Military Simulation and Training Global Market Report 2024

The global military simulation and training market has grown strongly in recent years. It will grow from $12.56 billion in 2023 to $13.48 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The expansion witnessed in the historical period can be attributed to several factors, including heightened terrorism activities, increased allocations toward defense spending, economic influences, and investments from government entities.

The global military simulation and training market is expected to see strong growth in the next few years. It will grow to $17.94 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. Anticipated growth in the forecasted period is linked to various factors such as budgetary allocations, preparation for intricate warfare scenarios, efforts toward risk mitigation, mission planning, and rehearsals, along with enhancements in interoperability. Significant trends expected in this period encompass cultural awareness training, standardization of simulations, customization of scenarios, real-time feedback mechanisms, advancements in human performance, and the development of remote training capabilities.

The anticipated growth in the military simulation and training market is underpinned by the rise in defense expenditure. This expenditure, indicative of financial resources allocated by governments toward military measures, is escalating due to escalating security challenges like violent extremism and separatist insurgencies. These circumstances demand effective military training, prompting the demand for synthetic or virtual training solutions. As evidenced by the Stockholm International Peace Research Institute's report in April 2022, global military expenditure rose by 0.7 percent in 2021, reaching $2,113 billion. Key contributors to this spending included the United States, China, India, the United Kingdom, and Russia, jointly constituting 62 percent of the total expenditure. This growth in defense spending is expected to fuel the expansion of the military simulation and training market.

The surge in terrorism activities is anticipated to bolster growth in the military simulation and training market. Terrorism, marked by acts of violence endangering others, underscores the need for comprehensive and realistic training for military and security forces. This growing threat drives the demand for advanced military simulation and training solutions. According to a report from the Center for Strategic and International Studies in May 2022, terrorist attacks surged by 53% in 2021, with 43% targeting government, armed forces, and law enforcement. Extremist groups were responsible for a majority of these attacks, emphasizing the significance of effective training solutions to counter such threats.

Technological advancements are a prominent trend shaping the military simulation and training market. Key market players prioritize innovation to maintain a competitive edge. For instance, Bohemia Interactive Simulations (BISim) introduced Mantle ETM in April 2026, a cutting-edge platform for creating simulated terrains for training, mission rehearsal, and terrain analysis. This technology integrates commercial-off-the-shelf (COTS) components, offering a comprehensive terrain development solution.

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 report 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 2023. 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.

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.

This report 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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