.
Lightweight augmented reality and mission command displays are a significant opportunity in the soldier modernization systems market: the SBMC phase two display weighs about 110 grams, and Anduril has built capacity for thousands of units and partnered with Meta and Oakley's Standard Issue brand for the glasses. Squad-level counter-drone capabilities, including smart fire control sights and thermal devices, lighter armor and modular helmets, and central power management that reduces the number of batteries carried are further openings. Localization is another growth area, as shown by the Rs 659.47 crore contract signed by India's Ministry of Defence in October 2025 for night sights with more than 51% indigenous content. Key trends include the move to complete platoon systems, the fusion of image intensification, thermal imaging, and digital displays, lighter modular protection, the entry of commercial technologies, and early testing of exoskeletons and health monitoring.
By system, the soldier modernization systems market is segmented into lethality systems, survivability systems, C4I and situational awareness systems, vision and target acquisition systems, power and energy systems, and mobility and human performance systems. Vision and target acquisition systems hold the largest share in 2026, reflecting large-scale buying of night vision goggles and sights, including the OCCAR contract revision of around EUR 1 billion signed in December 2025 with the THEON/HENSOLDT consortium for 100,000 more goggles for Germany, American goggle and observation device programs (ENVG-B and BiNOD), and Thales's optronics frame contract for IdZ-ES. C4I and situational awareness systems are set to record the highest CAGR, as SBMC and the networked IdZ-ES connect soldiers with vehicles and drones and each soldier needs radios, displays, computing, and power. Survivability systems keep a significant share, backed by new helmet and armor programs, while power and energy and mobility and human performance systems are small but growing faster than the market.
By offering, the soldier modernization systems market is segmented into hardware, software, and integration & support services. Hardware accounts for the largest share in 2026, because weapons, optics, protection, radios, and power equipment make up most program spending and are bought in large quantities for every soldier equipped. Software is set to grow the fastest, as mission command apps, augmented reality, AI, and network tools become core parts of digitized systems such as SBMC. Integration and support services are tied to integrated programs, where a general contractor such as Rheinmetall coordinates more than 30 subcontractors for IdZ-ES.
By program type, the soldier modernization systems market is segmented into integrated soldier system programs and standalone equipment upgrades. Standalone equipment upgrades hold the largest share in 2026, as most armed forces still buy weapons, night vision, protection, and radios through separate programs, such as NGSW, ENVG-B, and NG-IHPS in the U.S. Integrated soldier system programs are set to record the highest CAGR, since programs such as IdZ-ES deliver complete platoon systems of 35 soldier sets through a single general contractor and run for years with repeated call-offs.
By end user, the soldier modernization systems market is segmented into army & land forces, marine corps & naval infantry, special operations forces, and homeland security & paramilitary forces. Army & land forces hold the largest share in 2026, given the size of infantry forces and the reach of efforts such as IdZ-ES and NGSW. Special operations forces are set to grow the fastest, as they adopt the most advanced vision, communications, and mission command systems first, as shown by Anduril's August 2026 SBMC prototype trials with Army Rangers. Homeland security and paramilitary forces add demand for protection, night vision, and communications for border security and counter-terrorism.
North America holds the largest share of the global soldier modernization systems market in 2026, driven by large American defense budgets and land forces and a home base for L3Harris, Anduril, SIG SAUER, Elbit America, Vortex Optics, and other suppliers. SIPRI data show American military spending of USD 954 billion in 2025, the highest of any country. The U.S. Army is buying NGSW weapons and fire control, fielding ENVG-B goggles (L3Harris has reported more than 20,000 delivered), procuring BiNOD devices, and ordering NG-IHPS helmets, while more than USD 350 million in SBMC prototyping awards went to Anduril, Rivet, and Elbit Systems of America in September 2025.
Europe is set to grow at the highest CAGR during the forecast period, led by Germany's IdZ-ES program and night vision orders, the SAFE instrument, and NATO's 5% target. SIPRI reports that Germany raised military spending by 24% to USD 114 billion in 2025 and that Poland devoted 4.5% of GDP to defense, while the Netherlands, the U.K., France, and Spain are also modernizing soldier equipment and European suppliers such as Rheinmetall, Thales, Safran, THEON, and INVISIO are adding capacity. Asia-Pacific holds a significant share, with India buying indigenous night sights and soldier equipment from Bharat Electronics Limited, China modernizing with domestic suppliers, and Japan, South Korea, and Australia investing as part of wider defense buildups. In the Middle East & Africa, Gulf localization programs and Israeli and Turkish producers such as Elbit Systems and ASELSAN support steady growth, while Latin America remains smaller, with demand tied to border control and internal security.
The soldier modernization systems market is fragmented, with big defense groups serving as prime contractors for complete systems next to specialists in weapons, optics, night vision, protection, communications, and power. Suppliers compete on performance, weight and power, integration, interoperability, production capacity, local industrial content, and price, and long-term framework contracts with call-offs are the main route to market for integrated systems. THEON International reported a year-end 2025 backlog with options of around EUR 2.4 billion, over double its 2024 figure, and INVISIO reported 2025 revenue of SEK 1.73 billion and agreed a Dutch defense framework deal of up to SEK 365 million. Other recent moves include Thales's July 2026 optronics frame contract and local production investment in Germany, Avon Technologies' Team Wendy Ceradyne winning the largest part of June 2026 NG-IHPS helmet orders, and L3Harris's selection for BiNOD in April 2026.
Key companies profiled in the report include Rheinmetall AG (Germany), Thales S.A. (France), Elbit Systems Ltd. (Israel), L3Harris Technologies, Inc. (U.S.), Anduril Industries, Inc. (U.S.), Rivet Industries, Inc. (U.S.), Safran S.A. (France), SIG SAUER, Inc. (U.S.), Avon Technologies plc (U.K.), INVISIO AB (Sweden), THEON International Plc (Cyprus), Vortex Optics (U.S.), ASELSAN A.Ş. (Türkiye), Bharat Electronics Limited (India), and Ultralife Corporation (U.S.).
The market, also called the future soldier or integrated soldier systems market, includes the gear that armies hand to individual soldiers and small teams, from weapons and armor to sensors, radios, power, and mobility aids, to make them more lethal, better protected, better informed, and able to operate longer. It covers rifles, squad weapons, and fire control; armor, helmets, CBRN gear, uniforms, and carrying systems; radios, heads-up displays, navigation equipment, and headsets; night vision goggles, thermal sights, and target locators; batteries and power management; and exoskeletons and health monitoring, together with software, integration, training, and support.
According to the Stockholm International Peace Research Institute (SIPRI), world military spending hit a record USD 2.88 trillion in 2025, up 2.9% in real terms, with European spending climbing 14% to USD 864 billion. Germany now ranks among the biggest buyers of complete soldier systems: Rheinmetall's IdZ-ES framework contract with the Bundeswehr, signed in February 2025, runs to the end of 2030 with a ceiling of EUR 3.1 billion, and an April 2026 call-off of around EUR 1.04 billion for 237 more platoon systems will equip 8,600 additional soldiers. The U.S. Department of Defense FY2026 request for its Next Generation Squad Weapon (NGSW) effort covers 16,154 M7 rifles, 2,636 M250 automatic rifles, and 19,524 M157 fire control units.
Market Dynamics
Rising defense budgets are the main driver of the soldier modernization systems market, as armies expand their land forces and replace equipment worn out in operations or sent to Ukraine; in June 2025, NATO allies committed to spending 5% of GDP on defense by 2035, and the European Union's SAFE facility makes up to EUR 150 billion in loans available. Armed forces are also shifting from buying single items to buying integrated packages that bring together firearms, optics, radios, displays, armor, and power, and from equipping selected units to equipping whole formations. The replacement of individual weapons adds steady demand for rifles, digital fire control, sights, and target locators, while the push to link dismounted soldiers with vehicles, drones, and command posts is raising demand for radios, displays, computing, and power. Ukraine's war, in which more than 4 million drones were produced in 2025, has made night operations, drone detection, and protection from artillery and drone strikes everyday requirements for infantry.Every new capability adds weight to soldiers who already carry heavy loads of weapons, armor, ammunition, and batteries, and the U.S. Army restructured its Integrated Visual Augmentation System (IVAS) into the Soldier Borne Mission Command (SBMC) program after troops criticized its weight, form factor, and nausea effects. Programs take years from requirement to fielding because of testing, integration, and user trials; IdZ-ES deliveries under the April 2026 call-off run from November 2027 to December 2029, and an SBMC production decision may not come before fiscal 2028. Soldier equipment must also compete for funds with vehicles, aircraft, air defense, and munitions. Key challenges include making equipment from many suppliers work together and with vehicles and allied forces, winning soldier acceptance, and limiting the electronic signatures and cyber exposure that come with more networked devices.
Lightweight augmented reality and mission command displays are a significant opportunity in the soldier modernization systems market: the SBMC phase two display weighs about 110 grams, and Anduril has built capacity for thousands of units and partnered with Meta and Oakley's Standard Issue brand for the glasses. Squad-level counter-drone capabilities, including smart fire control sights and thermal devices, lighter armor and modular helmets, and central power management that reduces the number of batteries carried are further openings. Localization is another growth area, as shown by the Rs 659.47 crore contract signed by India's Ministry of Defence in October 2025 for night sights with more than 51% indigenous content. Key trends include the move to complete platoon systems, the fusion of image intensification, thermal imaging, and digital displays, lighter modular protection, the entry of commercial technologies, and early testing of exoskeletons and health monitoring.
Segment Analysis
The report analyzes the market by system, offering, program type, end user, and geography, helping stakeholders identify the most attractive areas for investment, product development, and program pursuit.By system, the soldier modernization systems market is segmented into lethality systems, survivability systems, C4I and situational awareness systems, vision and target acquisition systems, power and energy systems, and mobility and human performance systems. Vision and target acquisition systems hold the largest share in 2026, reflecting large-scale buying of night vision goggles and sights, including the OCCAR contract revision of around EUR 1 billion signed in December 2025 with the THEON/HENSOLDT consortium for 100,000 more goggles for Germany, American goggle and observation device programs (ENVG-B and BiNOD), and Thales's optronics frame contract for IdZ-ES. C4I and situational awareness systems are set to record the highest CAGR, as SBMC and the networked IdZ-ES connect soldiers with vehicles and drones and each soldier needs radios, displays, computing, and power. Survivability systems keep a significant share, backed by new helmet and armor programs, while power and energy and mobility and human performance systems are small but growing faster than the market.
By offering, the soldier modernization systems market is segmented into hardware, software, and integration & support services. Hardware accounts for the largest share in 2026, because weapons, optics, protection, radios, and power equipment make up most program spending and are bought in large quantities for every soldier equipped. Software is set to grow the fastest, as mission command apps, augmented reality, AI, and network tools become core parts of digitized systems such as SBMC. Integration and support services are tied to integrated programs, where a general contractor such as Rheinmetall coordinates more than 30 subcontractors for IdZ-ES.
By program type, the soldier modernization systems market is segmented into integrated soldier system programs and standalone equipment upgrades. Standalone equipment upgrades hold the largest share in 2026, as most armed forces still buy weapons, night vision, protection, and radios through separate programs, such as NGSW, ENVG-B, and NG-IHPS in the U.S. Integrated soldier system programs are set to record the highest CAGR, since programs such as IdZ-ES deliver complete platoon systems of 35 soldier sets through a single general contractor and run for years with repeated call-offs.
By end user, the soldier modernization systems market is segmented into army & land forces, marine corps & naval infantry, special operations forces, and homeland security & paramilitary forces. Army & land forces hold the largest share in 2026, given the size of infantry forces and the reach of efforts such as IdZ-ES and NGSW. Special operations forces are set to grow the fastest, as they adopt the most advanced vision, communications, and mission command systems first, as shown by Anduril's August 2026 SBMC prototype trials with Army Rangers. Homeland security and paramilitary forces add demand for protection, night vision, and communications for border security and counter-terrorism.
Regional Analysis
The report covers North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa, spanning 20 countries and four rest-of-region groups. The regional analysis considers defense budgets, national soldier programs, land force size, local industry and localization rules, and allied interoperability.North America holds the largest share of the global soldier modernization systems market in 2026, driven by large American defense budgets and land forces and a home base for L3Harris, Anduril, SIG SAUER, Elbit America, Vortex Optics, and other suppliers. SIPRI data show American military spending of USD 954 billion in 2025, the highest of any country. The U.S. Army is buying NGSW weapons and fire control, fielding ENVG-B goggles (L3Harris has reported more than 20,000 delivered), procuring BiNOD devices, and ordering NG-IHPS helmets, while more than USD 350 million in SBMC prototyping awards went to Anduril, Rivet, and Elbit Systems of America in September 2025.
Europe is set to grow at the highest CAGR during the forecast period, led by Germany's IdZ-ES program and night vision orders, the SAFE instrument, and NATO's 5% target. SIPRI reports that Germany raised military spending by 24% to USD 114 billion in 2025 and that Poland devoted 4.5% of GDP to defense, while the Netherlands, the U.K., France, and Spain are also modernizing soldier equipment and European suppliers such as Rheinmetall, Thales, Safran, THEON, and INVISIO are adding capacity. Asia-Pacific holds a significant share, with India buying indigenous night sights and soldier equipment from Bharat Electronics Limited, China modernizing with domestic suppliers, and Japan, South Korea, and Australia investing as part of wider defense buildups. In the Middle East & Africa, Gulf localization programs and Israeli and Turkish producers such as Elbit Systems and ASELSAN support steady growth, while Latin America remains smaller, with demand tied to border control and internal security.
Competitive Landscape
The report provides a detailed review of the competitive landscape, covering key growth strategies, competitive benchmarking, the competitive dashboard (market leaders, market differentiators, vanguards, and emerging players), and market share/rank analysis by key player for 2025. Company profiles include business and financial overviews, soldier systems and product portfolios, strategic developments, and SWOT analyses.The soldier modernization systems market is fragmented, with big defense groups serving as prime contractors for complete systems next to specialists in weapons, optics, night vision, protection, communications, and power. Suppliers compete on performance, weight and power, integration, interoperability, production capacity, local industrial content, and price, and long-term framework contracts with call-offs are the main route to market for integrated systems. THEON International reported a year-end 2025 backlog with options of around EUR 2.4 billion, over double its 2024 figure, and INVISIO reported 2025 revenue of SEK 1.73 billion and agreed a Dutch defense framework deal of up to SEK 365 million. Other recent moves include Thales's July 2026 optronics frame contract and local production investment in Germany, Avon Technologies' Team Wendy Ceradyne winning the largest part of June 2026 NG-IHPS helmet orders, and L3Harris's selection for BiNOD in April 2026.
Key companies profiled in the report include Rheinmetall AG (Germany), Thales S.A. (France), Elbit Systems Ltd. (Israel), L3Harris Technologies, Inc. (U.S.), Anduril Industries, Inc. (U.S.), Rivet Industries, Inc. (U.S.), Safran S.A. (France), SIG SAUER, Inc. (U.S.), Avon Technologies plc (U.K.), INVISIO AB (Sweden), THEON International Plc (Cyprus), Vortex Optics (U.S.), ASELSAN A.Ş. (Türkiye), Bharat Electronics Limited (India), and Ultralife Corporation (U.S.).
How This Report Helps
- Provides reliable market size estimates and long-term forecasts for the global soldier modernization systems market.
- Explains how defense budgets, integrated soldier programs, weapon replacement, and soldier digitization are shaping demand.
- Assesses the effect of soldier weight limits, long procurement cycles, budget competition, and integration risk on programs.
- Identifies high-growth opportunities across system, offering, program type, end user, and region.
- Tracks heads-up displays, fused night vision, digital fire control, counter-drone sights, soldier power, and exoskeletons.
- Benchmarks general contractors and equipment specialists by position, portfolio, and strategy.
- Supports program capture, partnering, and market entry decisions for suppliers and investors.
Key Questions Answered
- How big is the global soldier modernization systems market today, and how will it grow through 2036?
- What are the main drivers, restraints, opportunities, challenges, and trends shaping the market?
- What lessons from Ukraine are changing soldier equipment requirements?
- Which system, offering, program type, and end-user segments will grow the fastest?
- How will programs such as IdZ-ES, NGSW, and SBMC shape demand over the forecast period?
- How are weight, power, and user acceptance affecting the adoption of new soldier technologies?
- How are localization requirements influencing international soldier programs?
- Which regions and countries offer the most attractive business opportunities?
- Who are the leading companies in the market, and what strategies are they using to win contracts?
Table of Contents
1. Introduction
2. Research Methodology
4. Market Overview
5. Soldier Modernization Systems Market, by System
6. Soldier Modernization Systems Market, by Offering
7. Soldier Modernization Systems Market, by Program Type
8. Soldier Modernization Systems Market, by End User
9. Soldier Modernization Systems Market, by Geography
10. Competitive Landscape
11. Company Profiles
12. Appendix
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- Rheinmetall AG
- Thales S.A.
- Elbit Systems Ltd.
- L3Harris Technologies, Inc.
- Anduril Industries, Inc.
- Rivet Industries, Inc.
- Safran S.A.
- SIG SAUER, Inc.
- Avon Technologies plc
- INVISIO AB
- THEON International Plc
- Vortex Optics
- ASELSAN A.Ş.
- Bharat Electronics Limited
- Ultralife Corporation
