The global military simulation and virtual training market was valued at USD 13.02 billion in 2022 and is projected to reach USD 18.75 billion by 2030, growing at a CAGR of 4.7% from 2023 to 2030. The market growth is driven by the rising need for a well-trained naval workforce and the increasing demand for both conventional and unconventional military equipment and software.

Traditional real-time training is often time-consuming, costly, and resource-intensive, requiring significant raw materials such as fuel and explosives, and posing high operational risks. Consequently, defense ministries are increasingly turning to virtual training and simulation solutions, incorporating advanced technologies like big data, Artificial Intelligence (AI), and cloud computing.

Military simulation enables soldiers in training to engage in realistic, computer-generated scenarios that closely replicate real-world conditions. Growing investments in simulation software are expected to be a key driver for market expansion. Furthermore, several defense ministries are restructuring and modernizing their military forces by integrating innovative training solutions.

The adoption of military simulation and virtual training is expanding globally, as these solutions significantly reduce training costs through the use of Commercial-off-the-Shelf (COTS) components and low-cost development methods. This cost efficiency supports the introduction of new simulation-based training innovations.

Additionally, the demand for upgraded and advanced equipment continues to rise, further propelling market growth. For example, Bohemia Interactive Simulation developed an Augmented Reality (AR) visual system for Textron, Inc., enabling trainees to interact with real-world environments enhanced with VR/AR-generated visual scenes.

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Key Market Trends & Insights

• Regional Performance: North America held the largest market share at 34.9% in 2022.

• Application Insights: The air application segment accounted for the largest revenue share at 44.0% in 2022, while the ground application segment is projected to grow at the highest CAGR of 4.9% during the forecast period.

• Platform Insights: The flight simulation segment led the market with a 39.6% revenue share in 2022.

Market Size & Forecast

• 2022 Market Size: USD 13.02 Billion

• 2030 Projected Market Size: USD 18.75 Billion

• CAGR (2023–2030): 4.7%

• North America: Largest market in 2022

• Asia Pacific: Fastest-growing region

Key Companies & Market Share Insights

Leading players are leveraging acquisitions, partnerships, and product launches to strengthen their market position. The sector remains in a developmental phase, encouraging continuous innovation and collaboration. Many companies are engaging in contractual agreements to expand capabilities. For instance, in November 2022, BAE Systems partnered with Inzpire to integrate Inzpire’s expertise into future Operational Training Services, creating a secure, high-fidelity synthetic environment for immersive training.

Major Players in the Market Include:

• Northrop Grumman
• Cubic Corporation
• CAE Inc.
• AAI Corporation
• Collins Aerospace
• Lockheed Martin Corporation
• BAE Systems
• L3Harris Technologies, Inc.
• Thales
• Bohemia Interactive Simulations

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Conclusion:

The military simulation and virtual training market is on a steady growth trajectory, fueled by technological advancements, cost-efficiency benefits, and the increasing emphasis on safe, realistic, and immersive training environments. As defense forces worldwide continue to modernize and adopt simulation-based solutions, the integration of AI, AR/VR, and cloud computing is expected to redefine military training, ensuring enhanced preparedness and operational efficiency in the years ahead.

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