Military Simulation & Virtual Training Market Size, Share, Growth Analysis, By Application(Land, Naval, and Aerospace Training), By Technology(Live, Virtual, and Constructive Simulations), By Region - Industry Forecast 2024-2031

Military Simulation & Virtual Training Market size was valued at USD 12.85 Billion in 2022 and is poised to grow from USD 13.56 Billion in 2023 to USD 20.81 Billion by 2031, at a CAGR of 5.50% during the forecast period (2024-2031).

Technological prowess will play a crucial role in determining the success of any military simulation & virtual training market player around the world. Companies that have experience in developing military equipment such as Lockheed Martin Corporation, Northrop Grumman Corporation, and Raytheon Technologies Corporation will have an edge over other market players. New companies and start-ups will have the chance to penetrate the market by creating solutions and systems that target specific training needs. Mergers, partnerships, and collaborations with government organizations will also allow companies to maximize their business potential over the coming years. Innovation in simulation technologies such as AR, VR, and MR will be elemental to the success of any military simulation & virtual training company. military simulation & virtual training providers can also aim at acquiring government contracts and defense projects to boost their market growth in the long term. military simulation & virtual training companies can also study different military projects to enhance their offerings and stand out from the competition. 'Lockheed Martin Corporation - USA', 'BAE Systems plc - United Kingdom', 'Thales Group - France', 'CAE Inc. - Canada', 'Elbit Systems Ltd. - Israel', 'Boeing Company - USA', 'VSTEP - Netherlands', 'Raytheon Technologies Corporation - USA', 'General Dynamics Corporation - USA', 'Kratos Defense & Security Solutions, Inc. - USA', 'SAAB Group - Sweden', 'Cubic Corporation - USA', 'Leonardo S.p.A. - Italy', 'Meggitt Training Systems - United Kingdom', 'Northrop Grumman Corporation - USA', 'Rheinmetall AG - Germany', 'Textron Inc. - USA', 'Rockwell Collins (now part of Raytheon Technologies) - USA', 'L3Harris Technologies, Inc. - USA', 'Presagis (formerly CAE's Modeling and Simulation division) - Canada'

Increased Defense Budgets: mounting political tensions and recent outbreaks of wars in different parts of the world are pushing countries to increase their defense budgets, which in turn, are projected to favor the demand for military simulation & virtual training over the coming years. High demand for low-cost military training is slated to benefit market growth going forward.

Growing Demand for Immersive Training Solutions: Military organizations around the world are looking to make their training more immersive and realistic, which is projected to bolster demand for military simulation & virtual training solutions in the long run. The ability of VR and AR technologies to achieve this allows military organizations to opt for military simulation & virtual training solutions and thereby boost market growth as well.

The massive military spending of countries in the North American region allows it to account for the largest military simulation & virtual training market share in the world. The United States is projected to account for most of the military simulation & virtual training market revenue in this region across the forecast period. The high adoption of advanced technologies in military and defense applications and the presence of key military technology providers such as Lockheed Martin, Northrop Grumman, and L3Harris Technologies, is also driving the market growth in North America.