Military Simulation and Training Market Report 2025

The military simulation and training market size has grown strongly in recent years. It will grow from $13.2 billion in 2024 to $14.14 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to increased terrorism activities, increased defense spending, economy, and investments from government bodies.

The military simulation and training market size is expected to see strong growth in the next few years. It will grow to $18.74 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to budget allocations, complex warfare preparation, risk reduction, mission planning and rehearsals, interoperability enhancement. Major trends in the forecast period include cultural awareness training, simulation standardization, scenario customization, real-time feedback, human performance enhancement, and remote training capabilities.

The anticipated growth of the military simulation and training market is expected to be driven by the increase in defense expenditure. Defense expenditure refers to the financial resources allocated by a government for military purposes. This spending is rising due to escalating security challenges, including violent extremism and separatist insurgencies, which necessitate effective military training through various means, including synthetic or virtual training. For example, in April 2024, the Stockholm International Peace Research Institute, a Sweden-based international organization, reported that global military spending in 2023 rose by 6.8% in real terms to $2.44 trillion compared to 2022. Consequently, the increase in defense expenditure is projected to significantly contribute to the growth of the military simulation and training market.

The rising incidence of terrorism is projected to significantly boost the growth of the military simulation and training market. Terrorism involves violent acts that threaten the safety of individuals and show a disregard for the harm caused. The escalation of terrorist activities highlights the critical need for realistic and effective training for military and security forces, thereby increasing the demand for advanced military simulation and training solutions. For instance, in March 2023, the global terrorism index report from the Institute for Economics and Peace (IEP), an Australia-based organization focused on developing metrics for peace analysis, indicated that in 2022, the average number of deaths per terrorist attack increased by 0.4. Terrorist attacks have become increasingly lethal, with an average of 1.7 fatalities per incident compared to 1.3 in 2021. Additionally, the total number of deaths due to terrorist activities in 2022 reached 6,701. Thus, the surge in terrorism is driving the growth of the military simulation and training market.

Technological advancements have become a prominent trend in the military simulation and training market. Key players in the industry are focusing on innovating new technologies to maintain their competitive edge. For example, in April 2022, Bohemia Interactive Simulations (BISim), a US-based developer and producer of advanced military simulation and training software, launched Mantle ETM. This innovative technology is specifically designed as a platform for creating simulated terrain for training, mission rehearsal, visualization, and terrain analysis. Built on established commercial off-the-shelf (COTS) components and professional design and development services, Mantle ETM provides a cloud-capable, custom terrain pipeline that either integrates existing terrain capabilities or delivers a comprehensive end-to-end solution for terrain development and management from the ground up. The platform operates with various data, processes, servers, and runtimes. Mantle ETM is constructed using robust COTS components, including TerraTools for terrain generation, Blue Data Pipeline technologies in VBS4, and VBS World Server components for terrain storage and server functionality.

Innovative product development remains a focus within major companies operating in the military simulation and training market. For example, Bohemia Interactive Simulations (BISim) launched VBS4 and VBS Blue IG in June 2023, representing a suite of simulation software addressing various military training needs. These products cater to diverse scenarios and boast enhanced features, emphasizing the company's commitment to meeting customer demands.

In March 2022, BAE Systems, a UK-based aerospace and defense company, acquired Bohemia Interactive Simulations for $200 million. This strategic acquisition positions BAE Systems to meet the rising demands in the military training industry and offer advanced virtual systems to aid military preparedness for future situations. Bohemia Interactive Simulations, a Czech-based company specializing in military simulation solutions, aligns with BAE Systems' vision to provide advanced training solutions to the US military and its allies.

Major companies operating in the military simulation and training market are BAE Systems PLC, Cubic Corporation, FAAC Incorporated, Israel Aerospace Industries Ltd., L-3 Communications Holdings Inc., Lockheed Martin Corporation, Meggitt PLC, Northrop Grumman Corporation, Raytheon Technologies, Rheinmetall AG, Rockwell Collins Inc., SAAB AB, Textron Inc., Thales Group, Aechelon Technology Inc., Antycip Simulation, Barco NV, Bohemia Interactive Simulations, CAE Inc., DiSTI Corporation, Elbit Systems Ltd., Epic Games Inc., General Dynamics Corporation, Intelligent Decisions Inc., Presagis Canada Inc., Quantum3D Inc., Scalable Display Technologies, SimCentric Technologies Pty Ltd., Unity Technologies, Virtual Heroes Inc., MAK Technologies.

North America was the largest region in the military simulation and training market in 2024. The regions covered in the military simulation and training market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the military simulation and training market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Military simulation and training involve the utilization of simulation technology to handle military equipment and weapons. This approach offers significant time and labor savings while potentially reducing wear on technical equipment. It's a widely adopted method across various military equipment training modules due to its effectiveness.

The primary categories within military simulation and training encompass life, virtual, and constructive simulations. Live simulations involve real individuals using genuine systems, demanding substantial logistical efforts and expenses. On the other hand, simulations provide a safer, cost-effective alternative but lack the exact experiential match for participants. These simulations occur through synthetic and gaming environments, leveraging technologies like IoT, 5G, big data analytics, AI, cloud computing, AR, VR, digital twin, and robotic process automation. They cater to diverse platforms such as land, maritime, and airborne operations, serving applications within the army, aviation, and naval sectors.

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

The military simulation and training market consists of revenues earned by entities by providing training-related products and services such as virtual battlefield in real-time, enabling ab-initio training, mission rehearsal, and flight operations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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